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PDC Energy to buy two privately held companies for $1.5 billion

August 24, 2016
News

Oil and gas producer PDC Energy Inc said it would buy two privately held companies for about $1.5 billion to add acreage in the Delaware Basin in Texas.

Both the privately held companies are managed by Kimmeridge Energy Management Co.

The deal includes about 57,000 net acres, with 7,000 barrels of oil equivalent per day (boe/d) of net production.

PDC Energy said the transaction will be financed with $915 million of cash and about 9.4 million shares of its common stock, valued at about $590 million.

The Denver-based company said it intends to fund the cash portion of the acquisition through potential equity and debt financings prior to closing.

J.P. Morgan served as the financial adviser to PDC, while Davis Graham & Stubbs LLP served as legal counsel to PDC.

Evercore served as financial adviser and Sidley Austin LLP served as legal counsel to both the private companies.

By Vishaka George

Source: Reuters

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