Chevron Corp (CVX)

[DewDiligence]

CVX acquires PDCE for $72/sh in_stock—an_11%_premium_to_Friday's_close:

https://finance.yahoo.com/news/chevron-announces-agreement-acquire-pdc-120000591.html

Chevron Corporation announced today that it has entered into a definitive agreement with PDC Energy, Inc. (NASDAQ: PDCE) to acquire all of the outstanding shares of PDC in an all-stock transaction valued at $6.3 billion, or $72 per share. Based on Chevron’s closing price on May 19, 2023 and under the terms of the agreement, PDC shareholders will receive 0.4638 shares of Chevron for each PDC share. The total enterprise value, including debt, of the transaction is $7.6 billion.

… PDC brings strong free cash flow, low breakeven production and development opportunities adjacent to Chevron’s position in the Denver-Julesburg (DJ) Basin, as well as additional acreage to Chevron’s leading position in the Permian Basin… [The transaction] increases Chevron’s proved reserves by 10% at an acquisition cost under $7 per barrel of oil equivalent (BOE).

• DJ Basin – 275,000 net acres adjacent to Chevron’s existing operations that add over 1 billion BOE of proved reserves in highly economic locations and enable capital and operational synergies.

• Permian Basin – 25,000 net acres that are held by production and will be integrated into Chevron’s existing capital efficient development operations.