Exxon Mobil Corp. will spend $4.9 billion to acquire Plano, Texas-based pipeline operator Denbury Inc., a move the world’s largest energy company says it will use to further its carbon solutions business.
The deal, announced early Thursday before trading markets opened, is the latest consolidation in the oil and gas industry as the biggest players look to add scale with cash reserves accumulated during last year’s price runup.
Denbury owns more than 1,300 miles of pipelines used to transport carbon dioxide from industrial sources oil and gas-rich areas, where it can be pumped into the ground to store emissions and release fossil fuels. That includes 925 miles of pipeline in Louisiana, Texas and Mississippi, as well as ten sites offshore.
