Ovintiv Inc. (OVV - Free Report) recently announced that it is closing its joint venture with PetroChina (PTR - Free Report) in the Duvernay shale region of Alberta.
Ovintiv and PetroChina have been in a beneficial joint venture in Duvernay for almost eight years now. Prior to the dissolution of the deal, both involved parties owned an approximate 50% stake each in the entire asset with Ovintiv serving as the operator.
Following the cessation of this transaction, Ovintiv's net production, proved reserves and acreage in the Duvernay area will remian unaffected. This is because both entities reached an agreement to split the Duvernay acreage and its associated infrastructure with each company independently possessing and operating their interests going forward.
Ovintiv, formerly known as Encana Corp., produced 13,000 barrels of oil equivalent per day (43% liquids) from the Duvernay belt in the second quarter of 2020. Post the completion of transaction, the company will have a consolidated interest in approximately 250,000 net acres. This Calgary-based company decided to continue managing the field until PetroChina is all set to take the reins on its lands.
Ovintiv engages in exploration, development, production and marketing of natural gas, oil and natural gas liquids. The company holds principal assets in Anadarko Basin, located in the western and central parts of Oklahoma; the Permian Basin located in the western Texas and south eastern New Mexico, Midland Basin in Texas and the Montney Basin in western Canada.
Zacks Rank & Key Picks
Ovintiv currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the same space are Murphy USA Inc. (MUSA - Free Report) and SilverBow Resources Inc. (SBOW - Free Report) , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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