By David French and Shariq Khan
Reuters, Apr. 2, 2023
April 2 (Reuters) – Ovintiv Inc (OVV.N) is nearing a deal to acquire oil exploration and production assets in the Permian Basin that are controlled by private equity firm EnCap Investments for about $4 billion including debt, people familiar with the matter said on Sunday.
The deal represents a doubling down by Ovintiv on the Permian, where exploration in many areas still promises lucrative returns. The company was already planning to spend more money drilling in the region this year than in any other U.S. or Canadian basin where it operates.
The assets being bought are located in the Midland portion of the Permian in Texas and are currently owned by three companies controlled by EnCap: Black Swan Oil & Gas, Piedra Resources and PetroLegacy II.
Ovintiv will pay cash and also use some of its stock as currency for the deal, the sources said.
If the negotiations conclude successfully, a deal could be announced as early as this week, the sources said, cautioning that no deal is certain.
Read the full article on Reuters.