Ovintiv, a US-based petroleum company, has completed the sale of nearly all its Uinta Basin assets in Utah, US to FourPoint Resources for approximately $2bn in cash.
The transaction, first announced in November 2024, is part of Ovintiv’s strategic portfolio realignment.
Ovintiv president and CEO Brendan McCracken said: “The Uinta sale builds on our track record of unlocking significant value from our non-core assets while focusing our portfolio and extending inventory runway in our core areas.”
The Uinta Basin assets span 126,000 net acres, predominantly undeveloped, and include oil and condensate production averaging 29,000 barrels per day (Mbbls/d) as of Q3 2024.
The sale has an effective date of 1 October 2024. FourPoint Resources, a Denver-based private oil and gas company, completed the purchase with financial backing from Quantum Capital Group and Kayne Anderson.
At the time of signing the deal, FourPoint Resources’ chief operating officer Eric Eichler said that the Uinta Basin has a combination of features that make it a valuable asset. These include hydrocarbon-rich reservoirs extending several thousand feet, premium quality crude oil, and a strong history of stakeholder alignment.
Eichler further said that the acquired assets offer significant potential to deliver long-term value for the company’s investors, employees, and the wider community.
In tandem with this sale, Ovintiv is advancing its acquisition of certain Montney assets in Alberta, Canada from Paramount Resources. This deal, which was also announced last November, is expected to close by the end of Q1 2025.
The acquisition involves an all-cash transaction valued at approximately $2.38bn, adding approximately 109,000 net acres to Ovintiv’s portfolio.
About 80% of the acquired acreage is undeveloped, and the assets are expected to contribute 70,000 barrels of oil equivalent per day (MBOE/d), including 25,000 barrels per day of oil and condensate.
The Alberta Montney assets are strategically located near Ovintiv’s existing operations, offering access to midstream infrastructure with available capacity.
With the completion of the Uinta Basin sale and the upcoming Alberta Montney acquisition, Ovintiv projects an increase of $300m in non-GAAP free cash flow for 2025. This is expected to result in a 20% rise in free cash flow per share compared to previous forecasts.
