It’s an O Boy in the Permian for Ovintiv
To no one’s surprise, activity in the Permian is whipping up more dust devils in the acquisitions department, where Denver-based Ovintiv has delivered a one-two-three punch following a stellar 4Q report in February.
Reese Energy Consulting today is following the latest from Ovintiv, which scored a heavy weight purchase and a major sale the same day WTI and Brent crude oil prices took a rocket ship to space on news of an OPEC+ supply cut. In a cash and stock deal valued at $4.275 billion with Black Swan Oil & Gas, PetroLegacy Energy, and Piedra Resources, the company now has doubled its Permian position and production in the Midland, adding 65,000 undeveloped acres and 1,050 net drilling locations for a pro forma 179,000 acres and 125 MBPD.
Ovintiv also waved so long to its Bakken operations in N.D., with the $825 million sale to Grayson Mill Bakken in a move to help fund Ovintiv’s Permian buy. That deal included 46,000 acres and an estimated 37 MBOED. Black Swan, PetroLegacy, Piedra, and Grayson Mill are all EnCap portfolio companies, so it’s safe to say the PE firm has made some serious hay, too. With core assets in the Permian, Anadarko, and Montney, Ovintiv has big plans in store this year, starting with an increase of its total production guidance to as much as 190 MBPD and capital guidance to as much as $2.9 billion.