top of page
  • Writer's pictureStaff @ LT&C

Is ExxonMobil's Acquisition of Denbury Inc. a Game-Changer for Louisiana Low Carbon Energy Growth?

Exxon Mobil announced it has closed the acquisition of Denbury Inc. in a transaction valued at $4.8 billion, or $89.45 per share. The acquisition, first announced in July, will give Denbury shareholders 0.84 shares of ExxonMobile for every Denbury share they own.

“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.”

All in an effort to make the carbon capture process profitable, ExxonMobil will now have the largest owned and operated CO2 pipeline network in North America. The acquisition means the addition of 1,300 miles, 925 of those miles being in Louisiana, Texas and Mississippi. Denbury also had 15 onshore CO2 storage sites, which Exxon will make good use of.

Exxon will also inherit Gulf Coast and Rocky Mountain oil and natural gas operations. As of 2022, this consists of reserves around 200 million barrels of oil equivalent. This, paired with 46,000 oil-equivalent barrels per day of current production, provides immediate cash flow for carbon capture operations.

The combination of these assets, once fully developed, has the potential to reduce CO2 emissions by more than 100 million metric tons per year.


Top Stories

bottom of page