Shares of Denbury (NYSE:DEN) closed 7% higher yesterday after peaking at its all-time intraday high of $104.05 following a Bloomberg report that stated that Exxon Mobil (NYSE:XOM) could buy the company.
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Based in Texas, U.S., Denbury Inc. is an independent energy company with focused operations in two key operating areas: the Gulf Coast and Rocky Mountain regions.
In 2020, Denbury exited bankruptcy and has recently been reported to seek potential sales for the company. On the other hand, Exxon has committed to invest $15 billion by 2027 in lower-carbon investments.
The Bloomberg report highlighted that Denbury is well-known for its extensive pipeline infrastructure with over 1,300 miles of pipelines transporting carbon dioxide. The impressive infrastructure will be a synergistic addition to Exxon and support its long-term carbon capture goals if the acquisition deal materializes.
Importantly, Denbury’s Rocky Mountain assets have close proximity to Exxon’s Shute Creek gas facility near Wyoming.
Is Den a Good Stock to Buy?
As per TipRanks, analysts are cautiously optimistic about the DEN stock and have a Moderate Buy consensus rating, which is based on four Buys and one Sell. Denbury stock’s average price forecast of $103.40 implies 4.42% upside potential.
Notably, DEN stock has a top-notch Smart Score of a “Perfect 10” on TipRanks. Furthermore, DEN stock has a very positive signal from hedge fund managers, who added 560,400 shares during the last quarter.
On top of that, TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Denbury, with a whopping 11.7% of investors on TipRanks increasing their exposure to DEN stock over the past 30 days.
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