XOM - Did Chevron Just Force ExxonMobil's Hand?
2023-05-26 07:45:00 ET
Chevron (NYSE: CVX) recently made a big splash. It agreed to acquire PDC Energy (NASDAQ: PDCE) in a $7.6 billion deal. The highly strategic and accretive acquisition will provide Chevron with a meaningful boost.
The deal comes amid continued rumors that ExxonMobil (NYSE: XOM) is on the prowl for a mega-oil deal . While the company has said it plans to be patient , Chevron's deal could force Exxon to move faster.
Investors weren't initially excited by Chevron's $7.6 billion deal to acquire PDC Energy , as the stock slid about 2% following the transaction announcement. Many thought Chevron would bulk up on its position in the oil-rich Permian Basin if it did a deal. While PDC Energy has land in the Permian (25,000 net acres), its primary focus area is Colorado's DJ Basin (275,000 net acres).
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Did Chevron Just Force ExxonMobil's Hand?