Ovintiv Inc. is executing a strategic shift to enhance its competitiveness in a maturing North American shale market by concentrating its capital on core assets and divesting non-core positions.

Strategic Focus and Capital Allocation

The company will focus its spending on two premier North American positions: the Permian basin in the United States and the Montney shale play in Canada. For 2026, Ovintiv plans a significant capital investment program, allocating upwards of $1.375 billion to the Permian, where it expects to run about five rigs to add up to 135 new wells. In the Montney, it is planning an $875 million drilling program utilizing up to six rigs to develop as many as 140 wells. Conversely, the company is taking a wait-and-see approach to the Barnett shale, describing it as a deeper, higher-pressure, and more expensive play.

Major Divestiture and Financial Performance

This strategic re-prioritization includes a major divestiture. Ovintiv announced an agreement to sell its Oklahoma-based Anadarko basin assets for $3 billion to a newly formed entity identified as MidCon II BuyerCo LLC. The deal, expected to close by April, will transfer assets producing approximately 90,000 barrels of oil equivalent per day. Financially, the company reported strong results, with net earnings of $946 million for the fourth quarter of 2025, a significant improvement from a net loss of $60 million in the same period of 2024. Full-year 2025 net earnings were $1.2 billion, up from $1.1 billion in 2024.

Outlook and Operational Enhancements

Ovintiv anticipates reaping rewards from investments initiated in 2023 and its recent acquisition of NuVista Energy. The company projects its 2026 hydrocarbons production could reach as high as 645,000 barrels of oil equivalent per day, compared to an estimated 2025 average of 614,500 boepd. To improve operational economics and cash flow, Ovintiv has leveraged artificial intelligence technology in its Permian operations.