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Exxon Buys Denbury
Posted on 7/13/23 at 8:49 am
Posted on 7/13/23 at 8:49 am
LINK
quote:
July 13 (Reuters) - Exxon Mobil Corp (XOM.N) said on Thursday it would buy Denbury Inc (DEN.N) 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.
6
Posted on 7/13/23 at 8:50 am to evil cockroach
Only like a 1% premium on the Denbury stock. Denbury executives said “now’s the time to sell”.
Posted on 7/13/23 at 8:51 am to evil cockroach
Buying their way into a strong CCS position. Pretty smart since Exxon was somewhat behind others in that space
Posted on 7/13/23 at 9:59 am to TigerTatorTots
I moved some SUN solar into XOM yesterday
XOM is my extra long game play
XOM is my extra long game play
Posted on 7/13/23 at 10:14 am to evil cockroach
Why does such a small premium make sense?
Posted on 7/13/23 at 10:26 am to C
After seeing the stock grow the way it did after bankruptcy, my guess is that the Denbury executive didn’t think the stock had much more runway to grow further, therefore, just sell, and probably get a very lucrative transaction bonus
Posted on 7/13/23 at 11:24 am to evil cockroach
quote:buy the rumor sell the news
After seeing the stock grow the way it did after bankruptcy, my guess is that the Denbury executive didn’t think the stock had much more runway to grow further
Posted on 7/13/23 at 12:50 pm to evil cockroach
This is not a huge surprise, at least not Denbury being bought. They should have been a target for a while now.
How is Apache trading at 5x earnings? What am I missing on this stock? I just bought some, but my mind can be changed.
How is Apache trading at 5x earnings? What am I missing on this stock? I just bought some, but my mind can be changed.
This post was edited on 7/13/23 at 3:16 pm
Posted on 7/13/23 at 1:53 pm to evil cockroach
Nine years ago my cousin granted Denbury a Right-of-Way to build a pipeline across family property to transport CO2 to the Denbury Green Pipeline from Lake Charles Clean Energy, LLC. (AKA Leucadia). The plant on or near CITGO was never constructed because of the lack of federal funding as I was told.
Does anyone know of the plant's status?
I ask because Denbury's option to renew the ROW will expire in 2024. Thanks.
Does anyone know of the plant's status?
I ask because Denbury's option to renew the ROW will expire in 2024. Thanks.
Posted on 7/13/23 at 2:38 pm to CharleyLake
Did they lay the line?
Posted on 7/13/23 at 5:08 pm to castorinho
Never did. I reviewed the agreement. It states that the grantee will have four years to commence use of the pipeline following completion and construction of the plant. The plant will not commence until after construction of the pipeline.
Denbury will have until March 1,2024 to notify us that they wish to renew the agreement for another ten-year term.
Denbury will have until March 1,2024 to notify us that they wish to renew the agreement for another ten-year term.
Posted on 7/13/23 at 6:58 pm to CharleyLake
Yeah highly doubt they'll try to renew that
Posted on 7/14/23 at 5:27 am to evil cockroach
I didn’t think they would buy an Easter Candy company…
Posted on 7/14/23 at 6:23 am to castorinho
I suspect that you are right. The distance of the ROW is only a little over 30 rods but space is tight in that area. Someone will likely want that area for an industrial gas line in the future.
Posted on 7/14/23 at 10:39 am to evil cockroach
Without the Inflation Reduction Act incentives this deal makes little sense for XOM.
Posted on 7/14/23 at 11:05 am to Samso
Yep! I keep saying this. The money for these initiatives is coming from somewhere. Mostly govt, meaning taxpayers. This will be a[nother] major burden to our society’s financial viability. If the carbon issue is not an existential one, this is a colossal boondoggle that will have permanent impacts.
This post was edited on 7/14/23 at 11:05 am
Posted on 7/14/23 at 7:03 pm to evil cockroach
quote:
After seeing the stock grow the way it did after bankruptcy, my guess is that the Denbury executive didn’t think the stock had much more runway to grow further, therefore, just sell, and probably get a very lucrative transaction bonus
Something else I’m thinking about, but I bet a lot of those execs had shares tied up in restricted stock units RSU’s that haven’t vested yet . look at how well the stock has done . it’s done amazingly well . imagine being an exec with $10-$20 million locked up in RSU’s. and I bet a part of the deal is Exxon would mediately unlock all those shares And buy them .
Again, just trying to make educated guesses on why the higher-ups at Denbury would sign off on such a small premium on the stock
Posted on 7/17/23 at 8:46 am to evil cockroach
XOM looks like it will be back down under $100 today
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