The global shuffle of upstream energy assets continued, this time north of the border, with the announcement Nov. 4 that Denver-based Ovintiv and its subsidiary Ovintiv Canada are acquiring Calgary’s NuVista Energy for C$3.8 billion (US$2.69B) in cash and stock.
Under the agreement, NuVista stockholders will have the option to receive $18 per share in cash or 0.344 Ovintiv shares or an equivalent combination of both. Ovintiv said the price represents a 21 percent premium over NuVista’s closing price on Sept.19, and offers a higher shareholder exit than any NuVista closing price in the past 15 years. The deal includes Ovintiv’s assumption of NuVista debt.
NuVista specializes in the exploration, development and production of oil and natural gas, with assets in the Permian, but primarily operating in the Montney Basin of western Alberta and eastern British Columbia. The deal includes an inventory of about 140,000 net core acres in the Montney with about 930 well locations, 620 premium return well locations and 310 locations with upside potential.
The transaction has been approved and recommended by NuVista’s board of directors but the deal must also meet the approval of two-thirds of NuVista shareholders at a meeting likely to occur in Q1 2026.
Morgan Stanley and J.P. Morgan Securities are financial advisors to Ovintiv with Verten as its independent strategic advisor. Ovintiv outside legal counsel include Blake, Cassels & Graydon; Paul, Weiss, Rifkind, Wharton & Garrison and Gibson Dunn & Crutcher.
The Gibson Dunn team is led Houston by Cynthia Mabry with Tull Florey (Houston), Alan Williams (Houston), Muriel Hague (Houston), Shalla Prichard (Houston) and Ryan Searfoorce (Houston).
Peters & Co. and RBC Capital are financial advisors to NuVista, along with CIBC Capital Markets on strategic concerns. Burnet, Duckworth & Palmer is outside legal counsel to NuVista in Canada and Vinson & Elkins is advising NuVista in the U.S.
The V&E team is led by Houston partner Matt Strock and Dallas partner Alex Robertson with Chaudhry Hameed (Dallas) The also includes David Peck (Dallas), Allyson Seger (Austin), Kara Kuritz (Washington, D.C.), Doug McWilliams (Houston), Jackson O’Maley (Houston), Bryan Loocke (Houston), Jennifer Cornejo (Denver) and Jacob Baltzegar (Washington, D.C.).
Ovintiv has deep Canadian roots as Encana Corporation. In 2020, Encana redomiciled in the U.S., rebranded as Ovintiv and moved its corporate headquarters from Calgary to Denver.