ExxonMobil announces acquisition of Denbury

The acquisition is an all-stock transaction valued at US$4.9 billion, or US$89.45 per share based on ExxonMobil’s closing price on 12 July 2023. Under the terms of the agreement, Denbury shareholders will receive 0.84 shares of ExxonMobil for each Denbury share.

Darren Woods, Chairman and CEO of ExxonMobil, said: “Acquiring Denbury reflects our determination to profitably grow our low-carbon solutions business by serving a range of hard-to-decarbonise industries with a comprehensive CCUS offering. The breadth of Denbury’s network, when added to ExxonMobil’s experience in CCUS, gives us the opportunity to play an even greater role in a thoughtful energy transition.”

The acquisition of Denbury provides ExxonMobil with the largest owned and operated carbon dioxide pipeline network in the US at 1300 miles, including nearly 925 miles of CO₂ pipelines in Louisiana, Texas, and Mississippi – located within one of the largest US markets for CO₂ emissions, as well as 10 strategically located onshore sequestration sites. A cost-efficient transportation and storage system accelerates CCUS deployment for ExxonMobil and third-party customers over the next decade and underpins multiple low-carbon value chains including CCUS, hydrogen, ammonia, biofuels, and direct air capture.

Dan Ammann, President, ExxonMobil Low Carbon Solutions, said: “Denbury’s advantaged CO₂ infrastructure provides significant opportunities to expand and accelerate ExxonMobil’s low-carbon leadership across our Gulf Coast value chains. Once fully developed and optimised, this combination of assets and capabilities has the potential to profitably reduce emissions by more than 100 million tpy in one of the highest-emitting regions of the US.”

 

In addition to Denbury’s CCUS assets, the acquisition includes Gulf Coast and Rocky Mountain oil and natural gas operations. These operations consist of proved reserves totalling over 200 million boe, with 47 000 oil-equivalent bpd of current production, providing immediate operating cash flow and near-term optionality for CO₂ offtake and execution of the CCUS business.

Read the article online at: https://www.hydrocarbonengineering.com/the-environment/17072023/exxonmobil-announces-acquisition-of-denbury/