Deal Insight
PDC buys SRC in US$1.8 billion all-stock deal
Report summary
PDC Energy is to acquire SRC Energy in an all-stock deal worth US$1.8 billion (including net debt and working capital of US$820 million). PDC's offer of 0.158 shares per SRC share equates to a 4% discount to SRC's prior-closing share price and values SRC's equity at US$971 million. The buyers' shareholders were unusually warm to the deal - PDC's shares were up 17% at close on the day that the deal was announced. The merger will create the second-largest DJ Basin producer, behind Occidental (via Anadarko). The combined company will hold 182,000 net highly contiguous Niobrara and Codell acres in the core of the Wattenberg Field, along with PDC's 36,000 net acres Permian position. Production will be close to 200 mboe/d (62% liquids).
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 9 images and tables including:
- Executive summary: Table 1
- PDC and SRC acreage (Niobrara formation subsea depth)
- Upstream assets: Table 1
- PDC and SRC Enterprise Value and Wood Mackenzie NPV10
- Deal analysis: Table 1
- Deal analysis: Table 2
- Deal analysis: Table 3
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
What's included
This report contains:
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