Exxon Mobil Corporation (XOM) announced it has entered into a definitive agreement to acquire Denbury Inc. (DEN), a developer of carbon capture utilization and storage (CCS) solutions to enhance oil recovery.
The acquisition is an all-stock transaction valued at $4.9B.
The agreement reflects XON's "determination to profitably grow" its Low Carbon Solutions business with a comprehensive carbon capture and sequestration offering, said Darren Woods, Chairman/CEO.
The acquisition provides ExxonMobil with the largest owned and operated CO2 pipeline network in the U.S. - 1,300 miles. It also includes nearly 925 miles of CO2 pipelines in Louisiana, Texas and Mississippi – one of the largest U.S. markets for CO2 emissions, as well as 10 onshore sequestration sites.
The acquisition also includes Gulf Coast and Rocky Mountain oil and natural gas operations, which consist of proved reserves totaling over 200M barrels of oil equivalent, with 47,000 oil-equivalent barrels/day of current production that provides immediate operating cash flow and near-term optionality for CO2 offtake and execution of the CCS business.
Both boards of directors have unanimously approved the transaction, subject to regulatory reviews and approvals. It is also subject to approval by Denbury shareholders.
The transaction is expected to close in the 4th quarter of 2023. (Magnolia State Live 07/13/23) ExxonMobile acquires oil company with several Mississippi operations in $4.9 billion deal - Magnolia State Live | Magnolia State Live
Read more at: https://www.magnoliastatelive.com/2023/07/13/exxonmobile-acquires-oil-company-with-several-mississippi-operations-in-4-9-billion-deal/
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