Replies to post #26460 on The Rising Influence of Rising Affluence

[DewDiligence]

Still, directing CO2 capture to increase production of fossil fuels seems unlikely to win any PR points—and may have the opposite effect. Many people (including elected officials) don’t seem to understand the concept of fungibility.

[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.