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Exxon Mobil is reportedly exploring the potential acquisition of Texas-based independent Denbury Resources, a specialist in CO2 management with extensive assets on the US Gulf Coast. According to a Bloomberg report, Exxon has expressed “preliminary interest” in acquiring Denbury. No final decision has been made, however, sources report. Denbury specializes in enhanced oil recovery (EOR), employing so-called "CO2 floods" to squeeze marginal barrels out of mature oil fields. The company reported sales volumes of 46,561 boe/d in the second quarter of this year, 97% of which was oil. However, the Denbury assets that would likely be the most attractive to Exxon are its massive CO2 pipeline network and growing footprint of leased acreage suitable for sequestering captured CO2. Exxon has identified carbon capture and storage (CCS) as a key pillar of its energy transition and net zero strategies. It has announced plans to build a massive CCS hub near the Houston Ship Channel, an ambitious project that would partner the area’s 50 largest emitters. Denbury claims to own and operate the largest CO2 pipeline network in the US, with more than 1,300 miles of pipe to its name, much of it concentrated on the US Gulf Coast.

M&A, Carbon Capture (CCS)
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Tue, Jun 6, 2023