Denver-based PDC Energy has been acquired by Chevron Corporation, creating Colorado's largest oil and gas company. The deal comes three years after Chevron acquired Noble Energy.

The new company will now hold 600,000 acres statewide - about half of that in the Denver-Julseburg Basin adjacent to Chevron's existing operations. It will produce 400,000 barrels of oil per day on average making it one of Chevron's top five production units in the world.

"We have an inventory that's permitted and we see possibilities here," Chevron's Regional Vice President, Kim McHugh told CBS News Colorado.

"Both companies are committed to lowering their carbon footprint."

McHugh also said, "These two companies have similar cultures both safe and reliable benefitting the communities where they operate."

Chevron is based in California. it is also looking to expand its renewable fuel business in Colorado to include hydrogen, geothermal and carbon sequestration.

McHugh says the company has not made decisions yet regarding possible layoffs at PDC Energy.