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One-Page Deal Sheet

Ovintiv to Acquire Montney Assets from Paramount for $2.377 Billion in All-Cash Deal

Ovintiv Inc Paramount Resources Ltd.
AnnouncedNov 6, 2024
TypeAsset
LocationMontney Shale
Announced Date
November 06,2024
Effective Date
October 01,2024
Close Date
January 31,2025
Transaction Type
Asset
Enterprise Value (EV)($MM)
2377




Snapshot
Asset/Basin:
["Montney"]
TargetZones:
["Montney"]
Net Acres
109,000
% Oil:
43 % oil

Net Operated Locations:
900 (["Montney"])

Location
Region
Canada

Country
Canada

Play
Montney Shale


Production
Production
70,000 Boe/d

Production Mix
36 % Liquid


Calculated Metrics( EV/Category)
$/ Flowing
33,957

$/ Acre
21,807

$/Location
2,641,111

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).

 


Other Canada Region's Deals


Announced DateBuyerSellerDeal Value($mm)LocationCategory
Aug-22-2022 - - Click here British Columbia  E&P
Aug-01-2022 - - Click here Alberta  E&P
Jun-29-2022 - - Click here Alberta  E&P
Dec-15-2021 - - Click here   E&P
Nov-29-2021 - - Click here Alberta  E&P

Price History


Date Deal Headline Price$/acre
Nov-04-2025 Ovintiv Acquires NuVista Energy for $2.7B, Establishing Premier Montney Position - -
Jun-29-2022 Exxon Sells Off Montney, Duvernay Portfolio in $1.47 Billion Cash Deal - -
Nov-29-2021 CNRL to Acquire Montney-Focused Storm Resources in $960MM Deal - -