Varcoe: Ovintiv takes another big step into Canada, as part of growing $40B oilpatch consolidation wave

Ovintiv CEO Brendan McCracken. Courtesy Ovintiv

Two noteworthy oilpatch themes emerged from Ovintiv Inc.’s $3.8-billion acquisition this week of growing mid-sized petroleum producer NuVista Energy Ltd.

First, it marks another big step by Ovintiv in Canada as it sells more assets in the United States and sharpens its focus on two core areas on the continent — the prolific Permian Basin in Texas and the Montney formation in Western Canada.

“It’s hard to read it as anything other than a repositioning of the portfolio to put a higher weight on Canada,” said Michael Tims, vice-chair of Matco Investments.

It also marks the acquisition of another intermediate-sized petroleum producer in the country, as buyers from Canada and the U.S. look to expand their footprint in the Montney and Duverna