Exxon Mobil to Acquire Denbury in $4.9 Billion Deal

Exxon Mobil has recently announced its plans to acquire carbon capture developer Denbury in a stock deal worth $4.9 billion. With this acquisition, Exxon will secure the ownership of the largest carbon dioxide pipeline network in the United States, as stated in their news release.

The acquisition of Denbury aligns with Exxon’s commitment to growing its Low Carbon Solutions business and offering comprehensive carbon capture and sequestration solutions to various industries facing challenges in decarbonization. Darren Woods, the chief executive of Exxon, emphasized this point, stating, “Acquiring Denbury reflects our determination to profitably grow our Low Carbon Solutions business by serving a range of hard-to-decarbonize industries with a comprehensive carbon capture and sequestration offering.”

Both companies’ boards of directors have unanimously approved the acquisition. The deal is expected to close in the fourth quarter of this year, pending regulatory approval. Once completed, Denbury shareholders will receive 0.84 Exxon shares for each Denbury share they currently own.

Denbury Chief Executive Chris Kendall expressed his confidence in the partnership, highlighting ExxonMobil’s extensive resources and capabilities in developing their CO2 business. Kendall also noted that the all-equity consideration would allow Denbury shareholders to benefit from ExxonMobil’s strong capital return strategy while participating in the upside of ExxonMobil’s stock.

In premarket trading, Exxon’s shares remained flat at $106.50, while Denbury stock experienced a slight increase of 0.6% to $88.24.