Exxon Mobil Corp (XOM  ) disclosed a deal to acquire Denbury Inc (DEN  ) for $4.9 billion, representing $89.45 per share as of its closing price on July 12, 2023.

As per the deal, Denbury shareholders will receive 0.84 shares of XOM for each of its shares.

In 2022, XOM expressed preliminary interest in Denbury, which exited bankruptcy in 2020.

With the buyout, XOM will own and operate the largest CO2 pipeline network in the U.S. at 1,300 miles, including around 925 miles of CO2 pipelines in Louisiana, Texas, and Mississippi and ten onshore sequestration sites.

Also, the company will attain DEN's Gulf Coast and Rocky Mountain oil and natural gas operations, which comprise proved reserves of over 200 million barrels of oil equivalent (with current production of 47,000 oil-equivalent barrels per day).

"Acquiring Denbury reflects our determination to profitably grow our Low Carbon Solutions business by serving a range of hard-to-decarbonize industries with a comprehensive carbon capture and sequestration offering. The breadth of Denbury's network, when added to ExxonMobil's decades of experience and capabilities in CCS, gives us the opportunity to play an even greater role in a thoughtful energy transition, as we continue to deliver on our commitment to provide the world with the vital energy and products it needs," said Darren Woods, Chairman and CEO.

The company expects the transaction to close in Q4 2023.

In Q1, XOM's cash flow from operations reached $16.3 billion, and free cash flow was $11.4 billion.

Price Action: XOM shares are trading lower by 0.60% at $105.85 on the last check Thursday.