Chevron Corporation a world leading integrated energy companies has announced that it has finalized the acquisition of PDC Energy, Inc. this following the approval by PDC Energy shareholders on the acquisition deal.

 “We’re pleased to welcome PDC Energy into Chevron,” said Bruce Niemeyer, Chevron’s president for Americas Exploration & Production. “Our companies have similar cultures, with a focus on safe and reliable operations, teaming to deliver results, and benefiting the communities where we operate. PDC’s high-quality assets open up even greater opportunities in important U.S. basins where Chevron already has a strong presence.”

The assets acquired include 275,000 net acres in the Denver-Julesburg (DJ) Basin adjacent to Chevron’s existing operations, which add more than 1 billion barrels of oil equivalent proved reserves, and 25,000 net acres in the Permian Basin that are held by production.

On May 22, 2023 Chevron disclosed that it has entered into a definitive agreement with PDC Energy, Inc. 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.

The acquisition of PDC provided Chevron with high-quality assets expectation to deliver higher returns in lower carbon intensity basins in the United States. PDC acquisition will bring 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.