Denbury Inc. was a company engaged in hydrocarbon exploration and extraction via enhanced oil recovery, utilizing

carbon dioxide Carbon dioxide is a chemical compound with the chemical formula . It is made up of molecules that each have one carbon atom covalent bond, covalently double bonded to two oxygen atoms. It is found in a gas state at room temperature and at norma ...

to extract petroleum from fields that have been previously exploited. In November 2023 it was acquired by

ExxonMobil Exxon Mobil Corporation ( ) is an American multinational List of oil exploration and production companies, oil and gas corporation headquartered in Spring, Texas, a suburb of Houston. Founded as the Successors of Standard Oil, largest direct s ...

. The company's operations were focused in the Gulf Coast and Rocky Mountain regions. As of December 31, 2021, Denbury had of estimated proved reserves, of which 98.6% was

petroleum Petroleum, also known as crude oil or simply oil, is a naturally occurring, yellowish-black liquid chemical mixture found in geological formations, consisting mainly of hydrocarbons. The term ''petroleum'' refers both to naturally occurring un ...

and 1.4% was

natural gas Natural gas (also fossil gas, methane gas, and gas) is a naturally occurring compound of gaseous hydrocarbons, primarily methane (95%), small amounts of higher alkanes, and traces of carbon dioxide and nitrogen, hydrogen sulfide and helium ...

. The company also had an estimated 910 billion cubic feet of probable carbon dioxide reserves at Jackson Dome. The company's largest producing property was the Cedar Creek Anticline in

Montana Montana ( ) is a landlocked U.S. state, state in the Mountain states, Mountain West subregion of the Western United States. It is bordered by Idaho to the west, North Dakota to the east, South Dakota to the southeast, Wyoming to the south, an ...

and

North Dakota North Dakota ( ) is a U.S. state in the Upper Midwest, named after the indigenous Dakota people, Dakota and Sioux peoples. It is bordered by the Canadian provinces of Saskatchewan and Manitoba to the north and by the U.S. states of Minneso ...

, which accounted for 23% of production in 2021.

History

In March 1951, the company was incorporated in

Manitoba Manitoba is a Provinces and territories of Canada, province of Canada at the Centre of Canada, longitudinal centre of the country. It is Canada's Population of Canada by province and territory, fifth-most populous province, with a population ...

as "Kay Lake Mines Limited (N.P.L.)". In September 1984, the name of the company was changed to "Newscope Resources Limited". In December 1985, the name of the company was changed to "Denbury Resources Inc." In May 1997, the company became a

public company A public company is a company whose ownership is organized via shares of share capital, stock which are intended to be freely traded on a stock exchange or in over-the-counter (finance), over-the-counter markets. A public (publicly traded) co ...

via an

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investm ...

. In 1998, the company acquired properties from Chevron Corporation for $202 million. In August 1999, the company began its enhanced oil recovery operations with the acquisition of the Little Creek Field. In 2001, the company acquired Matrix Oil & Gas for $138 million in cash and stock. The company also acquired the Jackson Dome carbon dioxide reserves and the NEJD Pipeline in Mississippi, providing a source of carbon dioxide and the related transportation infrastructure. In 2009, the company sold its assets in the Barnett Shale. In 2010, the company acquired Encore Acquisition Company in a $4.6 billion transaction. In 2012, the company acquired Thompson Field in Fort Bend County, Texas for $360 million. The company also sold its acreage in the Bakken Formation to

for $1.6 billion. In 2013, the company acquired fields in the Cedar Creek Anticline from ConocoPhillips for $1.05 billion. In 2017, Christian S. Kendall was named chief executive officer of the company. The company also acquired assets in the Salt Creek Field of

Wyoming Wyoming ( ) is a landlocked U.S. state, state in the Mountain states, Mountain West subregion of the Western United States, Western United States. It borders Montana to the north and northwest, South Dakota and Nebraska to the east, Idaho t ...

from Linn Energy for $71.5 million. On July 20, 2020 at 5:51 a.m. New York time, Accesswire, a press release distribution service, carried a fake press release which claimed that Denbury had received a takeover offer. The company's shares rose sharply in pre-market trading, but fell after Denbury said the earlier press release was "completely fraudulent". In July 2020, the company filed for

bankruptcy Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the deb ...

. It emerged from bankruptcy in September 2020 and changed its name to Denbury Inc. On July 13, 2023,

announced its acquisition of Denbury for $4.9 billion. On November 3, 2023, Exxon completed the acquisition.

Safety problems

In 2007, Amite and Lincoln counties experienced leaks of CO₂, with people in the former having been evacuated. In 2011, a carbon dioxide pipeline owned by the company had a "blowout" in Tinsley, Mississippi, causing the sickening of one worker and killing deer, fish and birds. On February 22, 2020, a 24-inch pressurized pipeline carrying liquid

and

hydrogen sulfide Hydrogen sulfide is a chemical compound with the formula . It is a colorless chalcogen-hydride gas, and is toxic, corrosive, and flammable. Trace amounts in ambient atmosphere have a characteristic foul odor of rotten eggs. Swedish chemist ...

for carbon capture and utilization ruptured less than half a mile from Satartia. More than 300 people were evacuated and 46 hospitalized with carbon dioxide poisoning. In May 2022, the Pipeline and Hazardous Materials Safety Administration preliminarily assessed a civil penalty of $ 3,866,734. In March 2023, Denbury signed a

consent order A consent decree is an agreement or settlement that resolves a dispute between two parties without admission of guilt (in a criminal case) or liability (in a civil case). Most often it is such a type of settlement in the United States. The pl ...

to reform their safety procedures and response protocols.

References

{{Reflist Companies formerly listed on the New York Stock Exchange Companies that filed for Chapter 11 bankruptcy in 2020 Energy companies established in 1951 1997 initial public offerings 2023 mergers and acquisitions 1951 establishments in Canada 2023 disestablishments in Texas