PDC, SRC Energy To Combine In $1.7 Billion All-Stock Merger

PDC is set to become the second-largest producer in the D-J Basin through its acquisition of SRC Energy and will also remain committed to its Permian position.

PDC, SRC Energy To Combine In $1.7 Billion All-Stock Merger

Pro forma the SRC merger, PDC Energy will have about 182,000 consolidated core Wattenberg net acres, of which nearly 100% is located in Weld County, Colo. (Source: Hart Energy)

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 expected to materially increase PDC’s scale and free cash profile that the company said will enhance its ability to return additional capital to shareholders.

In the agreement, PDC will acquire SRC Energy, gaining SRC’s core area of operations is in the Greater Wattenberg Field of the Denver-Julesburg (D-J) Basin. Combined, the company is set to become the second-largest producer in the D-J Basin.

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.