Chevron will acquire PDC Energy for $7.6B in stock and debt in a deal projected to impact its U.S. operations substantially. The acquisition is part of a broader strategy for Chevron to expand production and consider other additions beyond 2027. Chevron's acquisition of shale producer PDC Energy, at $72 per share, is expected to close by year-end and add 10% to its reserves. - "It is a strong investment in our U.S. business," says Chevron CEO Michael Wirth.
- Within a year of the deal's conclusion, Chevron's capital expenditures and free cash flow will increase by nearly $1B.
- The acquisition will increase Chevron's oil and gas production in the DJ basin in Colorado by 260,000 barrels per day, elevating it to one of its top five business assets in terms of production.
- PDC Energy shares increased 9% in morning trading, while Chevron shares dropped less than 1%.
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