PDC Energy

History

2023: Chevron bought PDC Energy for $7.6 billion

On May 22, 2023, the American energy corporation Chevron announced the conclusion of an agreement on the acquisition of the oil and gas company PDC Energy. The total amount of the transaction will be more than $7.5 billion.

The combination of assets will be carried out through the exchange of securities. Under the terms of the contract, Chevron will pay PDC Energy shareholders $72 per share: this represents a premium of approximately 14% to the average value of the acquired company's securities for a ten-day period (by May 19, 2023). The total amount of the transaction is approximately $6.3 billion, or approximately $7.6 billion, including debt. As part of the deal, Chevron will issue about 41 million shares of common stock. The merger is scheduled to be completed by the end of 2023, subject to the necessary regulatory approvals. The merger unanimously approved the boards of directors of both companies.

Chevron Announces Agreement to Acquire Oil and Gas Company PDC Energy

The deal is taking place against the backdrop of a difficult macroeconomic situation, a crisis in the United States and geopolitical uncertainties. American oil companies were criticized by President Joe Biden due to the fact that they could not ensure an increase in the volume of resource production in the country on time. Because of this, fuel prices began to rise, which provoked unrest among the population.

Chevron expects PDC Energy's takeover to boost all key financial performance during the first year after the deal closes. The purchase, in particular, will add about $1 billion in free cash flow. At the same time, oil and gas production by 2024 will increase by approximately 260 thousand barrels of oil equivalent per day.

PDC's attractive assets complement our own resources and strengthen Chevron's position in key U.S. mining basins, "said Chevron Chairman and CEO Mike Wirth[1]

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