Ovintiv to Sell ‘Noncore’ Bakken, Uinta Assets for $250 Million

As a result of the agreements to sell portions of its assets located in the Bakken and Uinta basins, Ovintiv said it has elected to accelerate the doubling of its cash returns to shareholders starting immediately.

Hart Energy Staff
Ovintiv to Sell ‘Noncore’ Bakken, Uinta Assets for $250 Million

Both regions are located outside of what the company considers core operating areas, which include the Anadarko, Permian and Montney shale basins. Pictured, a drilling rig in the Utah desert. (Source: Shutterstock.com)

Ovintiv Inc. agreed on July 6 to sell portions of its assets located in the Bakken and Uinta basins for total proceeds of roughly $250 million, which will be used to accelerate doubling of shareholder returns.

“These transactions continue our track record of portfolio optimization, and this means we will double our cash returns to shareholders starting now,” Ovintiv CEO Brendan McCracken commented in a company release.

Starting immediately for the third quarter, Ovintiv will increase its returns to shareholders to 50% of the previous quarter’s non-GAAP free cash flow after base dividends. Cash returns in the third quarter are anticipated to be delivered through share buybacks.

Previously, the company had planned to increase cash returns to the 50% level starting Oct. 1.

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