Chevron buying PDC shows that energy stocks are cheap


PDCE was trading at 4x earnings next year and 2.5x last year. It was 26% off its 52W high. The shares were down 16% in the last 6 months and flat YTD. PDC does not have great long-lived assets. It's asset base is decent but the valuation made this a layup for Chevron.


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