ExxonMobil buys carbon capture company Denbury Inc for $4.9 bn

Oil giant ExxonMobil has agreed to buy carbon capture company Denbury Inc for $4.9 billion in a bid to accelerate its energy transition business, the company said in a release.

"Acquiring Denbury 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. "The breadth of Denbury's network, when added to ExxonMobil's decades of experience and capabilities in CCS, gives us the opportunity to play an even greater role in a thoughtful energy transition, as we continue to deliver on our commitment to provide the world with the vital energy and products it needs."

The acquisition provides ExxonMobil with the largest owned and operated CO2 pipeline network in the US, running almost 1,300 miles — including nearly 925 miles of CO2 pipelines in Louisiana, Texas, and Mississippi, one of the largest US markets for CO2 emissions — as well as 10 onshore sequestration sites where captured carbon can be stored.

The Denbury deal also includes Gulf Coast and Rocky Mountain oil and natural gas operations. These operations consist of proven reserves totaling over 200 million barrels of oil equivalent, with 47,000 oil-equivalent barrels per day of current production, providing immediate operating cash flow and near-term optionality for CO2 offtake and execution of the CCS business.