PDC completes acquisition of SRC Energy

DENVER — Two of the region’s largest energy producers have completed their $1.7 billion merger, creating the second-largest Weld County oil-and-gas operator.

Denver-based PDC Energy Inc. (Nasdaq: PDCE) Tuesday completed its acquisition of SRC Energy Inc. (NYSE: SRCI), also based in Denver.

The merger — first announced in August 2019 — was approved by PDC stockholders and SRC shareholders at special meetings conducted Jan. 13.

SRC stockholders saw their shares converted into the right to receive 0.158 shares of PDC common stock, with cash paid in lieu of fractional shares. With completion of the merger, SRC’s common stock will cease to be traded on the New York Stock Exchange.

“Today is a pivotal day for PDC as we have completed the merger of these two companies, both of which are grounded in strong core values and a shared commitment to responsible and safe operations,” Bart Brookman, PDC CEO, said in a prepared statement. “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.”

A PDC spokeswoman told BizWest last summer that the company employed about 250 people in its field office in Evans. The company’s oil and natural gas reserves are concentrated in the Wattenberg Field in Colorado and the Delaware Basin in West Texas. The merger increased PDC’s Weld County holdings to 182,000 acres.

SRC, formerly known as Synergy Resources Corp., was initially founded in Platteville but moved its headquarters to Denver in 2015.

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