Ovintiv has announced that it has entered into a definitive purchase agreement to acquire all leasehold interest and related assets of Black Swan Oil & Gas, PetroLegacy Energy and Piedra Resources (NMB sellers) which are portfolio companies of funds managed by EnCap Investments L.P. (EnCap), in a cash and stock transaction valued at approximately US$4.275 billion.
After completion of the acquisition, Ovintiv will have access to around 1,050 net 10,000-foot well locations in the Permian inventory and roughly 65,000 net acres located in the core of the Midland Basin. Under the terms of the agreement, the NMB sellers will receive approximately 32.6 million shares of Ovintiv common stock and US$3.125 billion of cash.
Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, and TPH&Co., which is the energy business of Perella Weinberg Partners, have been appointed as financial advisors to Ovintiv. Ovintiv has enlisted the services of Gibson, Dunn & Crutcher LLP, Kirkland & Ellis LLP, and Blake, Cassels & Graydon LLP as its legal counsel.
Jefferies LLC has been appointed as financial advisor to EnCap for the Northern Midland Basin transaction. Vinson & Elkins LLP has been retained as legal counsel for EnCap.