ExxonMobil to acquire Denbury to enhance carbon capture capabilities

ExxonMobil Corporation announced a definitive agreement to acquire Denbury, a leader in carbon capture, utilization, and storage (CCS) and enhanced oil recovery, in an all-stock transaction valued at $4.9 billion.

As per the agreement, Denbury shareholders will receive 0.84 shares of ExxonMobil for each of their Denbury shares. The acquisition is set to boost ExxonMobil’s Low Carbon Solutions business and consolidate the company’s commitment to low carbon value chains.

ExxonMobil’s move for Denbury, noted for its low carbon focus, signifies a strategic step toward expanding its CCS capabilities. The acquisition also increases ExxonMobil’s carbon capture network and is projected to yield more than 100 million metric tons of emissions reductions over time.

“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,” said Darren Woods, Chairman and CEO of ExxonMobil.

The Denbury acquisition presents ExxonMobil with the largest owned and operated CO2 pipeline network in the U.S., spanning 1,300 miles. This extensive network is positioned strategically within one of the most significant U.S. markets for CO2 emissions and will be instrumental in driving CCS deployment.

Chris Kendall, Denbury’s President and CEO, shared his positive outlook on the merger, stating, “ExxonMobil is the ideal partner with extensive resources and capabilities.” He also noted the potential for long-term value and benefits of the merger for all stakeholders.

The acquisition also comprises Denbury’s Gulf Coast and Rocky Mountain oil and natural gas operations, providing immediate cash flow and near-term options for ExxonMobil. Subject to regulatory reviews and approvals, and approval by Denbury shareholders, the transaction is expected to close in the 4th quarter of 2023.