Ovintiv Inc. said Monday it has agreed to acquire Canadian producer Logan Energy Corp. in an all-cash transaction it values at about $890 million, including expected net debt at closing, expanding its position in Canada’s Montney oil window^1,2.

Reuters reported the purchase as a Montney expansion¹. Ovintiv’s release said Logan shareholders would receive C$1.40 a share, putting total consideration at about C$1.26 billion including expected net debt, with closing targeted early in the first quarter of 2027, subject to Logan shareholder, court and regulatory approvals^2,3.

The Denver-based company said the assets would add about 266,000 net acres and current production of about 20,000 barrels of oil equivalent per day, including about 7,000 barrels a day of oil and condensate, 70 million cubic feet a day of natural gas and 1,000 barrels a day of other natural gas liquids^2,3.

Ovintiv said the package includes about 420 net 10,000-foot-equivalent oil well locations in the Simonette and Pouce Coupe areas, two oil batteries and interests in two natural gas processing plants, plus about 60,000 net acres with Duvernay shale exposure^2,3. It forecast about $60 million in annual cost synergies and said it expected 2027 non-GAAP cash flow per share to rise about 5 percent^2,3.

Logan shareholders are also due shares in a newly formed company, Logan Oil Corp., that would hold selected Logan assets outside the Montney and Duvernay fairways, the company and EconoTimes said^2,3. Ovintiv said it expects to fund the purchase with cash on hand, credit-facility borrowings and commercial paper, and that its shareholder-return targets are unchanged^2,3.

Whether regulators and Logan shareholders approve the deal, and whether production and cash-flow forecasts hold, was not established beyond the companies’ statements^1,2,3.