Denbury Resources

Last updated
Denbury Inc
FormerlyDenbury Resources
Newscope Resources
Company type Public
NYSE: DEN
Industry Petroleum industry
Founded1951
DefunctNovember 3, 2023 (2023-11-03)
FateAcquired by ExxonMobil
Headquarters Plano, Texas, United States
Key people
 Christian S. Kendall, President & CEO
Mark C. Allen, CFO
Products Petroleum
Natural gas
Production output
48.770 thousand barrels of oil equivalent (298,370 GJ) per day
RevenueIncrease2.svg $1.258 billion (2021)
Increase2.svg $56 million (2021)
Total assets Increase2.svg $1.902 billion (2021)
Total equity Increase2.svg $1.135 billion (2021)
Number of employees
716 (2021)
Footnotes /references
[1]

Denbury Inc. was a company engaged in hydrocarbon exploration and extraction via enhanced oil recovery, utilizing carbon dioxide to extract petroleum from fields that have been previously exploited. In November 2023 it was acquired by ExxonMobil.

Contents

The company's operations were focused in the Gulf Coast and Rocky Mountain regions. As of December 31, 2021, Denbury had 191.689 million barrels of oil equivalent (1.17273×109 GJ) of estimated proved reserves, of which 98.6% was petroleum and 1.4% was natural gas. 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 and North Dakota, which accounted for 23% of production in 2021. [1]

History

In March 1951, the company was incorporated in Manitoba 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." [2]

In May 1997, the company became a public company via an initial public offering. [1] In 1998, the company acquired properties from Chevron Corporation for $202 million. [3] In August 1999, the company began its enhanced oil recovery operations with the acquisition of the Little Creek Field. [1]

In 2001, the company acquired Matrix Oil & Gas for $138 million in cash and stock. [4] 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. [1] In 2009, the company sold its assets in the Barnett Shale. [5]

In 2010, the company acquired Encore Acquisition Company in a $4.6 billion transaction. [6] [7]

In 2012, the company acquired Thompson Field in Fort Bend County, Texas for $360 million. [8] [9] The company also sold its acreage in the Bakken Formation to ExxonMobil for $1.6 billion. [10]

In 2013, the company acquired fields in the Cedar Creek Anticline from ConocoPhillips for $1.05 billion. [11]

In 2017, Christian S. Kendall was named chief executive officer of the company. [12] The company also acquired assets in the Salt Creek Field of Wyoming from Linn Energy for $71.5 million. [13]

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". [14] [15] [16]

In July 2020, the company filed for bankruptcy. It emerged from bankruptcy in September 2020 and changed its name to Denbury Inc. [17]

On July 13, 2023, ExxonMobil announced its acquisition of Denbury for $4.9 billion. [18] [19] On November 3, 2023, Exxon completed the acqusition.

Safety problems

In 2007, Amite and Lincoln counties experienced leaks of CO2, with people in the former having been evacuated. [20]

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. [20] [21]

On February 22, 2020, a 24-inch pressurized pipeline carrying liquid carbon dioxide and hydrogen sulfide 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. [22] [23] [24] [25] [20] In May 2022, the Pipeline and Hazardous Materials Safety Administration preliminarily assessed a civil penalty of $ 3,866,734. [26] In March 2023, Denbury signed a consent order to reform their safety procedures and response protocols. [27]

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References

  1. 1 2 3 4 5 "Denbury Inc. 2021 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ↑ "Denbury Resources Inc. 1998 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  3. ↑ "DENBURY IN $202.2 MILLION DEAL FOR CHEVRON PROPERTIES". New York Times . Dow Jones & Company. November 26, 1997.
  4. ↑ "DENBURY RESOURCES TO ACQUIRE MATRIX OIL AND GAS" . The New York Times . Reuters. June 6, 2001.
  5. ↑ "Denbury Completes Majority of its Barnett Shale Sale" (Press release). Business Wire. July 6, 2009.
  6. ↑ "Denbury to Acquire Encore in a $4.5 Billion Transaction" (Press release). Business Wire. November 1, 2009.
  7. ↑ McCracken, Jeffrey (November 3, 2009). "Two U.S. Oil Firms To Merge" . The Wall Street Journal .
  8. ↑ "Denbury Agrees to Acquire Gulf Coast Oil Field" (Press release). GlobeNewswire. May 1, 2012.
  9. ↑ Joyce, Matt (June 6, 2012). "Denbury acquires Thompson oil field for $360 million". American City Business Journals .
  10. ↑ González, Ángel (September 20, 2012). "Exxon to Buy Denbury's Bakken Acreage for $1.6 Billion" . The Wall Street Journal .
  11. ↑ Chaudhuri, Saabira (January 15, 2013). "Conoco to Sell Fields to Denbury for $1.05 Billion" . The Wall Street Journal .
  12. ↑ "Denbury Announces Management Transition Plan" (Press release). GlobeNewswire. March 21, 2017.
  13. ↑ "Denbury Resources to Acquire Interest in Rockies CO2 Flood" (Press release). GlobeNewswire. May 30, 2017.
  14. ↑ Malik, Naureen S. (2020-07-20). "Shale Driller Calls Fake News on 'Fraudulent' Press Release". Financial Post. Bloomberg News.
  15. ↑ "Oil driller Denbury says statement on takeover deal was 'fraudulent' - BNN Bloomberg". BNN Bloomberg. Bloomberg News. 2020-07-20. Retrieved 2024-04-26.
  16. ↑ Malik, Naureen S. (2020-07-20). "Shale Driller Calls Fake News on 'Fraudulent' Press Release: Bloomberg.com". Bloomberg.com.
  17. ↑ "Denbury Successfully Completes Financial Restructuring" (Press release). GlobeNewswire. September 18, 2020.
  18. ↑ "Exxon Mobil buys Denbury, pipeline company with carbon capture expertise, for $5 billion". Associated Press News . July 13, 2023.
  19. ↑ "ExxonMobil completes $4.9bn acquisition of Denbury". Offshore Technology. November 3, 2023.
  20. 1 2 3 Zegart, Dan (26 August 2021). "Gassing Satartia: How A CO2 Pipeline Explosion Affected This Mississippi Town". HuffPost. Retrieved 2024-02-12.
  21. ↑ "Denbury pays big fine for 2011 oil well blowout". The Oklahoman. 2021-08-26. Archived from the original on 2021-08-26. Retrieved 2024-02-12.
  22. ↑ China Lee (February 23, 2020). "Evacuated families allowed back home after large gas leak in Yazoo Co". WLBT.
  23. ↑ Travis Fedschun (February 23, 2020). "Mississippi pipeline rupture results in dozens hospitalized, hundreds evacuated". Fox News.
  24. ↑ Sanya Mansour (February 23, 2020). "Hundreds Evacuated, Dozens Hospitalized After Gas Pipe Rupture in Mississippi". Time .
  25. ↑ Sarah Fowler (February 27, 2020). "'Foaming at the mouth': First responders describe scene after pipeline rupture, gas leak". The Clarion-Ledger . Jackson, Mississippi.
  26. ↑ "PHMSA Notice of Proposed Violation, Proposed Civil Penalty and Proposed Compliance Order to Denbury Gulf Coast Pipeline" (PDF). 2022-05-26.
  27. ↑ "CPF No. 4-2022-017-NOPV" (PDF). March 24, 2023. Retrieved September 22, 2023.
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