Analyst Stewart Glickman at CFRA on Monday upgraded his rating on Chevron Corp.’s stock
CVX,
to buy, from hold, after Chevron’s announcement earlier Monday that it plans to buy PDC Energy Inc.
PDCE,
The deal, for $6.3 billion plus $1.3 billion in stock, would boost Chevron’s share count by 4.6% and it is likely to be immediately accretive, Glickman said. PDC’s DJ Basin acreage, largely adjacent to Chevron’s, can enable Chevron “to generate improved unit cost performance in that region,” the analyst said.
