Ovintiv will sell its Anadarko assets for $3 billion, sharpening focus on Permian and Montney to strengthen returns and balance sheet.
Ovintiv Inc. has signed a definitive agreement to divest its assets in the Anadarko Basin in Oklahoma for total cash proceeds of $3.0 billion. The buyer’s identity has not been disclosed. The transaction covers roughly 360,000 net acres, representing nearly all of the company’s landholdings in the Anadarko play. This strategic move reflects Ovintiv’s broader effort to streamline its portfolio and concentrate on higher-margin, core operating areas.
The Anadarko assets currently generate solid production volumes. For February month-to-date, output has averaged approximately 90,000 barrels of oil equivalent per day (boe/d). This includes about 27,000 barrels per day of oil and condensate, around 240 million cubic feet per day of natural gas, and roughly 23,000 barrels per day of natural gas liquids (NGLs). Despite this steady production profile, the company determined that reallocating capital to other regions would better support long-term value creation.
According to Brendan McCracken, Ovintiv’s President and Chief Executive Officer, the divestment represents a key milestone in sharpening the company’s operational focus. He emphasized that the sale will help Ovintiv achieve its targeted debt reduction goals while enhancing its capacity to return capital to shareholders. By exiting the Anadarko Basin, the company is concentrating its investments on what it views as the most attractive and economically resilient resource plays in North America.
McCracken highlighted that Ovintiv has built one of the industry’s strongest premium drilling inventories in the Permian Basin and the Montney formation. These two regions are widely regarded as among the most valuable hydrocarbon basins on the continent, offering competitive cost structures, strong well productivity, and long-term development potential. With a more concentrated asset base, Ovintiv expects to generate improved capital efficiencies, stronger free cash flow, and more consistent shareholder returns over time.
The agreement remains subject to customary closing conditions, regulatory approvals, and standard purchase price adjustments. The transaction is anticipated to close in the early part of the second quarter of 2026, with an effective date retroactive to January 1, 2026. Until completion, Ovintiv will continue normal operations at the Anadarko assets.
Financial advisory services for the transaction are being provided by Wells Fargo, while legal counsel is being handled by Kirkland & Ellis LLP. Their involvement underscores the scale and complexity of the divestiture.
Looking ahead, Ovintiv plans to release its updated 2026 guidance, including full-year and first-quarter outlooks, alongside its fourth-quarter and full-year 2025 financial results on February 23, 2026. At that time, the company will also present a refreshed shareholder return framework, outlining how it intends to deploy capital following the asset sale.
Overall, this divestiture signals a decisive shift in Ovintiv’s strategic direction—prioritizing balance sheet strength, operational focus, and disciplined capital allocation aimed at delivering sustained long-term value.
