ExxonMobil, one of the largest publicly traded oil and gas companies in the world, is looking to expand its energy empire. According to a recent report by Bloomberg, ExxonMobil is exploring the possibility of acquiring Plano, Texas-based oil producer Denbury.
Reportedly, ExxonMobil has already entered the talks with Denbury, but the negotiations remain in the preliminary stage. As a result, Denbury’s stock has jumped as much as 12% to start the week and even passed the price of $100 per share at one point. This marked an all-time high for the company since it emerged from bankruptcy in September 2020.
Denbury specializes in hydrocarbon exploration, meaning that they use carbon dioxide to extract petroleum from the oil fields that have already been exploited with traditional methods. The company filed for bankruptcy in the summer of 2020 but successfully managed to complete the financial restructuring by the end of the year.
Thanks to its strong performances on the stock market and various attractive assets, including a significant storage potential, Denbury has been a point of interest for several big-time oil and gas companies in recent months.
If the company ends up being sold, it will most likely fetch a high price, especially if a bidding war ensues. Besides ExxonMobil, some reports indicate that Chevron Corp. is also thinking about submitting a bid.
