No. of Recommendations: 1
https://www.chevron.com/newsroom/2023/q2/chevron-a...'chevron announces agreement to acquire PDC energy
Complementary to Chevron's operations in important U.S. production basins
Adds 10% to oil equivalent proved reserves for under $7 per barrel
Accretive to earnings per share and return on capital employed (ROCE)
Expected to add $1 billion to annual free cash flow
SAN RAMON, Calif. and DENVER, Colo., May 22, 2023 ' Chevron Corporation (NYSE: CVX) announced today that it has entered into a definitive agreement with PDC Energy, Inc. (NASDAQ: PDCE) to acquire all of the outstanding shares of PDC in an all-stock transaction valued at $6.3 billion, or $72 per share. Based on Chevron's closing price on May 19, 2023 and under the terms of the agreement, PDC shareholders will receive 0.4638 shares of Chevron for each PDC share. The total enterprise value, including debt, of the transaction is $7.6 billion.
The acquisition of PDC provides Chevron with high-quality assets expected to deliver higher returns in lower carbon intensity basins in the United States. PDC brings strong free cash flow, low breakeven production and development opportunities adjacent to Chevron's position in the Denver-Julesburg (DJ) Basin, as well as additional acreage to Chevron's leading position in the Permian Basin.
'PDC's attractive and complementary assets strengthen Chevron's position in key U.S. production basins,' said Chevron Chairman and CEO Mike Wirth. 'This transaction is accretive to all important financial measures and enhances Chevron's objective to safely deliver higher returns and lower carbon. We look forward to welcoming PDC's team and shareholders to Chevron and continuing both companies' focus on safe and reliable operations.''
Would love to know their level of interest in OXY!
