Friday, March 12, 2021

Ovintiv Selling Assets In Eagle Ford? -- March 12, 2021

Updates 

March 13, 2021: Ovintiv nears south Texas asset sale for over $800 million. Link here.

  • Denver-based Ovintiv; on a multi-year debt reduction plan it outlined in February, 2021;
  • this sale will generate about $1 billion
  • Ovintiv's shares have already gained over 90% this year;
  • prospective buyer: Pontem Energy Capital; run by Felix Energy founder Skye Callantine, Jeff Bartlett and Cameron Brown;
  • yes, an Eagle Ford position; bought in 2014 for about $3.1 billion from Freeport-McMoRan, Inc
    • unable to find net acres in Eagle Ford
  • if paid $5,000 / acre in 2014:
    • $3.1 billion / $5K = 620,000 net acres
    • at $800 million / 620,000 net acres = $1300 / acre

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