(Reuters) -Chevron Corp said on Monday it would acquire PDC Energy Inc in an all-stock transaction for $7.6 billion, including debt.

The oil major said the PDC deal would bring strong free cash flow, low breakeven production and development opportunities adjacent to Chevron's position in the Denver-Julesburg Basin, as well as additional acreage to the company's position in the Permian Basin.

The deal is expected to increases Chevron's proved reserves by 10% at an acquisition cost of under $7 per barrel of oil equivalent.

(Reporting by Arunima Kumar in Bengaluru; Editing by Krishna Chandra Eluri)