Transaction Details: 

Ovintiv Inc. announced it will acquire Paramount Resources' Montney assets in Alberta for $2.377 billion in cash, adding 70 MBOE/d of production (including 25 Mbbls/d of oil and condensate), 900 net drilling locations, and 109,000 largely undeveloped net acres. 

Strategically adjacent to Ovintiv's existing operations, the deal enhances its scale in the oil-rich Montney and is expected to be immediately accretive to free cash flow and capital returns. The acquisition is being funded through proceeds from Ovintiv’s $2.0 billion sale of its Uinta Basin assets, along with cash and bridge financing.

Deal Rationale & Highlights

• Positions Ovintiv as the leading operator in the Montney with ~369K net core acres post-acquisition.

• Adds 25 Mbbls/d of oil and condensate production, expanding total Montney liquids to 55 Mbbls/d.

• Acquisition funded via Uinta asset sale ($2.0B), cash on hand, and bridge financing.

• Generates $125 million in annual cost synergies through lower drilling costs, overhead and tax savings.

• Per well costs reduced by over $1.5 million due to scale and operational efficiencies.

• Transaction is immediately accretive to Return on Capital Employed, FCF/share, and CF/share.

• Ovintiv’s 2025 capital plan will prioritize Montney and Permian (~85–90% of total spend).

Canada Deal Activity In Last 12 Months