Chevron to buy PDC Energy

Chevron, one of the major oil producers in the US, announced that it will buy PDC Energy for $7.6 billion including its debt. The company announced that an agreement was reached for Chevron to buy all shares of PDC Energy for $6.3 billion. The value of the purchase, including its debt, was reported to be $7.6 billion. The statement indicated that the agreement in question complements Chevron’s operations in important US production basins and that it is expected to increase Chevron’s proven reserves by 10 percent at a cost of less than $7 per barrel. The statement indicated that the agreement is expected to add $1 billion to Chevron’s annual free cash flow. The statement indicated that the agreement was unanimously approved by the boards of both companies and that it is expected to be completed by the end of the year.