Wattenberg Consolidation: PDC,SRC Energy To Combine In $1.7 Billion All’Stock Merger

摘要

PDC ENERGY INC.is answering activist investor calls made earlier this year to return more cash to shareholders with an all-stock merger worth roughly $1.7 billion,including the assumption of debt.The Denver-based oil and gas producer announced the merger agreement with SRC Energy Inc.on Aug.26.It is expected to materially increase PDC’s scale and free-cash profile,enhancing its ability to return additional capital to shareholders.In the agreement,PDC will acquire SRC Energy,gaining SRC’s core area of operations in Greater Wattenberg Field of the Denver-Julesburg(D-J)Basin.Combined,the company is set to become the second-largest producer in the basin.”SRC’s complementary,high-quality assets in the core Wattenberg,coupled with our existing inventory and track record of operational excellence will create a best-in-class operator with the size,scale and financial positioning to thrive in today’s market,”Bart Brook-man,president and CEO of PDC,said in a statement on Aug.26.