Ovintiv closed its $2.3 billion acquisition of Paramount Resource’s Montney Shale assets on Jan. 31 after divesting Unita Basin assets for $2 billion last week. (Source: Shutterstock, Paramount, Ovintiv, FourPoint)
Ovintiv Inc., which recently closed its $2 billion Uinta Basin divestiture, said Jan. 31 that it has completed its purchase of Paramount Resources Ltd.’s Montney Shale assets in deals totaling more than $4.3 billion.
The Paramount acquisition adds approximately 70,000 boe/d, 900 net, 10,000 ft equivalent well locations and approximately 109,000 net acres of leasehold near Ovintiv’s current Montney operations.
Ovintiv said the purchase price was $2.307 billion, down from an initial $2.377 billion announced in November. The change in valuation was attributed Ovintiv currency swaps. The deal was tied to Ovintiv’s Uinta sale to FourPoint Resources for $2 billion, with those proceeds earmarked to help fund the Paramount transaction.
"We are set to rapidly integrate the new Montney asset into our portfolio," said Ovintiv President and CEO Brendan McCracken. "We consider it to be one of the highest quality undeveloped acreage positions in North America. It extends our premium Montney oil and condensate inventory life to approximately 15 years and positions Ovintiv as the premier operator in the play. This transaction, when combined with the impact of our recently closed Uinta asset sale, is accretive both immediately and long-term across all key financial metrics. Our 2025 Non-GAAP Free Cash Flow is expected to increase by approximately $300 million, at current commodity strip pricing."
Ovintiv said it plans to issue its full year and first-quarter 2025 guidance on Feb. 26.
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