The Rising Influence of Rising Affluence

[DewDiligence]

XOM acquires DEN for $89.45/sh in_stock—a 2% premium_to_yesterday’s_close:

https://finance.yahoo.com/news/exxonmobil-announces-acquisition-denbury-120000191.html

The paltry premium is due, in part, to this deal’s having been rumored for quite some time, implying that DEN’s valuation already had an implicit buyout premium embedded. The nominal deal value is $4.9B.

XOM’s stated rationale for the deal is DEN’s potential CCS* business, which ought to benefit from government subsidies that came into being with the IRA. DEN owns and operates 1,300 miles of CO2 pipelines including 900 miles on the US Gulf coast.

*Carbon Capture and Storage.