US independent Ovintiv closes acquisition of Midland basin assets for $4.28 billion

US-based independent Ovintiv has closed the acquisition of core Midland basin assets from portfolio companies of EnCap Investments in a cash and stock transaction worth $4.275 billion.

Ovintiv acquired all the leasehold interest and related assets of Black Swan Oil & Gas, PetroLegacy Energy, and Piedra Resources.

The acquisition adds about 1050 net 10,000-foot well locations and about 65,000 net acres of mostly undeveloped land adjacent to Ovintiv’s existing operations in the Permian basin.

Ovintiv also recently announced a cash sale of all of its Bakken assets in North Dakota to Grayson Mill Bakken fpr $825 million. Grayson Mill Bakken is also a portfolio company of Encap.

Due to the early close of the transaction, Ovintiv updated its 2024 guidance with expectations to deliver more than 200,000 barrels per day of total company oil and condensate production.

The company expects a total capital investment of $2.1 billion to $2.5 billion.