(AOF) – Exxon Mobil Corporation has entered into a definitive agreement to acquire Denbury Inc., an experienced developer of carbon capture, utilization and storage (CCS) and enhanced oil recovery solutions. The acquisition is an all-stock transaction valued at $4.9 billion, or $89.45 per share based on ExxonMobil’s closing price on July 12, 2023. Under the terms of the agreement, shareholders of Denbury will receive 0.84 shares of ExxonMobil for each Denbury share.
The synergies of the transaction should allow ExxonMobil to record strong growth and obtain good results. The acquisition of Denbury provides ExxonMobil with the largest owned and operated CO2 pipeline network in the United States (1,300 miles), including nearly 925 miles of CO2 pipelines in Louisiana, Texas and Mississippi – located in one of the largest US markets for CO2 emissions – as well as 10 strategically located land sequestration sites.
A cost-effective transportation and storage system accelerates the deployment of CCS for ExxonMobil and supports multiple low-carbon value chains, including CCS, hydrogen, ammonia, biofuels and direct air capture.
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Biogas to green activities
Obtained through the decomposition of waste, it falls into the category of green energy. It is part of the strategy of many countries, particularly in Europe, to reduce their dependence on hydrocarbon imports. The oil groups have strong ambitions in the field, as revealed by two recent operations. The British BP took over the American Archaea Energy for 4.1 billion dollars. Then, the Anglo-Dutch, Shell, announced the acquisition of the Danish Nature Energy for 2 billion dollars. These transactions show high valuation levels, underlining the strong potential of the sector. TotalEnergies had already taken a stake in the American Clean Energy Fuels Corp in 2018, of which it now holds 19%. It recently joined forces with Veolia to recover biomethane from waste treatment facilities.