Chevron buys Denver-based PDC Energy and gets a lot of Colorado land in the deal

Chevron, one the largest energy companies in the world, is buying Denver-based PDC Energy.

The deal will add 275,000 acres to Chevron’s holdings in the Denver-Julesburg Basin in eastern Colorado, the companies said in a statement announcing the transaction. That equates to more than 1 billion barrels of oil equivalent, according to the statement. Chevron will also acquire 25,000 acres in the Permian Basin.

“PDC’s attractive and complementary assets strengthen Chevron’s position in key U.S. production basins,” Chevron CEO Mike Wirth said in the statement. “This transaction … 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.”

The all-stock transaction is valued at $6.3 billion, or $72 per share.  

The deal has been unanimously approved by the boards of both companies and is expected to close by the end of the year. It still has to be approved by PDC shareholders and U.S. regulators.