Exxon Mobil in talks to buy oil and gas producer Denbury -Bloomberg News


Oct 10 (Reuters) – Exxon Mobil Corp (XOM.N) is considering the acquisition of oil and gas producer Denbury Inc (DEN.N) and talks are at a preliminary stage, Bloomberg News reported on Monday, citing people familiar with the matter.

Shares of Plano, Texas-based energy company Denbury rose as much as 12% on Monday, before paring some gains to close about 7% higher, giving it a market value of around of $5 billion.

Denbury is expected to command a significant premium if it goes through with the sale, making it a potentially sizeable transaction.

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Denbury has been exploring options and is working with an adviser on a possible sale, sources familiar with the matter previously told Reuters. Other potential buyers could include oil majors such as Chevron Corp (CVX.N), the sources said.

The company specializes in using carbon dioxide to extract oil from old wells and is therefore seen as an attractive asset for oil majors and other large-cap energy companies that are beginning to bet more heavily on environmental strategy. , social and corporate governance (ESG). .

Denbury emerged from bankruptcy in 2020 and its shares have performed strongly since then, providing an exit opportunity for its creditors who became shareholders in the company.

Denbury’s oil pipelines and storage potential on the Gulf Coast are also seen as attractive features to potential buyers.

Exxon declined to comment and Denbury did not immediately respond to a Reuters request for comment.

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Reporting from Arunima Kumar in Bengaluru and David French in New York; Edited by Shinjini Ganguli and Chris Reese

Our standards: the Thomson Reuters Trust Principles.


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