M&A · Energy · Crude Petroleum & Natural Gas
Chevron Corp to acquire PDC Energy, Inc.
Announced May 22, 2023 · Closed Aug 7, 2023
Deal value$6.30BEV $7.58B
Premium9.4%To unaffected price
EV / Adj. EBITDA—1.7x EV / Revenue
ConsiderationAll stock$72.00 per share
Transaction
- Acquirer
- Chevron Corp (CVX)
- Target
- PDC Energy, Inc. (PDCE)
- Buyer type
- Strategic
- Offer price per share
- $72.00
- Enterprise value
- $7.58B
- Status
- Closed Aug 7, 2023
Deal protections
- Break fee (target pays)
- $225M · 3.6%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Morgan Stanley, Evercore
- To the target
- JPMorgan, PJT Partners
Sector context · Energy
- Comparable deals
- 35 in the prior 24 months
- Premium
- 9.4% vs. 27.3% sector median
- EV / Adj. EBITDA
- Sector median 11.3x
- Break fee
- 3.6% vs. 2.8% sector median
Timeline
- AnnouncedMay 22, 2023
- Proxy filedJul 7, 2023
- Definitive proxyJul 7, 2023
- Shareholder voteAug 4, 2023
- ClosedAug 7, 2023
Valuation · fairness opinions
Discounted cash flow$64.75$82.00
Offer $72.00
Implied value per PDC Energy, Inc. share by analysis, from JPMorgan · DCF discount rate 10.25%–11.25%.