Ovintiv Inc. closed the previously announced acquisition of core Midland Basin assets on June 12, adding approximately 1,050 net 10,000 ft well locations and 65,000 net acres — mostly undeveloped land adjacent to the company’s Permian Basin operations.

The $4.275 billion cash-and-stock transaction includes almost all the leasehold interest and related assets of EnCap Investments LP portfolio companies Black Swan Oil and Gas, PetroLegacy Energy and Piedra Resources.

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Ovintiv also closed its previously announced all-cash sale of its Bakken portfolio in the Williston Basin to EnCap portfolio company Grayson Mill Bakken LLC for $825 million.

Both transactions will enhance capital efficiency by 15% and increase cash returns per share by more than 25%, the company said.

As part of the transaction, Ovintiv will issue approximately 31.8 million shares of its common stock, down from the 32.6 million shares estimated in the initial announcement of the transaction.

Ovintiv will also be added to the S&P 400 Index effective prior to market open on June 20.

Ovintiv expects to have a total company oil and condensate production of more than 200,000 bbl/d and a total capital investment of $2.1 billion to $2.5 billion in 2024.