Exxon Mobil considers takeover of oil recovery specialist Denbury
(Bloomberg) — Exxon Mobil Corp. is considering a takeover of Denbury Inc., an oil and gas producer with the largest carbon dioxide pipeline network in the U.S., according to people familiar with the matter.
Shares of Denbury jumped as much as 12% and traded at $98.83 at 3:49 p.m. in New York Monday, giving the company a market value of about $4.9 billion. A Denbury representative declined to comment, while an Exxon representative didn’t immediately respond to a request for comment.
Denbury has more than 1,300 miles (2,092 kilometers) of pipelines in the Gulf Coast and Rocky Mountains dedicated to transporting carbon dioxide. Carbon capture is the bedrock of Exxon’s climate strategy, which aims to eliminate operational emissions by 2050, and buying Denbury would give the oil giant critical and hard-to-replicate infrastructure as it pursues that goal.
Denbury has the most aggressive net zero target of any large US oil company, aiming to be “carbon negative” on a Scope 3 basis, which includes customers’ emissions, by 2030.
Earlier this year, Exxon pledged to spend $15 billion on lower-carbon investments through 2027, with carbon capture as a priority. Denbury’s Rocky Mountain assets are connected to Exxon’s Shute Creek gas facility near LaBarge, Wyoming, which has captured more carbon than any other asset in the U.S.
Source: Worldoil.com
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