ExxonMobil has entered into a definitive agreement to acquire Denbury Inc., an experienced developer of carbon capture, utilization and storage (CCS) solutions and enhanced oil recovery for $4.9 billion. The transaction is expected to close in the 4th quarter of 2023. The combined assets and capabilities are meant to accelerate ExxonMobil’s Low Carbon Solutions business and create an even more compelling customer decarbonization proposition.
The acquisition “underpins ExxonMobil’s commitment to low carbon value chains including CCS, hydrogen, ammonia, biofuels, and direct air capture” and “reflects our determination to profitably grow our Low Carbon Solutions business by serving a range of hard-to-decarbonize industries with a comprehensive carbon capture and sequestration offering,” said Darren Woods, Chairman and CEO. In 2021, ExxonMobil announced Scope 1 and 2 greenhouse gas emission-reduction plans for 2030 for operated assets, compared to 2016 levels. The plans are to achieve a 20-30% reduction in corporate-wide greenhouse gas intensity; a 40-50% reduction in greenhouse gas intensity of upstream operations; a 70-80% reduction in corporate-wide methane intensity; and a 60-70% reduction in corporate-wide flaring intensity.
With advancements in technology and the support of clear and consistent government policies, ExxonMobil aims to achieve net-zero Scope 1 and 2 greenhouse gas emissions from its operated assets by 2050. 
The “transaction synergies” of the acquisition are also expected to drive strong growth and returns for ExxonMobil.
The acquisition of Denbury provides ExxonMobil with the largest owned and operated CO 2 pipeline network in the U.S. at 1,300 miles, including nearly 925 miles of CO 2 pipelines in Louisiana, Texas, and Mississippi—located within one of the largest U.S. markets for CO 2 emissions—as well as 10 strategically located onshore sequestration sites.
“Denbury’s advantaged CO 2 infrastructure provides significant opportunities to expand and accelerate ExxonMobil’s low-carbon leadership across our Gulf Coast value chains,” said Dan Ammann, President, ExxonMobil Low Carbon Solutions. “Once fully developed and optimized, this combination of assets and capabilities has the potential to profitably reduce emissions by more than 100 million metric tons per year in one of the highest-emitting regions of the U.S.” In addition to Denbury’s carbon capture and storage assets, the acquisition includes Gulf Coast and Rocky Mountain oil and natural gas operations.
