Exxon Mobil Corporation (NYSE: XOM) today announced it has
closed its acquisition of Denbury Inc. (NYSE: DEN) in an all-stock
transaction valued at $4.9 billion, or $89.45 per share, based on
ExxonMobil’s closing price on July 12, 2023. Under the terms of the
agreement, Denbury shareholders will receive 0.84 shares of
ExxonMobil for each Denbury share.
“This transaction is a major step forward in the profitable
growth of our Low Carbon Solutions business,” Chairman and CEO
Darren Woods said. “Our expertise, combined with Denbury’s talent
and CO2 pipeline network, expands our low-carbon leadership and
best positions us to meet the decarbonization needs of industrial
customers while also reducing emissions in our own operations.”
ExxonMobil now has the largest owned and operated CO2 pipeline
network in the U.S. – adding more than 1,300 miles, including
nearly 925 miles of CO2 pipelines in Louisiana, Texas and
Mississippi – located in one of the largest U.S. markets for CO2
emissions. The company also has access to more than 15
strategically located onshore CO2 storage sites.
The acquisition also includes Gulf Coast and Rocky Mountain oil
and natural gas operations, consisting of proved reserves totaling
more than 200 million barrels of oil equivalent as of year-end
2022, with approximately 46,000 oil-equivalent barrels per day of
current production. These operations provide immediate operating
cash flow and optionality for carbon capture operations.
Once fully developed and optimized, the combination of these
assets and capabilities has the potential to reduce CO2 emissions
by more than 100 million metric tons per year.
For more information, the investor presentation is available at
ExxonMobil Investor website.
About ExxonMobil
ExxonMobil, one of the largest publicly traded international
energy and petrochemical companies, creates solutions that improve
quality of life and meet society’s evolving needs.
The corporation’s primary businesses - Upstream, Product
Solutions and Low Carbon Solutions – provide products that enable
modern life, including energy, chemicals, lubricants, and lower
emissions technologies. ExxonMobil holds an industry-leading
portfolio of resources, and is one of the largest integrated fuels,
lubricants, and chemical companies in the world. 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. To learn more, visit exxonmobil.com and ExxonMobil’s
Advancing Climate Solutions.
Follow us on LinkedIn, Instagram and X.
Forward-Looking Statements
This communication contains “forward-looking statements” within
the meaning of the federal securities laws, including Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. In this context,
forward-looking statements often address future business and
financial events, conditions, expectations, plans or ambitions, and
often contain words such as “expect,” “anticipate,” “intend,”
“plan,” “believe,” “seek,” “see,” “will,” “would,” “target,”
similar expressions, and variations or negatives of these words,
but not all forward-looking statements include such words.
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain, such as statements about the
consummation of the proposed transaction and the anticipated
benefits thereof. All such forward-looking statements are based
upon current plans, estimates, expectations and ambitions that are
subject to risks, uncertainties and assumptions, many of which are
beyond the control of ExxonMobil and Denbury, that could cause
actual results to differ materially from those expressed in such
forward-looking statements. Important risk factors that may cause
such a difference include, but are not limited to: anticipated tax
treatment, unforeseen liabilities, future capital expenditures,
revenues, expenses, earnings, synergies, economic performance,
indebtedness, financial condition, losses, future prospects,
business and management strategies for the management, expansion
and growth of the combined company’s operations, including the
possibility that any of the anticipated benefits of the proposed
transaction will not be realized or will not be realized within the
expected time period; the ability of ExxonMobil and Denbury to
integrate the business successfully and to achieve anticipated
synergies and value creation; potential litigation relating to the
proposed transaction that could be instituted against ExxonMobil,
Denbury or their respective directors; the risk that disruptions
from the proposed transaction will harm ExxonMobil’s or Denbury’s
business, including current plans and operations and that
management’s time and attention will be diverted on
transaction-related issues; potential adverse reactions or changes
to business relationships resulting from the completion of the
merger; rating agency actions and ExxonMobil and Denbury’s ability
to access short- and long-term debt markets on a timely and
affordable basis; legislative, regulatory and economic
developments, including regulatory implementation of the Inflation
Reduction Act, timely and attractive permitting for carbon capture
and storage by applicable federal and state regulators, and other
regulatory actions targeting public companies in the oil and gas
industry and changes in local, national, or international laws,
regulations, and policies affecting ExxonMobil and Denbury
including with respect to the environment; potential business
uncertainty, including the outcome of commercial negotiations and
changes to existing business relationships; acts of terrorism or
outbreak of war, hostilities, civil unrest, attacks against
ExxonMobil or Denbury, and other political or security
disturbances; dilution caused by ExxonMobil’s issuance of
additional shares of its common stock in connection with the
proposed transaction; the possibility that the transaction may be
more expensive to complete than anticipated, including as a result
of unexpected factors or events; changes in policy and consumer
support for emission-reduction products and technology; the impacts
of pandemics or other public health crises, including the effects
of government responses on people and economies; global or regional
changes in the supply and demand for oil, natural gas,
petrochemicals, and feedstocks and other market or economic
conditions that impact demand, prices and differentials, including
reservoir performance; changes in technical or operating
conditions, including unforeseen technical difficulties; those
risks described in Item 1A of ExxonMobil’s Annual Report on Form
10-K, filed with the SEC on February 22, 2023, and subsequent
reports on Forms 10‑Q and 8-K, as well as under the heading
“Factors Affecting Future Results” on the Investors page of
ExxonMobil’s website at www.exxonmobil.com (information included on
or accessible through ExxonMobil’s website is not incorporated by
reference into this communication); those risks described in Item
1A of Denbury’s Annual Report on Form 10-K, filed with the SEC on
February 23, 2023, and subsequent reports on Forms 10-Q and 8-K;
and those risks that will be described in the registration
statement on Form S-4 and accompanying prospectus available from
the sources indicated above. References to resources or other
quantities of oil or natural gas may include amounts that
ExxonMobil or Denbury believe will ultimately be produced, but that
are not yet classified as “proved reserves” under SEC
definitions.
We caution you not to place undue reliance on any of these
forward-looking statements as they are not guarantees of future
performance or outcomes and that actual performance and outcomes,
including, without limitation, our actual results of operations,
financial condition and liquidity, and the development of new
markets or market segments in which we operate, may differ
materially from those made in or suggested by the forward-looking
statements contained in this communication. Neither ExxonMobil nor
Denbury assumes any obligation to publicly provide revisions or
updates to any forward-looking statements, whether as a result of
new information, future developments or otherwise, should
circumstances change, except as otherwise required by securities
and other applicable laws. Neither future distribution of this
communication nor the continued availability of this communication
in archive form on ExxonMobil’s or Denbury’s website should be
deemed to constitute an update or re-affirmation of these
statements as of any future date.
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