(MENAFN- AzerNews) Chevron Corporation (NYSE: CVX) has announced its definitive
agreement to acquire PDC Energy, Inc. (NASDAQ: PDCE) in a landmark
all-stock transaction valued at $6.3 billion, equivalent to $72 per
share, Azernews reports, citing international media outlets.
As the multinational energy corporation reports, under the terms
of the agreement, each outstanding share of PDC will be exchanged
for 0.4638 shares of Chevron. Based on Chevron's closing price on
May 19, 2023, the deal offers an attractive proposition to PDC
shareholders.
This strategic acquisition positions Chevron to benefit from
PDC's portfolio of high-quality assets situated in lower carbon
intensity basins across the United States. The assets are expected
to generate superior returns for Chevron.
Notably, PDC brings to the table robust free cash flow,
production with low breakeven costs, and promising development
opportunities adjacent to Chevron's existing presence in the
Denver-Julesburg (DJ) Basin. Furthermore, the transaction adds
valuable acreage to Chevron's already prominent position in the
Permian Basin, reinforcing its industry-leading position.
By expanding its footprint in these key basins, Chevron aims to
capitalize on the significant growth potential and leverage
synergies to enhance operational efficiencies. The acquisition
aligns with Chevron's strategic focus on sustainable and
responsible energy development, while further diversifying its
portfolio and strengthening its competitive edge in the market.
The transaction is subject to customary closing conditions and
regulatory approvals. Upon completion, Chevron's acquisition of PDC
Energy will mark a significant milestone in the company's pursuit
of growth opportunities and its commitment to delivering long-term
value to shareholders.
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