Ovintiv Strikes Deal to Buy Montney Oil Producer Logan Energy
OVV has more than doubled off its 52-week low of $35.47.
Summary
Ovintiv agreed to acquire Logan Energy Corp., a Montney oil producer, extending its position in the play, for total consideration to shareholders of C$1.48 per share, with the deal valued at roughly $890 million. The transaction consists of C$1.40 per share in cash plus the spin-out of Logan Oil to shareholders with an initial equity value of about C$0.08 per share, and it carries a C$44 million termination fee and a February 26, 2027 outside date. Closing needs 66 2/3% Logan shareholder approval and Competition Act clearance. This follows Ovintiv's $460 million year-to-date acquisition program announced in August that added 41,000 net acres and 240 well locations, and it comes with the stock near a 52-week high at $71.20 against a $73.00 peak. The deal size relative to Ovintiv's roughly $20 billion market value will determine whether it's a bolt-on or a thesis-changer; watch the funding mix.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Ovintiv will pay C$1.40 cash per Logan share, with a C$44 million termination fee and a February 26, 2027 outside date; closing needs 66 2/3% Logan shareholder approval and Competition Act clearance.
At the time of this announcement, OVV was trading at $71.20 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $19.9B. The 52-week trading range was $35.47 to $73.00. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.