Denbury explores options including possible sale – Bloomberg News

An extension of Denbury Inc’s Greencore carbon pipeline is ready to be lowered into its trench, in Montana, US, 2021. Picture taken in 2021. Denbury/Handout via REUTERS

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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.

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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.

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Reporting by Ruhi Soni in Bengaluru; Editing by Shailesh Kuber

Our Standards: The Thomson Reuters Trust Principles.

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