Bloomberg: Exxon considering a takeover of Plano-based Denbury
October 12, 2022
Exxon Mobil Corp. (NYSE: XOM), which is moving its headquarters to the Houston area, is considering a takeover of Plano-based oil and gas firm Denbury Inc., according to a report in Bloomberg.
Denbury (NYSE: DEN) has the largest carbon dioxide pipeline network in the U.S. The Bloomberg report said that Exxon has expressed preliminary interest in the company but that no final decision has been made and the company could opt out before proceeding with a potential deal.
Neither Denbury nor Exxon representatives commented for the Bloomberg story.
According to the story, Denbury has more than 1,300 miles of pipelines dedicated to transporting carbon dioxide in the Gulf Coast and the Rocky Mountains. Carbon capture is the key part of Exxon’s climate strategy, which has a goal to eliminate operational emissions by 2050. Buying Denbury would give the oil and gas giant a lot more infrastructure as it pursues that goal.
If this deal happens, it would be the largest carbon-management investment since the Inflation Reduction Act was passed in August. That legislation provides tax incentives for burying carbon dioxide and increased tax credits for carbon capture by 70% to $85 a ton.
Bloomberg reported in August that Denbury, which exited bankruptcy in 2020, was working with an adviser to explore a sale.
In February, Denbury created an alliance with Sacramento, California-based clean fuel company Infinium to develop low-carbon fuel projects in Texas.
Exxon announced in January that it is moving its headquarters from Irving to its Houston campus in City Place, the master-planned community formerly known as Springwoods Village, by the middle of 2023.