Ovintiv has closed its beforehand introduced acquisition of sure Montney property from Paramount Assets Ltd. The acquisition provides roughly 70 thousand barrels of oil equal per day (MBOE/d) of manufacturing, 900 web 10,000 foot equal properly places, and roughly 109,000 web acres of land, strategically situated close to the Ovintiv’s present Montney operations with ample entry to midstream infrastructure capability.
“We’re set to quickly combine the brand new Montney asset into our portfolio,” mentioned Ovintiv President and CEO, Brendan McCracken. “We contemplate it to be one of many highest high quality undeveloped acreage positions in North America. It extends our premium Montney oil and condensate stock life to roughly 15 years and positions Ovintiv because the premier operator within the play. This transaction, when mixed with the impression of our just lately closed Uinta asset sale, is accretive each instantly and long-term throughout all key monetary metrics. Our 2025 Non-GAAP Free Money Circulation is anticipated to extend by roughly $300 million, at present commodity strip pricing.”
When the transaction was introduced in November of 2024, the acquisition worth was valued at $2.377 billion (C$3.325 billion). At the moment, Ovintiv entered into forex swaps to handle the chance related to buying an asset denominated in Canadian {dollars}. With present international alternate charges, the acquisition worth at closing is roughly $2.307 billion (C$3.325 billion) and the realized losses related to the forex swaps are roughly $97 million.
Ovintiv plans to challenge its full yr and first quarter 2025 steering with the discharge of its fourth quarter and full yr 2024 outcomes on February 26, 2025.
