Activism: PDC Energy to pursue merger talks with SRC Energy; Kimmeridge in activist role

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[Context: On August 6, Bloomberg reported DJ Basin-focused PDC Energy is in talks with SRC Energy. PDC has been the target of activist efforts by PE firm Kimmeridge Energy Management. Further details and related links are below.]


 

On August 6, Bloomberg reported that PDC Energy (Nasdaq: PDCE) is in talks to merge with SRC Energy (NYSEAmerican: SRCI), citing people familiar. Private equity firm Kimmeridge Energy Management, which owns 5% of PDC shares, had gone activist and in May failed in an attempt to change PDC Energy’s board. PDC and SRC operate in the DJ Basin.