On November 14, 2024, Paramount Resources Ltd. entered a purchase and sale agreement with Ovintiv Inc. to divest its Karr, Wapiti, and Zama properties for $3.325 billion in cash, along with Ovintiv's Horn River Basin properties. The transaction includes 170 net sections of Montney lands with significant reserves and related infrastructure, as well as Ovintiv's 50% operated interests in the Two Island Lake and Kiwigana fields.

The deal enables Paramount to realize value for its assets and positions the company to focus on its high-growth Duvernay properties and other strategic assets. Proceeds will be allocated for shareholder returns and reinvestment in growth opportunities.

BMO Capital Markets and Peters & Co. Limited acted as financial advisors to Paramount, with Norton Rose Fulbright Canada LLP as legal counsel. Scotiabank, RBC Capital Markets, and ATB Capital Markets served as strategic advisors. Ovintiv was advised by J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Jefferies LLC, and BofA Securities, Inc., with legal counsel from Blake, Cassels & Graydon LLP and Gibson, Dunn & Crutcher LLP.

The deal, effective October 1, 2024, is expected to close in Q1 2025, pending regulatory approvals. Paramount plans to maintain its dividend at $0.15 per share until closing and will review post-transaction dividend strategy.