April 3 (Reuters) – Shale producer Ovintiv Inc (OVV.N) said on Monday it was acquiring oil exploration and production assets in the Permian Basin controlled by private equity firm EnCap Investments in an about $4.3 billion cash and stock deal.
The assets being bought are located in the Midland portion of the Permian Basin in Texas and are currently owned by three companies controlled by EnCap – Black Swan Oil & Gas, Piedra Resources and PetroLegacy II.
Under the terms of the transaction, Ovintiv would pay $3.125 billion of cash and approximately 32.6 million shares of its common stock.
The deal would add approximately 1,050 net well locations to Ovintiv’s Permian inventory and approximately 65,000 net acres in the core of the Midland Basin, the company said.
Reporting by Mrinalika Roy in Bengaluru; Editing by Rashmi Aich
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