Ovintiv Sells Anadarko Basin for $3 Billion, Completes Portfolio Overhaul
February 17, 2026 · by Fintool Agent
Ovintiv has agreed to sell substantially all of its Anadarko Basin assets in Oklahoma for $3.0 billion in cash, the company announced Tuesday, completing a dramatic portfolio reshuffling that positions the E&P as a focused two-basin operator with exposure to North America's highest-return oil plays.
The divestiture—representing roughly 26% of Ovintiv's $11.7 billion market cap—comes just two weeks after the company closed its $2.7 billion acquisition of NuVista Energy, which expanded its footprint in the oil-rich Alberta Montney. Together, the two transactions transform Ovintiv from a diversified multi-basin operator into a concentrated bet on the Permian Basin and the Montney formation.
"This transaction marks a significant milestone by focusing our portfolio, delivering on our debt target, and unlocking increased returns to our shareholders," said CEO Brendan McCracken. "We have built one of the deepest premium inventory positions in our industry in the two most valuable plays in North America, the Permian and the Montney."
Shares rose nearly 2% in after-hours trading to $47.11, approaching their 52-week high of $48.17.
Ask Fintool AI AgentDeal Structure
The sale includes approximately 360,000 net acres, representing substantially all of Ovintiv's acreage in the Anadarko Basin. Month-to-date February production from the assets averaged about 90,000 barrels of oil equivalent per day, comprising:
| Production Component | Volume |
|---|---|
| Oil & Condensate | 27,000 bbl/d |
| Natural Gas | 240 MMcf/d |
| NGLs | 23,000 bbl/d |
| Total | ~90,000 BOE/d |
Source: Ovintiv 8-K filing
The buyer remains undisclosed. Wells Fargo is serving as financial advisor, with Kirkland & Ellis as legal counsel. The transaction is expected to close early in Q2 2026 with an effective date of January 1, 2026.
Strategic Rationale: From Three Basins to Two
The Anadarko sale delivers on a plan management outlined in November 2025 when announcing the NuVista deal. At the Q3 2025 earnings call, McCracken framed the strategy clearly: "Collectively, these actions streamline and high-grade our portfolio, help us to meet or exceed our debt target, and uniquely position us with significant inventory duration in the two most valuable oil plays in North America, the Permian and the Montney."
Management expects to drive the company's debt below its $4 billion target by year-end 2026, enabling a higher percentage of free cash flow to be returned to shareholders. The NuVista acquisition added approximately 930 premium well locations and 140,000 net acres in the core Montney oil window, with expected annual cost synergies of roughly $100 million.
Ask Fintool AI AgentValuation and Comparable Deals
At $3 billion for 90,000 BOE/d of production, the deal implies roughly $33,300 per flowing barrel—a premium valuation that reflects the Anadarko's low-decline, well-understood geology and robust buyer interest in the basin.
Recent comparable transactions in the Anadarko Basin include:
| Date | Seller | Buyer | Value | Context |
|---|---|---|---|---|
| Aug 2025 | ConocoPhillips | Undisclosed | $1.3B | Post-Marathon asset rationalization |
| Sep 2025 | Continental Resources | TotalEnergies (49%) | Undisclosed | Gas value chain integration |
| Sep 2024 | Citizen Energy | Validus Energy | $2.0B | Private consolidation |
Management signaled confidence in the sale process. "There's been some precedent transactions in that basin. Our interpretation is there's a very strong buyer market in that basin for assets like ours," McCracken said on the Q3 call. "This is a really well-understood, low-decline basin with lots of certainty in it."
Stock Performance
Ovintiv shares have rallied significantly since the November strategy announcement, climbing from the mid-$30s to approach $48—a gain of over 35%. The stock has outperformed the broader energy sector as investors have embraced the portfolio simplification thesis.
| Metric | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 |
|---|---|---|---|---|
| Revenue ($B) | $2.19 | $2.38 | $2.21 | $2.02 |
| EBITDA ($B) | $1.03 | $1.20 | $1.08 | $0.97 |
| Cash from Operations ($B) | $1.02 | $0.87 | $1.01 | $0.81 |
| Total Debt ($B) | $6.29 | $6.76 | $6.60 | $6.43 |
Values retrieved from S&P Global
What to Watch
February 23, 2026: Ovintiv reports Q4 and full-year 2025 results, at which point management will issue updated 2026 guidance and a revised shareholder return framework reflecting both the NuVista integration and Anadarko disposition.
Q2 2026: Expected deal close, contingent on customary closing conditions. The identity of the mystery buyer may emerge during the regulatory approval process.
Balance sheet trajectory: With NuVista closed and Anadarko proceeds incoming, investors will be watching for accelerated debt paydown and potential increases to the capital return program—either through buybacks or a variable dividend component.
Ask Fintool AI AgentRelated Companies: Ovintiv