ExxonMobil Acquires Denbury in $4.9B Transaction, Expands Pipeline Network
ExxonMobil purchased Denbury in an all-stock transaction valued at $4.9 billion, adding a network of CO2 pipelines to its portfolio.
ExxonMobil Corporation has announced the closing of its acquisition of Denbury Inc. in an all-stock transaction valued at $4.9 billion—$89.45 per share—based on ExxonMobil’s closing price on July 12, 2023. According to the terms of the acquisition, Denbury shareholders will receive 0.84 shares of ExxonMobil per Denbury share.
As a result of the purchase, ExxonMobil added more than 1,300 miles of pipeline, including approximately 925 miles of CO2 pipelines in Louisiana, Texas, and Mississippi. In addition, the company has access to more than 15 onshore CO2 storage sites.
“This transaction is a major step forward in the profitable growth of our low carbon solutions business,” said Darren Woods, Chairman and CEO, ExxonMobil. “Our expertise, combined with Denbury’s CO2 pipeline network, expands our low-carbon leadership and positions us to meet the decarbonization needs of industrial customers while also reducing emissions in our own operations.”
The acquisition includes oil and natural gas operations located along the Gulf Coast and in the Rocky Mountains. These operations have reserves totaling more than 200 million barrels of oil equivalent and approximately 46,000 oil-equivalent barrels per day of production, as of year-end 2022.
Upon full development and optimization, these assets and capabilities have the potential to reduce CO2 emissions by more than 100 million metric tons annually.
