Exxon Mobil agreed to buy Denbury Inc for $4.9 billion on July 13, to accelerate its energy transition business with an established carbon dioxide (CO2) storage operation.
The deal gives Exxon ready-made CO2 transportation and highlights its bets on making carbon capture a profitable business. U.S. tax credits fo r lowering global-warming gasses have set off a race to build carbon capture sites.
However, wide-scale adoption of carbon storage remains uncertain because of costs and technical challenges, which were reflected in the deal price. Exxon's all-stock offer valued Denbury at a 1.9% premium to its closing stock price on July 13.
