Ovintiv Sells Eagle Ford Asset to Private Operator for $880 Million

The Eagle Ford asset sale to privately owned Validus Energy is the latest step Denver-based Ovintiv has taken to cut down debt and gain investor confidence.

Ovintiv Sells Eagle Ford Asset to Private Operator for $880 Million

Pictured is the Permian Basin, one of Ovintiv’s core growth assets where its acreage is located in the prolific, oil-rich Midland sub-basin in West Texas. (Source: Ovintiv Inc.)

Ovintiv Inc. on March 24 announced the sale of its position in the Eagle Ford Shale of South Texas for $880 million, pushing the Denver-based oil and gas producer over its divestiture target for the year.

Privately owned Validus Energy agreed to acquire the assets, which were bought in 2014 by Ovintiv, known as Encana at the time, for about $3.1 billion. Ovintiv said in a company release it expected full-year 2021 volumes from the Eagle Ford to average roughly 21,000 boe/d, including 14,000 bbl/d of crude and condensate.

The Eagle Ford asset sale is the latest step Ovintiv has taken to cut down debt and gain investor confidence. The company had previously been targeted by activist investor Kimmeridge Energy Management last year. Though, the subsequent proxy fight was resolved earlier this month with Oviniv agreeing to add one of Kimmeridge’s nominees to its board.

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.