DEN - ExxonMobil Is Spending $4.9 Billion to Accelerate Its Lower-Carbon Energy Ambitions
2023-07-14 07:15:00 ET
The rumors were true. ExxonMobi l (NYSE: XOM) is indeed buying fellow oil producer Denbury Resources (NYSE: DEN) . The Thursday announcement ends months of rumors and speculation that Exxon would acquire Denbury.
However, Denbury's relatively small-scale oil business isn't the main draw. Exxon wants its carbon dioxide expertise and infrastructure. Here's a look at the deal and how Denbury fits Exxon's lower-carbon strategy.
ExxonMobil has agreed to acquire Denbury in an all-stock transaction. It's exchanging 0.84 shares of its stock for each share of Denbury. This exchange ratio values Denbury at $4.9 billion. That's a meager 2% premium to Denbury's trading price before the deal's announcement.
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ExxonMobil Is Spending $4.9 Billion to Accelerate Its Lower-Carbon Energy Ambitions