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.

Already have an account? Log In

Thanks for reading Hart Energy.

Sign Up now to get unmatched coverage of the oil and gas industry’s entire landscape.

Free Access