As always do your own DD.
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Highlights:
Acquiring approximately 65,000 net acres of largely undeveloped resource in Martin and Andrews Counties, highly complementary with Ovintiv's existing Permian Basin position
Valued at approximately 2.8 times next twelve months (“NTM”) Adjusted EBITDA with a 19% NTM Non-GAAP Free Cash Flow Yield at current commodity strip pricing
Adds approximately 1,050 net well locations, including approximately 800 premium(1) return well locations and approximately 250 high potential upside locations
Immediately accretive to Non-GAAP Cash Flow per share, Non-GAAP Free Cash Flow per share, net asset value per share and shareholder returns at current commodity strip pricing
Increases NTM cash returns per share by more than 25% and 2024 cash returns per share by more than 40%
Agreement reached to divest entirety of Bakken assets for proceeds of approximately $825 million
At closing, the Company's leverage ratio is expected to be approximately 1.4 times Debt to Adjusted EBITDA, based on twelve month projected Adjusted EBITDA at March 30, 2023 strip prices
Ovintiv will steward towards a 1.0 times leverage ratio and $4.0 billion of total debt
Ovintiv remains committed to an investment grade balance sheet and expects the ratings agencies to affirm its investment grade rating
20% per share increase to base dividend announced, effective for the June 2023 record date
Strong first quarter production exceeds Company guidance with total volumes of approximately 510 thousand barrels of oil equivalent per day (“MBOE/d”), including approximately 165 thousand barrels per day (“Mbbls/d”) of oil and condensate; expected first quarter capital of $610 to $620 million
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https://www.prnewswire.com/news-releases/ovintiv-to-acquire-core-midland-basin-assets-301788180.html
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