Exxon Mobil to acquire Denbury in all-stock transaction valued at $4.9B

Exxon Mobil (XOM) announced it has entered into a definitive agreement to acquire Denbury (DEN). The acquisition is an all-stock transaction valued at $4.9B, 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 the transaction synergies are expected to drive strong growth and returns for ExxonMobil. In addition to Denbury’s carbon capture and storage assets, the acquisition includes Gulf Coast and Rocky Mountain oil and natural gas operations. These operations consist of proved reserves totaling over 200 million barrels of oil equivalent, with 47,000 oil-equivalent barrels per day of current production, providing immediate operating cash flow and near-term optionality for CO2 offtake and execution of the CCS business. The boards of directors of both companies have unanimously approved the transaction, which is subject to customary regulatory reviews and approvals. It is also subject to approval by Denbury shareholders. The transaction is expected to close in the fourth quarter of 2023.