PDC Energy to acquire SRC Energy for $1.7bn.

PDC Energy, a domestic independent exploration and production company that acquires, produces, develops, and explores for crude oil, natural gas and NGLs, agreed to acquire SRC Energy, a Denver-based oil and natural gas exploration and production company, for $1.7bn. Under the terms of the agreement, SRC shareholders will receive a fixed exchange ratio of 0.158 PDC shares for each share of SRC common stock they own, which represents a premium of 6.8% to the 30-day average exchange ratio. Lynn A. Peterson, Chief Executive Officer and Chairman of the Board of SRC Energy commented, “I am proud of the SRC team and the high-quality acreage and low-cost operations we have built together. We believe that this transaction will establish the combined company as a leader in the Colorado energy industry. The transaction also provides SRC shareholders with the opportunity to participate in the significant upside potential created by a larger-scale DJ Basin producer with complementary assets in the prolific Delaware Basin. We look forward to working closely with PDC to ensure that the full potential of this combination is realized for the benefit of all of our stakeholders."