Ovintiv Inc. OVVCA:OVV said Monday it has agreed to acquire all leaeshold and related assets of Black Swan Oil & Gas, PetroLegacy Energy and Piedra Resources in a cash-and-stock deal valued at about $4.275 billion. The three companies are portfolio companies of funds managed by EnCap Investments L.P. The deal will add about 1,050 net 10,000 foot well locations to Ovintiv’s Permian inventory and approximately 65,000 net acres in the core of the Midland Basin. The sellers will receive about 32.6 million Ovintiv shares and $3.125 billion of cash. Ovintiv is also planning to sell all of its Bakken assets located in the Willison Basin of North Dakota to Grayson Mill Bakken LLC, for about $825 million in cash. Grayson Mill is also a portfolio company of funds managed by EnCap. Ovintiv also said its board has approved a 20% hike in its quarterly dividend to 30 cents a share. It is now expecting 2023 total production of 520 to 545 MBOE/d, up from earlier guidance of 500 to 525. The stock rose 5.4% premarket but is down 35% in the last 12 months, while the S&P 500 SPX has fallen 10%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.