Exxon Mobil Corp said it would buy Denbury Inc in an all-stock transaction valued at $4.9 billion, giving the oil major access to the largest carbon dioxide pipeline network in the United States.
Plano, Texas-based Denbury specializes in using carbon dioxide to extract oil from old wells and thus is seen as an attractive asset for oil majors and other large-cap energy companies that are starting to make bigger bets on the environmental, social and corporate governance (ESG) strategy.
Under the terms of the deal, Denbury shareholders will get 0.84 Exxon shares for each Denbury share they hold.