Business · NEWS EXPLAINER
Ovintiv agrees $890m Logan Energy deal; the cash offer also includes a spinout
Ovintiv would pay C$1.40 per Logan share and assumes expected net debt in the roughly $890 million value. Logan holders would also receive Logan Oil shares and warrants, while votes and approvals remain outstanding.
Ovintiv agreed to acquire Logan Energy for C$1.40 per share in cash, valuing Logan at about $890 million, or C$1.26 billion, including expected net debt at closing.
The cash payment is only one part of what Logan investors would receive. Logan Oil Corp. would be spun out before closing, and Logan holders would receive its shares and warrants. The acquisition remains subject to shareholder, court and regulatory approvals.
The $890 million headline includes expected debt
Ovintiv and Logan state the value as about $890 million, or C$1.26 billion, including expected net debt at closing. The C$1.40 figure is the cash paid per Logan share; the headline value also reflects the assumed debt component.
Logan investors would receive more than cash
The plan calls for Logan Oil Corp. to be spun out to Logan shareholders. Reuters says its shares were initially valued at about C$0.08 per Logan share, with warrants also included, bringing indicated total consideration to about C$1.48 per share.
The Montney assets add production and inventory
Ovintiv expects about 266,000 net acres, roughly 20 thousand barrels of oil equivalent per day of current production and 420 net 10,000-foot-equivalent well locations. These are company estimates tied to the acquired assets.
Infrastructure is part of the operating case
The package includes two oil batteries and interests in two natural-gas processing facilities. Ovintiv says the assets should support margins and future growth, but those benefits and the forecast $60 million of annual cost synergies are not yet realized.
Signing is not closing
The companies target an early first-quarter 2027 close. Logan shareholder approval, court and regulatory approvals and other customary conditions still have to be satisfied, so ownership has not yet transferred.
