PDC Energy Adds Inventory with $1.3 Billion Core Wattenberg Acquisition

PDC Energy Inc. agreed on Feb. 28 to acquire Great Western Petroleum LLC in a transaction valued at roughly $1.3 billion, including net debt of approximately $500 million, that analysts say will add much-needed inventory in the Wattenberg Field in Colorado’s Denver-Julesburg (D-J) Basin.

“Coupled with our existing high-quality inventory, this core Wattenberg acquisition adds meaningful scale to PDC while also demonstrating our commitment to—and confidence in—the future of safe and responsible energy development in the state of Colorado,” President and CEO Bart Brookman commented in a company release.

Great Western, a privately held D-J Basin operator owned by affiliates of EIG, TPG Energy Solutions LP and The Broe Group, focuses in the Wattenberg with 54,000 net acres primarily in Colorado’s Adams County and about 55,000 boe/d (42% oil / 67% liquids) of PDP. In total, Great Western has 315 operated locations, of which about 125 are DUCs/approved permits.