Ovintiv Inc. has closed its previously announced acquisition of core Midland basin assets.

In a transaction valued at US$4.275 billion, the company has acquired the leasehold interest and associated assets of Black Swan Oil & Gas, PetroLegacy Energy, and Piedra Resources. These assets include core Midland Basin properties that encompass approximately 1,050 net well locations with a depth of 10,000 ft and roughly 65,000 net acres of mostly undeveloped land adjacent to Ovintiv's existing operations in the Permian region. The acquisition was completed through a combination of cash and stock and was facilitated by EnCap Investments L.P., which manages the funds that hold these portfolio companies. 

The Midland Basin is a prolific oil and gas-producing region located within the larger Permian Basin in West Texas and southeastern New Mexico, US. These assets in the Midland Basin typically include oil and gas leases, drilling permits, wells, and associated infrastructure. Companies operating in the Midland Basin often employ advanced drilling and completion techniques, such as horizontal drilling and hydraulic fracturing, to maximize oil and gas production.