CALGARY – Ovintiv Inc. is growing its Canadian holdings with its purchase of Logan Energy Corp. in a $1.26-billion deal, which includes the assumption of debt.
The Denver-based company said Monday that the acquisition is expected to add about 20,000 barrels of oil equivalent per day of production in the Montney region, which stretches over parts of northern British Columbia and Alberta.
The acquisition also includes two new oil batteries and interests in two natural gas processing facilities.
“This bolt-on transaction delivers value for our shareholders by adding high margin oil and condensate production and infrastructure, utilizing our operational advantage to drive significant synergies, and adding to our already deep drilling inventory and future growth optionality,” Ovintiv president and CEO Brendan McCracken said in a news release.
“The Logan assets have demonstrated leading oil productivity performance and will immediately compete for capital alongside the rest of our portfolio.”
Ovintiv, formerly Encana, moved its headquarters to the United States from Calgary in 2020. It significantly increased its Canadian presence earlier this year, when it closed its $3.8-billion purchase of NuVista Energy Ltd., another Montney-focused player.
Under the agreement announced Monday, Ovintiv will pay $1.40 per share in cash for Logan Energy.
Logan Energy shareholders will also receive 0.0817 of a share in a new company, Logan Oil, plus 0.05 of a Logan Oil purchase warrant for each Logan Energy share they hold. Each whole warrant will entitle the holder to buy one Logan Oil share at an exercise price of $1 per share, within 60 days following the closing date.
The deal is expected to close early next year, subject to shareholder, court and regulatory approval.
This report by The Canadian Press was first published Oct. 26, 2026.
Companies in this story: (TSX:OVV, TSXV:LGN)
