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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
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Author: rnam ✧  😊 😞
Number: of 15065 
Subject: OT Exxon acquisition
Date: 07/13/2023 2:44 PM
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Denbury (NYSE:DEN) +0.8% pre-market Thursday following news that Exxon Mobil (NYSE:XOM) agreed to acquire the developer of carbon capture, utilization and storage solutions in an all-stock transaction valued at $4.9B, or $89.45/share, a 1.9% premium to Wednesday's closing stock price.

Under the deal terms, Denbury (DEN) shareholders will receive 0.84 shares of Exxon Mobil (XOM) for each Denbury share.

In addition to Denbury's (DEN) carbon capture and storage assets, the acquisition includes Gulf Coast and Rocky Mountain oil and natural gas operations, consisting of more than 200M boe of proved reserves with 47K boe/day of current production.

https://seekingalpha.com/news/3987357-exxon-to-buy...

I don't believe I have ever seen an acquisition with such a low premium of 1.9%. Denbury is up 5% YTD, so it hasn't had a huge run up already, justifying a low premium.

This should be a good hunting ground for BHE. They should be able to deploy vast amounts of capital without overpaying. They could partner with OXY who could operate the extraction and carbon capture and Mid American could operate the pipelines and terminals.
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