Chevron Acquires PDC Energy

Chevron has entered into a definitive agreement with PDC Energy to acquire all outstanding shares of PDC in a transaction valued at US$6.3 billion, or US$72 per share. The total enterprise value, including debt, of the transaction is US$7.6 billion.

The acquisition increases Chevron’s presence in two US basins – DJ and Permian. In the DJ Basin, Chevron gains 275,000 net acres adjacent to its existing operations that add over 1 billion BOE of proved reserves. In the Permian Basin, which is made up of several component basins, 25,000 net acres across the core Delaware Basin will be integrated into Chevron’s existing Permian Basin operations.


“PDC’s attractive and complementary assets strengthen Chevron’s position in key US production basins,” said Chevron Chair and CEO Mike Wirth. “This transaction is accretive to all important financial measures and enhances Chevron’s objective to safely deliver higher returns and lower carbon. We look forward to welcoming PDC’s team and shareholders to Chevron and continuing both companies’ focus on safe and reliable operations.”

Chevron anticipates the transaction to be accretive to all key financial measures within the first year after closing and to add about US$1 billion in annual free cash flow at US$70 per barrel Brent and US$3.50 per Mcf Henry Hub (approximate 2024 futures prices as of May 2023).


PDC Energy is a US independent exploration and production company that acquires, explores, and develops properties for the production of crude oil, natural gas, and natural gas liquids, with operations in the Wattenberg Field in Colorado and Delaware Basin in west Texas. Its operations in the Wattenberg Field are focused in the horizontal Niobrara and Codell plays and its Delaware Basin operations are primarily focused in the horizontal Wolfcamp zones.

“The combination with Chevron is a great opportunity for PDC to maximize value for our shareholders. It provides a global portfolio of best-in-class assets,” said Bart Brookman, PDC president and CEO. “I look forward to blending our highly complementary organizations, and I’m excited that PDC’s assets will help propel Chevron toward our shared goal for a lower carbon energy future.”



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