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Under the terms of the agreement, Denbury shareholders received 0.84 shares of Exxon for each Denbury share.
Exxon’s acquisition adds the expertise of a carbon capture, utilization and storage and EOR company for $89.45 per share — roughly a 2% premium on Denbury’s closing price when the deal was announced in July.
Exxon said it now owns the largest CO2 pipeline network in the U.S. — spanning more than 1,300 miles and including nearly 925 miles of CO2 pipelines in Louisiana, Texas and Mississippi — located in one of the largest U.S. markets for CO2 emissions. The company also has access to more than 15 strategically located onshore CO2 storage sites.
“This transaction is a major step forward in the profitable growth of our Low Carbon Solutions business,” Exxon Chairman and CEO Darren Woods said. “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.”
The acquisition also includes Gulf Coast and Rocky Mountain oil and natural gas operations, consisting of proved reserves totaling more than 200 MMboe as of year-end 2022, with approximately 46,000 boe/d production. The operations provide immediate operating cash flow and optionality for carbon capture operations, Exxon said.
Once fully developed and optimized, the assets have the potential to reduce CO2 emissions by more than 100 million metric tons per year.
2024-02-27 - Chevron’s $53 billion deal to buy Hess’ interests in the Stabroek Block offshore Guyana could be derailed as Exxon, CNOOC say they have first rights of refusal on the block’s interests.
2024-02-08 - The acquisition of Enerplus by Devon would more than double the company’s third-quarter 2023 Williston Basin production.
2023-12-18 - A land grab for top-quality drilling locations fueled record Permian Basin M&A activity in 2023. To preserve inventory, E&Ps are radically slashing drilling activity on their new assets, East Daley Analytics reports.
2024-02-01 - Newly released guidelines by the Department of Justice and Federal Trade Commission suggest that a post-deal, combined market share of more than 30% is potentially problematic.
2024-02-27 - Hess Corp. said on Feb. 27 that a pre-emption provision does not apply to its proposed $53-billion buyout by Chevron Corp. and it remains "fully committed" to the deal.