Energy giant ExxonMobil announced today an agreement to acquire carbon capture and CO2 utilization-focused energy company Denbury in a deal valued at $4.9 billion, in a deal the company said will help it accelerate its low-carbon opportunities and provide carbon capture services to hard-to-decarbonize industries.

Denbury’s primary business is producing oil, with a focus on developing stranded reserves from depleted reserves through the injection of captured industrial-sourced CO2. The company said that it has achieved net negative Scope 1 and 2 emissions with a goal to reach net zero across all scopes by 2030.

While the company achieved 2.5 million tons net negative Scope 1 and 2 emissions, however, its Scope 3 emissions are still significantly larger, exceeding 11 million tons in 2021, according to Denbury’s most recent Corporate Responsibility Report.

Denbury also has a significant focus on carbon capture, utilization and storage (CCS) solutions, with the world’s largest owned and operated 1,300-mile CO2 pipeline network and a growing portfolio of properties for carbon sequestration.

ExxonMobil Chairman and CEO Darren Woods said:

“Acquiring Denbury reflects our determination to profitably grow our Low Carbon Solutions business by serving a range of hard-to-decarbonize industries with a comprehensive carbon capture and sequestration offering. The breadth of Denbury’s network, when added to ExxonMobil’s decades of experience and capabilities in CCS, gives us the opportunity to play an even greater role in a thoughtful energy transition, as we continue to deliver on our commitment to provide the world with the vital energy and products it needs.”

The deal follows Exxon’s announcement last year of plans to invest more than $15 billion over the next six years to reduce greenhouse gas (GHG) emissions in its operations, and in lower-emission business opportunities to help customers reduce emissions. The company established a Low Carbon Solutions business in 2021, focused on areas including carbon capture and storage, hydrogen and biofuels.

Dan Ammann, President, ExxonMobil Low Carbon Solutions, said:

“Denbury’s advantaged CO2 infrastructure provides significant opportunities to expand and accelerate ExxonMobil’s low-carbon leadership across our Gulf Coast value chains. Once fully developed and optimized, this combination of assets and capabilities has the potential to profitably reduce emissions by more than 100 million metric tons per year in one of the highest-emitting regions of the U.S.”

Chris Kendall, Denbury’s President and CEO added:

“Over the last few years, Denbury has made significant progress executing our strategic plan, strengthening our enhanced oil recovery operations and capitalizing on our unrivaled infrastructure to accelerate the growth of our CO2 transportation and storage business. To build even further on this positive momentum, the Denbury Board of Directors and management team undertook a thorough review process and considered a number of alternatives to maximize long-term value. Through this process, it became clear that the transaction with ExxonMobil is in the best interests of our company, our shareholders, and all Denbury stakeholders.”