Chevron Corp. has agreed to acquire all of the outstanding shares of PDC Energy Inc., an exploration and production company that acquires, explores and develops properties for the production of crude oil, natural gas and natural gas liquids (NGLs), in an all-stock transaction valued at $6.3 billion.
The acquisition of PDC provides Chevron with assets that the company expects to deliver higher returns in lower carbon intensity basins in the U.S. PDC brings cash flow, production and development opportunities adjacent to Chevron’s position in the Denver-Julesburg Basin, as well as additional acreage to Chevron’s position in the Permian Basin.
“PDC’s attractive and complementary assets strengthen Chevron’s position in key U.S. production basins,” states 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.
Morgan Stanley & Co. LLC is acting as financial advisor to Chevron. Evercore also advised Chevron. Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal advisor to Chevron. J.P. Morgan Securities LLC is acting as financial advisor to PDC Energy and provided a fairness opinion to the board of directors. Wachtell, Lipton, Rosen & Katz and Davis Graham & Stubbs are jointly serving as the company’s legal counsel. PJT Partners also advised PDC Energy.