Denbury’s Search for a Buyer
Denbury Resources Inc., a Texas-based oil and gas company, has been in search of a buyer for some time. The company has been in talks with 28 potential buyers since the beginning of 2021, and recently announced a deal with Exxon Mobil Corp.
The Search Begins
The search for a buyer began in 2021, when Denbury’s board of directors began to explore strategic alternatives. The company was looking for a buyer that could provide the best value for its shareholders.
The company hired Evercore Group LLC to advise them on the process. Evercore is a global independent investment banking advisory firm that specializes in mergers and acquisitions.
The Bidding Process
Denbury sent out a confidential information memorandum to 28 potential buyers. The memorandum contained information about the company’s assets, operations, and financials.
The company received a number of bids from potential buyers. After reviewing the bids, Denbury’s board of directors decided to enter into exclusive negotiations with Exxon Mobil.
The Deal with Exxon Mobil
On August 29, 2023, Denbury announced that it had entered into a definitive agreement with Exxon Mobil. Under the terms of the agreement, Exxon Mobil will acquire all of Denbury’s outstanding shares for $2.6 billion.
The deal is expected to close in the fourth quarter of 2023. Upon closing, Denbury will become a wholly owned subsidiary of Exxon Mobil.
The Benefits of the Deal
The deal with Exxon Mobil is expected to provide a number of benefits to Denbury’s shareholders. The company’s shareholders will receive $2.6 billion in cash, which is a premium of approximately 33% over Denbury’s closing stock price on August 28, 2023.
The deal will also provide Denbury’s shareholders with the opportunity to participate in the future growth of Exxon Mobil. The company is one of the largest and most successful oil and gas companies in the world, and the acquisition of Denbury will give Exxon Mobil access to Denbury’s assets and operations.
The Future of Denbury
The acquisition of Denbury by Exxon Mobil is expected to be a positive move for both companies. Denbury’s shareholders will benefit from the cash payment and the potential for future growth, while Exxon Mobil will gain access to Denbury’s assets and operations.
The deal is expected to close in the fourth quarter of 2023, and the companies are optimistic about the future. Denbury’s board of directors believes that the deal will create value for both companies and their shareholders.
The Impact of the Deal
The deal between Denbury and Exxon Mobil is expected to have a positive impact on the oil and gas industry. The acquisition will give Exxon Mobil access to Denbury’s assets and operations, which will help the company expand its presence in the industry.
The deal is also expected to have a positive impact on the economy. The $2.6 billion cash payment will provide a boost to the economy, and the potential for future growth will create jobs and investment opportunities.
Final Thoughts
The deal between Denbury and Exxon Mobil is expected to be a positive move for both companies. Denbury’s shareholders will benefit from the cash payment and the potential for future growth, while Exxon Mobil will gain access to Denbury’s assets and operations. The deal is expected to close in the fourth quarter of 2023, and the companies are optimistic about the future. The acquisition is also expected to have a positive impact on the oil and gas industry and the economy.