Exxon Mobil Corp. (NYSE: XOM) announced it is acquiring $1.6 billion more in assets held by Denbury Resources Inc. (NYSE: DNR) in the Bakken oil field in Montana and North Dakota.
The acquisition represents all of the shale assets held by Denbury in the Bakken field. In addition to the $1.6 billion, which will be paid in cash, Denbury will receive the interest held by Exxon in two fields in Texas and Wyoming.
Denbury had held 196,000 acres in the Bakken, which will bring the total owned by Exxon to just under 600,000 acres in the region.
The immediate benefit to Exxon will be production on the acreage will add about 15,000 barrels of oil and other hydrocarbons a day to their production, with all of that coming on the land they're acquiring.
This will increase as they boost drilling on the acreage. It adds approximately 3 percent to its oil production in the U.S.
As for North Dakota, they have quickly become the second-largest oil producer state in the United States.
Denbury was trading at $17.45, up $0.74, or 4.40 percent, as of 12.03 PM EDT. Exxon was trading at $91.16, up 0.59, or 0.65 percent.
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