Canadian energy company Ovintiv Inc. (NYSE: OVV) has entered into a definitive agreement to sell its oil and gas assets in the Anadarko Basin, Oklahoma, for $3 billion in cash to an undisclosed buyer. These assets cover approximately 360,000 net acres, essentially comprising the company's entire holdings in the Anadarko region, and currently produce about 90,000 barrels of oil equivalent per day, including crude oil, condensate, natural gas, and natural gas liquids. The transaction is expected to close in early Q2 of this year, marking Ovintiv's exit from the Anadarko Basin to streamline its portfolio and repay debt, while focusing capital on high-margin assets in the Permian and Montney Basins.

This sale follows Ovintiv's acquisition of NuVista Energy Ltd. for $2.7 billion earlier this month, which bolstered its position in the Montney Basin. The company expects the NuVista acquisition to add approximately 100,000 barrels of oil equivalent per day of production this year, while the $3 billion proceeds from the Anadarko Basin asset sale will be used to reduce debt, accelerating progress towards its net debt target of $4 billion. Currently, Ovintiv produces over 300,000 barrels of oil equivalent per day from its Canadian assets.

Ovintiv's stock has performed strongly at the start of the new year, rising nearly 18% year-to-date. Although the International Energy Agency predicts a global oil surplus could push prices down to around $60 per barrel, Canadian oil and gas producers can remain profitable in a low-price environment by reducing operating costs. The full operation of the Trans Mountain pipeline expansion project and the startup of LNG projects are expected to reduce the price discount on Canadian energy products and open new channels to Asian markets. Overall, the outlook for Canada's oil and gas industry in 2026 is differentiated but positive.