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Chevron secures $7.6bn deal to acquire PDC Energy

Published 05/22/2023, 09:33 AM
© Reuters.  Chevron (CVX) secures $7.6bn deal to acquire PDC Energy

Chevron (NYSE:CVX) has agreed to acquire PDC Energy (NASDAQ:PDCE) in a deal worth $6.3 billion, the company announced Monday.

The all-stock transaction is valued at $6.3B, or $72 per share. Based on Chevron's closing price on May 19, PDC shareholders will receive 0.4638 shares of Chevron for each PDC share. The total enterprise value of the deal, including debt, is $7.6B.

PDC shares have jumped more than 8% on the news, currently trading at $70.63 premarket.

"PDC's attractive and complementary assets strengthen Chevron's position in key U.S. production basins," said Chevron Chairman and CEO Mike Wirth. "This transaction is accretive to all important financial measures and enhances Chevron's objective to safely deliver higher returns and lower carbon."

The deal is expected to close by the end of 2023. Chevron shares are down 0.8% premarket.

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