Colorado-based oil and gas driller PDC Energy Inc. has completed its previously announced $1.7 billion all-stock merger with SRC Energy Inc., according to a Jan. 14 release.
The merger was approved by PDC stockholders and SRC shareholders following special meetings held Jan. 13, the release said. In announcing the deal in August 2019, the companies said the merger would create the second-largest producer operating in the DJ Basin.
"This merger will give the combined company incredible financial strength and flexibility, highlighted by low leverage and an industry-leading cost structure, as well as a business plan capable of delivering sustainable free cash flow to return significant capital to shareholders," PDC President and CEO Bart Brookman said in the release.
Under the agreement, SRC shareholders would get 0.158 PDC share for each share held, with cash paid out instead of any fractional shares. Following the merger, SRC's stock will no longer be listed for trading on the NYSE.
PDC previously said that the merger would result in a leasehold position of about 182,000 net acres in the Wattenberg field of Colorado and about 200,000 barrels of oil equivalent per day of production by the end of 2019.