{"id":12270,"date":"2023-05-22T17:51:46","date_gmt":"2023-05-22T21:51:46","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/chevron-to-buy-pdc-energy-in-an-all-stock-deal-valued-at-6-3-billion-at-premium-of-nearly-11\/"},"modified":"2023-05-22T17:51:49","modified_gmt":"2023-05-22T21:51:49","slug":"chevron-to-buy-pdc-energy-in-an-all-stock-deal-valued-at-6-3-billion-at-premium-of-nearly-11","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=12270","title":{"rendered":"Chevron to buy PDC Energy in an all-stock deal valued at $6.3 billion, at premium of nearly 11%"},"content":{"rendered":"
\n

Chevron Corp. announced Monday an agreement to buy Colorado-based oil and gas producer PDC Energy Inc. in an all-stock deal valued at $6.3 billion, or $7.6 billion when including debt.<\/p>\n

The deal sent PDC shares
\n PDCE,
\n +7.22%<\/bg-quote>
\n surging 8.6% in afternoon trading, putting them on track for the highest close since March 3. Chevron\u2019s stock
\n CVX,
\n -1.80%<\/bg-quote>
\n fell 0.7%, as stock-based acquisitions dilute current shareholdings.<\/p>\n

\n

Under the terms of the deal, PDC shareholders will receive 0.4638 Chevron shares for each PDC share they own. Based on Friday\u2019s closing price for Chevron\u2019s stock of $155.23, the deal valued PDC shares at $72 each, a 10.6% premium to PDC\u2019s Friday closing price of $65.12.<\/p>\n

\u201cPDC\u2019s attractive and complementary assets strengthen Chevron\u2019s position in key U.S. production basins,\u201d said Chevron Chief Executive Officer Mike Wirth.<\/p>\n

The deal is expected to close by the end of 2023.<\/p>\n

Chevron said it expects the deal to add to \u201call key financial measures\u201d within the first year after closing. It is expected to add about $1 billion in free cash flow per year with Brent crude at $70 a barrel and Henry Hub natural gas at $3.50 per thousand cubic feet (MCF).<\/p>\n

The deal increases Chevron\u2019s proved reserves by 10% at an acquisition cost of $7 per barrel of oil equivalent (BOE).<\/p>\n

Chevron expects to increase capital expenditures (capex) by about $1 billion per year, and is therefore raising its capex guidance range through 2027 to $14 billion to $16 billion.<\/p>\n

Synergies from the deal are expected to be around $100 million.<\/p>\n

PDC\u2019s stock has climbed 11.4%, while Chevron\u2019s stock has dropped 14.1%, the Energy Select Sector SPDR exchange-traded fund
\n XLE,
\n -0.41%<\/bg-quote>
\n has lost 8.5% and the Dow Jones Industrial Average
\n DJIA,
\n -0.42%<\/bg-quote>
\n has gained 0.6%.<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Chevron Corp. announced Monday an agreement to buy Colorado-based oil and gas producer PDC Energy Inc. in an all-stock deal valued at $6.3 billion, or $7.6 billion when including debt. The deal sent PDC shares PDCE, +7.22% surging 8.6% in afternoon trading, putting them on track for the highest close since March 3. Chevron\u2019s stock […]<\/p>\n","protected":false},"author":1,"featured_media":12271,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-12270","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nChevron to buy PDC Energy in an all-stock deal valued at $6.3 billion, at premium of nearly 11% | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Chevron Corp. announced Monday an agreement to buy Colorado-based oil and gas producer PDC Energy Inc. in an all-stock deal valued at $6.3 billion, or\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=12270\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta 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