Jump to content

Ovintiv: Difference between revisions

From Wikipedia, the free encyclopedia
Browse history interactively
← Previous editNext edit →
Content deleted Content added
VisualWikitext
→‎top: Fixed grammar
Tags: canned edit summary Mobile edit Mobile app edit Android app edit
No edit summary
(14 intermediate revisions by 9 users not shown)
Line 1: Line 1:
⚫
{{Use mdy dates|date=January 2020}}
{{short description|American energy company}}
{{short description|American energy company}}
⚫
{{Use mdy dates|date=January 2020}}
{{Infobox company
{{Infobox company
| name = Ovintiv Inc.
| name = Ovintiv Inc.
| logo = Ovintiv logo.svg
| former_name = Encana Corporation
| logo = [[File:Ovintiv_logo.png|frameless]]
| type = [[Public company]]
| type = [[Public company]]
| traded_as = {{ubl|{{NYSE|OVV}}|[[Russell 1000]] component|{{TSX|OVV}}}}
| traded_as = {{ubl|{{NYSE|OVV}}|[[S&P 400]] component|{{TSX|OVV}}}}
| ISIN = US69047Q1022
| ISIN = {{ISIN|sl=n|pl=y|US69047Q1022}}
| founded = {{Start date and age|2002|4|4}} in [[Calgary]], [[Alberta]], Canada
| founded = {{Start date|2020|1|24}}
| location_city = [[Denver, Colorado]]
| hq_location_city = [[Denver, Colorado]]
| location_country = U.S.
| key_people = Peter Dea, Board Chair;<BR>Brendan McCracken, President & CEO;<BR> Corey Code, EVP & CFO
| key_people = Peter Dea, Board Chair;<BR>Brendan McCracken, President & CEO;<BR> Corey Code, EVP & CFO
| industry = [[Petroleum industry]]
| industry = [[Petroleum industry|Petroleum]]
| products = [[Petroleum]]<BR>[[Natural gas]]<BR>[[Natural gas liquids]]
| products = [[Petroleum]]<BR>[[Natural gas]]<BR>[[Natural gas liquids]]
| production = {{convert|533.9|e3BOE|lk=in}} per day (2021)
| production = {{convert|533.9|e3BOE|lk=in}} per day (2021)
Line 19: Line 17:
| assets = {{decrease}} US$14.055 billion (2021)
| assets = {{decrease}} US$14.055 billion (2021)
| equity = {{increase}} US$5.074 billion (2021)
| equity = {{increase}} US$5.074 billion (2021)
| num_employees = 1,713 (2021)
| num_employees = 1,744 (December 2022)
| predecessors = Encana Corporation<BR>PanCanadian Energy Corporation<BR>Alberta Energy Company<BR>AEC West
| predecessors = [[Encana]]
| website = {{URL|www.ovintiv.com/}}
| website = {{URL|www.ovintiv.com/}}
| footnotes = <ref name=history>{{cite web | url=https://www.ovintiv.com/history/ | title=Our History | publisher=Ovintiv}}</ref><ref name=10K>{{cite web | url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1792580/000156459022006978/ovv-10k_20211231.htm | title=Ovintiv Inc. 2021 Form 10-K Annual Report | publisher=[[U.S. Securities and Exchange Commission]]}}</ref>
| footnotes = <ref name=history>{{cite web | url=https://www.ovintiv.com/history/ | title=Our History | publisher=Ovintiv}}</ref><ref name=10K>{{cite web | url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1792580/000156459022006978/ovv-10k_20211231.htm | title=Ovintiv Inc. 2021 Form 10-K Annual Report | publisher=[[U.S. Securities and Exchange Commission]]}}</ref>
}}
}}


'''Ovintiv Inc.''' is an American petroleum company based in [[Denver]]. The company was formed in 2020 through a [[restructuring]] of its Canadian predecessor, [[Encana]].
'''Ovintiv Inc.''' is a [[hydrocarbon exploration]] and production company organized in [[Delaware]] and headquartered in [[Denver]], United States. It was founded and headquartered in [[Calgary]], Alberta,<ref>{{Cite news| url=https://www.cbc.ca/news/canada/calgary/encana-move-us-united-states-calgary-base-ovintiv-1.5342315 | title=Energy giant Encana to move HQ from Calgary to the U.S. | date=October 31, 2019}}</ref><ref name=denver>{{Cite news | url=https://www.cbc.ca/news/canada/calgary/encana-reveals-denver-new-headquarters-after-leaving-calgary-1.5351575 | title=Encana reveals Denver will be its new headquarters after leaving Calgary | work=[[CBC News]] | date=November 7, 2019}}</ref> under its previous name '''Encana'''. It was the largest energy company and largest natural gas producer in Canada, before moving to the United States in 2020.<ref>{{Cite news |last1=Jones |first1=Jeffrey |last2=Haggett |first2=Scott |title=EnCana to split in two with oil at record highs |url=https://www.reuters.com/article/us-encana/encana-to-split-in-two-with-oil-at-record-highs-idUSN1133047420080511 |work=[[Reuters]] |date=May 11, 2008}}</ref><ref>{{cite news | url=https://business.financialpost.com/commodities/energy/doug-suttles-transforms-headquarter-less-encana-with-7-7-billion-deal-to-buy-newfield | title=Doug Suttles transforms 'headquarter-less' Encana with $7.7-billion deal to buy Newfield | first=Geoffrey | last=Morgan | work=[[Financial Post]] | date=November 1, 2018}}</ref> The company was rebranded as Ovintiv and relocated to Denver in 2019{{ndash}}20.


⚫
== History ==
⚫
==Hydrocarbon production==
⚫
On January 24, 2020, after receiving shareholder approval, the company completed the transfer of its corporate domicile from Canada to the United States,<ref>{{cite press release |title=Encana completes reorganization and establishes corporate domicile in the U.S. |url=https://www.prnewswire.com/news-releases/encana-completes-reorganization-and-establishes-corporate-domicile-in-the-us-300992926.html |publisher=[[PR Newswire]] |date=January 24, 2020}}</ref><ref>{{cite news | url=https://business.financialpost.com/commodities/energy/doug-suttles-transforms-headquarter-less-encana-with-7-7-billion-deal-to-buy-newfield | title=Doug Suttles transforms 'headquarter-less' Encana with $7.7-billion deal to buy Newfield | first=Geoffrey | last=Morgan | work=[[Financial Post]] | date=November 1, 2018}}</ref> Ovintiv Canada ULC retains an office in Calgary.<ref>{{Cite web |last= |date=2022-05-19 |title=Regulatory Action – Ovintiv Canada ULC |url=http://nuclearsafety.gc.ca/eng/acts-and-regulations/regulatory-action/ovintiv-canada-ulc.cfm |access-date=2022-06-23 |website=[[Canadian Nuclear Safety Commission]] |language=en}}</ref>
⚫
In 2021, the company's average production was {{convert|533.9|e3BOE|lk=in}} per day, of which 26% was petroleum, 25% was natural gas liquids, and 49% was natural gas. Of 2021 production, 56% was in the United States and 44% was in Canada.<ref name=10K/>

⚫
==History==
[[File:Encana logo.svg|thumb|right|Former logo (as Encana)]]

=== 1880s to 2002 - Canadian Pacific and PanCanadian years ===
When the [[Canadian Pacific Railway]] was formed, the government of Sir [[John A. Macdonald]] compensated it for assuming the risk of developing the railroad with the subsurface rights for a checkerboard pattern of most of Alberta and part of Saskatchewan. These rights were later spun off to the company's predecessors.<ref>{{cite web | url=http://www.fundinguniverse.com/company-histories/canadian-pacific-railway-limited-history/ | work=International Directory of Company Histories| publisher=fundinguniverse.com | title=Canadian Pacific Railway Limited History }}</ref>

While drilling for water near [[Medicine Hat]], in 1883 Canadian Pacific Railway staff discovered natural gas.<ref>{{cite news | url=https://financialpost.com/commodities/energy/a-storied-history-born-out-of-fire-and-explosion-encanas-roots-tied-to-canadian-pacific-railways-western-push-in-the-1880s | title=A storied history: Born out of fire and explosion, Encana's roots tied to Canadian Pacific Railway's western push in the 1880s | first=Colin | last=McClelland | work=[[Financial Post]] | date=October 31, 2019 }}</ref>

On July 3, 1958, Canadian Pacific created "Canadian Pacific Oil and Gas" to manage its oil and gas properties and its mineral rights<ref>{{cite web | url=http://publications.gc.ca/collections/collection_2017/statcan/52-202/CS52-202-1965-eng.pdf | title=CANADIAN PACIFIC RAILWAY COMPANY: 1923–65 | publisher=[[Dominion Bureau of Statistics]]}}</ref> which, in 1971 merged with "Central-Del Rio Oils", to create "Pan Canadian Petroleum Limited".<ref>{{cite news | url=https://www.ogj.com/articles/print/volume-95/issue-27/in-this-issue/general-interest/big-canadian-miscible-co-2-eor-project-pipeline-advance.html | title=Big Canadian miscible CO 2 EOR project, pipeline advance | work=[[Oil & Gas Journal]] | date=July 7, 1997}}</ref><ref>{{cite web | url=https://digital.library.mcgill.ca/hrcorpreports/search/detail.php?company=PanCanadian%20Petroleum%20Limited&ID=1142 | title=Canadian Corporate Reports; Company Detail: PanCanadian Petroleum Limited | publisher=[[McGill University]]}}</ref>

=== 2002 to 2019 - the Encana years ===
In April 2002, Pan Canadian Petroleum Ltd was spun out of Canadian Pacific Limited. It subsequently merged with Alberta Energy Corporation to form EnCana. Gwyn Morgan was named president and CEO.<ref name=history/>

In 2009, EnCana completed the [[corporate spin-off]] of [[Cenovus Energy]], which held its oil business, representing one-third of its total production and reserves, and EnCana Corporation retaining the [[natural gas]] business.<ref name=spinoff>{{cite news|last=Haggett|first=Scott|date=November 30, 2009|title=EnCana wraps up spinoff of its oil business|work=[[Reuters]]|url=https://www.reuters.com/article/encana-cenovus/encana-wraps-up-spinoff-of-its-oil-business-idUSN3025130420091130}}</ref><ref name="proceeds">{{Cite press release|title=EnCana proceeds with plan to split into two distinct and independent energy companies|url=https://www.cenovus.com/news/news-releases/2009/0910-split-proceeds.pdf|publisher=[[Cenovus Energy]]|date=September 10, 2009}}</ref> Investors favoured the split as it gave them the flexibility to choose between investing in oil, gas, or both.<ref name="choice">{{Cite news|last=Parkinson|first=David|date=December 9, 2009|title=Cenovus spinoff gives investors a choice|url=https://www.theglobeandmail.com/globe-investor/investment-ideas/cenovus-spinoff-gives-investors-a-choice/article4311405/}}</ref>

[[File:Calgary 3a (8033584466).jpg|thumb|[[The Bow (skyscraper)|The Bow]], Encana's former headquarters in Calgary]]
In December 2012, Encana announced a US$2.1 billion joint venture with state-owned, Beijing-based [[PetroChina]] through which PetroChina received a 49.9% stake in Encana's [[Duvernay Formation]] acreage in Alberta. This was in line with the rules that "favor minority stakes over takeovers" since Prime Minister [[Stephen Harper]]'s December 7, 2012 prohibition of purchases by state-owned enterprises seeking to invest in Canadian oil.<ref>{{cite news | url=https://www.reuters.com/article/us-encana-petrochina/encana-petrochina-take-2-2-billion-stab-at-joint-venture-idUSBRE8BC1E020121214 | title=Encana, PetroChina take $2.2 billion stab at joint venture | first=Jeffrey | last=Jones | work=[[Reuters]] | date=December 13, 2012}}</ref><ref>{{cite news | url=https://business.financialpost.com/commodities/energy/encana-petrochina-form-joint-venture-to-develop-natural-gas-in-alberta | title=Encana, PetroChina form joint venture to develop natural gas in Alberta | work=[[Financial Post]] | date=December 13, 2012}}</ref> By the end of 2012, Encana's staff had increased to 4,169 employees.<ref name="cbc">{{cite news | title=Encana laying off 20% of workers | url=https://www.cbc.ca/news/business/encana-laying-off-20-of-workers-1.2415070 | publisher=[[CBC News]] | date=November 5, 2013}}</ref>

Encana and Cenovus' headquarters, [[The Bow (skyscraper)|The Bow]] in Calgary, was completed in 2013, becoming the [[List of tallest buildings in Canada|tallest building in Canada]] outside of [[Toronto]].<ref name=officiallyopens>{{Cite news |title=The Bow tower officially opens in Calgary |url=https://www.cbc.ca/news/canada/calgary/the-bow-tower-officially-opens-in-calgary-1.1355372 | work=[[CBC News]] |date=June 4, 2013}}</ref> The project, owned by [[H&R REIT]], was announced as Encana's headquarters in 2006, prior to the Cenovus split.<ref name=REIT>{{Cite news |last=Parkinson |first=David |title=H&R REIT to develop EnCana's new headquarters |url=https://www.theglobeandmail.com/report-on-business/hr-reit-to-develop-encanas-new-headquarters/article1070462/ | work=[[Globe and Mail]] |date=February 9, 2007}}</ref>

In November 2013, the company cut its dividend, announced layoffs of 20% of its employees, closure of its office in [[Plano, Texas]], and plans to sell assets and to found a separate company for its mineral rights and royalty interests across southern Alberta.<ref name=cbc/> It planned to invest 75% of its 2014 capital budget into 5 projects: Projects in the [[Montney Formation]] and the [[Duvernay Formation]] in Alberta, the [[San Juan Basin]] in New Mexico, Louisiana's [[Tuscaloosa Marine Shale]], and the Denver-Julesburg Basin (DJ Basin) in northeast Colorado, Wyoming, and Nebraska.<ref name=cbc/><ref>{{cite news | url=https://www.wsj.com/articles/encana-cuts-dividend-jobs-in-reorganization-1383654875 | title=Encana to Cut Dividend, Jobs in Reorganization | first1=Chester | last1=Dawson | first2=Judy | last2=McKinnon | work=[[The Wall Street Journal]] | date=November 5, 2013 | url-access=subscription}}</ref>

In October 2019, the company announced plans to move its operations from Canada to [[Denver]], where its CEO lived, and change its name to Ovintiv.<ref>{{Cite web| url=https://www.prnewswire.com/news-releases/encana-to-establish-corporate-domicile-in-the-us-300948848.html |title=Encana to Establish Corporate Domicile in the U.S. | publisher=[[PR Newswire]]| date=October 31, 2019}}</ref><ref name="denver" />

The name change, notably the dropping of "Cana" was met with criticism in Canada. Encana's departure from Canada "only intensified the gloom enveloping the Canadian energy industry after foreign companies sold more than US$30 billion".<ref>{{Cite news | url=https://business.financialpost.com/commodities/energy/farewell-encana-hello-brookfield-property-in-canadian-index-rejig | title=Encana, whose history in Canada dates back to 1800s, says farewell to the TSX today as it heads south | first1=Divya | last1=Balji | first2=Kevin | last2=Orland | agency=[[Bloomberg News]] | publisher=[[Financial Post]] | date=January 23, 2020 | url-access=subscription}}</ref> Youssef Youssef, a commerce professor at Humber College in Toronto, also takes this perspective, citing the difficulty in changing a brand as recognizable as this one "(Encana) was a solid brand and it had resonance within the Canadian oil industry, and everybody knows the company, so to change the brand, it takes a lot of steps.”<ref>{{Cite news | url=https://nationalpost.com/news/encana-is-now-ovintiv-and-the-rebrand-begs-a-question-what-the-hell-is-an-ovintiv | title=As Encana becomes Ovintiv, the rebrand begs a question: What the hell is an Ovintiv? | first=Tyler | last=Dawson | work=[[Financial Post]] | date=October 31, 2019 | url-access=subscription}}</ref>

=== 2020 to present day - Ovintiv ===
⚫
On January 24, 2020, after receiving shareholder approval, the company completed the transfer of its corporate domicile from Canada to the United States,<ref>{{cite press release |title=Encana completes reorganization and establishes corporate domicile in the U.S. |url=https://www.prnewswire.com/news-releases/encana-completes-reorganization-and-establishes-corporate-domicile-in-the-us-300992926.html |publisher=[[PR Newswire]] |date=January 24, 2020}}</ref> Ovintiv Canada ULC retains an office in Calgary.<ref>{{Cite web |last= |date=2022-05-19 |title=Regulatory Action – Ovintiv Canada ULC |url=http://nuclearsafety.gc.ca/eng/acts-and-regulations/regulatory-action/ovintiv-canada-ulc.cfm |access-date=2022-06-23 |website=[[Canadian Nuclear Safety Commission]] |language=en}}</ref>


In June 2020, the company announced layoffs of 25% of its workforce.<ref>{{Cite news | url=https://www.cbc.ca/news/business/ovintiv-encana-layoffs-1.5616174 | title=Oil and gas company Ovintiv, formerly Encana, laying off workers across North America | first=Tony | last=Seskus | work=[[CBC News]] | date=June 17, 2020}}</ref><ref>{{Cite news | url=https://www.reuters.com/article/us-ovintiv-layoffs/ovintiv-lays-off-25-of-workforce-after-oil-demand-slumps-idUSKBN23P3O8 | title=Ovintiv lays off 25% of workforce after oil demand slumps | first1=Shanti S. | last1=Nair | first2=Shariq | last2=Khan | work=[[Reuters]] | date=June 18, 2020}}</ref><ref>{{Cite news | url=https://calgaryherald.com/commodities/energy/ovintiv-cutting-jobs-across-north-america/wcm/544ce142-3f83-4b81-b18b-3b8180000066/ | title=Ovintiv cutting jobs in Calgary, Denver and Texas as drilling slows | first=Kevin | last=Orland | agency=[[Bloomberg News]] | publisher=[[Calgary Herald]] | date=June 17, 2020}}</ref>
In June 2020, the company announced layoffs of 25% of its workforce.<ref>{{Cite news | url=https://www.cbc.ca/news/business/ovintiv-encana-layoffs-1.5616174 | title=Oil and gas company Ovintiv, formerly Encana, laying off workers across North America | first=Tony | last=Seskus | work=[[CBC News]] | date=June 17, 2020}}</ref><ref>{{Cite news | url=https://www.reuters.com/article/us-ovintiv-layoffs/ovintiv-lays-off-25-of-workforce-after-oil-demand-slumps-idUSKBN23P3O8 | title=Ovintiv lays off 25% of workforce after oil demand slumps | first1=Shanti S. | last1=Nair | first2=Shariq | last2=Khan | work=[[Reuters]] | date=June 18, 2020}}</ref><ref>{{Cite news | url=https://calgaryherald.com/commodities/energy/ovintiv-cutting-jobs-across-north-america/wcm/544ce142-3f83-4b81-b18b-3b8180000066/ | title=Ovintiv cutting jobs in Calgary, Denver and Texas as drilling slows | first=Kevin | last=Orland | agency=[[Bloomberg News]] | publisher=[[Calgary Herald]] | date=June 17, 2020}}</ref>
⚫
==Hydrocarbon production==
⚫
In 2021, the company's average production was {{convert|533.9|e3BOE|lk=in}} per day, of which 26% was petroleum, 25% was natural gas liquids, and 49% was natural gas. Of 2021 production, 56% was in the United States and 44% was in Canada.<ref name="10K" />


== List of notable sales, mergers and acquisitions ==
== List of notable sales, mergers and acquisitions ==
Line 68: Line 39:
In May 2007, the company sold its assets in the delta of the [[Mackenzie River]].<ref>{{cite news|last=EBNER|first=DAVID|date=May 9, 2007|title=MGM Energy buys into several EnCana assets|work=[[The Globe and Mail]]|url=https://www.theglobeandmail.com/report-on-business/mgm-energy-buys-into-several-encana-assets/article962318/}}</ref>
In May 2007, the company sold its assets in the delta of the [[Mackenzie River]].<ref>{{cite news|last=EBNER|first=DAVID|date=May 9, 2007|title=MGM Energy buys into several EnCana assets|work=[[The Globe and Mail]]|url=https://www.theglobeandmail.com/report-on-business/mgm-energy-buys-into-several-encana-assets/article962318/}}</ref>


In 2009, EnCana's oil business was [[corporate spin-off|spun-off]] as [[Cenovus Energy]].<ref name=spinoff/>
In 2009, EnCana's oil business was [[corporate spin-off|spun-off]] as [[Cenovus Energy]].<ref name="spinoff">{{cite news |last=Haggett |first=Scott |date=November 30, 2009 |title=EnCana wraps up spinoff of its oil business |work=[[Reuters]] |url=https://www.reuters.com/article/encana-cenovus/encana-wraps-up-spinoff-of-its-oil-business-idUSN3025130420091130}}</ref>


In November 2011, a potential buyer backed out of a $45 million deal to buy the company's gas field in [[Pavillion, Wyoming]].<ref>{{cite news|last=Lustgarten|first=Abrahm|date=November 29, 2011|title=Company Backs out of $45 Million Deal to Buy Troubled Wyoming Gas Field|work=[[ProPublica]]|url=https://www.propublica.org/article/company-backs-out-of-45-million-deal-to-buy-troubled-wyoming-gas-field}}</ref>
In November 2011, a potential buyer backed out of a $45 million deal to buy the company's gas field in [[Pavillion, Wyoming]].<ref>{{cite news|last=Lustgarten|first=Abrahm|date=November 29, 2011|title=Company Backs out of $45 Million Deal to Buy Troubled Wyoming Gas Field|work=[[ProPublica]]|url=https://www.propublica.org/article/company-backs-out-of-45-million-deal-to-buy-troubled-wyoming-gas-field}}</ref>
Line 109: Line 80:
From 2008 through 2010, the company accumulated 250,000 net acres in the Collingwood-[[Utica Shale]] gas play in the Middle [[Ordovician]] Collingwood formation of the [[Michigan Basin]] at an average cost of $150/acre.<ref>{{cite news | url=https://www.ogj.com/articles/2010/05/michigan-collingwood-utica.html | title=Explorations: Michigan Collingwood-Utica gas play emerging | first=Alan |last=Petzet | work=[[Oil & Gas Journal]] | date=May 7, 2010}}</ref> In May 2012, the company paid about $185 an acre for oil and gas rights on 2,156 acres (873 hectares) at an auction by the [[Michigan Department of Natural Resources]], which was "88 percent less than the average paid two years ago in the area".<ref>{{cite news | first=Joe | last=Carroll | title=Encana Expands in Michigan Shale Chesapeake Is Abandoning | url=https://business.financialpost.com/commodities/energy/encana-expands-in-michigan-oil-shale-chesapeake-is-abandoning | agency=[[Bloomberg News]] | work=[[Financial Post]] | date=June 27, 2012}}</ref>
From 2008 through 2010, the company accumulated 250,000 net acres in the Collingwood-[[Utica Shale]] gas play in the Middle [[Ordovician]] Collingwood formation of the [[Michigan Basin]] at an average cost of $150/acre.<ref>{{cite news | url=https://www.ogj.com/articles/2010/05/michigan-collingwood-utica.html | title=Explorations: Michigan Collingwood-Utica gas play emerging | first=Alan |last=Petzet | work=[[Oil & Gas Journal]] | date=May 7, 2010}}</ref> In May 2012, the company paid about $185 an acre for oil and gas rights on 2,156 acres (873 hectares) at an auction by the [[Michigan Department of Natural Resources]], which was "88 percent less than the average paid two years ago in the area".<ref>{{cite news | first=Joe | last=Carroll | title=Encana Expands in Michigan Shale Chesapeake Is Abandoning | url=https://business.financialpost.com/commodities/energy/encana-expands-in-michigan-oil-shale-chesapeake-is-abandoning | agency=[[Bloomberg News]] | work=[[Financial Post]] | date=June 27, 2012}}</ref>


In July 2012, Reuters reported about e-mails between the company and [[Chesapeake Energy]], the second-largest natural gas producer in the U.S., to divide up Michigan counties state land leases to suppress land prices in an October 2010 auction.<ref>{{cite news | first1=Brian | last1=Grow | first2=Joshua | last2=Schneyer | first3=Janet | last3=Roberts | title=Special Report: Chesapeake and rival plotted to suppress land prices | url=https://www.reuters.com/article/us-chesapeake-land-deals-idUSBRE85O0EI20120625 | work=[[Reuters]] | date=June 25, 2012}}</ref> In 2013, a private landowner filed suit against the company and Chesapeake for [[bid rigging]].<ref>{{cite news | first1=Brian | last1=Grow | first2=Joshua | last2=Schneyer | title=Chesapeake, Encana sued in civil antitrust action | url=https://www.reuters.com/article/us-chesapeake-encana-antitrust/chesapeake-encana-sued-in-civil-antitrust-action-idUSBRE91O15D20130225 | work=[[Reuters]] | date=February 25, 2013}}</ref> Justice Department and Michigan authorities were investigating whether state or federal laws were violated; the [[Internal Revenue Service]] and [[U.S. Securities and Exchange Commission]] also investigated.
In July 2012, Reuters reported about e-mails between the company and [[Chesapeake Energy]], the second-largest natural gas producer in the U.S., to divide up Michigan counties state land leases to suppress land prices in an October 2010 auction.<ref>{{cite news | first1=Brian | last1=Grow | first2=Joshua | last2=Schneyer | first3=Janet | last3=Roberts | title=Special Report: Chesapeake and rival plotted to suppress land prices | url=https://www.reuters.com/article/us-chesapeake-land-deals-idUSBRE85O0EI20120625 | work=[[Reuters]] | date=June 25, 2012}}</ref> In 2013, a private landowner filed suit against the company and Chesapeake for [[bid rigging]].<ref>{{cite news | first1=Brian | last1=Grow | first2=Joshua | last2=Schneyer | title=Chesapeake, Encana sued in civil antitrust action | url=https://www.reuters.com/article/us-chesapeake-encana-antitrust/chesapeake-encana-sued-in-civil-antitrust-action-idUSBRE91O15D20130225 | work=[[Reuters]] | date=February 25, 2013}}</ref> Justice Department and Michigan authorities were investigating whether state or federal laws were violated; the [[Internal Revenue Service]] and [[U.S. Securities and Exchange Commission]] also investigated.


While the case was dropped by the [[United States Department of Justice|DOJ]], Michigan's Attorney General followed up on the accusations, and Encana ended up with a fine of $5 million, and Chesapeake paid $25 million into a victim-compensation fund.<ref>{{cite journal |url=https://digitalcommons.law.ou.edu/cgi/viewcontent.cgi?article=1072&context=onej |title=Minimizing Antitrust Risks in Joint Ventures, Joint Bidding, and AMIs: A Review of Recent Enforcement Activities |journal=Oil and Gas, Natural Resources, and Energy Journal |volume=2| number=5| page=536| date=January 2017}}</ref>
While the case was dropped by the [[United States Department of Justice|DOJ]], Michigan's Attorney General followed up on the accusations, and Encana ended up with a fine of $5 million, and Chesapeake paid $25 million into a victim-compensation fund.<ref>{{cite journal |url=https://digitalcommons.law.ou.edu/cgi/viewcontent.cgi?article=1072&context=onej |title=Minimizing Antitrust Risks in Joint Ventures, Joint Bidding, and AMIs: A Review of Recent Enforcement Activities |journal=Oil and Gas, Natural Resources, and Energy Journal |volume=2| number=5| page=536| date=January 2017}}</ref>
Line 117: Line 88:


===Alleged excessive water use for hydraulic fracturing===
===Alleged excessive water use for hydraulic fracturing===
In November 2013, Ecojustice, the Sierra Club and the Wilderness Committee filed a lawsuit against Encana Corporation and the British Columbia's [[Oil and Gas Commission]] for excessive water use from lakes and rivers for its hydraulic fracturing for shale gas, "granted by repeated short-term water permits, a violation of the provincial water act".<ref>{{cite news | first=Dene | last=Moore | title=Fracking Lawsuit Targets EnCana, B.C. Oil And Gas Commission | url=https://www.huffingtonpost.ca/2013/11/13/fracking-lawsuit-encana_n_4268728.html | agency=[[The Canadian Press]] | work=[[HuffPost]] | date=November 13, 2013}}</ref>
In November 2013, Ecojustice, the Sierra Club and the Wilderness Committee filed a lawsuit against British Columbia's [[Oil and Gas Commission]] (OGC) granting Encana Corp. "repeated short-term water permits, a violation of the provincial water act".<ref>{{cite news | first=Dene | last=Moore | title=Fracking Lawsuit Targets EnCana, B.C. Oil And Gas Commission | url=https://www.huffingtonpost.ca/2013/11/13/fracking-lawsuit-encana_n_4268728.html | agency=[[The Canadian Press]] | work=[[HuffPost]] | date=November 13, 2013}}</ref> The Supreme Court in October 2014 upheld the validity of OGC's use of short-term water use approvals on a recurrent basis.<ref>{{cite web |last1=Theroux |first1=Michael P. |title=B.C. Supreme Court Upholds Recurring Short-Term Water Use Approvals|url=https://www.bennettjones.com/Blogs-Section/B,-d-,C,-d-,-Supreme-Court-Upholds-Recurring-Short-Term-Water-Use-Approvals |publisher= Bennett Jones LLP |date=15 October 2014 |access-date=17 May 2024}}</ref>


==Criticism==
==Criticism==
Line 136: Line 107:


== Leadership ==
== Leadership ==

⚫
=== Chairman of the Board ===
[[David P. O'Brien]], 2002–2013<br>
⚫
Clayton H. Woitas, 2013–2020<br>
⚫
Peter A. Dea, 2020–


=== President ===
=== President ===
⚫
Michael G. McAllister, January 24, 2020 – June 30, 2020<br>
[[Gwyn Morgan]], 2002–2005<br>
⚫
Brendan M. McCracken, December 1, 2020 –
Randall K. Eresman, 2005–2013<br>

Clayton H. Woitas (interim), 2013<br>
⚫
=== Chairman of the Board ===
[[Doug Suttles|Douglas J. Suttles]], 2013–2019<br>
⚫
Clayton H. Woitas, January 24, 2020 – June 30, 2020<br>
⚫
Michael G. McAllister, 2019–2020<br>
⚫
Peter A. Dea, June 30, 2020 –
⚫
Brendan M. McCracken, 2020–


==References==
==References==
Line 166: Line 132:


{{Portal|Companies}}
{{Portal|Companies}}
{{S&P 400 companies}}


{{Authority control}}
{{Authority control}}
Line 173: Line 140:
[[Category:Natural gas companies of the United States]]
[[Category:Natural gas companies of the United States]]
[[Category:Companies based in Denver]]
[[Category:Companies based in Denver]]
[[Category:Non-renewable resource companies established in 2002]]
[[Category:Non-renewable resource companies established in 2020]]
[[Category:Non-renewable resource companies established in 2020]]
⚫
[[Category:Energy companies established in 2002]]
[[Category:Energy companies established in 2020]]
[[Category:Energy companies established in 2020]]
[[Category:American companies established in 2020]]
[[Category:American companies established in 2020]]
[[Category:2002 establishments in Alberta]]
[[Category:Canadian companies established in 2002]]
[[Category:Canadian companies disestablished in 2020]]
[[Category:2020 establishments in Colorado]]
[[Category:2020 establishments in Colorado]]
[[Category:2020 disestablishments in Alberta]]
[[Category:Oil companies]]
[[Category:Oil companies]]
[[Category:Energy companies]]
[[Category:Energy companies]]
[[Category:Ovintiv]]
⚫
[[Category:Energy companies of the United States]]
[[Category:Companies in the S&P 400]]

Revision as of 21:12, 20 June 2024

Ovintiv Inc.
Company typePublic company
ISINUS69047Q1022
IndustryPetroleum
PredecessorsEncana
FoundedJanuary 24, 2020 (2020-01-24)
Headquarters
Denver, Colorado
Key people
Peter Dea, Board Chair;
Brendan McCracken, President & CEO;
Corey Code, EVP & CFO
ProductsPetroleum
Natural gas
Natural gas liquids
Production output
533.9 thousand barrels of oil equivalent (3,266,000 GJ) per day (2021)
RevenueIncrease US$8.658 billion (2021)
3,853,000,000 United States dollar (2022) Edit this on Wikidata
Increase US$1.416 million (2021)
Total assetsDecrease US$14.055 billion (2021)
Total equityIncrease US$5.074 billion (2021)
Number of employees
1,744 (December 2022)
Websitewww.ovintiv.com
Footnotes / references
[1][2]

Ovintiv Inc. is an American petroleum company based in Denver. The company was formed in 2020 through a restructuring of its Canadian predecessor, Encana.

History

On January 24, 2020, after receiving shareholder approval, the company completed the transfer of its corporate domicile from Canada to the United States,[3][4] Ovintiv Canada ULC retains an office in Calgary.[5]

In June 2020, the company announced layoffs of 25% of its workforce.[6][7][8]

Hydrocarbon production

In 2021, the company's average production was 533.9 thousand barrels of oil equivalent (3,266,000 GJ) per day, of which 26% was petroleum, 25% was natural gas liquids, and 49% was natural gas. Of 2021 production, 56% was in the United States and 44% was in Canada.[2]

List of notable sales, mergers and acquisitions

In October 2004, EnCana sold its UK unit, including a 43% stake in the Buzzard field (discovered in 2001 by a PanCanadian-led group), to Nexen for $2.1bn US.[9]

In January 2007, the company sold its assets in Chad to China National Petroleum Corporation for $202.5 million.[10][11]

In May 2007, the company sold its assets in the delta of the Mackenzie River.[12]

In 2009, EnCana's oil business was spun-off as Cenovus Energy.[13]

In November 2011, a potential buyer backed out of a $45 million deal to buy the company's gas field in Pavillion, Wyoming.[14]

In December 2011, the company sold the majority of its natural gas producing assets in the Barnett Shale.[15]

In February 2012, Mitsubishi paid approximately C$2.9 billion for a 40% interest in the Cutbank Ridge Partnership with Encana, which involves 409,000 net acres of Montney Formation natural gas lands in northeast British Columbia.[16][17] The company also sold its midstream assets in the Cutbank Ridge to Veresen for C$920 million.[18]

In June 2014, the company sold its Bighorn assets in Alberta to Jupiter Resources for US$1.8 billion.[19]

In November 2014, the company acquired Athlon Energy for $7.1 billion.[20]

In May 2014, Jonah Energy LLC acquired the company's Jonah Field operations in Sublette County, Wyoming.[21]

In June 2014, the company acquired assets in the Eagle Ford Group from Freeport-McMoRan for $3.1 billion.[22]

In August 2015, the company sold its assets in the Haynesville Shale for $850 million to affiliates of GSO Capital Partners and GeoSouthern Energy.[23]

In December 2015, the company significantly cut its dividend and capital expenditures budget after a fall in energy prices.[24]

In July 2016, the company sold its assets in the Denver Basin for $900 million.[25][26]

In June 2017, the company sold its assets in the Piceance Basin for $735 million.[27][28]

In May 2018, the company permanently ceased production at Deep Panuke. The Deep Panuke project produced and processed natural gas 250 kilometers offshore southeast of Halifax, Nova Scotia.[29] The platform was sent for recycling in 2020.[30]

In December 2018, the company sold its assets in the San Juan Basin for $480 million.[31][32]

In February 2019, the company acquired Newfield Exploration.[33][34]

Major land assets

The company has a land position in Canada of 1.3 million net acres, of which about 773,000 net acres are undeveloped.[2] Its assets in Canada are in the Montney Formation, where it has a partnership with Mitsubishi to develop Cutbank Ridge, Wheatland County, Alberta, and the Horn River Formation.[2]

In February 2022, Ovintiv absorbed former subsidiary EWL Management Limited[35] making it the owner of five decommissioned mines in Ontario: Coldstream Copper Mine, Gordon Lake Mine, Greyhawk Mine (uranium), Dyno Mine (uranium), and Madawaska Mine (uranium) which is being rehabilitated to meet current compliant standards.[36][37]

In the United States, the company holds approximately 929,000 net acres of land, of which 152,000 net acres are undeveloped. It operates in the Permian Basin, Anadarko Basin, Uinta Basin, and the Bakken formation.[2]

Lawsuits

Alleged collusion and bid rigging with Chesapeake Energy

From 2008 through 2010, the company accumulated 250,000 net acres in the Collingwood-Utica Shale gas play in the Middle Ordovician Collingwood formation of the Michigan Basin at an average cost of $150/acre.[38] In May 2012, the company paid about $185 an acre for oil and gas rights on 2,156 acres (873 hectares) at an auction by the Michigan Department of Natural Resources, which was "88 percent less than the average paid two years ago in the area".[39]

In July 2012, Reuters reported about e-mails between the company and Chesapeake Energy, the second-largest natural gas producer in the U.S., to divide up Michigan counties state land leases to suppress land prices in an October 2010 auction.[40] In 2013, a private landowner filed suit against the company and Chesapeake for bid rigging.[41] Justice Department and Michigan authorities were investigating whether state or federal laws were violated; the Internal Revenue Service and U.S. Securities and Exchange Commission also investigated.

While the case was dropped by the DOJ, Michigan's Attorney General followed up on the accusations, and Encana ended up with a fine of $5 million, and Chesapeake paid $25 million into a victim-compensation fund.[42]

Failed lawsuit by adjacent property owners to prevent drilling

In 2013, two property owners adjacent to a drilling unit filed suit against the Michigan Department of Environmental Quality (DEQ) and Encana for potential harm due to proximity. In October 2013, the judge of the Circuit Court of Ingham County issued an injunction against Encana starting to drill until an administrative hearing before DEQ's supervisor of wells had been completed, re part 12 of DEQ's rules for oil and gas operations.[43] In May 2014, the supervisor of wells found with Encana, that the petitioners did "not have standing", because they did not own land within the drilling unit and dismissed the case.[44]

Alleged excessive water use for hydraulic fracturing

In November 2013, Ecojustice, the Sierra Club and the Wilderness Committee filed a lawsuit against British Columbia's Oil and Gas Commission (OGC) granting Encana Corp. "repeated short-term water permits, a violation of the provincial water act".[45] The Supreme Court in October 2014 upheld the validity of OGC's use of short-term water use approvals on a recurrent basis.[46]

Criticism

Wyoming water pollution

In spring 2008, residents from Pavillion, Wyoming, approached the United States Environmental Protection Agency (EPA) about changes in water quality from their domestic wells. Encana was the primary natural gas producer in the area. In 2009, the EPA announced that it had found hydrocarbon contaminants in residents' drinking water wells.[47]

Pipeline explosions

In Pouce Coupe British Columbia five explosions targeted Encana pipelines between October 2008 and January 2009; media reports indicate the pipeline may have been bombed by a disgruntled community member fearing the sour gas (containing hydrogen sulfide, which can be fatal if too much of it is inhaled) poses a danger to the community.[48] Encana was fined CAD $250,000 under Canada's Environmental Emergency Act.[49]

Encana's hydraulic fracturing operations in the United States are portrayed in the 2010 documentary, Gasland, which alleges that hydraulic fracturing causes pollution of ground and surface water, air, and soil.[50]

Deep Panuke project

Issues were raised for the Deep Panuke project offshore of Nova Scotia, when it was proposed in 2006 as a smaller version with increased ocean discharges and when Encana asked for a "streamlined regulatory process" without public hearings.[51]

In British Columbia, between 2007 and 2019, Ovintiv was charged for breaching provincial legislation 19 times, more than any other company, as well as being fined the highest amount.[49]

Leadership

President

Michael G. McAllister, January 24, 2020 – June 30, 2020
Brendan M. McCracken, December 1, 2020 –

Chairman of the Board

Clayton H. Woitas, January 24, 2020 – June 30, 2020
Peter A. Dea, June 30, 2020 –

References

  1. ^ "Our History". Ovintiv.
  2. ^ a b c d e "Ovintiv Inc. 2021 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  3. ^ "Encana completes reorganization and establishes corporate domicile in the U.S." (Press release). PR Newswire. January 24, 2020.
  4. ^ Morgan, Geoffrey (November 1, 2018). "Doug Suttles transforms 'headquarter-less' Encana with $7.7-billion deal to buy Newfield". Financial Post.
  5. ^ "Regulatory Action – Ovintiv Canada ULC". Canadian Nuclear Safety Commission. May 19, 2022. Retrieved June 23, 2022.
  6. ^ Seskus, Tony (June 17, 2020). "Oil and gas company Ovintiv, formerly Encana, laying off workers across North America". CBC News.
  7. ^ Nair, Shanti S.; Khan, Shariq (June 18, 2020). "Ovintiv lays off 25% of workforce after oil demand slumps". Reuters.
  8. ^ Orland, Kevin (June 17, 2020). "Ovintiv cutting jobs in Calgary, Denver and Texas as drilling slows". Calgary Herald. Bloomberg News.
  9. ^ "Nexen buys EnCana unit". The Globe and Mail. October 29, 2004.
  10. ^ "CNPC buys EnCana's Chad operations for $202.5 mln". Reuters. January 21, 2007.
  11. ^ "CNPC International to buy EnCana's Chad holdings". Oil & Gas Journal. January 15, 2007.
  12. ^ EBNER, DAVID (May 9, 2007). "MGM Energy buys into several EnCana assets". The Globe and Mail.
  13. ^ Haggett, Scott (November 30, 2009). "EnCana wraps up spinoff of its oil business". Reuters.
  14. ^ Lustgarten, Abrahm (November 29, 2011). "Company Backs out of $45 Million Deal to Buy Troubled Wyoming Gas Field". ProPublica.
  15. ^ Joyce, Matt (December 22, 2011). "Encana closes sale on most Barnett assets". American City Business Journals.
  16. ^ "Encana Completes Cutbank Ridge Deal with Mitsubishi". LNG World News. February 27, 2012.
  17. ^ DE LA MERCED, MICHAEL J. (February 17, 2012). "Mitsubishi Buys 40% Stake in Encana Shale Gas Assets". The New York Times.
  18. ^ "Encana closes C$920 million sale of Cutbank Ridge midstream assets" (Press release). Business Wire. February 9, 2012.
  19. ^ "Encana Reaches Agreement to Sell Bighorn Assets to Jupiter Resources for Approximately US$1.8 Billion" (Press release). GlobeNewswire. June 27, 2014.
  20. ^ "Encana completes acquisition of Athlon Energy". Oil & Gas Journal. November 13, 2014.
  21. ^ "Jonah Energy Completes Acquisition of the Jonah Field Operations in Wyoming from Encana" (Press release). Business Wire. May 12, 2014.
  22. ^ "Encana Completes $3.1 Billion Eagle Ford Acquisition" (Press release). GlobeNewswire. June 20, 2014.
  23. ^ Graeber, Daniel J. (August 25, 2015). "Encana Corp. leaves Louisiana shale". United Press International.
  24. ^ Pinto, Anet Josline (December 14, 2015). "Canada's Encana slashes dividend, cuts capex". Reuters.
  25. ^ SVALDI, ALDO (July 29, 2016). "Encana Corp. completes sale of Denver-Julesburg Basin assets". The Denver Post.
  26. ^ McKinnon, Judy (October 8, 2015). "Encana to Sell Colorado Oil and Gas Assets for $900 Million". The Wall Street Journal.
  27. ^ "Encana announces agreement to sell its Piceance natural gas assets" (Press release). Globe Newswire. June 9, 2017.
  28. ^ "BRIEF-Encana to sell its Piceance natural gas assets for $735 mln". Reuters. June 9, 2017.
  29. ^ "Encana Corporation – Abandonment of Deep Panuke Offshore Gas Development". National Energy Board.
  30. ^ "Canada: Deep Panuke Offshore Platform Removed from Field". Offshore Engineer. August 7, 2020.
  31. ^ "DJR Energy Closes Acquisition of Encana's San Juan Basin Assets" (Press release). Business Wire. December 27, 2018.
  32. ^ KOHLER, JUDITH (December 28, 2018). "Denver-based DJR Energy closes $480M purchase of assets in San Juan Basin". The Denver Post.
  33. ^ "Encana completes acquisition of Newfield Exploration to create North America's premier resource company" (Press release). Globe Newswire. February 13, 2019.
  34. ^ Pulsinelli, Olivia (February 14, 2019). "Encana closes multibillion-dollar acquisition of Woodlands co". American City Business Journals.
  35. ^ Canadian Nuclear Safety Commission, Order Under Section 25 or Paragraph 37(2)(f) of the Nuclear Safety Control Act, 6 May 2022. (archive)
  36. ^ "Independent Environmental Monitoring Program: Dyno, Bicroft, and Madawaska Mines". Canadian Nuclear Safety Commission. September 21, 2020.
  37. ^ "EWL Legacy Mine Properties Perpetual Management Strategy" (PDF). May 1, 2014.
  38. ^ Petzet, Alan (May 7, 2010). "Explorations: Michigan Collingwood-Utica gas play emerging". Oil & Gas Journal.
  39. ^ Carroll, Joe (June 27, 2012). "Encana Expands in Michigan Shale Chesapeake Is Abandoning". Financial Post. Bloomberg News.
  40. ^ Grow, Brian; Schneyer, Joshua; Roberts, Janet (June 25, 2012). "Special Report: Chesapeake and rival plotted to suppress land prices". Reuters.
  41. ^ Grow, Brian; Schneyer, Joshua (February 25, 2013). "Chesapeake, Encana sued in civil antitrust action". Reuters.
  42. ^ "Minimizing Antitrust Risks in Joint Ventures, Joint Bidding, and AMIs: A Review of Recent Enforcement Activities". Oil and Gas, Natural Resources, and Energy Journal. 2 (5): 536. January 2017.
  43. ^ Smith, Lee (February 8, 2014). "Michigan's fracking: Actors and issues". Midland Daily News.
  44. ^ "Supervisor of Wells Orders". Department of Environmental Quality. Michigan.
  45. ^ Moore, Dene (November 13, 2013). "Fracking Lawsuit Targets EnCana, B.C. Oil And Gas Commission". HuffPost. The Canadian Press.
  46. ^ Theroux, Michael P. (October 15, 2014). "B.C. Supreme Court Upholds Recurring Short-Term Water Use Approvals". Bennett Jones LLP. Retrieved May 17, 2024.
  47. ^ "Pavillion, Wyoming Groundwater Investigation: January 2010 Sampling Results and Site Update" (PDF). United States Environmental Protection Agency. August 2010.
  48. ^ "Latest EnCana pipeline explosion was deliberate: RCMP". CBC News. July 2, 2009.
  49. ^ a b Narwhal, The. "Meet the frackers: B.C.'s top 10 fracking companies, their subsidies, profits and taxes, revealed". The Narwhal. Retrieved October 9, 2021.
  50. ^ Mosier, Jeff (February 3, 2017). "Wise County couple that sued Plano gas company may lose their $2.9M judgment". The Dallas Morning News.
  51. ^ "EnCana unveils smaller Deep Panuke project". CBC News. August 29, 2006.
  • Official website Edit this at Wikidata
  • Business data for Ovintiv Inc.:
Retrieved from "https://en.wikipedia.org/w/index.php?title=Ovintiv&oldid=1230133964"