Denbury explores options including possible sale - Bloomberg News
17/08/2022 20:07
Aug 17 (Reuters) - Oil company Denbury Inc DEN.N is
exploring options including putting itself up for sale,
Bloomberg News reported on Wednesday, citing people with
knowledge of the matter.
The Plano, Texas-based firm, which has a $3.9 billion market
cap, is working with an advisor to consider its strategic
options, Bloomberg reported.
Denbury's shares were up 11% at $87.86 in afternoon trading.
The company declined to comment when contacted by Reuters.
Denbury, which exited bankruptcy in September 2020, extracts
oil from the Gulf Coast and Rocky Mountains regions using
enhanced oil recovery (EOR), a process in which carbon dioxide
is injected into existing oil fields to push trapped oil out of
the ground.
Investors are not paying anywhere near the full value of
Denbury's carbon capture business, MKM Partners analyst Leo
Mariani wrote in a note. He added that the company still has
hidden value in its CO2 pipelines.
About 95% of carbon capture and storage capacity in the
United States is for EOR, according to data from the Global CCS
Institute last year.
(Reporting by Ruhi Soni in Bengaluru; Editing by Shailesh
Kuber)
((Ruhi.Soni@thomsonreuters.com
Twitter: https://twitter.com/ruhithere))