Exxon Mobil expands its carbon capture portfolio by adding Denbury

Exxon Mobil Corporation announced on Thursday it has closed its acquisition of carbon capture company, Denbury in 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, Denbury shareholders will receive 0.84 shares of ExxonMobil for each Denbury share, the company said in a statement. They added that once fully optimized the the combination of these assets and capabilities has the potential to reduce CO₂ emissions by more than 100 million metric tons per year. 

“This transaction is a major step forward in the profitable growth of our Low Carbon Solutions business,” 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.” 

ExxonMobil said it has the largest owned and operated CO₂ pipeline network in the U.S. – adding more than 1,300 miles, 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.