Ovintiv Inc. signaled last month that the focus this year would be Permian Basin oil, and on Monday, the Denver independent advanced those ambitions by striking a nearly $4.3 billion cash-and stock deal to build West Texas inventory. 

“Substantially all leasehold interest and related assets” were acquired from companies managed by private equity (PE) giant EnCap Investments LP: Black Swan Oil & Gas, PetroLegacy Energy and Piedra Resources. The 65,000 net-acre leasehold in Martin and Andrew counties is near Ovitiv acreage, and it includes around 1,050 well locations.

“We are acquiring a unique undeveloped asset in the Northern Midland Basin,” CEO Brendan McCracken said. “Located in some of the best rock in the Permian, these assets have demonstrated leading well...