Ovintiv raises 2026 output guidance to 645 MBOE/d as $2.82 billion Anadarko sale cuts net debt to $3 billion. Ovintiv lifted 2026 guidance to 645 MBOE/d and cut net debt 42% after closing its $2.82 billion Anadarko Basin sale, keeping capex unchanged. Ovintiv raised its full-year 2026 production guidance to 630 to 645 MBOE/d on July 23 after reporting second-quarter results that showed the $2.82 billion Anadarko Basin divestiture closing during the quarter. Net debt fell from $5.167 billion at year-end 2025 to $2.995 billion by June 30, a $2.172 billion reduction in one quarter. Capital spending guidance remains unchanged at $2.25 to $2.35 billion for the year. The company generated $682 million of non-GAAP free cash flow in Q2, with $429 million returned to shareholders. Where the $2.82 billion went. The Anadarko Basin sale closed in Q2, generating $2.82 billion after closing adjustments and transaction costs, per Ovintiv's press release. Ovintiv's net debt fell by $2.172 billion during the quarter, from $5.167 billion at year-end 2025 to $2.995 billion at June 30. The Anadarko proceeds were the primary driver of that debt reduction. Separately, the company redeemed $700 million of senior notes at a 5.65% coupon originally due in 2028, eliminating $40 million in annual interest expense going forward. Net debt measured as a multiple of adjusted EBITDA improved from 1.2x at year-end 2025 to 0.6x by June 30. Total liquidity reached $4.4 billion. Ovintiv returned $345 million to shareholders through share buybacks covering 6.1 million shares, and paid $84 million in dividends during Q2, a combined $429 million or 63% of free cash flow. For 2026 as a whole, the company targets returning more than 60% of non-GAAP free cash flow. Permian and Montney take center stage after the Anadarko exit. Ovintiv's asset base now concentrates on two core plays after the Anadarko Basin exit: the Permian Basin in West Texas and the Montney Formation in northeastern British Columbia and Alberta. Permian production averaged 231 MBOE/d in Q2, with a 78% liquids weighting and 38 net wells brought online during the quarter. Full-year Permian capital is budgeted at $1.325 to $1.375 billion to run approximately 5 rigs and bring on 125 to 135 net wells. Montney production averaged 374 MBOE/d in Q2, with 27% liquids and 40 wells turned in line during the period. Capital budgeted for the Montney in 2026 totals $875 to $925 million to support 130 to 140 net wells. For the second half of 2026, Ovintiv targets Montney oil and condensate production of 80 to 85 thousand barrels per day alongside 1.7 to 1.8 Bcf/d of natural gas. Q2 total company production was 615 MBOE/d before the guidance revision. Q2 results and CEO commentary. CEO Brendan McCracken described Ovintiv as positioned with "deep inventory superior-return drilling" and a "fortified balance sheet" following the quarter's results. Q2 realized oil and condensate pricing averaged $91.22 per barrel, representing 98% of WTI, per the company's press release. Ovintiv reported net earnings of $456 million for Q2, or $1.62 per diluted share, though the figure includes a $337 million pretax loss on the Anadarko divestiture. Non-GAAP adjusted earnings were $491 million, excluding that write-down. Year-to-date shareholder returns through June totaled $598 million, representing 45% of free cash flow. Operating cash flow for Q2 reached $1.6 billion. Ovintiv's two remaining core plays, Permian and Montney, now carry the full weight of the company's capital program and production growth targets through year-end. Sources and methodology. Oil Authority synthesis: traced Anadarko proceeds through to the specific debt reduction, $700M note redemption, and shareholder returns; calculated net-debt-to-EBITDA improvement from 1.2x to 0.6x in one quarter; cross-referenced Q2 oil realization rates against WTI to assess cash flow contribution from the two remaining core plays. Published by Oil Authority, edited by Adam Humphreys Submit a correction. Spotted a factual error? Free account required to submit a correction.

Devon Energy gets $8 billion offer for Marcellus position, sources say. May 29, 2026 EnergyNow Media * Stone Ridge offers around $8 billion for Devon's Marcellus shale position, sources say * The Stone Ridge offer would be supported by largest ever ABS financing in US oil and gas, sources say * Devon reviewing its business post-Coterra merger, prioritizing shareholder value and capital allocation * Unclear whether Stone Ridge offer will lead to any deal for Devon's Marcellus position NEW YORK, May 29 (Reuters) - Devon Energy (DVN.N) has received a roughly $8 billion offer from money manager Stone Ridge Asset Management for its Marcellus shale assets, four people familiar with the matter said. Get the Latest Canadian Focused Energy News Delivered to You! It's FREE: Quick Sign-Up Here The move comes as Devon reviews its business in the wake of closing its $58 billion merger with Coterra Energy earlier this month, a combination which created one of the largest independent oil and gas producers in the United States, with a presence in a half-dozen regions led by the Delaware portion of the Permian basin in Texas and New Mexico. Stone Ridge submitted its Marcellus offer as a way to initiate conversations about a deal with Devon, said the sources, who noted that Devon had not made any decisions on the future of the natural gas-focused position, which previously belonged to Coterra and covers 190,000 net acres in Pennsylvania. There is no guarantee that the Stone Ridge offer would lead to a sale of the Marcellus position, or even a consideration of a sale by Devon, the sources said. They also spoke on condition of anonymity to discuss confidential information. Devon and Stone Ridge did not respond to comment requests. Largest ABS ever. The Stone Ridge proposal includes utilizing the largest asset-backed securitization (ABS) ever in the U.S. oil and gas industry, the sources said. The sources declined to elaborate, including on the actual size of the financing. Under the financing structure, future revenue generated from oil and gas production is pledged as collateral to lower borrowing costs. ABS financing has found favor in the last couple of years as a way to fund acquisitions of mature oil and gas assets with established production levels. These wells typically provide limited growth, but have low decline rates, making them attractive to financial investors looking for steady returns. New York-based Stone Ridge, an investment firm focused on alternative asset classes with $35 billion of assets under management, has been among the most active buyers of oil and gas production using ABS funding. This includes Ovintiv's Oklahoma assets, which were acquired in April by Stone Ridge in partnership with Flywheel Energy for $3 billion, according to two sources familiar with that deal. Stone Ridge could partner on a possible acquisition of Devon's Marcellus with another party, one more suited to operating the undeveloped acreage in the position, some of the sources said. Devon's priorities. Devon management, including Chief Executive Clay Gaspar, has said the company is looking to optimize the business following the Coterra merger. On a May 6 earnings call, Gaspar said it was reviewing all assets against strategic and financial criteria, and would be quick to act on an opportunity to enhance shareholder value. "Every asset in the combined portfolio has to compete for its capital and earn its seat at the table," he said. Devon also said on May 7 - the same day the merger closed - it would boost its share repurchase program to $8 billion, and pay a quarterly dividend that was a third higher than the previous quarter. It plans to unveil new financial guidance in mid-June. Devon has faced calls from investment firm Kimmeridge to consider a program of asset sales, among other actions, to help improve the company's share price and focus its spending on its best positions. The prominent energy-focused activist said last month Devon risked a "conglomerate discount" if it did not streamline its business. The Marcellus was expected to account for around 20% of Devon's 1.6 million barrels of oil equivalent per day production forecast in 2026, second only to the Delaware with 53%, according to a February presentation. Highlighting the company's Delaware focus, Devon spent $2.6 billion last week buying more acreage in the basin from a federal land sale. Reporting by David French and Shariq Khan in New York; Editing by Echo Wang and Chizu Nomiyama Share This:

First quarter 2026 oil and gas M&A hits two-year high driven by corporate deals. May 19, 2026 By Mark Jaffe, EUCI energy writer First quarter 2026 U.S. upstream oil and gas sector mergers and acquisitions (M&A) hit a quarterly two-year high - $36 billion - before activity cooled in the face of market and geopolitical uncertainties, according to Enverus Intelligence Research. "The slowdown in volume reflects less active deal flow in March given uncertainty in oil markets once the Iran conflict commenced," the industry analyst's merger report said. Nevertheless, higher oil prices are expected to accelerate a rebound in dealmaking, with continued corporate consolidation and more private exploration and production companies pursuing sales. "The market entered a temporary holding pattern as volatility clouded the outlook for oil prices, but the case for higher-for-longer oil prices is strengthening and creating the setup for an M&A rebound," Andrew Dittmar, principal Enverus analyst, said in a statement. "We expect that to translate into more private companies coming to market, something we are already starting to see, and continued consolidation among public operators," Dittmar said. A single corporate consolidation - the $25 billion merger of Devon Energy and Coterra Energy - accounted for the lion's share of the deal value for the quarter. The second biggest deal was Mitsubishi's purchase of Aethon Energy - with resources and pipelines in the Haynesville Shale along the Louisiana-Texas border - for $7.6 billion, a reflection on continued interest of international buyers, particularly in gas-weighted regions. "Limited remaining Haynesville targets are likely to push buyers to evaluate alternative regions such as Appalachia despite infrastructure constraints, or even gassier portions of the Permian once a pipeline buildout helps alleviate extremely poor gas pricing in the region," Enverus said. Asset-backed securitization (ABS) financing - secured mainly by the contractual cashflows of specific assets, with ownership rights serving as secondary collateral - is playing a growing role in production-weighted acquisitions. Flywheel Energy's $3 billion purchase of Ovintiv's Anadarko Basin assets used ABS financing. The Devon, Mitsubishi, and Flywheel Energy acquisitions accounted for 87% of the quarter's deal value. While M&A value was more than $60 billion for the last six months, there was an overall decline in the first quarter of 2026 with only eight deals over $100 million, tying a post-2020 low. The largest of those was Caturus Energy's purchase of SM Energy's Eagle Ford assets for $950 million. Nevertheless, the prospect of continued higher oil prices is shifting seller behavior and increasing the likelihood of private sales. "Better pricing is expected to encourage more private E&Ps [exploration and production companies] to bring assets to market, including a handful of remaining targets in the Permian, while also making mature plays like the Eagle Ford and Williston significantly more economic to develop," Enverus said.