Exxon has acquired carbon capture, utilization, and storage company Denbury in an all-stock agreement valued at USD4.9bn, or USD89.45 per share, with a 2% premium on Denbury's closing price. This acquisition makes Exxon the owner of the largest CO2 pipeline network in the U.S., spanning over 1,300 miles and grants access to more than 15 onshore carbon storage locations. The deal also includes Gulf Coast and Rocky Mountain oil and natural gas operations with reserves exceeding 200 million barrels of oil equivalent by the end of 2022. These operations currently yield around 46,000 barrels of oil equivalent per day and offer potential for carbon capture initiatives. Exxon anticipates a yearly reduction of 100 million metric tons in carbon dioxide emissions. This move aims to strengthen Exxon's Low Carbon Solutions business and align with decarbonization efforts while enhancing its operational cash flow.

Source: Carbonherald