Mr. Brendan McCracken reports

OVINTIV ANNOUNCES AGREEMENT TO ACQUIRE MONTNEY OIL PRODUCER, LOGAN ENERGY CORP.

Ovintiv Inc. and Logan Energy Corp. have entered into a definitive agreement, whereby Ovintiv will acquire all of the outstanding shares of Logan in an all-cash transaction that values Logan at approximately $890-million (U.S.) ($1.26-billion (Canadian)), including expected net debt, at closing. The acquisition is expected to add approximately 420 total net 10,000-foot-equivalent oil well locations, and approximately 266,000 net acres (approximately 200,000 core acres, 80 per cent undeveloped) in the Montney oil window. Current production from the acquired assets is approximately 20,000 barrels of oil equivalent per day (approximately 7,000 barrels per day of oil and condensate, 70 million cubic feet per day of natural gas and one million barrels per day of other natural gas liquids (C2 to C4)). The assets are located in close proximity to Ovintiv's existing Montney operations and include two new oil batteries and additional natural gas processing capacity.

Highlights:

• Agreement reached to acquire Logan Energy for $1.40 (Canadian) per share in cash for total consideration of approximately $890-million (U.S.) ($1.26-billion (Canadian)), including the assumption of net debt;
• Ovintiv's shareholder returns plan is unchanged -- targeting 2026 shareholder returns of at least 60 per cent of non-GAAP (generally accepted accounting principles) free cash flow;
• Acquisition is expected to add approximately 266,000 net acres and approximately 20,000 barrels of oil equivalent per day in the oil-rich window of the Montney;
• Montney-only inventory additions of approximately 420 total net 10,000-foot equivalent oil well locations, including approximately 220 premium return well locations at an average cost of $1.5-million (U.S.) per premium location and approximately 200 upside locations;
• Includes ownership of two new oil batteries and interests in two natural gas processing facilities, which are expected to enhance Montney margins and enable future oil growth optionality;
• Transaction is expected to be immediately and long-term accretive across all key financial metrics, including non-GAAP cash-flow-per-share accretion of approximately 5 per cent in 2027;
• Annual cost synergies expected to total approximately $60-million.

"This bolt-on transaction delivers value for our shareholders by adding high-margin oil and condensate production and infrastructure, utilizing our operational advantage to drive significant synergies, and adding to our already-deep drilling inventory and future growth optionality," said Ovintiv president and chief executive officer Brendan McCracken. "The Logan assets have demonstrated leading oil productivity performance and will immediately compete for capital alongside the rest of our portfolio."

The transaction is expected to be financed through a combination of the company's cash on hand, borrowings under its credit facility and its commercial paper program.

Transaction overview:

• Immediately accretive: The transaction is expected to be immediately and long-term accretive across key operational and financial metrics, including non-GAAP cash flow per share of 5 per cent and non-GAAP free cash flow per share of 3 per cent in 2027.
• Increases Montney scale: The transaction is expected to add approximately 420 total net 10,000-foot equivalent oil well locations (220 premium return locations and approximately 200 upside locations, all located in the Simonette and Pouce Coupe areas). Ovintiv's core land position in the Montney is expected to increase to approximately 720,000 net acres. Also included in the transaction is approximately 60,000 net acres with exposure to the Duvernay shale.
• Significant synergies: The transaction is expected to generate cost synergies of approximately $60-million annually, comprising primarily capital savings, production cost savings and overhead cost reductions. Capital cost savings are estimated at more than $2-million per well across the acquired assets, consistent with Ovintiv's current Montney well costs.
• Infrastructure ownership: Logan has 100-per-cent ownership in two new oil batteries in Simonette with combined capacity of 24,000 barrels per day, the first of which came on line during the third quarter of 2026, and the second is expected to come on line by the end of the first quarter of 2027. Logan also has 50-per-cent ownership at a natural gas processing facility in Simonette with total capacity of 90 million cubic feet per day and 65-per-cent ownership in a natural gas processing facility in Pouce Coupe with total capacity of 57 million cubic feet per day. Ownership in these facilities is expected to enhance Ovintiv's Montney margins and provide future growth optionality.
• Maintains strong balance sheet: Following closing of the transaction early in the first quarter of 2027, Ovintiv expects its net debt to be below $4-billion. The company's targeted shareholder returns remain unchanged, with at least 60 per cent of 2026 non-GAAP free cash flow expected to be returned to shareholders through share buybacks and regular dividend payments. Beyond 2026, the target range remains unchanged at 50 per cent to 100 per cent.

As part of the transaction, 100 per cent of the shares of Logan Oil Corp., a newly formed wholly owned subsidiary of Logan, will be spun out to the shareholders of Logan and will include select Logan assets outside the Montney and Duvernay fairways. More details specific to Logan Oil can be found on Logan's website.

Timing and approvals

The transaction has been unanimously approved by the boards of directors of both Ovintiv and Logan and is expected to close early in the first quarter of 2027, subject to the receipt of Logan shareholder, court and regulatory approvals and the satisfaction of other customary closing conditions.

Advisers

RBC Capital Markets is serving as exclusive financial adviser to Ovintiv on the transaction. Blake Cassels & Graydon LLP and Paul Weiss Rifkind Wharton & Garrison LLP are serving as legal advisers to Ovintiv on the transaction.

Important information

Unless otherwise noted, Ovintiv reports in U.S. dollars and production and sales estimates are reported on an after-royalties basis. Unless otherwise specified or the context otherwise requires, references to Ovintiv or to the company includes reference to subsidiaries of and partnership interests held by Ovintiv and its subsidiaries.

National Instrument 51-101 exemption

The Canadian securities regulatory authorities have issued a decision document (the decision) granting Ovintiv exemptive relief from the requirements contained in Canada's NI 51-101, Standards of Disclosure for Oil and Gas Activities. As a result of the decision and provided that certain conditions set out in the decision are met on a continuing basis, Ovintiv will not be required to comply with the Canadian requirements of NI 51-101 and the Canadian Oil and Gas Evaluation Handbook. The decision permits Ovintiv to provide disclosure in respect of its oil and gas activities in the form permitted by and in accordance with the legal requirements imposed by the U.S. Securities and Exchange Commission (SEC), the Securities Act of 1933, the Securities Exchange Act of 1934, and the Sarbanes-Oxley Act of 2002 and the rules of the New York Stock Exchange. The decision also provides that Ovintiv is required to file all such oil and gas disclosures with the Canadian securities regulatory authorities on SEDAR+ as soon as practicable after such disclosure is filed with the SEC.

We seek Safe Harbor.