DENVER — Two Denver-based companies struck deals revealed Thursday in which oil and gas assets in Utah and Canada change hands in transactions worth $4.3 billion.
Ovintiv (NYSE: OVV) sold its assets in northeast Utah's Uinta Basin area to Denver-based FourPoint Resources for $2 billion in cash.
Ovintiv also purchased assets in Canada's Montney region, near where its existing oil wells are, from Canada-based Paramount Resources for $2.3 billion in cash, the company said. Both transactions are expected to close by the end of the first quarter of 2025.
"The combined transactions advance our durable returns strategy," said Ovintiv CEO and President Brendan McCracken in a press release. "We are high grading our portfolio, significantly increasing free cash flow, and enhancing our resiliency, enabling us to build on our track record of strong shareholder returns."
In its purchase from Paramount, Ovintiv acquires 109,000 net acres and production of 70,000 barrels of oil equivalent per day. The deal adds 900 total net well locations, Ovintiv said.
