Ovintiv Inc. has signed an settlement to purchase a portfolio of belongings within the Midland Basin in Texas in a deal valued at US$4.275 billion in money and inventory.
The corporate acquires the belongings of a bunch of portfolio firms from funds managed by EnCap Investments LP.
Below the phrases of the transaction, the sellers will obtain roughly 32.6 million shares of Ovintiv widespread inventory and US$3.125 billion in money.
To assist finance the deal, Ovintiv says it has signed an settlement to promote its Bakken belongings in North Dakota to a portfolio firm of funds managed by EnCap for US$825 million.
The transactions are anticipated to shut by the top of the second quarter, topic to customary closing circumstances and changes.
Ovintiv additionally introduced that it elevated its quarterly dividend by a nickel to 30 cents per share.
© 2023 The Canadian Press
