Hi Jon,
Exxon to buy Denbury for $89.45/share in all-stock deal
Jul. 13, 2023 8:21 AM ET Exxon Mobil Corporation (XOM), DENBy: Carl Surran, SA News Editor 8 Comments
 Spencer Platt/Getty Images News
Denbury (NYSE: DEN) +0.8% pre-market Thursday following news that Exxon Mobil (NYSE: XOM) agreed to acquire the developer of carbon capture, utilization and storage solutions in an all-stock transaction valued at $4.9B, or $89.45/share, a 1.9% premium to Wednesday's closing stock price.
Under the deal terms, Denbury ( DEN) shareholders will receive 0.84 shares of Exxon Mobil ( XOM) for each Denbury share.
The acquisition Exxon ( XOM) with the largest owned and operated CO2 pipeline network in the U.S. at 1,300 miles, including nearly 925 miles of CO2 pipelines in Louisiana, Texas and Mississippi, as well as 10 onshore sequestration sites.
"Once fully developed and optimized, this combination of assets and capabilities has the potential to profitably reduce emissions by more than 100M metric tons/year in one of the highest-emitting regions of the U.S.," Exxon Mobil ( XOM) Low Carbon Solutions President Dan Ammann said.
In addition to Denbury's ( DEN) carbon capture and storage assets, the acquisition includes Gulf Coast and Rocky Mountain oil and natural gas operations, consisting of more than 200M boe of proved reserves with 47K boe/day of current production. |
