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Is Chevron's Purchase of PDC Energy a Steal? wsj.com Is Chevron's Purchase of PDC Energy a Steal?Some Wall Street analysts believe Chevron's $6.3 billion deal for rival driller PDC Energy is a steal. The acquisition, which expands Chevron's shale footprint in Colorado, Wyoming and Texas, represents an 11% premium to PDC shares' close on Friday. With oil-and-gas producers boasting strong balance sheets that have fueled dealmaking chatter, that price tag could offer clues about the M&A market. "What is surprising to us is we do not believe the deal was fully shopped [across] the industry which could have potentially enabled an even higher bid," Truist Securities told clients in a note Monday. Chevron's all-stock deal also came in below Siebert Williams Shank analysts' price target for PDC Energy. Calling the valuation "highly attractive," they believe it will benefit Chevron stock--and, in turn, PDC shareholders. Shares of Chevron dipped Monday, while PDC's were recently up more than 8%. |
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