United States – Exxon Mobil and Denbury, a provider of enhanced oil recovery (EOR) and  carbon capture, utilization and storage (CCS) technologies, have entered into a legally binding agreement.
Based on ExxonMobil’s closing share price on July 12, 2023, the acquisition represents an all-stock deal worth $4.9 billion, or $89.45 per share. Denbury stockholders will get 0.84 ExxonMobil shares for every Denbury share, as per the terms of the transaction.
ExxonMobil anticipates excellent growth and returns from the merger synergies. With the purchase of Denbury, ExxonMobil now has the largest owned and operated network of CO2 pipelines in the United States, measuring 1,300 miles. This network includes ten strategically placed onshore sequestration sites and nearly 925 miles of CO2 pipelines in Louisiana, Texas, and Mississippi, three of the largest CO2 emitting states in the country. Over the next ten years, ExxonMobil and other clients can accelerate the deployment of CCS, which supports a number of low carbon value chains like as CCS, hydrogen, ammonia, biofuels, and direct air capture.
The deal also includes Rocky Mountain and Gulf Coast oil and natural gas activities in addition to Denbury’s carbon capture and storage facilities. With 47,000 oil-equivalent barrels of current production per day and proved reserves amounting to approximately 200 million barrels of oil equivalent, these operations offer immediate operating cash flow as well as short-term flexibility for CO2 offtake and CCS business execution.
The transaction has been accepted by the boards of directors of both companies and is now awaiting the usual regulatory reviews and approvals.
