Ovintiv has closed the previously announced acquisition of core Midland Basin assets, adding approximately 1,050 net 10,000 foot well locations and approximately 65,000 net acres of largely undeveloped land adjacent to Ovintiv's existing Permian operations. The Company has acquired substantially all the leasehold interest and related assets of Black Swan Oil & Gas, PetroLegacy Energy and Piedra Resources, which are portfolio companies of funds managed by EnCap Investments, in a cash and stock transaction valued at $4.275 billion.

The Company also closed the previously announced all cash sale of its Bakken assets, located in the Williston Basin of North Dakota to Grayson Mill Bakken, LLC, a portfolio company of funds managed by EnCap for $825 million. The sale represents the entirety of Ovintiv's Bakken position.

The combined transactions are expected to enhance capital efficiency by 15% and durably increase cash returns per share by more than 25%.

2024 Outlook
In 2024, Ovintiv expects to deliver total company oil and condensate production of greater than 200 thousand barrels per day ("Mbbls/d") with total capital investment of $2.1 billion to $2.5 billion.  The Company's production profile is expected to normalize by mid-year 2024 with second-half 2024 oil and condensate production stabilizing at 200 Mbbls/d.

S&P 400 Inclusion
Separately, it was recently announced that Ovintiv will be added to the S&P 400 Index effective prior to market open on June 20, 2023.  Ovintiv is not currently included in any of the S&P 500/400/600 Indices.

Additional Transaction Details
Ovintiv will use cash and issue approximately 31.8 million shares of Ovintiv common stock in conjunction with the transaction, down from the original 32.6 million shares estimated at the transaction announcement date.  Customary closing adjustments are expected to result in an upward adjustment of approximately $85 million associated with the Midland Basin acquisition and a $110 million reduction in Bakken sale proceeds. One-time transaction-related costs, including financing costs, bridge loan costs, fees, insurance costs and restructuring costs are expected to total approximately $80 to $85 million.

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