Chevron CEO Mike Wirth told Bloomberg this week that Monday’s announcement of the company’s acquisition of Denver-based PDC Energy “doesn’t preclude our ability to do further transactions, but we don’t have gaps to fill. We’re always looking, but we’ll stay very disciplined as we have been on a number of transactions we have done over recent years.” Chevron acquired PDC Energy assets in Permian Basin and DJ Basin for $6.3 billion ($7.6 billion including debt).
Bloomberg reported, “Oil and gas producers are flush with cash after raking in record profits over the past year, leaving the U.S. energy patch ripe for a takeover boom. Companies are looking to bulk up and consolidate, acquiring rivals to secure drilling sites for the future.” Wirth said PDC Energy fits neatly into Chevron’s plan to grow in areas that fit with its existing assets rather than take on large, transformative acquisitions. He said the PDC deal will move DJ Basin “into the top handful of assets that we have worldwide.” Biraj Borkhataria, analyst with RBC Capital Markets, added, “We expect more deals such as this going forward.”