Chevron has entered into a definitive agreement to acquire the US shale producer PDC Energy in an all-stock transaction valued at US$6.3bn. The total enterprise value, including debt, of the transaction is US$7.6bn. The acquisition will increase Chevron’s proved reserves by 10%, adding 260,000 boe/ of oil and gas production in the Denver-Julesburg (DJ) basin. In addition, PDC Energy produces 25,000 bb/d in the Permian basin.
In 2022, Chevron posted full year earnings of US$35.5bn, compared to US$15.6bn in 2021. The company produced 3 mb/d of oil in 2022 (-3% compared to 2021). International production decreased 7% in 2022 primarily due to the end of concessions in Thailand and Indonesia, while the US production increased by 4% compared to 2021, mainly in the Permian Basin.