Through the acquisition, Chevron obtains 275,000 net acres, adjacent to its existing operations in the Denver-Julesburg (DJ) basin, and 25,000 net acres in the Permian Basin, which will add more than 1 billion barrels of oil equivalent proved reserves
US-based oil and gas company Chevron has concluded the previously announced acquisition of PDC Energy, an independent oil and gas company, for a total of $7.6bn.
Chevron closes acquisition of PDC Energy. (Credit: Delfino Barboza on Unsplash)
In May this year, Chevron signed a definitive agreement with PDC Energy to acquire all the outstanding shares of PDC Energy at a price of $72 per share.
The transaction has been unanimously approved by the Boards of Directors of both companies and is now closed following approval by PDC Energy shareholders.
Through the acquisition, Chevron obtains 275,000 net acres, adjacent to its existing operations in the Denver-Julesburg (DJ) basin, and 25,000 net acres in the Permian Basin.
The assets will add more than one billion barrels of oil equivalent proved reserves.
Chevron Americas exploration and production president Bruce Niemeyer said: “We’re pleased to welcome PDC Energy into Chevron. 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 US basins where Chevron already has a strong presence.”
Morgan Stanley & Co., served as lead financial advisor, Evercore as advisor, and Paul, Weiss, Rifkind, Wharton & Garrison as legal advisor to Chevron, on the transaction.
J.P. Morgan Securities served as lead financial advisor to PDC Energy and provided a fairness opinion to its Board of Directors.
Wachtell, Lipton, Rosen & Katz and Davis Graham & Stubbs are served as legal counsel, and PJT Partners as advisor to PDC Energy.
Last month, Italian energy company Eni agreed to acquire Chevron’s interests and operatorship in certain production blocks in the Kutei Basin, offshore Indonesia.
Under the terms of the agreement, Eni will acquire a 72% of Makassar Straits Block and a 62% stake each in Ganal and Rapak Blocks.
Eni already owns a 20% interest in the Ganal and Rapak Blocks blocks as a non-operator.