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- Denbury Resources
Denbury Resources Acquisition, Valuation, Funding & Investors
Denbury Resources was acquired by ExxonMobil for $4.9B in July 2023, a 3.8x multiple on $1.3B of revenue.
Denbury Resources revenue at acquisition
$1.3B
Last twelve months · Jul 2023
Denbury Resources revenue multiple at acquisition
3.8x
EV/Revenue · Jul 2023
Denbury Resources EBITDA multiple at acquisition
6.4x
EV/EBITDA · Jul 2023
About Denbury Resources
Denbury Resources is an independent energy company focused on enhanced oil recovery using carbon dioxide in the U.S. Gulf Coast and Rocky Mountain regions. As of 2022, it operated over 1,500 miles of CO2 pipelines and produced around 45,000 barrels of oil equivalent per day from fields like Jackson Dome in Mississippi. Acquired by ExxonMobil in 2023 for $4.9 billion, its assets emphasize tertiary recovery methods.
Founded
1951
HQ
Website
Status
Acquired
Customer focus
B2B
Revenue model
Product sales
Revenue
$1.3B (Jul 2023)
Valuation
$4.9B (acquired Jul 2023)
Sectors
Denbury Resources Acquisition
Denbury Resources was acquired by ExxonMobil for $4.9B on 13 July 2023.
The acquisition price implies a 3.8x revenue and 6.4x EBITDA multiple on $1.3B of revenue.
Before the acquisition Denbury Resources had raised $40M across 1 funding round.
Denbury Inc. develops carbon capture, utilization and storage (CCS) solutions and enhanced oil recovery, operating the largest owned CO2 pipeline network in the U.S. at over 1,300 miles, including nearly 925 miles in Louisiana, Texas, and Mississippi, plus access to more than 15 onshore CO2 storage sites across Alabama, Louisiana, Mississippi, and Texas. ExxonMobil Corporation, a major international energy company, acquired Denbury in an all-stock transaction valued at $4.9 billion, or $89.45 per share based on ExxonMobil’s July 12, 2023 closing price, with Denbury shareholders receiving 0.84 ExxonMobil shares per Denbury share. Announced July 13, 2023, and unanimously approved by both boards, the deal closed November 2, 2023, following regulatory reviews and shareholder approval, expected in Q4 2023. The strategic rationale centers on accelerating ExxonMobil’s Low Carbon Solutions business by integrating Denbury’s CO2 pipeline infrastructure and storage sites with ExxonMobil’s decades of CCS expertise, enabling service to hard-to-decarbonize industries, emissions reductions up to 110 million tons per year, and support for low-carbon value chains like hydrogen, ammonia, biofuels, and direct air capture. The acquisition also includes Denbury’s Gulf Coast and Rocky Mountain oil and natural gas operations, with proved reserves over 200 million barrels of oil equivalent as of year-end 2022 and production of 46,000-47,000 oil-equivalent barrels per day, providing immediate cash flow and CO2 offtake optionality. Positioned in key U.S. CO2 emissions markets, the combined network enhances ExxonMobil’s leadership in CCS amid energy transition demands.
| Acquirer | Date | Type | Price | EV/Revenue | EV/EBITDA |
|---|---|---|---|---|---|
| 13 Jul 2023 | Strategic M&A | $4.9B | 3.8x | 6.4x |
Denbury Resources Funding History
Denbury Resources has raised a total of $40M across 1 funding round.
Denbury Resources funding rounds
| Date | Stage | Investors | Raised | Deal Summary |
|---|---|---|---|---|
| Jan 1995 | Strategic investment | TPG | $40M | TPG, then Texas Pacific Group, acquired 45 percent of Newscope Resources, an oil and gas company, for $40 million in 1995. Newscope was later renamed Denbury Resources. The investment gave TPG a large minority position in a Canadian-listed exploration company that was building a position in the Mississippi region of the United States. Denbury went on to become a major operator of carbon-dioxide enhanced oil recovery projects and moved its headquarters to Texas. The $40 million purchase was among the earliest investments of TPG after its founding in 1992, and the reference history of the firm lists it as a 1995 transaction. TPG's partners saw the Mississippi oil fields as an opportunity for tertiary recovery. The company sold crude oil produced from its fields to refiners and marketers. |
Who has invested in Denbury Resources?
1 investor has backed Denbury Resources across its funding rounds, including TPG.
Denbury Resources Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
This data is available for Pro users. Sign up to see all 1 Denbury Resources investors. Start Free Trial | ||||
Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples
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Start Free TrialAcquisitions by Denbury Resources
Denbury Resources has acquired 1 company to date.
Last acquisition by Denbury Resources was on November 4th 2020. Denbury Resources acquired Free State Pipeline for $23M.
Latest Acquisitions by Denbury Resources
| Description | Free State Pipeline is an 86-mile carbon dioxide transportation pipeline serving oil production operations in Mississippi. The system transports carbon dioxide from the Jackson Dome supply area to fields where it is used in enhanced oil recovery. Its operating role is to move a production input between a source and consuming oilfield infrastructure. Genesis Energy owned the pipeline and provided transportation capacity under a long-term agreement with Denbury. The business therefore comprised a physical operating pipeline and associated commercial transportation arrangements. Its activities were concentrated in Mississippi and were distinct from Genesis Energy’s separate Northeast Jackson Dome financing lease arrangement. Denbury subsequently brought ownership of the pipeline back within its operating group. |
| HQ Country | |
| HQ City | - |
| Deal Date | 4 Nov 2020 |
| Valuation | $23M |
| EV/Revenue | |
| EV/EBITDA | |
This data is available for Pro users. Sign up to see all Denbury Resources acquisitions and their M&A valuation multiples. Start Free Trial | |
Denbury Resources Competitors
Denbury Resources competitors include listed companies like OGDC, CNX Resources, International Seaways and Seatrium, and private ones like TANAP and Yinson Production.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Publicly listed | $1.6B | $923M | $4.9B | 2.3x | ||
| Publicly listed | $2.1B | $1.5B | $5B | 3.6x | ||
| Publicly listed | $843M | $508M | $5B | 3.7x | ||
| Publicly listed | $9B | $696M | $4.8B | 0.6x | ||
| Private | - | - | $4B | - | ||
| Private | $606M | - | $3.7B | 6.1x |
Denbury Resources Public Comps
Denbury Resources is no longer listed, but its public comps include OGDC, CNX Resources, International Seaways, Seatrium, Crescent Energy, Luberef, Yancoal Australia, MyMesra, Sinopec Oilfield Service and Plains GP Holdings.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $1.6B | $923M | 2.2x | 2.3x | 3.8x | - | |||
| $2.1B | $1.5B | 3.5x | 3.6x | 4.8x | 5.7x | |||
| $843M | $508M | 6.2x | 3.7x | 10.4x | - | |||
| $9B | $696M | 0.6x | 0.6x | 7.9x | 6.4x | |||
| $3.6B | $1.7B | 2.7x | 2.0x | 5.8x | 3.3x | |||
| $2.2B | $318M | 2.3x | 1.7x | 15.4x | 7.9x | |||
| $4B | $938M | 0.9x | 0.8x | 3.9x | 2.8x | |||
| $9.4B | $454M | 0.4x | 0.3x | 7.5x | 6.7x | |||
This data is available for Pro users. Sign up to see all Denbury Resources competitors and their valuation data. Start Free Trial | ||||||||
Common questions about Denbury Resources
| When was Denbury Resources founded? | Denbury Resources was founded in 1951. |
| Where is Denbury Resources headquartered? | Denbury Resources is headquartered in Dallas, TX, United States. |
| Is Denbury Resources publicly listed? | No, Denbury Resources was acquired by ExxonMobil in July 2023. |
| Who acquired Denbury Resources? | Denbury Resources was acquired by ExxonMobil in July 2023. |
| How much was Denbury Resources acquired for? | Denbury Resources was acquired for $4.9B in July 2023, a 3.8x revenue multiple. |
| How much funding has Denbury Resources raised? | Denbury Resources has raised $40M across 1 funding round. |
| What was Denbury Resources' last funding round? | Denbury Resources' last funding round was a $40M strategic investment round in January 1995. |
| Who are Denbury Resources' investors? | Denbury Resources' investors include TPG. |
| Which companies are comparable to Denbury Resources? | Companies comparable to Denbury Resources include OGDC, CNX Resources, International Seaways, Seatrium, TANAP and Yinson Production. |
| How many companies has Denbury Resources acquired? | Denbury Resources has acquired 1 company, including Free State Pipeline. |
| What was the largest acquisition by Denbury Resources? | The $23M acquisition of Free State Pipeline in November 2020 is the largest acquisition Denbury Resources has made to date. |
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