Chevron to buy PDC Energy in $6.3bn stock deal

Chevron said PDC provides it with high-quality assets expected to deliver higher returns in lower carbon intensity basins in the US.

The company’s chairman and chief executive Mike Wirth said: "PDC’s attractive and complementary assets strengthen Chevron’s position in key US production basins.

"This transaction is accretive to all important financial measures and enhances Chevron’s objective to safely deliver higher returns and lower carbon. We look forward to welcoming PDC’s team and shareholders to Chevron and continuing both companies’ focus on safe and reliable operations."

Chevron expects the acquisition to be accretive to all key financial measures within the first year after closing and to add about $1bn in annual free cash flow at $70 per barrel Brent.