Denbury Incorporation has been acquired through an all-stock transaction, worth USD 4.9 billion, by Exxon Mobil Corporation. This acquisition provides ExxonMobil with the largest owned and operated CO2 pipeline network in the U.S. at 1,300 miles. The transaction is expected to close in the 4th quarter of 2023.
Denbury Inc has reportedly been acquired by Exxon Mobil Corporation, as Exxon Mobil announced entering into a definitive agreement to acquire Denbury. The acquisition is an all-stock transaction valued at USD 4.9 billion, based on ExxonMobil’s closing price on July 12, 2023. The boards of directors of both companies have unanimously approved the transaction, which is subject to customary regulatory reviews and approvals. The transaction is expected to close in the 4th quarter of 2023.
The acquisition of Denbury provides ExxonMobil with the largest owned and operated CO2 pipeline network in the U.S. at 1,300 miles, including nearly 925 miles of CO2 pipelines in Louisiana, Texas, and Mississippi – located within one of the largest U.S. markets for CO2 emissions, as well as 10 strategically located onshore sequestration sites. A cost-efficient transportation and storage system accelerates CCS deployment for ExxonMobil and third-party customers over the next decade and underpins multiple low carbon value chains including CCS, hydrogen, ammonia, biofuels, and direct air capture. In addition to Denbury’s carbon capture and storage assets, the acquisition includes Gulf Coast and Rocky Mountain oil and natural gas operations. These operations consist of proved reserves totaling over 200 million barrels of oil equivalent, with 47,000 oil-equivalent barrels per day of current production, providing immediate operating cash flow and near-term optionality for CO2 offtake and execution of the CCS business.