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Wednesday, July 6, 2022

Ovintiv To Sell Portion Of Its Bakken Assets; Increase Cash Return To Shareholders -- July 6, 2022

Link here.

  • seller: Ovintiv
  • buyer: two "counterparties"
  • deal:
    • $250 million
    • "portions of its (Ovintiv's) assets located in the Uinta and Bakken basins
  • combined assets being sold:
    • 5,000 boepd, mostly oil and condensate (4,900 bbls)
    • $250 million / 5,000 boepd = $50,000 / flowing bbl
  • starting immediately for the 3Q22:
    • Ovintiv will increase its returns to shareholders to 50% of free cash flow  after base dividends
    • but note: cash returns in the third quarter are anticipated to be delivered through share buybacks
  • in the Bakken:
    • apparently about 88 wells, located mainly in Richland County, MT
    • about 30 miles from Ovintiv's primary Bakken position

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