• ExxonMobil's joined assets speed up their Low Carbon Solutions business, offering better decarbonization options for customers.
• ExxonMobil's top CCS network supports their commitment to low carbon value chains, like hydrogen and biofuels.
• The transaction synergies will cut over 100 MTA of emissions, leading to strong growth and returns.

Exxon Mobil Corporation revealed that it will acquire Denbury Inc., a company specializing in carbon capture, utilization, and storage (CCS) solutions and enhanced oil recovery. $4.9 billion deal will be completed through an all-stock transaction.

Darren Woods, Chairman and CEO said “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”.

Transaction Benefits for ExxonMobil

• Strong Growth and Returns

The transaction is expected to generate significant synergies, leading to robust growth and favorable returns for ExxonMobil.

• Largest Owned CO2 Pipeline Network

With the acquisition of Denbury, ExxonMobil gains ownership of the largest CO2 pipeline network in the U.S., spanning an impressive 1,300 miles.

• Extensive CO2 Pipeline Presence

Nearly 925 miles of CO2 pipelines are strategically located in Louisiana, Texas, and Mississippi, positioning ExxonMobil in one of the largest U.S. markets for CO2 emissions.

• Onshore Sequestration Sites

The acquisition also grants ExxonMobil access to 10 strategically situated onshore sequestration sites, further enhancing their carbon capture and sequestration capabilities.

• Accelerated CCS Deployment

By utilizing a cost-efficient transportation and storage system, ExxonMobil can expedite the deployment of carbon capture and sequestration solutions for both their operations and third-party customers over the next decade.

• Foundation for Low Carbon Value Chains

This integrated system serves as a foundational infrastructure supporting multiple low carbon value chains, such as carbon capture and storage (CCS), hydrogen production, ammonia production, biofuels, and direct air capture.

“The breadth of Denbury’s network, when added to ExxonMobil’s decades of experience and capabilities in CCS, gives us the opportunity to play an even greater role in a thoughtful energy transition, as we continue to deliver on our commitment to provide the world with the vital energy and products it needs,” said Darren Woods.

Long-term value and benefits for Denbury

“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, ExxonMobil Low Carbon Solutions.

This transaction is a compelling opportunity for Denbury to join an admired global energy leader with a low-carbon focus, a robust balance sheet and a leading shareholder return program.

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.

To build even further on this positive momentum, the Denbury Board of Directors and management team undertook a thorough review process and considered a number of alternatives to maximize long-term value.

Through this process, it became clear that the transaction with ExxonMobil is in the best interests of our company, our shareholders, and all Denbury stakeholders.

Importantly, given the significant capital and years of work required to fully develop our CO2 business, ExxonMobil is the ideal partner with extensive resources and capabilities.

The all-equity consideration will allow Denbury shareholders to participate in the upside of ExxonMobil’s stock while benefitting from its strong capital return strategy.

Acquisition includes Gulf Coast and Rocky Mountain operations

Apart from Denbury's carbon capture and storage assets, the acquisition also encompasses Gulf Coast and Rocky Mountain oil and natural gas operations. These operations boast proven reserves exceeding 200 million barrels of oil equivalent, accompanied by a current production rate of 47,000 oil-equivalent barrels per day. This acquisition provides an immediate operating cash flow and offers promising opportunities in the near term for CO2 offtake and the execution of the CCS business.

About ExxonMobil 

ExxonMobil, a major global energy and petrochemical company, develops solutions to enhance life quality and address evolving societal needs. Its core businesses include Upstream, Product Solutions, and Low Carbon Solutions, providing essential products like energy, chemicals, lubricants, and low-emission technologies.

With a vast portfolio of resources, ExxonMobil ranks among the world's largest integrated fuels, lubricants, and chemical companies. In pursuit of sustainability, the corporation announced greenhouse gas emission-reduction plans for 2030. These plans target a 20-30% reduction in corporate-wide greenhouse gas intensity, 40-50% reduction in upstream operations, 70-80% reduction in corporate-wide methane intensity, and 60-70% reduction in corporate-wide flaring intensity, all compared to 2016 levels.

Looking ahead, ExxonMobil aims to achieve net-zero Scope 1 and 2 greenhouse gas emissions from its operated assets by 2050, banking on technological advancements and supportive government policies.

About Denbury

Denbury is an independent energy company with a clear focus on Carbon Capture, Utilization, and Storage (CCS) and Enhanced Oil Recovery (EOR) in the Gulf Coast and Rocky Mountain regions. For more than two decades, the company has been strategically using CO2 in its EOR operations. Since 2012, Denbury has also actively engaged in CCS by injecting captured industrial-sourced CO2.

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