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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: rnam ✭☼  😊 😞
Number: of 21943 
Subject: OT Exxon acquisition
Date: 07/13/23 2:44 PM
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Denbury (NYSE:DEN) +0.8% pre-market Thursday following news that Exxon Mobil (NYSE:XOM) agreed to acquire the developer of carbon capture, utilization and storage solutions in an all-stock transaction valued at $4.9B, or $89.45/share, a 1.9% premium to Wednesday's closing stock price.

Under the deal terms, Denbury (DEN) shareholders will receive 0.84 shares of Exxon Mobil (XOM) for each Denbury share.

In addition to Denbury's (DEN) carbon capture and storage assets, the acquisition includes Gulf Coast and Rocky Mountain oil and natural gas operations, consisting of more than 200M boe of proved reserves with 47K boe/day of current production.

seekingalpha.com - Exxon to buy denbury for in all stock deal

I don't believe I have ever seen an acquisition with such a low premium of 1.9%. Denbury is up 5% YTD, so it hasn't had a huge run up already, justifying a low premium.

This should be a good hunting ground for BHE. They should be able to deploy vast amounts of capital without overpaying. They could partner with OXY who could operate the extraction and carbon capture and Mid American could operate the pipelines and terminals.
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This community has written 21,448 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 57 recs · 2023
Summary of 2Q 2026 · 54 recs · 2026
3Q Summary · 53 recs · 2024
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