DEAL ALERT (OVINTIV)

Energy Advisors issued a Deal Alert, Ovintiv Sheds Oklahoma in Further Refinement for Liquids & Longevity, analyzing one of our industry's most active dealmakers transformation to Permian + Montney.

The $3B sale to Stone Ridge / Flywheel (Operator) is a remarkable milestone as Ovintiv (formerly Encana) completes a multi-decade journey from "Big Gas" to a focus on North America's 2 Top oil basins.

Contents and Insights:

------ Deal Stats: $3.0B cash paid by Stone Ridge for Ovintiv's Anadarko assets (90,000 Boepd, 320,000 net acres).

------ Ovintiv Impact: Transforms OVV to 2-Basins (Permian & Montney). Increases shareholder return to 75% in 2026.

------ Stone Ridge Rolls: Another ABS large deal. Follows SRE's $2.3B Eagle Ford buy (Baytex), $1.3B Oklahoma buy (Conoco) & $1.0+B Piceance gas buy (Colorado, Terra Resources I).

------ Ovintiv's Journey: As one of our industry's most active dealmakers, Ovintiv entered as Encana built on a simple thesis of scale, gas, repeat which has now been traded to a focused oil-weighted identity.

Here some quick quotes from our report along w/ three slides.

Quick Quotes:

------- Beginning. "Encana entered the hydrocarbon world as Encana, a sprawling Canadian gas producer built on a simple thesis of scale, gas, repeat."

-------- Pivot. "When it became obvious that "Big Gas" meant small multiples, management did something radical for a legacy producer: it pivoted the portfolio towards oil and NGLs, deliberately and at speed."

------- Execution. "The modern Ovintiv adopted a strict Atkins-like basin diet: fewer plays, but more protein per section."

------- Today. "In the end, Ovintiv proved that somewhere between Calgary and Midland, you can change your basin, your passport, and your hydrocarbon of choice when the economics say so."

Below is a quick look at this Deal Alert.

Energy Advisors Group is working hard to expand our thought leadership leveraging our decades of industry expertise. We look forward to providing additional market insight for our clients through Market Monitor, Regional Perspectives, Deal Alerts and Quarterly M&A Outlook.

Our firm has been serving the needs of buyers, sellers and capital providers for over thirty-five years. We stand ready to assist asset owners in a competitive divestment process and to help buyers find off-market strategic assets for their portfolio. Call Rich Martin at 214-744-2495 or email rmartin@energyadvisors.com for a private consultation.

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Phone: 713-600-0169

– Email: bdornak@energyadvisors.com

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This article is for informational purposes only and not intended as financial advice. Please conduct your own research before investing.