Denbury Acquires NEJD and Free State Pipelines From Genesis Energy

Updated 10 months 1 week ago

Denbury has restructured a long-standing CO2 pipeline arrangement with Genesis Energy regarding the 183-mile Northeast Jackson Dome (NEJD) system which runs from Denbury's Jackson Home CO2 source field near Donaldsville, Louisiana to Denbury's Green pipeline which ends near Houston. Under an agreement executed on October 30, 2020, Denbury will acquire the pipeline in exchange for $70 million to be paid in four equal payments during 2021, representing the remaining obligations under a secured financing lease. Denbury also acquired the Free State pipeline from Genesis for $22.5 million.

In May 2008, Denbury sold the NEJD and Free State pipelines to Genesis for $175 million and $75 million, respectively.

Denbury President & CEO

We believe that Denbury’s extensive CO2 pipeline infrastructure is an important strategic asset that is well positioned for the emerging carbon capture, utilization, and storage business, which we believe will drive significant and sustainable future value creation for Denbury.