Chevron Corp announced on Monday that it will acquire PDC Energy Inc in an all-stock transaction for $7.6 billion, including debt. This is the second acquisition in three years that will expand Chevron’s shale operations in Colorado and Wyoming. The deal is expected to add 10% to Chevron’s proved reserves at a cost of less than $7 per barrel and add $1 billion to annual free cash flow. The deal values PDC at $72 per share, representing a premium of 10.56% to Friday’s close and carries the equity value of $6.3 billion. The acquisition is expected to close by the end of the year and was unanimously approved by the boards of both companies.
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