Montney Momentum: Ovintiv Doubles Down

Ovintiv’s $2.7B NuVista buy deepens its Montney reach and signals a sharper wave of energy consolidation

17 Feb 2026

Ovintiv has completed its $2.7bn acquisition of NuVista Energy, strengthening its position in Canada’s Montney formation and adding scale in one of North America’s most active shale regions.

The transaction, finalised on February 3, values NuVista at about C$3.8bn including net debt. It reflects a broader shift among upstream producers towards consolidation, larger contiguous land positions and tighter capital discipline as investors demand steadier returns.

Through the deal, Ovintiv gains roughly 140,000 net acres in the Montney, much of it undeveloped. The formation, which stretches across British Columbia and Alberta, is valued for its liquids-rich output and multiple stacked reservoirs, offering long-term drilling opportunities.

Ovintiv expects the acquired assets to contribute about 100,000 barrels of oil equivalent per day in 2026. The company has also projected annual cost savings of around $100mn, driven by shared infrastructure, operational overlap and efficiencies across its expanded footprint.

The Montney has attracted sustained investment in recent years as producers seek inventory that can support output over longer periods while lowering break-even costs. Larger land positions allow companies to drill longer horizontal wells and reduce per-unit development expenses.

Across North America, mergers and acquisitions have accelerated as companies compete for premium acreage in core basins such as the Permian in the US and the Montney in Canada. Executives have argued that scale improves free cash flow generation and provides resilience against commodity price swings.

Ovintiv said in its closing announcement, reported by EnergyNow, that the acquisition deepens its exposure to one of Canada’s leading resource plays. The company has also indicated plans to divest non-core assets, narrowing its focus to higher-return regions.

Integration remains a key task. Delivering projected synergies will depend on aligning operations and capital plans, while larger producers face closer scrutiny from investors and regulators over environmental performance. Greater scale, however, may provide additional capacity to invest in emissions reduction and carbon management initiatives.

With fewer but larger operators emerging, the Montney is set to remain central to Canada’s upstream strategy as consolidation reshapes the sector.