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Released July 17, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) said last week it plans to acquire Denbury Incorporated (NYSE:DEN) (Plano, Texas), in an all-stock transaction valued at $4.9 billion.
Denbury is a developer of carbon capture, utilization and storage (CCUS) solutions and enhanced oil recovery. Industrial Info is tracking four active Denbury projects worth $300 million. Subscribers to Industrial Info's Global Marketing Intelligence (GMI) Oil & Gas Pipelines Project Database can click here for a list of detailed project reports.
"Acquiring Denbury reflects our determination to profitably grow our Low Carbon Solutions business by serving a range of hard-to-decarbonize industries with a comprehensive carbon capture and sequestration offering," said ExxonMobil Chief Executive Officer Darren Woods in a July 13 press release. The transaction is expected to close in fourth-quarter 2023.
ExxonMobil said the acquisition will provide it with the largest owned and operated carbon dioxide (CO2) pipeline network in the U.S. at 1,300 miles, including nearly 925 miles of CO2 pipelines in Louisiana, Texas and Mississippi--located within one of the largest U.S. markets for CO2 emissions, as well as 10 strategically located onshore sequestration sites.
Denbury Chief Executive Officer Chris Kendall said, "Over the last few years, Denbury has made significant progress executing our strategic plan, strengthening our enhanced oil recovery operations and capitalizing on our unrivaled infrastructure to accelerate the growth of our CO2 transportation and storage business."
"Denbury's advantaged CO2 infrastructure provides significant opportunities to expand and accelerate ExxonMobil's low-carbon leadership across our Gulf Coast value chains," said Dan Ammann, president of ExxonMobil Low Carbon Solutions. "Once fully developed and optimized, this combination of assets and capabilities has the potential to profitably reduce emissions by more than 100 million metric tons per year in one of the highest-emitting regions of the U.S."
The acquisition also includes Denbury's Gulf Coast and Rocky Mountain oil and natural gas operations. These include proved reserves totaling more than 200 million barrels of oil equivalent, with 47,000 oil-equivalent barrels per day of current production.
For related information, see July 10, 2023, article - Big Spending Plans for CCS May Fall Short of What's Needed for Net Zero, and December 15, 2022, article - Denbury to Ramp up Carbon Capture, Usage and Storage Efforts.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
Denbury is a developer of carbon capture, utilization and storage (CCUS) solutions and enhanced oil recovery. Industrial Info is tracking four active Denbury projects worth $300 million. Subscribers to Industrial Info's Global Marketing Intelligence (GMI) Oil & Gas Pipelines Project Database can click here for a list of detailed project reports.
"Acquiring Denbury reflects our determination to profitably grow our Low Carbon Solutions business by serving a range of hard-to-decarbonize industries with a comprehensive carbon capture and sequestration offering," said ExxonMobil Chief Executive Officer Darren Woods in a July 13 press release. The transaction is expected to close in fourth-quarter 2023.
ExxonMobil said the acquisition will provide it with the largest owned and operated carbon dioxide (CO2) pipeline network in the U.S. at 1,300 miles, including nearly 925 miles of CO2 pipelines in Louisiana, Texas and Mississippi--located within one of the largest U.S. markets for CO2 emissions, as well as 10 strategically located onshore sequestration sites.
Denbury Chief Executive Officer Chris Kendall said, "Over the last few years, Denbury has made significant progress executing our strategic plan, strengthening our enhanced oil recovery operations and capitalizing on our unrivaled infrastructure to accelerate the growth of our CO2 transportation and storage business."
"Denbury's advantaged CO2 infrastructure provides significant opportunities to expand and accelerate ExxonMobil's low-carbon leadership across our Gulf Coast value chains," said Dan Ammann, president of ExxonMobil Low Carbon Solutions. "Once fully developed and optimized, this combination of assets and capabilities has the potential to profitably reduce emissions by more than 100 million metric tons per year in one of the highest-emitting regions of the U.S."
The acquisition also includes Denbury's Gulf Coast and Rocky Mountain oil and natural gas operations. These include proved reserves totaling more than 200 million barrels of oil equivalent, with 47,000 oil-equivalent barrels per day of current production.
For related information, see July 10, 2023, article - Big Spending Plans for CCS May Fall Short of What's Needed for Net Zero, and December 15, 2022, article - Denbury to Ramp up Carbon Capture, Usage and Storage Efforts.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
