Deal Insight
Chevron acquires PDC Energy for US$7.6 billion
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Chevron is acquiring PDC Energy in an all-stock transaction worth US$7.6 billion. This is Chevron's first oil and gas deal since acquiring Noble Energy in 2020. Many had been wondering when the company would return to the M&A market given its strong financial position. At the end of Q1 2023, the company had US$18 billion of cash on its balance sheet and a gearing ratio of just 3%. Although the deal was an all-stock transaction, Chevron is planning to spend US$17.5 billion on buybacks this year which will more than offset the additional shares issued. We value PDC's assets above the transaction price, though the transaction price represents a 14% premium to PDC's ten day trailing share price.
Table of contents
- Executive summary
- Transaction details
- Upstream assets
- Deal analysis
- Upsides and risks
- Strategic rationale
- Oil & gas pricing and assumptions
Tables and charts
This report includes the following images and tables:
- Executive summary: Table 1
- Denver Julesburg production and net acreage by operator
- Denver Julesburg - PDC and Chevron leasehold and operated wells
- Delaware Basin - PDC and Chevron leasehold and operated wells
- Upstream assets: Table 1
- Deal analysis: Table 1
- Deal analysis: Table 2
- Deal analysis: Table 3
- Upstream emissions intensity comparison
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
What's included
This report contains:
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