Chevron to Buy PDC Energy in $6.3 Billion Stock Swap
May 22 2023 - 8:48AM
Dow Jones News
By Colin Kellaher
Chevron on Monday said it agreed to buy independent oil-and-gas
company PDC Energy in a $6.3 billion stock swap that bolsters the
energy giant's position in key U.S. production basins.
Chevron said it would issue 0.4638 shares, worth $72 based on
Friday's closing price of $155.23, for each share of Denver-based
PDC, a nearly 11% premium to Friday's closing price of $65.12.
Chevron, based in San Ramon, Calif., said the deal has a total
enterprise value of $7.6 billion, including PDC's debt.
Chevron said the PDC deal would add 10% to its oil-equivalent
proved reserves for under $7 a barrel and adds 275,000 net acres
adjacent to its position in the Denver-Julesburg Basin, along with
25,000 net acres in the prolific Permian Basin, the largest U.S.
oil field.
Chevron said it would issue roughly 41 million shares in the
deal, slated to close by the end of the year, adding that it
expects the transaction to add $1 billion to annual free cash
flow.
Trading in shares of PDC was halted premarket on Monday.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
May 22, 2023 08:33 ET (12:33 GMT)
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