ExxonMobil announced it would buy carbon capture developer Denbury Inc. in an all-stock deal that values the Plano, TX-based company at approximately $4.9 billion.

Exxon will pay $89.45 per share, a 2% premium to Denbury’s Wednesday closing price, with investors receiving 0.84 shares of Exxon per share. The deal is likely to close in the fourth quarter of this year, Exxon said.

Denbury owns the largest CO2 pipeline network in the US, measuring about 1,300 miles, including nearly 925 miles in the biggest CO2 markets of Texas, Louisiana and Mississippi.

“Acquiring Denbury reflects our determination to profitably grow our Low Carbon Solutions business by serving a range of hard-to-decarbonize industries with a comprehensive carbon capture and sequestration offering,” said Darren Woods, Chairman and CEO.

In addition to Denbury’s carbon capture and storage assets, the acquisition includes Gulf Coast and Rocky Mountain oil and natural gas operations, which consist of over 200 million barrels of oil equivalent reserves.

Earlier this year, Exxon Mobil posted record first quarter profits, despite a pullback in crude oil prices, thanks in part to a ramp-up in production and ongoing cost cuts.

Exxon’s net income nearly doubled from last year to $11.43 billion, a first quarter record, and the company said it remains on track to cut costs by around $9 billion, compared with 2023 levels, by year-end.