U.S.-based Ovintiv is acquiring Canadian producer NuVista Energy in a $3.8-billion cash and stock deal, expanding its operations in Alberta’s Montney region as energy sector consolidation accelerates.
BNN Bloomberg spoke with Julian Klymochko, CEO of Accelerate Financial Technologies, about what the deal means for investors and how it signals renewed U.S. interest in Canada’s oil patch.
Key Takeaways
- Ovintiv will acquire NuVista for $18 per share, split evenly between cash and stock.
- The offer carries a modest 6.6 per cent premium, below the sector’s historical average.
- Ovintiv already holds 9.6 per cent of NuVista’s shares, supporting a smooth shareholder vote.
- The deal adds 140,000 net acres and 100,000 barrels of oil equivalent per day in the Montney basin.
- Analysts see the move as part of a broader return of U.S. capital to Canada’s energy industry.
Read the full transcript below:
ROGER: The U.S.-based energy company Ovintiv, headquartered in Denver, has agreed to acquire Calgary-based NuVista Energy. Ovintiv was once a Canadian company before moving its head office to the United States. Here to discuss what the merger means is Julian Klymochko, CEO of Accelerate Financial Technologies. Julian, thanks very much for joining us.
JULIAN: Morning, Roger. Thanks for having me — happy to be here.
ROGER: What’s your reaction to this deal?
JULIAN: It’s an interesting one and continues what’s been a busy period for mergers and acquisitions in the oil patch. As you mentioned, Ovintiv — formerly known as Encana — used to be Canada’s flagship energy company before shifting its headquarters and much of its business to the U.S. This marks a sort of return to Canada with its $3.8-billion acquisition of NuVista Energy.
What stands out is the slim 6.6 per cent premium, with the deal priced at $18 per share, split evenly between cash and stock. I expect some grumbling from shareholders because, historically, oil patch M&A premiums average closer to 42 per cent. Just last week, we saw a deal where Signet Energy acquired Kiwetinohk Energy with a 62.8 per cent premium. So, this one looks a little lean. That said, NuVista seems to have been thoroughly shopped over the past few months, and it looks like Ovintiv’s offer was the best available.
ROGER: Could that shareholder dissatisfaction derail or alter the deal?
JULIAN: It’s unlikely. Ovintiv already holds about 9.6 per cent of NuVista’s shares, which gives it a strong position heading into the shareholder vote expected next quarter. NuVista also ran a fairly comprehensive strategic review, so if this was the best offer that emerged, shareholders may simply have to accept it.
ROGER: Just to clarify, are they moving their headquarters back to Canada?
JULIAN: No, Ovintiv will remain a U.S. company. However, the deal suggests a renewed interest in investing in Canada. NuVista’s assets are entirely in Western Canada, so this marks a shift in Ovintiv’s investment strategy — returning capital to Canadian operations.
ROGER: Why do you think they’re doing that?
JULIAN: It may relate to recent federal budget measures, narrowing price differentials and improved infrastructure in Canada. The investment environment for Canadian energy has strengthened, and at the end of the day, capital goes where it’s welcome.
ROGER: Do you think we could see more American companies looking north?
JULIAN: That’s a great question. We saw many international energy companies pull out over the past decade, but these things are cyclical. If federal and provincial governments make Canada more attractive, we could see U.S. investment return to levels we used to enjoy in the oil patch.
ROGER: Any concerns in Ottawa about this deal, especially around energy independence?
JULIAN: Not really. This should be viewed as a safe deal under the Investment Canada Act. Oil and gas transactions are quite common and not considered strategically sensitive, unlike critical minerals. Canada has abundant oil and gas reserves and generally welcomes investment — especially since this is a $3.8-billion infusion from a U.S. company, which should be positive for the economy.
ROGER: Finally, your thoughts on the budget’s energy measures?
JULIAN: It’s encouraging to see signals that the emissions cap on oil and gas production could be eased or removed. That would please Albertans and energy producers, as the sector remains a key driver of Canada’s economy. With the U.S. under Donald Trump ramping up investment, Canada really has no choice but to stay competitive globally — and reducing restrictions like the emissions cap is a step in that direction.
ROGER: We’ll have to leave it there. Julian, thanks for joining us.
JULIAN: Thanks for having me, Roger.
ROGER: That’s Julian Klymochko, CEO of Accelerate Financial Technologies.
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This BNN Bloomberg summary and transcript of the Nov. 5, 2025 interview with Julian Klymochko are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.