Chevron To Acquire PDC Energy In $7.6B Deal
Portfolio Pulse from Nabaparna Bhattacharya
Chevron Corporation (NYSE:CVX) has agreed to acquire PDC Energy, Inc. (NASDAQ:PDCE) in an all-stock deal worth $7.6 billion, including debt. The acquisition will add $1 billion to annual free cash flow and increase Chevron's proved reserves by 10%.
May 22, 2023 | 1:59 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Chevron's acquisition of PDC Energy will add $1 billion to annual free cash flow and increase proved reserves by 10%.
The acquisition of PDC Energy will provide Chevron with development opportunities in the DJ Basin and additional acreage in the Permian Basin. This will increase Chevron's proved reserves and add $1 billion to annual free cash flow, which is likely to have a positive impact on the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
PDC Energy shareholders will receive 0.4638 shares of Chevron for each PDC share in the $7.6 billion all-stock deal.
The acquisition deal values PDC Energy at $72 per share, which is a premium to its current trading price. PDC shareholders will receive 0.4638 shares of Chevron for each PDC share, which is likely to have a positive impact on the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100