Denbury Resources Inc. and Encore Acquisition Co. have entered into a definitive merger agreement pursuant to which Denbury will acquire Encore in a transaction valued at USD 4.5 billion, including the assumption of debt and the value of the minority interest in Encore Energy Partners LP. The combined company will continue to be known as Denbury Resources Inc. and will be headquartered in Plano, Texas. Under the definitive agreement, Encore stockholders will receive USD 50.00 per share for each share of Encore common stock, comprised of USD 15.00 in cash and USD 35.00 in Denbury common stock subject to both an election feature and a collar mechanism on the stock portion of the consideration. The transaction positions the Company as one of the largest crude oil-focused, independent North American exploration and production companies. The acquisition will also create one of the largest CO2 enhanced oil recovery platforms diversified across the Gulf Coast and Rocky Mountain regions, complemented by ownership and control of the Jackson Dome CO2 source in Mississippi and CO2 sequestration contracts secured with anthropogenic sources in the Gulf Coast, Midwest and Rockies. The combined companies will have over 500MMBOE of additional potential barrels recoverable with CO2 tertiary operations.
