In a push to expand its low carbon opportunities on the Gulf Coast, ExxonMobil agreed Thursday to pay $4.9 billion to acquire Denbury Inc., a leading carbon capture developer. 

Denbury, an enhanced oil recovery (EOR) specialist, is working on several carbon capture and storage (CCS) projects on the Gulf Coast, with extensive carbon dioxide (CO2) infrastructure. ExxonMobil also has CCS projects in the works on the Gulf Coast. In addition, the company has pushed for an estimated $10 billion carbon capture venture to store Houston Ship Channel petrochemical emissions.

In addition to Denbury’s CCS assets, the acquisition includes Gulf Coast and Rocky Mountain oil and natural gas operations. These operations include proved reserves totaling more than 200 million boe, with 47,000...