XOM To Buy DEN -- Biden, IRA, MAGA -- July 13, 2023

Locator: 45118B. 

Not the airport.

Updates

Later, 11:23 a.m. CT: these things immediately come to mind:

• on the heels of the BRK-Cove Point announcement
• made possible by Biden's IRA (MAGA) signed August, 2022
• XOM's roots go deeper into the Bakken: XOM already owned DNR's mineral acreage; and, XOM also owned XTO, one of the bigger operators in the Bakken
• it's less expensive to buy a pipeline company, than to build a pipeline
• all "this CO2 stuff" will offset XOM's other emissions; a huge PR stunt that may or may not make money down the road; but XOM now has a huge seat at the CCUS table

DEN (DNR) ticker:

• now down almost 2% today; now down about $1.62 / share
• I have no idea why any small mom-and-pop retail investor would sell DRN today
• if they got in right after DNR/DEN came out of bankruptcy, they could have gotten in at $20 / share;
• now, selling at $86, they will incur a heavy capital gains tax
• hold the DEN and get XOM stock with no tax consequences as far as I know (?)
  

Original Post 

Link here.

DEN's 1Q23 presentation. I assume this "will disappear" within the next six months.

DEN (DNR) and XOM have had close relationship for a long, long time From the blog:

September 20, 2012: XOM to buy all DNR acreage in the Williston Basin Bakken (North Dakota and Montana); $1.6 billion deal; 196,000 Bakken acres; but DNR gets XOM acreage in Wyoming and Texas.

XOM had been ready to pounce, at least since October, 2022, but it was the IRA signed by Biden in August, 2023, that "allowed" XOM to pull the trigger.

I don't know if I own any DEN. Don't plan on looking. I tend not to look at individual stocks in portfolio unless interested in buying / selling. Don't take that out of context. There are exceptions. Lots of exceptions.

 

From the blog back in July 2020:

Denbury Resources:

• market cap: $130 million
• cash on hand: $7 million
• total debt: $2.3 billion
• filed for bankruptcy in 2020;

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Family Notes

Olivia turned 17 years old while taking flying lessons "with the USAF" this past summer.

She logged exactly 15 hours, as per "the contract."

At 14.1 hours, she was told that she would continue to fly -- there were still about two days left in the training schedule, but even if she went over 15 hours, she could only log 15 hours due to "contract language."

Her instructor signed her off at "first opportunity" to solo but she asked for one more flight with instructor before her solo flight.

She soloed on/about her 14th hour of flight time.