Brief: Chevron Corp To Acquire PDC Energy In All-Stock Transaction Valued At $6.3 Billion

PDC Energy

22/05/2023 13:37

May 22 (Reuters) - Chevron Corp  CVX.N :
    * CHEVRON CORP - TO ACQUIRE ALL OF THE OUTSTANDING SHARES OF PDC IN AN
ALL-STOCK
TRANSACTION VALUED AT $6.3 BILLION, OR $72 PER SHARE
    * CHEVRON CORP - PDC SHAREHOLDERS WILL RECEIVE 0.4638 SHARES OF CHEVRON FOR
EACH
PDC SHARE
    * CHEVRON CORP - DEAL EXPECTED TO ADD $1 BILLION TO ANNUAL FREE CASH FLOW
    * CHEVRON CORP - TOTAL ENTERPRISE VALUE, INCLUDING DEBT, OF THE TRANSACTION
IS
$7.6 BILLION
    * CHEVRON CORP - ANTICIPATES THE TRANSACTION TO BE ACCRETIVE TO ALL KEY
FINANCIAL
MEASURES WITHIN THE FIRST YEAR AFTER CLOSING
    * CHEVRON - EXPECTS TO INCREASE CAPEX BY ABOUT $1 BILLION PER YEAR, RAISING
ITS
GUIDANCE RANGE TO $14 TO $16 BILLION THROUGH 2027
    * CHEVRON CORP -  TRANSACTION IS EXPECTED TO ACHIEVE RUN-RATE COST SYNERGIES
OF
AROUND $100 MILLION BEFORE TAX WITHIN A YEAR OF CLOSING
    * CHEVRON - DEAL UNANIMOUSLY APPROVED BY BOARDS OF BOTH COS AND EXPECTED TO
CLOSE
BY YEAR-END 2023

Source text for Eikon:  ID: 
Further company coverage:  CVX.N 

 ((Reuters.Briefs@thomsonreuters.com;))