[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.