Denbury (NYSE:THE CAVE) shares spiked to an intraday all-time high of $104.05 before settling with a 6.8% gain on Monday after Bloomberg reported Exxon Mobil (NYSE:XOM) expressed preliminary interest in buying the companybut there is no end decision has been made.
Denbury (THE CAVE) owns more than 1,300 miles of pipelines dedicated to transporting carbon dioxide, while the acquisition of the company will provide critical and hard-to-renew infrastructure to support Exxon (XOM) ambition to capture carbon.
The takeover will also include the largest carbon management investment since the Inflation Reduction Act was passed in August, which increased the tax credit for carbon capture by 70% to $85/ton. ; executives include Exxon (XOM) CEO Darren Woods praised the move for providing financial support for carbon capture.
Denbury (THE CAVE) is also the most aggressive net zero goal of any major US oil company, aiming to be carbon negative on a Scope 3 basis, including customer emissions, by 2030.
The company’s Rocky Mountain assets are connected to Exxon (XOM) The Shute Creek gas facility near LaBarge, Wyoming, has captured more carbon than any other property in the US
Denbury (THE CAVE) recently been praised by Jinjoo Lee in The Wall Street Journal‘s Heard On The Street, a column that advertises the company’s carbon dioxide collection infrastructure as “in the right place at the right time.”
Denbury’s (THE CAVE) carbon solutions business “could provide significant benefits”, Elephant Analytics wrote in a analysis published earlier this summer in Seeking Alpha.