Ovintiv Strengthens Hand in Permian Basin with EnCap Deal

April 4, 2023--Researched by Industrial Info Resources (Sugar Land, Texas)--Ovintiv Incorporated (NYSE:OVV) (Calgary, Alberta), formerly known as Encana, is picking up 65,000 acres of largely undeveloped resources in Texas' Midland Basin, bolstering its position in both the Permian Basin and the Texas exploration and production (E&P) market. The properties, currently held by EnCap Investments (Houston, Texas), add about 1,050 net well locations to Ovintiv's Texas portfolio.

Industrial Info is tracking about $3.2 billion worth of active projects from Ovintiv, nearly half of which is attributed to projects in Texas' Permian Basin. Ovintiv says its pro forma Permian oil and condensate production is expected to nearly double to about 125,000 barrels per day (BBL/d).

In the Permian, Ovintiv already is drilling 80 new wells across two leases, both of which began in February and are expected to last through the end of the year. The company also is preparing for up to 45 new wells at each development next year.