Ovintiv Unloads Eagle Ford Assets

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Ovintiv is selling its assets in the South Texas Eagle Ford Shale to Validus Energy for $880 million. The price came in higher than most analysts' assessments, which were closer to $800 million. The deal is expected to close during the second quarter. Ovintiv had forecast Eagle Ford production of close to 21,000 boe/d for 2021, including 14,000 boe/d of condensate production. Proceeds from the sale of its noncore assets in the Eagle Ford will be allocated toward debt reduction, giving the firm cash on hand to pay off near-term debt maturities, said CEO Doug Suttles. Coupled with the sale of its Simonette asset in the Canadian Duvernay Shale for $263 million, Ovintiv’s year-to-date divestitures amount to $1.1 billion (OD Feb.18'21). The dealmaking puts Ovintiv on track to end 2021 with less than $5 billion in debt and in position to reach its $4.5 billion debt target in the first half of 2022 instead of the second half.

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