Veren Inc T.VRN

Ovintiv Inc

[MyHoneyPot]

I find it very strange that a company purchase a very prospective play area like Shells Kaybob Duvernay area, and then directs its capital to completing partner pads, and expanding the play area. My thinking was originally that the land base was so large and prospective, that they would be kept busy for ever, and they might be selling off more Sask assets. 

Conspiracy Theory

Ovintiv wants out Canada and out of the Durvernay and CPG is partnering with them on a few well pads to evaluate the resouce and the play. In the mean time they might do a divesture of some assets, fix the balance sheet a bit more, then take out the Ovintiv lands. 

Does that sound to crazy, i know the wells profile and this is a super rich area, with big wells and big reserves.

I am not sure CPG needs a bigger land base here but it might be handed to them on a silver platter by Ovintiv.

any thoughts.

IMHO

[not4anymore]

Ovintiv sold their Duvernay interests, probably to PetroChina. It is a big swack of land.  Given that is true, PetroChina is probably CPG's partner. CPG agreed to complete 16 wells for a consideration that was not disclosed. Assuming a CPG/PetroChina deal, CPG likely has options on a significant portion, if not all of the original Ovintiv lands.   Do your own DD.

[ChickenLittle13]

Ok so what will the market think of this? This means more debt and less immediate return to shareholders. Sure they might be great assets, but why invest money here if other names are paying out 10% dividend and buying back shares next year. Conspiracy theory is sound and I thought it was very weird CPG didn't commit to any substantial dividend or buyback and actually jd strategic acquisition