ExxonMobil Acquires Denbury Carbon Capture Business for $4.9B
SPRING, Texas — Exxon Mobil Corporation has completed its acquisition of Denbury Inc., a Plano, Texas-based firm that uses carbon dioxide to extract petroleum from previously exploited oil fields.
The all-stock transaction is valued at $4.9 billion.
Denbury shareholders approved the deal on Oct. 31. Under the terms of the agreement, they will receive 0.84 shares of ExxonMobil for each Denbury share.
“This transaction is a major step forward in the profitable growth of our low carbon solutions business,” said ExxonMobil Chairman and CEO Darren Woods, in a written statement.
“Our expertise, combined with Denbury’s talent and CO2 pipeline network, expands our low-carbon leadership and best positions us to meet the decarbonization needs of industrial customers while also reducing emissions in our own operations,” Woods said.
ExxonMobil now has the largest owned and operated CO2 pipeline network in the U.S. — adding more than 1,300 miles that Denbury previously had owned, including nearly 925 miles of CO2 pipelines in Louisiana, Texas and Mississippi.
Denbury also has access to more than 15 strategically located onshore CO2 storage sites.
The acquisition also includes Gulf Coast and Rocky Mountain oil and natural gas operations, consisting of proven reserves totaling more than 200 million barrels of oil equivalent as of year-end 2022, with approximately 46,000 oil-equivalent barrels per day of current production.
These operations provide immediate operating cash flow and optionality for carbon capture operations.
Once fully developed and optimized, the combination of these assets and capabilities has the potential to reduce CO2 emissions by more than 100 million metric tons per year.