Ovintiv to acquire NuVista for $2.7 billion, plans Anadarko exit

DENVER - Ovintiv Inc. (NYSE:OVV) (TSX:OVV) announced Tuesday it has entered into a definitive agreement to acquire NuVista Energy Ltd. (TSX:NVA) in a cash and stock transaction valued at approximately $2.7 billion (C$3.8 billion), including the assumption of about $215 million in net debt.

The acquisition will add approximately 140,000 net acres in the oil-rich Alberta Montney region and about 100,000 barrels of oil equivalent per day (MBOE/d) of production, according to a company press release. The assets are adjacent to Ovintiv’s current operations and include access to processing and downstream infrastructure. NuVista shares have shown remarkable momentum, with a 313% price return over the past year and 166% over the last six months, according to InvestingPro data. The company’s strong current ratio of 3.49 indicates solid short-term financial stability.

Under the terms of the agreement, Ovintiv will acquire all outstanding NuVista shares not already owned by Ovintiv for C$18.00 per share, split equally between cash and Ovintiv common stock. Ovintiv currently owns approximately 9.6% of NuVista’s shares, purchased previously at C$16.00 per share.

The transaction is expected to close by the end of the first quarter of 2026, subject to NuVista shareholder, court and other customary approvals.

Ovintiv also announced plans to launch a divestiture process for its Anadarko assets in the first quarter of 2026, with proceeds expected to be used for debt reduction. The company has temporarily paused its share buyback program for two quarters to help fund the cash portion of the NuVista acquisition. InvestingPro analysis shows NuVista with an overall Financial Health score of "GREAT" at 3.19, with particularly strong price momentum (3.8) and growth scores (3.33). InvestingPro subscribers have access to 12 additional ProTips and comprehensive financial metrics to evaluate the full implications of this acquisition.

"This transaction boosts our free cash flow per share by acquiring top decile rate of return assets in the heart of the Montney oil window at an attractive price," said Brendan McCracken, Ovintiv President and CEO.

The company expects the acquisition to generate approximately $100 million in annual synergies through capital savings, production cost reductions, and overhead efficiencies. Following the transaction, NuVista shareholders other than Ovintiv will own approximately 10.6% of the combined company.

For 2026, Ovintiv plans to operate six rigs across its combined Montney acreage, five rigs in the Permian, and one rig in the Anadarko. The company expects 2026 total average oil and condensate production of approximately 230 thousand barrels per day and total production of approximately 715 MBOE/d, with capital investment below $2.5 billion.

In other recent news, Nova Minerals Limited has initiated the procurement of essential mining and processing equipment for its Estelle antimony mining operations and downstream refinery in Alaska. This development is supported by approximately A$83 million in funding, which includes a significant US$43.4 million award from the U.S. Department of War aimed at bolstering antimony production. Additionally, Nova Minerals has secured a land use permit for 42.81 acres near Port Mackenzie, Alaska, for a proposed antimony refinery, reinforcing its plans to establish a U.S. critical minerals production hub.

The company has also been approached by the Australian Ambassador to the United States, Kevin Rudd, to provide a briefing on its Estelle Gold and Critical Minerals Project. This briefing is in preparation for an upcoming meeting between Australian Prime Minister Anthony Albanese and U.S. President Donald Trump, where critical minerals cooperation will be a central topic. Furthermore, Nova Minerals’ U.S. subsidiary received $43.4 million in Defense Production Act funding, which will help accelerate the development of a domestic antimony supply chain.

These recent developments highlight Nova Minerals’ strategic moves in the critical minerals sector, particularly in antimony production.

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