Exxon Mobil Shows Initial Interest In Denbury Takeover

Exxon Mobil Corp XOM has expressed preliminary interest in Denbury Inc DEN. No final decision has been made, and Exxon could opt against proceeding with a potential deal.
If it goes through, it would be the biggest carbon-management investment since the Inflation Reduction Act was passed in August, Bloomberg reported, providing significant tax incentives for burying carbon dioxide.
Carbon capture is the bedrock of Exxon's climate strategy, which aims to eliminate its operational emissions by 2050.
Denbury's 1,300 miles of pipelines in the Gulf Coast and the Rocky Mountains dedicated to transporting carbon dioxide would give Exxon critical and hard-to-replicate infrastructure.
Denbury is working with an adviser to explore a sale, Bloomberg reported in August. The company exited bankruptcy in 2020.
Earlier this year, Exxon announced its plans to spend $15 billion on lower-carbon investments through 2027, with carbon capture as a priority, the report added.
Denbury's Rocky Mountain assets are connected to Exxon's Shute Creek gas facility near LaBarge, Wyoming, which has captured more carbon than any other asset in the US.
Price Action: DEN shares closed at $99.10 on Monday. XOM stock is down 2.24% at $96.63 during the premarket session on the last check Tuesday.