Chevron to boost U.S. presence with $7.6 billion PDC Energy buy

Chevron

May 22 (Reuters) – Chevron Corp (CVX.N) said on Monday it is increasing its U.S. oil and gas footprint by acquiring shale producer PDC Energy Inc (PDCE.O) in a stock-and-debt transaction worth $7.6 billion.

For Chevron, the second-largest U.S. oil firm, the deal will increase its production, capital expenditures and cash flow in the United States amid geopolitical tensions following Russia’s invasion of Ukraine last year.

The deal values Denver-based PDC at $72 per share, about a 14% premium to its 10-day average ending Friday. It is expected to close by year-end, the companies said.

“It’s a strong investment in our business in the U.S.,” Chief Executive Michael Wirth told Reuters in an interview.

The company and rivals were criticized last year by U.S. President Joe Biden for not increasing output as fuel prices spiked.

The deal values Denver-based PDC at $72 per share, about a 14% premium to its 10-day average ending Friday. It is expected to close by year-end, the companies said.

“It’s a strong investment in our business in the U.S.,” Chief Executive Michael Wirth told Reuters in an interview.

The company and rivals were criticized last year by U.S. President Joe Biden for not increasing output as fuel prices spiked.

The deal values Denver-based PDC at $72 per share, about a 14% premium to its 10-day average ending Friday. It is expected to close by year-end, the companies said.

“It’s a strong investment in our business in the U.S.,” Chief Executive Michael Wirth told Reuters in an interview.

The company and rivals were criticized last year by U.S. President Joe Biden for not increasing output as fuel prices spiked.

The oil major has minted cash from last year’s sky-high crude prices and held $15.7 billion in cash and equivalents at the end of the first quarter, about triple what it needs for operating activity.

Source: Reuters.com