Ovintiv to buy Canada’s Logan Energy in Montney expansion

Ovintiv Inc. agreed to acquire Canadian oil and gas producer Logan Energy Corp. in an all-cash transaction valued at about $1.26 billion, including net debt, expanding the company’s position in the oil-rich Montney formation.

Denver-based Ovintiv will pay $1.40 a share for Logan, and the acquisition is expected to add about 266,000 net acres and approximately 20 thousand barrels of oil equivalent per day, the company said in a statement. The transaction is expected to close early in the first quarter of 2027.

The purchase boosts Ovintiv’s Montney operations, building on the company’s US$2.3 billion acquisition of assets from Paramount Resources Ltd. completed in early 2025. That deal coincided with Ovintiv selling its assets in Utah’s Uinta Basin, as the company focused its operations on two core basins in western Canada and the Permian of West Texas and southeast New Mexico.

Monday’s announcement comes amid a pickup in Canadian energy dealmaking, with companies betting on Prime Minister Mark Carney’s favorable stance toward the country’s fossil fuels industry. In a turnabout from his predecessor Justin Trudeau, he’s vowed to speed permits for major projects as part of his vision for making Canada an energy superpower. Canada has the world’s third-largest proven oil reserves, behind only Venezuela and Saudi Arabia.

Shell Plc recently put Canada at the heart of its growth plans with its US$13.6 billion takeover of Montney giant ARC Resources Ltd. The deal is partly meant to secure gas for LNG Canada, the country’s first such export terminal in which Shell holds a 40 per cent stake. LNG Canada’s partners recently approved a second phase expansion that will double the plant’s capacity. It’s part of a string of west coast export projects that are pushing to create a new outlet for Canadian gas, which for decades was sold mostly to the U.S. at a discount.

For Ovintiv, the deal with Logan will add about 420 net drilling locations, including 220 that Ovintiv classifies as “premium return” wells, and is expected to generate about US$60 million of annual cost savings, it said.

As part of the transaction, Logan said it will spin out Logan Oil Corp., containing assets not being acquired by Ovintiv, including certain undeveloped lands in northwest Alberta. Logan values the spinout shares at about $0.08 per existing share.