Canada's Ovintiv Leans on Permian, Montney Shale

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Written by Daniel Graeber for IIR Energy Intelligence (Sugar Land, Texas)

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Summary

Ovintiv sold off most of its holdings in the Anadarko Basin, giving it room to focus on other North American assets. With gas, the company is behind an LNG rush off the western shores of North America.

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Ovintiv Focused on Performance

Selling off a stake in the Anadarko Basin in Oklahoma gives Ovintiv room to maneuver in rival U.S. and Canadian reserves, the Canadian-based company said.

In a deal expected to close during the second quarter, Ovintiv said it sold off its Anadarko portfolio to an undisclosed buyer in Oklahoma for $3 billion.

"This transaction marks a significant milestone by focusing our portfolio, delivering on our debt target, and unlocking increased returns to our shareholders," Brendan McCracken, the chief executive officer of Ovintiv, said Tuesday. "We have built one of the deepest premium inventory positions in our industry in the two most valuable plays in North America, the Permian and the Montney."

The Calgary-based company added that a portion of the sale would eat into the $5.2 billion in debt it held to the third quarter of 2025. The company is scheduled to release fourth quarter figures on February 25.

For the third quarter, the company said its net income before taxes was $192 million, compared with $557 million during the same period in 2024. No reason was given for the decline, though crude oil prices may have been a factor. It realized a price of $64.93 per barrel for West Texas Intermediate, compared to $75.90 during the same period in 2024.

In its third quarter earnings report, Ovintiv said production averaged 102 million barrels of oil equivalent per day (BOE/d) from the Anadarko basin. Its full-year capital commitment for the Oklahoma shale basin was about $300 million, which was expected to support 37 net wells.

In announcing the sale, Ovintiv elaborated that it offloaded 360,000 net acres. To February, the company said its assets yielded roughly 27,000 barrels per day (BBL/d) in the light crude oil known as condensate, 240 million cubic feet per day in natural gas and another 23,000 BBL/d in natural gas liquids.

From its remaining U.S. assets, the company said it yielded 210 million BOE/d from 30 net wells in the Permian basin. Some 318 million BOE/d came from 19 wells in the Montney formation in British Columbia.

By the Numbers

• $3 billion for Anadarko shale acreage
• 12-year supply agreement for Cedar LNG

Ovintiv Behind Cedar LNG in British Columbia

Volumes from British Columbia support the company's position as a major natural gas producer in Canada. In December, Ovintiv signed a 12-year supply agreement to deliver a half-million tons of gas in the liquid form per year to Pembina Pipeline, which will deliver it to the proposed Cedar LNG facility. Ovintiv is a subsidiary of Pembina.

If progress continues as expected, Cedar LNG could be in service by late 2028.

The facility is part of a broad-based trade diversification effort in Canada to pivot away from the U.S. Bellicose rhetoric and barbs against NATO ally Canada from U.S. President Donald Trump have prompted a dramatic downturn in bilateral relations.

Provincial leaders in British Columbia believe the coastal province is primed for expansions in LNG deliveries, after the LNG Canada facility made its debut delivery last year to become the only plant delivering the super-cooled form of natural gas from the western shores of North America.

If completed as planned by late 2028, Cedar LNG would have a peak design capacity of 3.3 million metric tons per annum of gas in the liquid form.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can learn more about Cedar LNG--including capacities, investment values and necessary equipment--in a detailed project report.

Key Takeaways

• Ovintiv focused on Permian, Montney shale
• The company is behind the Cedar LNG facility

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR News Intelligence) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 250,000 current and future projects worth $30.2 trillion (USD).