Jordan Soto, executive producer, Hart Energy: This is a big deal. Literally. This is your A&D Minute with Hart Energy LIVE powered by BOK Financial Securities.

Exxon Mobil is growing in carbon capture utilization and storage in a big way. The U.S. supermajor inked a $4.9 billion stock deal to acquire Denbury, a leader in CCUS and enhanced oil recovery. With this marking one of the first major public M&A deals where CCS assets make up the bulk of the value, what does this mean for the legacy oil and gas industry? Andrew Dittmar, director at Enverus Intelligence Research, joins us to discuss.

Andrew Dittmar, director, Enverus Intelligence Research: This acquisition of Denbury by Exxon isn't that surprising, given how focused Exxon's been on building their CCS business. It does further advance them as a leader, particularly in the Gulf Coast Corridor, a critical region for CCS. What was a little bit surprising for this deal is seeing Denbury taken all equity, low-to-no-premium deal, particularly given how healthy the industry is right now with oil prices relatively high as compared to what we saw right after COVID. I think this makes a mark that other companies may need to look for low premium deals as we see more corporate M&A down the road.

JS: That's your A&D Minute with Hart Energy LIVE powered by BOK Financial Securities. Be the first to watch new episodes every Wednesday with our A&D Watch newsletter. Sign up at hartenergy.com/deals.

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