Ovintiv agrees to buy Logan Energy in all-cash deal valued near $890 million
The deal adds about 266,000 net acres and 20,000 barrels of oil equivalent per day of production in the Montney oil window.
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Ovintiv has agreed to buy Logan Energy, a Montney oil producer, in an all-cash deal valued at about $890 million (C$1.26 billion). The figure includes the net debt that Ovintiv will take on. Logan shareholders will receive C$1.40 per share. Both companies' boards have approved the deal unanimously.
The purchase adds about 266,000 net acres of land, the share of the ground that Logan's interests cover. It also adds about 20,000 barrels of oil equivalent per day, a unit that combines oil and gas output, in the Montney oil window. Ovintiv expects annual cost savings from the deal of about $60 million.
The deal is expected to close early in the first quarter of 2027. It still needs approval from Logan shareholders, the courts and regulators. The per-share price, set against a total that includes debt, gives other Montney sellers a new reference point for cash offers. Ovintiv will need to deliver the $60 million in annual savings to justify the price, and that is the figure to watch once the deal closes. Until then, the terms remain open to challenge.
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