Chevron acquires US shale assets for $6.3 bln

USA

SAN RAMON, May 23, 2023 – Chevron has signed a deal to fully acquire US E&P independent PDC Energy for USD 6.3 billion, the multinational energy giant announced on Monday.

PDC Energy currently owns 1,110 square kilometres on the Denver-Julian basin with proven reserves of more than 1 billion boe, and more than 101 square kilometres on the Permian basin.

The plays are adjacent to Chevron’s current assets.

The acquisition will see the buyer raise its proven reserves by 10% and add USD 1 billion to its annual cash flow.

The move is part of Chevron’s plans to increase its capex by around USD 1 billion per year, with its guidance raised to between USD 14 billion and USD 16 billion through 2027.

The integrated energy player is currently one of the largest producers at the Denver-Julian basin after acquiring Noble Energy in 2020.

Chevron posted record earnings of USD 6.7 billion in Q1 2023.

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