As filed with the Securities and Exchange Commission on April 20, 2010September 27, 2023

Registration No. 333-164620333-274252

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

AMENDMENT NO. 2Amendment No. 1

TOto

FORM S-4

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

 

 

Exxon Mobil CorporationEXXON MOBIL CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

 

New Jersey 2911 13-5409005

(State or Other Jurisdiction of

Incorporation or Organization)

 

(Primary Standard Industrial

(I. R. S. Employer
Incorporation or Organization)Classification Code Number)

 

(I.R.S. Employer

Identification Number)

5959 Las Colinas Boulevard22777 Springwoods Village Parkway

Irving,Spring, Texas 75039-229877389-1425

(972) 444-1000940-6000

(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant’s Principal Executive Offices)

Patrick T. MulvaCraig S. Morford

Vice President, General Counsel and Secretary

Exxon Mobil Corporation

5959 Las Colinas BoulevardSpring, Texas 77389-1425

Irving, Texas 75039-2298

(972) 444-1000940-6000

(Name, Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent For Service)

 

 

Copies to:

 

George R. Bason, Jr.

Louis L. Goldberg, Esq.

H. Oliver Smith, Esq.

Shanu Bajaj, Esq.

Davis Polk & Wardwell LLP

450 Lexington Avenue

New York, New York 10017

(212) 450-4000

 

RogerJames S. AaronMatthews

Executive Vice President,

Chief Administrative Officer,

General Counsel and Secretary

Denbury Inc.

5851 Legacy Circle, Suite 1200 Plano, Texas 75024

(972) 673-2000

Stephen F. ArcanoM. Gill

Kenneth M. WolffDouglas E. McWilliams

Skadden, Arps, Slate, MeagherD. Alex Robertson

Vinson & FlomElkins LLP

4 Times Square845 Texas Avenue, Suite 4700 Houston, Texas 77002

(713) New York, New York 10036758-2222

(212) 735-3000

Approximate date of commencement of proposed sale of the securities to the public: As soon as practicableFrom time to time after thethis Registration Statement becomes effective date of this registration statement and the effective timeupon completion of the merger of ExxonMobil InvestmentEMPF Corporation, (“Merger Sub”), a wholly owned subsidiary of Exxon Mobil Corporation, (“ExxonMobil”), with and into XTO EnergyDenbury Inc. (“XTO Energy”), as described in the Agreement and Plan of Merger dated as of December 13, 2009 among XTO Energy, ExxonMobil and Merger Sub.

If the securities being registered on this form are being offered in connection with the formation of a holding company and there is compliance with General Instruction G, check the following box. ¨

If this form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act of 1933, as amended (the Securities Act“Securities Act”), check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨

If this form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Securities Exchange Act of 1934 (the “Exchange Act”).1934.

 

Large accelerated filerx

   Accelerated filer¨

Non-accelerated filer  ¨

 (Do not check if a smaller reporting company)
Non-accelerated filer Smaller reporting company¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

If applicable, place an X in the box to designate the appropriate rule provision relied upon in conducting this transaction:

Securities Exchange Act Rule 13e-4(i) (Cross-Border Issuer Tender Offer) ¨

Securities Exchange Act Rule 14d-1(d)14d-l(d) (Cross-Border Third-Party Tender Offer) ¨

 

 

CALCULATION OF REGISTRATION FEE

 

Title Of Each Class

Of Securities To Be Registered

 Amount To Be
Registered(1)
 Proposed Maximum
Offering Price Per
Share
 Proposed Maximum
Aggregate Offering
Price(2)
 Amount Of
Registration Fee(3)

Common Stock, without par value

 

430,094,421

 N/A 

$27,739,817,697

 

$1,977,849(4)

 
 
(1)Represents the maximum number of shares of common stock of ExxonMobil estimated to be issuable upon completion of the merger described in this proxy statement/prospectus, equal to the product of (i) the maximum number of shares of XTO Energy common stock that may be canceled and exchanged in the merger (based on 583,275,792 shares of XTO Energy common stock outstanding on January 22, 2010, 18,281,806 shares of XTO Energy common stock issuable pursuant to the exercise of XTO Energy options outstanding on January 22, 2010, 1,927,800 shares of XTO Energy common stock issuable pursuant to the exercise of XTO Energy warrants outstanding on January 22, 2010, 2,427,083 shares of XTO Energy common stock to be issued immediately prior to completion of the merger pursuant to certain grant agreements with the named executive officers of XTO Energy and 24,996 shares issued to XTO Energy’s non-employee directors in February 2010 constituting such directors’ annual equity grant), multiplied by (ii) the exchange ratio of 0.7098 of a share of ExxonMobil common stock for each share of XTO Energy common stock.
(2)Estimated solely for the purpose of calculating the registration fee required by Section 6(b) of the Securities Act and calculated pursuant to Rules 457(f)(1) and 457(c) under the Securities Act. The proposed maximum aggregate offering price of the registrant’s common stock was calculated based upon the market value of shares of XTO Energy common stock (the securities to be canceled in the merger) in accordance with Rule 457(c) and is equal to the product of (i) $45.78, the average of the high and low prices per share of XTO Energy common stock on the New York Stock Exchange on January 26, 2010, multiplied by (ii) 605,937,477, the maximum number of shares of XTO Energy common stock that may be canceled and exchanged in the merger as of January 22, 2010.
(3)Calculated pursuant to Section 6(b) of the Securities Act and SEC Fee Advisory #4 for Fiscal Year 2010 at a rate equal to $71.30 per $1,000,000 of the proposed maximum aggregate offering price.
(4)Previously paid in connection with the initial filing of this Registration Statement on February 1, 2010 and the filing of Amendment No. 1 to this Registration Statement on March 24, 2010.

The registrant hereby amends this registration statementRegistration Statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statementRegistration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statementRegistration Statement shall become effective on such date as the Securities and Exchange Commission acting pursuant to said Section 8(a), may determine.

 

 

 


Information contained herein is subject to completion or amendment. A registration statement relating to these securities has been filed with the Securities and Exchange Commission. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. ThisThe attached proxy statement/prospectus shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

 

PRELIMINARY — PRELIMINARY—SUBJECT TO COMPLETION — COMPLETION—DATED APRIL 20, 2010SEPTEMBER 27, 2023

LOGO

MERGER PROPOSAL — LOGO

TRANSACTION PROPOSED—YOUR VOTE IS VERY IMPORTANT

[], 2010

Dear XTO EnergyStockholders of Denbury Inc. Stockholder::

On DecemberJuly 13, 2009, XTO Energy2023, Denbury Inc. and(“Denbury”), Exxon Mobil Corporation entered into a merger agreement that provides for XTO Energy to become(“ExxonMobil”) and EMPF Corporation, a wholly owned subsidiary of ExxonMobil. The XTO EnergyExxonMobil (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”), under which, upon the terms and subject to the conditions set forth therein, Merger Sub will merge with and into Denbury, with Denbury surviving as a wholly owned subsidiary of ExxonMobil (the “Merger”).

If the Merger is completed, Denbury stockholders will receive, in exchange for each share of Denbury common stock, par value $0.001 per share, held immediately prior to the Merger, 0.840 of a share of ExxonMobil common stock, without par value (such consideration, the “Merger Consideration”).

Denbury’s board of directors has determined that the merger and the merger agreement are advisable and in the best interests of XTO Energy and its stockholders and hasunanimously approved the merger agreementMerger Agreement and recommends that Denbury stockholders vote in favor of approving and adopting the merger.Merger Agreement.

IfBased on ExxonMobil’s closing stock price on     , 2023, the merger is completed, each outstandingmost recent practicable date for which such information was available, the Merger Consideration represented approximately $   in value per share of XTO Energy common stock will be converted into the right to receive 0.7098 shares of ExxonMobil common stock. Immediately following completion of the merger, it is expected that XTO Energy stockholders will own approximately 8% of the outstanding shares of ExxonMobil common stock, basedwhich represents a premium of approximately   % over the closing price of the Denbury common stock on July 12, 2023, the numberlast trading day before the public announcement of sharesthe execution of XTO Energy andthe Merger Agreement with ExxonMobil. The value of the Merger Consideration to be received in exchange for each share of Denbury common stock will fluctuate with the market value of ExxonMobil common stock outstanding, on a fully diluted basis, as of April 14, 2010.until the Merger is complete. The Denbury common stock of each of ExxonMobil and XTO Energy is tradedlisted on theThe New York Stock Exchange (the “NYSE”) under the symbolssymbol “DEN”. The ExxonMobil common stock is listed on the NYSE under the symbol “XOM” and “XTO”, respectively..

We are holding a special meetingThe Merger cannot be completed without approval of stockholders on [], 2010 at [], local time, at [], to obtain your votethe proposal to adopt the merger agreement. YourMerger Agreement by the affirmative vote is very important. The merger cannot be completed unless theof holders of a majority of the outstanding shares of XTO EnergyDenbury common stock entitled to vote forthereon. Because of this, Denbury is holding a special meeting of its stockholders on    , 2023 (the “Special Meeting”) to vote on the adoption ofproposal necessary to complete the merger agreementMerger. Information about the Special Meeting, the Merger, the Merger Agreement and the other business to be considered by stockholders at the special meeting.

The XTO EnergySpecial Meeting is contained in this proxy statement/prospectus. Denbury’s board of directors has fixed the close of business on September 27, 2023 as the record date for the determination of Denbury stockholders entitled to notice of, and to vote at, the Special Meeting. Any stockholder entitled to attend and vote at the Special Meeting is entitled to appoint a proxy to attend and vote on such stockholder’s behalf. Such proxy need not be a holder of Denbury common stock. We urge you to read this proxy statement/prospectus and the annexes and documents incorporated by reference carefully.  You should also carefully consider the risks that are described in the “Risk Factors” section beginning on page31.

The Denbury board of directors has unanimously determined that the Merger Agreement and the transactions contemplated thereby, including the Merger, are fair to and in the best interests of Denbury and its stockholders, approved, adopted and declared advisable the Merger Agreement and the transactions contemplated thereby, including the Merger in accordance with the requirements of the Delaware General Corporation Law and directed that the Merger Agreement be submitted to the Denbury stockholders for adoption at a meeting of such stockholders. The Denbury board of directors unanimously recommends that XTO EnergyDenbury stockholders vote “FOR” the adoptionproposal to approve and adopt the Merger Agreement and the transactions contemplated thereby, including the Merger.


Your vote is very important regardless of the merger agreement.number of shares of Denbury common stock that you own.

On behalf of the XTO Energy board of directors, I invite you to attend the special meeting. Whether or not you expectplan to attend the XTO Energy special meeting in person, we urge you toSpecial Meeting virtually, please submit your proxy as promptlysoon as possible through one ofby following the delivery methods described ininstructions on the accompanying proxy statement/prospectus.card to make sure that your shares are represented at the meeting. If your shares are held in the name of a broker, bank or other nominee, please follow the instructions on the voting instruction form furnished by the broker, bank or other nominee. You must provide voting instructions by filling out the voting instruction form in order for your shares to be voted.

In addition, we urge youThe Special Meeting will be held in a virtual meeting format only. You will not be able to read carefullyattend the accompanying proxy statement/prospectus (and the documents incorporated by reference into the accompanying proxy statement/prospectus) which includes important information about the merger agreement, the proposed merger, XTO Energy, ExxonMobil and the special meeting.Please pay particular attention to the section titled “Risk Factors” beginning on page [] of the accompanying proxy statement/prospectus.Special Meeting physically in person.

On behalf of the XTO Energy board of directors, thankThank you for your continued support.

Sincerely,Very truly yours,

LOGOChristian S. Kendall

Bob R. SimpsonPresident and Chief Executive Officer

Chairman of the Board and FounderDenbury Inc.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the Merger or the other transactions described in this proxy statement/prospectus or the securities to be issued underin connection with the accompanying proxy statement/prospectusMerger or determined that the accompanyingif this proxy statement/prospectus is accurate or complete. Any representation to the contrary is a criminal offense.

The accompanyingThis proxy statement/prospectus is dated    [], 20102023, and is first being mailed to the stockholders of XTO EnergyDenbury on or about    [], 2010.2023.



ADDITIONAL INFORMATION

The accompanying document is the proxy statement of XTO Energy Inc.Denbury for its special meeting of stockholdersthe Special Meeting and the prospectus of Exxon Mobil CorporationExxonMobil for the shares of Exxon Mobil CorporationExxonMobil common stock to be issued to Denbury stockholders as consideration forin the merger.Merger. The accompanying proxy statement/prospectus incorporates by reference important business and financial information about Exxon Mobil CorporationDenbury and XTO Energy Inc.ExxonMobil from documents that are not included in or delivered with the accompanying proxy statement/prospectus. This information is available to you without charge upon your request. You can obtain the documents incorporated by reference into the accompanying proxy statement/prospectus (other than certain exhibits or schedules to these documents), without charge, by requesting them in writing or by telephone from Exxon Mobil CorporationDenbury or XTO Energy Inc.ExxonMobil at the following addresses and telephone numbers:numbers, or through the Securities and Exchange Commission website at www.sec.gov:

 

Denbury

ExxonMobil Shareholder Services

c/o Computershare Trust Company, N.A.

P.O. Box 43078

Providence, Rhode Island 02940-3078

Telephone: (800) 252-1800 (within the U.S. and Canada)

Telephone: (781) 575-2058 (outside the U.S. and Canada)5851 Legacy Circle, Suite 1200

  

XTO Energy Inc.22777 Springwoods Village Parkway

810 Houston StreetPlano, TX 75024

Fort Worth,Spring, Texas 76102-629877389-1425

Attn:Attention: Investor Relations

Telephone: (817) 870-2800 or (800) 299-2800Attention: Investor Relations

(972) 673-2000

(972) 940-6000 (General)

IR@denbury.com

Investor.relations@exxonmobil.com

In addition, if you have any questions aboutconcerning the mergerMerger Agreement or the Merger or the other transactions contemplated by the Merger Agreement, or the accompanying proxy statement/prospectus, or if you would like additional copies of the accompanyingthis proxy statement/prospectus or documents incorporated by reference herein, or if you need to obtain proxy cards or other information related to the proxy solicitation,help voting your shares of Denbury common stock, please contact Denbury’s proxy solicitor:

Innisfree M&A Incorporated the proxy solicitor for XTO Energy Inc., toll-free at

501 Madison Avenue, 20th Floor

New York, New York 10022

Stockholders May Call Toll-Free: (877) 750-5836 (banks and brokers call collect at717-3905

Banks & Brokers May Call Collect: (212) 750-5833). You will not be charged for any of these documents that you request.750-5833

If you would like to request documents, please do so by [], 2010 in order to receive themno later than five business days before the special meeting.date of the Special Meeting (which date is   , 2023).

See “Where You Can Find More Information” beginning on page []178 of the accompanying proxy statement/prospectus for further information.


LOGO


LOGO

810 Houston Street

Fort Worth, Texas 76102

NOTICE OF SPECIAL MEETING OF STOCKHOLDERS

TO BE HELD    , 2023

To theour Stockholders:

You are hereby notified that a Special Meeting of Stockholders of XTO EnergyDenbury Inc.:

Notice is hereby given that a special meeting of stockholders of XTO Energy Inc., which is referred to as XTO Energy, a Delaware corporation (“Denbury”), will be held virtually at www.virtualshareholdermeeting.com/DEN2023SM at     Central Time (CT) on     [], 2010 at [], local time, at [], solely2023, for the following purposes:

 

To consider
a.

to vote on a proposal to approve and adopt the Agreement and Plan of Merger, dated July 13, 2023, by and among Exxon Mobil Corporation, a New Jersey corporation (“ExxonMobil”), EMPF Corporation, a Delaware corporation and wholly owned subsidiary of ExxonMobil (“Merger Sub”), and Denbury (as it may be amended from time to time, the “Merger Agreement”), which is further described in the section titled “The Merger Agreement” beginning on page 112, and vote on a proposal to adopt the Agreement and Plan of Merger, dated as of December 13, 2009 (as it may be amended from time to time), among Exxon Mobil Corporation, which is referred to as ExxonMobil, ExxonMobil Investment Corporation, a wholly owned subsidiary of ExxonMobil, and XTO Energy, a copy of which is attached as Annex A to the proxy statement/prospectus of which this notice forms a part (the “Merger Agreement Proposal”); and

b.

to hold an advisory vote to approve the compensation that may be paid or become payable to Denbury’s named executive officers that is based on or otherwise related to the merger (the “Advisory Compensation Proposal”).

Denbury will transact no other business at the Special Meeting except such business as may properly be brought before the Special Meeting or any adjournment or postponement thereof by or at the direction of the Denbury board of directors. Please refer to the proxy statement/prospectus accompanyingof which this notice; and

To approvenotice forms a part for further information with respect to the adjournment of the XTO Energy special meeting, if necessarybusiness to solicit additional proxies if there are not sufficient votes to adopt the merger agreementbe transacted at the time of the special meeting.

These items of business, including the merger agreement and the proposed merger, are described in detail in the accompanying proxy statement/prospectus.The XTO Energy board of directors has determined that the merger agreement and the transactions contemplated by the merger agreement, including the merger, are advisable and in the best interests of XTO Energy and its stockholders and recommends that XTO Energy stockholders vote “FOR” the proposal to adopt the merger agreement and “FOR” the adjournment of the XTO Energy special meeting if necessary to solicit additional proxies in favor of such adoption.Special Meeting.

Only stockholders of record as of the close of business on [], 2010September 27, 2023 are entitled to notice of, the XTO Energy special meeting and to vote at, the XTO Energy specialSpecial Meeting.

To be admitted to the Special Meeting at www.virtualshareholdermeeting.com/DEN2023SM, stockholders must enter the control number found on their proxy card, voting instruction form or notice. Once properly admitted to the Special Meeting, stockholders of record as of the record date may vote their shares by following the instructions available on the meeting or at any adjournment or postponement thereof. Awebsite during the meeting and may also view the complete list of stockholders entitled to vote at the special meetingannual meeting. To ask a question pertaining to the business of the Special Meeting, stockholders must submit it in advance of the Special Meeting by visiting www.proxyvote.com. Questions may be submitted until 11:59 p.m., Central Time, on  , 2023. Each stockholder will be limited to no more than one question. Technical support will be available in our offices locatedon the meeting platform at    810 Houston Street, Fort Worth, Texas 76102, during regular business hours for a period of no less than ten days beforebeginning at    a.m. Central Time on    , 2023 or by calling (800) 586-1548 (US) or (303) 562-9288 (International). The technical support offered through this service is designed to address difficulties related to the specialvirtual meeting website, and at the placeit is recommended that you contact your broker should you be unable to locate your control number.

Completion of the special meeting during the meeting.

AdoptionMerger is conditioned on adoption of the merger agreementMerger Agreement by the XTO EnergyDenbury stockholders, is a condition to the merger andwhich requires the affirmative vote of holders of a majority of the outstanding shares of XTO EnergyDenbury common stock outstanding and entitled to vote thereon. Therefore, your

The Denbury board of directors has unanimously determined that the Merger Agreement and the transactions contemplated thereby, including the Merger, are fair to and in the best interests of Denbury and its stockholders, approved, adopted and declared advisable the Merger Agreement and the transactions contemplated thereby, including the Merger in accordance with the requirements of the


Delaware General Corporation Law and directed that the Merger Agreement be submitted to the Denbury stockholders for adoption at a meeting of such stockholders. The Denbury board of directors unanimously recommends that Denbury stockholders vote “FOR” the proposal to approve and adopt the Merger Agreement and the transactions contemplated thereby, including the Merger.

Your vote is very important.Your failure to vote your shares will have the same effect as a vote “AGAINST” the adoptionimportant regardless of the merger agreement.

By ordernumber of shares of Denbury common stock that you own. If you plan to attend the board of directors,

LOGO

VIRGINIA N. ANDERSON

Secretary

Fort Worth, Texas

[], 2010


YOUR VOTE IS IMPORTANT!

WHETHER OR NOT YOU EXPECT TO ATTEND THE XTO ENERGY SPECIAL MEETING IN PERSON, WE URGE YOU TO SUBMIT YOUR PROXY AS PROMPTLY AS POSSIBLE (1) THROUGH THE INTERNET, (2) BY TELEPHONE OR (3) BY MARKING, SIGNING AND DATING THE ENCLOSED PROXY CARD AND RETURNING IT IN THE POSTAGE-PAID ENVELOPE PROVIDED.You may revoke yourSpecial Meeting virtually, please follow the instructions as outlined in this proxy statement/prospectus. Whether or changenot you expect to attend the Special Meeting virtually, we urge you to submit your vote at any time beforein advance of the XTO Energy special meeting. If your shares are held in the name of a broker, bank broker or other fiduciary,nominee, please followvote by following the instructions on the voting instruction form furnished by the broker, bank or other nominee. If you hold your shares in your own name, submit a proxy to vote your shares as promptly as possible by (i) visiting the internet site listed on the accompanying proxy card, furnished(ii) calling the toll-free number listed on the proxy card or (iii) submitting your proxy card by mail by using the self-addressed, stamped envelope provided. Submitting a proxy will not prevent you from voting virtually at the meeting, but it will help to you by such record holder.secure a quorum and avoid added solicitation costs. Any eligible holder of Denbury common stock may vote virtually at the Special Meeting, thereby revoking any previous proxy. In addition, a proxy may also be revoked in writing before the Special Meeting in the manner described in the proxy statement/prospectus of which this notice is a part.

The proxy statement/prospectus of which this notice is a part provides a detailed description of the Merger and the Merger Agreement and the other matters to be considered at the Special Meeting. We urge you to carefully read the accompanyingthis proxy statement/prospectus, including allany documents incorporated by reference intoherein, and the accompanying proxy statement/prospectus, and its annexes carefully and in their entirety. In particular, we urge you to carefully read the section entitled “Risk Factors” beginning on page 31.

If you have any questions concerning the merger, the special meetingMerger or the accompanyingthis proxy statement/prospectus, would like additional copies of the accompanying proxy statement/prospectus or need help voting your shares of XTO EnergyDenbury common stock, please contact XTO Energy’sDenbury’s proxy solicitor:

Innisfree M&A Incorporated at (877) 717-3905.

501 Madison Avenue, 20th FloorBy order of the Board of Directors,

New York, New York 10022James S. Matthews

Stockholders, call toll-free: (877) 750-5836Executive Vice President, Chief Administrative Officer,

BanksGeneral Counsel and brokers, call collect: (212) 750-5833

Secretary

Denbury Inc.

   , 2023


TABLE OF CONTENTS

 

   Page

QUESTIONS AND ANSWERS ABOUT THE MERGER AND THE SPECIAL MEETING

 1

SUMMARY

  7
12

Information about ExxonMobil, XTO Energy and ExxonMobil Investment CorporationThe Companies

  712

The Merger

  813

The Special Meeting of XTO Energy Stockholders

  813

What XTO EnergyDenbury Stockholders Will Receive in the Merger

  915

Treatment of Equity AwardsNo Dissenters’ or Appraisal Rights

  1016

Treatment of Denbury Equity Awards

16

Recommendation of the XTO EnergyDenbury Board of Directors

  1116

OpinionOpinions of XTO Energy’sDenbury’s Financial AdvisorAdvisors

  1116

Ownership of Shares of ExxonMobil Common Stock After the Merger

  1118

ExxonMobil Shareholder Approval Is Not RequiredInterests of Denbury’s Directors and Executive Officers in the Merger

  1118

Interests of Certain Persons in the Merger

12

Listing of Shares of ExxonMobil Common Stock and Delisting and Deregistration of XTO EnergyDenbury Common Stock

  1219

No Appraisal Rights Available

12

Completion of the Merger Isis Subject to Certain Conditions

  1219

The Merger May Not Be Completed Without All Required Regulatory Approvals

  1320

The Merger Is Expected to Occur in the Second Quarter of 2010

14

No Solicitation by XTO EnergyDenbury

  1421

Termination of the Merger Agreement

  1523

Termination Fee Payable by XTO EnergySpecific Performance; Remedies

  1625

Material U.S. Federal Income Tax Consequences of the Merger

  1625

Accounting Treatment

  1726

Rights of XTO EnergyDenbury Stockholders Will Change as a Result of the Merger

  1726

Litigation RelatingRelated to the Merger

  17
26

SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA OF EXXONMOBILRisk Factors

  18
27

SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA OF XTO ENERGY

19

SELECTED PROVED OIL AND GAS RESERVES OF XTO ENERGY

21

COMPARATIVE PER SHARE DATA

23

COMPARATIVE PER SHARE MARKET PRICE AND DIVIDEND INFORMATION

  25
29

Market Prices

  2529

Dividends

  26
29

RISK FACTORS

  27
31

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

  33
41

THE COMPANIES

  36
43

ExxonMobilExxon Mobil Corporation

  3643

XTO EnergyDenbury Inc.

  3643

ExxonMobil InvestmentEMPF Corporation

  37
43

THE SPECIAL MEETING OF STOCKHOLDERS OF XTO ENERGY

  38
44

Date, Time and Place of the Special Meeting

  3844

PurposePurposes of the Special Meeting

  3844

XTO EnergyRecommendation of the Denbury Board Recommendationof Directors

  3844

XTO Energy Record Date; Outstanding Shares; SharesStockholders Entitled to Vote

  3845

Quorum

  3845

Required VoteVote; Treatment of Abstentions and Broker Non-Votes

  3945

Share Ownership; Voting by Denbury’s Directors and Executive Officers

46

Voting of Denbury Common Stock

46

Revocation of Proxies

47

Inspector of Elections; Tabulation of Votes

48

Solicitation of Proxies

48

Adjournments and Postponements

48

Other Matters

48

Householding of Proxy Statement/Prospectus

49

Questions and Additional Information

49

THE MERGER

50

 

i


   Page

Stock Ownership of and Voting by XTO Energy’s Directors and Executive OfficersGeneral

  3950

Voting of Shares by Holders of RecordThe Parties

  3950

Voting of Shares Held in Street Name

40

Revocability of Proxies; Changing Your Vote

40

Solicitation of Proxies

40

No Other Business

41

Adjournments

41

Assistance

41

THE MERGER

42

General

42

Background of the Merger

  4251

XTO Energy Reasons for the Merger; Certain Relationships between ExxonMobil and Denbury

72

Recommendation of the XTO EnergyDenbury Board of Directors

55

ExxonMobil and Reasons for the Merger

  5973

Opinion of XTO Energy’s Financial AdvisorExxonMobil’s Reasons for the Merger

  6079

Certain ProjectedDenbury Unaudited Prospective Financial Data Prepared by Barclays Capital for Purposes of
Rendering its OpinionInformation

  7280

Opinions of Denbury’s Financial Advisors

87

Regulatory Approvals Required for the Merger

  73107

No Dissenters’ or Appraisal Rights

  75109

Material Litigation Related to the Merger

109

U.S. Federal Income Tax Consequences of the Merger

  75110

Accounting Treatment

  78111

Listing of Shares of ExxonMobil Common Stock and Delisting and Deregistration of XTO EnergyShares of Denbury Stock

  78111

Litigation Relating to the Merger

78

Congressional Subcommittee Hearing

82

THE MERGER AGREEMENT

  83
112

Explanatory Note

112

Structure of the Merger

  83112

ClosingCompletion and Effective TimeEffectiveness of the Merger

  83112

Merger Consideration

  84113

Fractional Shares

  84114

Procedures for Surrendering XTO EnergyDenbury Stock Certificates

  84114

Treatment and Quantification of XTO EnergyDenbury Equity Awards

  85115

TreatmentListing of XTO Energy WarrantsShares of ExxonMobil Common Stock

  86116

Listing of ExxonMobil Stock and Delisting and Deregistration of XTO Energy Stock

87

Conditions to theGovernance Matters Following Completion of the Merger

  87116

Conditions to Completion of the Merger

117

Representations and Warranties

  88118

Definition of “Material Adverse Effect”

  89119

Conduct of Business Pending the Merger

  90120

Obligation of the XTO Energy Board of DirectorsObligations to Call Stockholders’ Meeting

124

Obligations to Recommend the Approval and Adoption of the Merger Agreement and Call a Stockholders’ Meeting

  92125

No Solicitation by XTO Energy

  93125

ExxonMobil’s Covenant to Vote

95

Reasonable Best Efforts Covenant

  95128

Proxy StatementStatement/Prospectus and Registration Statement Covenant

  95129

Indemnification and Insurance

  96130

Employee Matters

  97131

Continuation of XTO Energy’s ExistenceTax Matters

  98132

Other Agreements

132

Termination of the Merger Agreement

  98133

Termination Fee Payable by XTO EnergyExclusive Remedy

  99135

Amendments; WaiversOther Expenses

  100135

ExpensesSpecific Performance; Remedies

  100136

Third Party Beneficiaries

136

Amendments; Waivers

136

U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE MERGER

137

INTERESTS OF DENBURY’S DIRECTORS AND EXECUTIVE OFFICERS IN THE MERGER

140

Certain Assumptions

140

Background for Certain Denbury 2020 Equity Awards

140

Treatment and Quantification of Denbury Equity Awards

141

Severance Agreements

143

Golden Parachute Compensation

144

 

ii


   Page

INTERESTSPROPOSAL I—APPROVAL AND ADOPTION OF CERTAIN PERSONS IN THE MERGER AGREEMENT

  101
147

PROPOSAL XTO Energy Non-Employee DirectorsII—NON-BINDING ADVISORY VOTE ON TRANSACTION-RELATED COMPENSATION FOR CERTAIN DENBURY EXECUTIVE OFFICERS

  101148

XTO Energy Named Executive Officers

102

Other Executive Officers of XTO Energy

107

Indemnification and Insurance

108

Relationship with Jefferies

108

DESCRIPTION OF EXXONMOBIL CAPITAL STOCK

  109
149

Authorized Capital Stock

  109149

Description of Common Stock

  109149

Description of Preferred Stock

  109149

Transfer Agent and Registrar

  110150

Stock Exchange ListingCOMPARISON OF STOCKHOLDER RIGHTS

  110
151

COMPARISONSECURITY OWNERSHIP OF SHAREHOLDER RIGHTSCERTAIN DENBURY BENEFICIAL OWNERS AND MANAGEMENT

  111
172

Material Differences in Shareholder RightsEXPERTS

  111175

Certain Similarities in Shareholder RightsLEGAL MATTERS

  123
176

LEGAL MATTERSFUTURE DENBURY STOCKHOLDER PROPOSALS

  127
177

EXPERTS

127

FUTURE STOCKHOLDER PROPOSALS

128

WHERE YOU CAN FIND MORE INFORMATION

  129178

ANNEXES

  

Annex A: Agreement and Plan of Merger

A-1

Annex B: Opinion of J.P. Morgan Securities LLC

B-1

Annex C: Opinion of TPH & Co.

C-1

Annex D: Opinion of PJT Partners LP

D-1

Annex A — Agreement and Plan of MergerPART II INFORMATION NOT REQUIRED IN THE PROSPECTUS

  

Annex B — Opinion of Barclays Capital Inc.

II-1
 

 

iii



QUESTIONS AND ANSWERS ABOUT THE MERGER AND THE SPECIAL MEETING

The following are some questions that you, as a stockholder of XTO Energy,Denbury, may have regarding the mergerMerger and other matters being considered at the special meeting of Denbury stockholders (the “Special Meeting”) and brief answers to those questions. You are urgedTo better understand these matters, and for a description of the legal terms governing the Merger, Denbury urges you to carefully read carefullythe remainder of this proxy statement/prospectus andbecause the other documents referred toinformation in this proxy statement/prospectus in their entirety because this section maydoes not provide all of the information that ismight be important to you with respect to the mergerMerger and the special meeting.other matters being considered at the Special Meeting. Additional important information is also contained in the annexes to this proxy statement/prospectus and the documents incorporated by reference into,in this proxy statement/prospectus. See “Where You Can Find More Information” beginning on page 178 of this proxy statement/prospectus.

Q: Why am I receiving this document?

Q:Why am I receiving this document?

A: Exxon Mobil Corporation, a New Jersey corporation (“ExxonMobil”), EMPF Corporation, a wholly owned subsidiary of ExxonMobil (“Merger Sub”), and Denbury Inc., a Delaware corporation (“Denbury”), have entered into an Agreement and Plan of Merger, dated as of July 13, 2023 (as it may be amended from time to time, the “Merger Agreement”), providing for the merger of Merger Sub with and into Denbury (the “Merger”), with Denbury surviving the Merger as a wholly owned subsidiary of ExxonMobil. In order to complete the Merger, Denbury stockholders must approve the proposal to adopt the Merger Agreement and all other conditions to the Merger must be satisfied or waived.

A:ExxonMobil and XTO Energy have agreed to a merger, pursuant to which XTO Energy will become a wholly owned subsidiary of ExxonMobil and will cease to be a publicly held corporation. In order to complete the merger, XTO Energy stockholders must vote to adopt the merger agreement, and XTO Energy is holding a special meeting of stockholders solely to obtain such stockholder approval. In the merger, ExxonMobil will issue shares of ExxonMobil common stock as the consideration to be paid to holders of XTO Energy common stock.

Denbury will hold the Special Meeting to obtain approval of the Merger Agreement proposal and approvals with respect to certain other related matters. This proxy statement/prospectus, which you should read carefully, contains important information about the Merger and other matters being considered at the Special Meeting.

This document is being delivered to you as both a proxy statement of XTO EnergyDenbury and a prospectus of ExxonMobil in connection with the merger.Merger. It is the proxy statement by which the XTO EnergyDenbury board of directors is soliciting proxies from youDenbury stockholders to vote on the adoption of the merger agreement at the special meetingSpecial Meeting, or at any adjournment or postponement of the special meeting. ItSpecial Meeting, on the approval of the Merger Agreement Proposal and the approval of the Advisory Compensation Proposal, each as described more fully herein. In addition, this document is also the prospectus by which ExxonMobil will issue shares of ExxonMobil common stock to youDenbury stockholders in the merger.Merger in accordance with the Merger Agreement.

Your vote is important regardless of the amount of shares of Denbury common stock that you own. We encourage you to vote as soon as possible.

Q: What is the purpose of the Special Meeting?

A: At the Special Meeting, holders of Denbury common stock will act upon all the matters outlined in the Notice of Special Meeting of Stockholders. These include:

 

Q:What will happen in1.

a proposal to approve and adopt the merger?Merger Agreement (the “Merger Agreement Proposal”); and

 

A:In2.

to approve, on an advisory basis, the merger, ExxonMobil Investment Corporation, a wholly owned subsidiary of ExxonMobilcompensation that was formed formay be paid or become payable to Denbury’s named executive officers in connection with the purpose of the merger, will be merged with and into XTO Energy. XTO Energy will be the surviving corporation in the merger and will be a wholly owned subsidiary of ExxonMobil following completion of the merger.Merger (the “Advisory Compensation Proposal”).

Q: What is a proxy and how does it work?

Q:What will I receive in the merger?

A: The Denbury board of directors is asking for your proxy. A “proxy” is your legal designation of another person to vote the stock you own in the manner you direct. If you designate someone as your proxy in a written document, that document is also called a proxy or a proxy card. By giving your proxy to the persons named as proxy holders in the proxy card accompanying this proxy statement/prospectus, you authorize them to vote your

 

A:If the merger is completed, each of your shares of XTO Energy common stock will be cancelled and converted automatically into the right to receive 0.7098 of a share of ExxonMobil common stock. XTO Energy stockholders will receive cash for any fractional shares of ExxonMobil common stock that they would otherwise receive in the merger.

1


shares of Denbury common stock, $0.001 par value per share, at the Special Meeting in the manner you direct. You may cast votes “FOR,” “AGAINST” or “ABSTAIN” with respect to all, some or none of the matters we are submitting to a vote of holders of Denbury common stock at the Special Meeting.

If you complete and submit your proxy in one of the manners described below, but do not specify how to vote, the proxy holders will vote your shares “FOR” each of the proposals described below.

Q: What will Denbury stockholders receive for their shares of Denbury common stock in the Merger?

A: At the effective time of the Merger (the “effective time”), each share of Denbury common stock issued and outstanding immediately prior to the effective time (including the unvested restricted stock of Denbury, but excluding shares of Denbury common stock held (1) in treasury (excluding Denbury common stock subject to or issuable in connection with a Denbury employee benefit plan) or (2) by ExxonMobil or Merger Sub, which are to be cancelled at the effective time (collectively, the “excluded shares”)) will be converted into the right to receive 0.840 shares of ExxonMobil common stock (the “share consideration”). No fractional shares of ExxonMobil common stock will be issued and each Denbury stockholder who would otherwise have been entitled to receive a fraction of a share of ExxonMobil common stock in connection with the Merger shall receive in lieu thereof a cash payment (together with the share consideration, the “Merger Consideration”), without interest and subject to any applicable withholding taxes, in accordance with the Merger Agreement.

Although the number of shares of ExxonMobil common stock that Denbury stockholders will receive in the Merger is fixed, the market value of the Merger Consideration will fluctuate with the market price of ExxonMobil common stock and will not be known at the time that holders of Denbury common stock vote to adopt the Merger Agreement. Based on the closing price of $72.83 for ExxonMobilExxonMobil’s common stock on the New York Stock Exchange (“NYSE”) on December 11, 2009,July 12, 2023, the last trading day before the public announcement of the merger agreement,Merger, the merger consideration0.840 exchange ratio represented approximately $51.69$89.45 in implied value for each share of XTO EnergyDenbury common stock. Based on theExxonMobil’s closing price on     , 2023 of $68.61 for ExxonMobil common stock on$   , the New York Stock Exchange on April 14, 2010, the most recent practicable trading day prior to the date of this proxy statement/prospectus, the merger consideration0.840 exchange ratio represented approximately $48.70$   in implied value for each share of XTO EnergyDenbury common stock.The market price of ExxonMobil common stock will fluctuate prior to the merger, and the market price of ExxonMobil common stock when received by XTO EnergyDenbury stockholders receive those shares after the mergerMerger is completed could be greater orthan, less than or the currentsame as the market price of shares of ExxonMobil common stock. See “Risk Factors” beginningstock on page []the date of this proxy statement/prospectus.

Q:What happens if the merger is not completed?

A:

If the merger agreement is not adopted by XTO Energy stockholdersprospectus or if the merger is not completed for any other reason, you will not receive any payment for your shares of XTO Energy common stock in

connection with the merger. Instead, XTO Energy will remain an independent public company and its common stock will continue to be listed and traded on the New York Stock Exchange. If the merger agreement is terminated under specified circumstances, XTO Energy may be required to pay ExxonMobil a termination fee of $900 million as described under “The Merger Agreement—Termination Fee Payable by XTO Energy” beginning on page [] of this proxy statement/prospectus.

Q:Will I continue to receive future dividends?

A:Before completion of the merger, XTO Energy expects to continue to pay its regular quarterly cash dividends on shares of its common stock, which currently are $0.125 per share. However, XTO Energy and ExxonMobil will coordinate the timing of dividend declarations leading up to the merger so that a holder will neither receive two dividends, nor fail to receive one dividend, for any quarter. Receipt of the regular quarterly dividend will not reduce the merger consideration you receive. After completion of the merger, you will be entitled only to dividends on any shares of ExxonMobil common stock you receive in the merger. While ExxonMobil provides no assurances as to the level or payment of any future dividends on shares of its common stock, and ExxonMobil’s board of directors has the power to modify dividend policy at any time, ExxonMobil presently pays dividends at a quarterly rate of $0.42 per share of ExxonMobil common stock.

Q:What am I being asked to vote on?

A:XTO Energy’s stockholders are being asked to vote on the following proposals:

to adopt the merger agreement between ExxonMobil and XTO Energy, a copy of which is attached as Annex A to this proxy statement/prospectus; and

to approve the adjournment of the special meeting, if necessary to solicit additional proxies if there are not sufficient votes to adopt the merger agreement at the time of the special meeting.Special Meeting.

Q: If I am a holder of Denbury common stock, how will I receive the Merger Consideration to which I am entitled?

A: The approvalconversion of Denbury common stock into the right to receive the Merger Consideration will occur automatically upon the completion of the Merger. Promptly after the effective time and in any event within five (5) business days of the completion of the Merger, an exchange agent will mail to each holder of record of Denbury common stock (whose shares were converted into the right to receive the Merger Consideration pursuant to the Merger Agreement) a letter of transmittal and instructions for use in effecting the surrender of certificates representing shares of Denbury common stock (“Certificates”) and book-entry shares representing shares of Denbury common stock (“Uncertificated Shares”) in exchange for the Merger Consideration and any dividends or other distributions to which such Certificates or Uncertificated Shares become entitled to pursuant to the Merger Agreement.

Upon receipt by the exchange agent of (i) either Certificates or Uncertificated Shares and (ii) a duly completed and validly executed letter of transmittal, and such other documents as may be required pursuant to the instructions in the letter of transmittal and otherwise by the exchange agent, the holder of such Certificates or Uncertificated Shares will be entitled to receive the Merger Consideration in exchange therefor.

Q: Who will own ExxonMobil common stock immediately following the transactions?

A: ExxonMobil and Denbury estimate that, as of immediately following completion of the Merger, holders of ExxonMobil common stock as of immediately prior to the Merger will hold approximately   % and holders of

2


Denbury common stock as of immediately prior to the Merger will hold approximately  % of the outstanding shares of ExxonMobil common stock (or, on a fully diluted basis, holders of ExxonMobil common stock as of immediately prior to the Merger will hold approximately  % and holders of Denbury common stock as of immediately prior to the Merger will hold approximately  % of the shares of ExxonMobil common stock).

Q: How important is my vote?

A: Your vote “FOR” each proposal presented at the Special Meeting is very important regardless of the number of shares of Denbury common stock that you own, and you are encouraged to adoptsubmit a proxy or proxies as soon as possible.

Q: What vote is required to approve each proposal at the mergerSpecial Meeting?

A: Approval of the Merger Agreement proposal requires the affirmative vote of holders of a majority in voting power of the outstanding shares of Denbury common stock, at the Special Meeting present (via the Denbury meeting website) or by proxy, entitled to vote on the Merger Agreement proposal. Any abstention by a holder of Denbury common stock and the failure of any holder of Denbury common stock to submit a vote will have the same effect as voting “AGAINST” the Merger Agreement proposal.

Adoption of the Advisory Compensation Proposal requires the affirmative vote of the majority of the voting power present (via the Denbury meeting website) or represented by proxy and entitled to vote on such proposal. Abstentions from voting by a Denbury stockholder attending the Special Meeting via the Denbury meeting website or voting by proxy will have the same effect as a vote “AGAINST” the Advisory Compensation Proposal. A failure to attend the Special Meeting via the Denbury meeting website or by proxy will have no effect on the outcome of the vote on the Advisory Compensation Proposal. Because the Advisory Compensation Proposal is non-binding, if the Merger Agreement is approved by Denbury stockholders and the Merger is completed, the compensation that is the subject of the Advisory Compensation Proposal, including amounts Denbury is contractually obligated to pay, would still be paid regardless of the outcome of the non-binding advisory vote.

See “The Special Meeting—Required Vote; Treatment of Abstentions and Broker Non-Votes” beginning on page 45 of this proxy statement/prospectus.

Q: How does the Denbury board of directors recommend that I vote?

A: Denbury’s board of directors, after considering the various factors described under “The Merger—Recommendation of the Denbury Board of Directors and Reasons for the Merger” beginning on page 73 of this proxy statement/prospectus, the comprehensive process conducted by the Denbury board of directors and the alternatives to the Merger (including Denbury remaining as a standalone company), unanimously (i) determined that it is in the best interests of Denbury and its stockholders, and declared it advisable, for Denbury to enter into the Merger Agreement, (ii) approved the execution, delivery and performance by Denbury of the Merger Agreement and the consummation of the transactions contemplated thereby, including the Merger, and (iii) resolved to recommend the adoption of the Merger Agreement by holders of Denbury common stock and that the adoption of the Merger Agreement be submitted to a vote at a meeting of holders of Denbury common stock.

Accordingly, the Denbury board of directors unanimously recommends that holders of Denbury common stock vote “FOR” the adoption of the Merger Agreement and “FOR” the approval on an advisory (non-binding) basis of certain compensation that may be paid or become payable to Denbury’s named executive officers in connection with the Merger.

3


Q: Are there any Denbury stockholders who have already committed to voting in favor of the Merger Agreement Proposal at the Special Meeting?

A: Denbury’s directors and executive officers have the right to vote approximately      shares of the then-outstanding Denbury common stock at the Special Meeting, collectively representing approximately    % of the Denbury common stock outstanding and entitled to vote on that date. We currently expect that Denbury’s directors and executive officers will vote their shares “FOR” the Merger Agreement Proposal and “FOR” the Advisory Compensation Proposal, although no director or executive officer has entered into any agreement by XTO Energy stockholdersobligating him or her to do so.

Q: Will the ExxonMobil common stock received at the time of completion of the Merger be traded on an exchange?

A: Yes. It is a condition to the obligationsconsummation of XTO Energythe Merger that the shares of ExxonMobil common stock to be issued to Denbury stockholders in connection with the Merger be authorized for listing on the NYSE, subject to official notice of issuance.

Q: How will ExxonMobil shareholders be affected by the Merger?

A: Upon completion of the Merger, each ExxonMobil shareholder will hold the same number of shares of ExxonMobil stock that such stockholder held immediately prior to completion of the Merger. As a result of the Merger, ExxonMobil shareholders will own shares in a larger consolidated company with more assets. However, because in connection with the Merger, ExxonMobil will be issuing additional shares of ExxonMobil common stock to Denbury stockholders in exchange for their shares of Denbury common stock, each outstanding share of ExxonMobil common stock as of immediately prior to the Merger will represent a smaller percentage of the aggregate number of shares of ExxonMobil common stock outstanding after the Merger.

Q: What are the U.S. federal income tax consequences of the Merger to holders of Denbury common stock?

A: The Merger is intended to qualify as a “reorganization” within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended (the “Code”), and ExxonMobil and Denbury intend to report the Merger consistent with such qualification. Each of ExxonMobil and Denbury has agreed in the Merger Agreement to use its reasonable best efforts (i) to cause the Merger to qualify as a “reorganization” within the meaning of Section 368(a) of the Code and (ii) not to, and not permit or cause any of its respective subsidiaries or affiliates to, take or cause to be taken any action reasonably likely to cause the Merger to fail to qualify as a “reorganization” within the meaning of Section 368(a) of the Code for U.S. federal income tax purposes. As of the date of this proxy statement/prospectus, Davis Polk & Wardwell LLP (“Davis Polk”), legal counsel to ExxonMobil, and Vinson & Elkins, L.L.P. (“Vinson & Elkins”), legal counsel to Denbury, are of the opinion that the Merger will qualify as a “reorganization” within the meaning of Section 368(a) of the Code and have provided opinions to ExxonMobil and Denbury, respectively, to that effect. These opinions of counsel are based on customary assumptions and representations, covenants and undertakings of ExxonMobil, Denbury and Merger Sub, all as of the date hereof. If any of the assumptions, representations, covenants or undertakings is incorrect, incomplete, inaccurate, or is violated, the validity of the opinions may be affected and the U.S. federal income tax consequences of the Merger could differ materially from those described in this proxy statement/prospectus. The receipt of an opinion from counsel on the qualification of the Merger as a “reorganization” within the meaning of Section 368(a) of the Code is not a condition to either party’s obligation to complete the merger.Merger. ExxonMobil and Denbury have not sought, and will not seek, any ruling from the U.S. Internal Revenue Service (the “IRS”) regarding any matters related to the transactions, and, as a result, there can be no assurance that the IRS will agree with the opinions or would not assert, or that a court would not sustain, a position contrary to the treatment of the Merger as a “reorganization” within the meaning of Section 368(a) of the Code. Assuming that the Merger qualifies as a “reorganization” within the meaning of Section 368(a) of the Code, U.S. holders (as

 

Q:Does XTO Energy’s board of directors recommend that stockholders adopt the merger agreement?

4


defined in “U.S. Federal Income Tax Consequences of the Merger”) generally will not recognize gain or loss for U.S. federal income tax purposes, except with respect to cash received in lieu of fractional shares of ExxonMobil common stock. If the Merger does not qualify as a “reorganization”, the Merger generally would be a taxable transaction to U.S. holders, and each U.S. holder generally would recognize gain or loss in an amount equal to the difference, if any, between (i) the sum of the value of the ExxonMobil common stock it receives in the Merger plus the amount of any cash it receives in lieu of fractional shares of ExxonMobil common stock and (ii) such holder’s adjusted tax basis in its shares of Denbury common stock exchanged in the Merger.

The U.S. federal income tax consequences described above may not apply to all holders of Denbury common stock. You should read “U.S. Federal Income Tax Consequences of the Merger” beginning on page 137 of this proxy statement/prospectus for a more complete discussion of the U.S. federal income tax consequences of the Merger. Tax matters can be complicated and the tax consequences of the Merger to you will depend on your particular tax situation. You should consult your own tax advisor to determine the tax consequences of the Merger to you.

Q: When do ExxonMobil and Denbury expect to complete the Merger?

A: ExxonMobil and Denbury currently expect to complete the Merger in the fourth quarter of 2023, subject to timing of satisfaction of closing conditions to the Merger. However, neither ExxonMobil nor Denbury can predict the actual date on which the Merger will be completed, nor can the parties provide any assurance that the Merger will be completed. See “Risk Factors,” “The Merger—Regulatory Approvals Required for the Merger” and “The Merger Agreement—Conditions to Completion of the Merger” beginning on pages 31, 107 and 116, respectively, of this proxy statement/prospectus.

Q: Is the completion of the Merger subject to any conditions?

A: Yes. ExxonMobil, Merger Sub and Denbury are not required to complete the Merger unless certain conditions are satisfied (or, to the extent permitted by applicable law, waived). These conditions include, among others, the approval and adoption of the Merger Agreement by holders of a majority of Denbury common stock and the expiration or termination of any applicable waiting period, or any extension thereof, under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”) (in the case of ExxonMobil and Merger Sub’s obligation to complete the Merger, without the imposition of a Burdensome Condition (see “The Merger Agreement – Reasonable Best Efforts Covenant” beginning on page 128 of this proxy statement/prospectus)). For a more complete summary of the conditions that must be satisfied (or, to the extent permitted by applicable law, waived) prior to completion of the Merger, see “The Merger Agreement—Conditions to Completion of the Merger” and “The Merger—Regulatory Approvals Required for the Merger” beginning on pages 117 and 107, respectively, of this proxy statement/prospectus.

Q: What happens if the Merger is not completed?

A: In the event that the Merger Agreement is not adopted by Denbury’s stockholders at the Special Meeting or the Merger is not completed for any other reason, Denbury’s stockholders will not receive any consideration for shares of Denbury stock they own. Instead, Denbury will remain an independent public company, Denbury common stock will continue to be listed and traded on the NYSE and registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Denbury will continue to file periodic reports with the Securities and Exchange Commission (the “SEC”) on account of Denbury’s common stock. If the Merger is not completed for any reason, including as a result of Denbury stockholders failing to approve the necessary proposals, the ongoing businesses of Denbury may be adversely affected, and the anticipated benefits of having completed the Merger will not be realized. See “Risk Factors—Failure to complete the Merger could negatively impact the stock price and the future business and financial results of Denbury” beginning on page 37 of this proxy statement/prospectus.

 

A:Yes. The XTO Energy board of directors has approved the merger agreement and the transactions contemplated thereby, including the merger, and determined that these transactions are advisable and in the best interests of the XTO Energy stockholders. Therefore, the XTO Energy board of directors recommends that you vote “FOR” the proposal to adopt the merger agreement at the special meeting. See “The Merger—XTO Energy Reasons for the Merger; Recommendation of the XTO Energy Board of Directors” beginning on page [] of this proxy statement/prospectus.

5


Under specified circumstances, Denbury and/or ExxonMobil may be required to pay a termination fee upon termination of the Merger Agreement, as described under “The Merger Agreement—Termination of the Merger Agreement” beginning on page 133 of this proxy statement/prospectus.

Q: When and where is the Special Meeting?

A: The Special Meeting will be held virtually at www.virtualshareholdermeeting.com/DEN2023SM on   , 2023, at   , Central Time. On or about   , 2023, Denbury commenced mailing this proxy statement/prospectus and the enclosed form of proxy to its stockholders entitled to vote at the Special Meeting.

The Special Meeting can be accessed by visiting www.virtualshareholdermeeting.com/DEN2023SM , where Denbury stockholders will be able to participate and vote online. Denbury encourages its stockholders to access the meeting prior to the start time leaving ample time for check-in. Please follow the instructions as outlined in this proxy statement/prospectus. This proxy statement/prospectus is first being furnished to Denbury’s stockholders on or about     , 2023.

Denbury has chosen to hold the Special Meeting solely via live webcast and not in a physical location. Denbury has adopted a virtual format for the Special Meeting to make participation accessible for stockholders from any geographic location with Internet connectivity.

Q: Who can vote at the Special Meeting?

A: All holders of shares of Denbury common stock who hold such shares of record at the close of business on September 27, 2023, the record date for the Special Meeting, are entitled to receive notice of, and to vote at, the Special Meeting.

Q: How many votes may I cast?

A: Each outstanding share of Denbury common stock entitles its holder of record to one vote on each matter considered at the Special Meeting. Only Denbury stockholders who held shares of common stock of Denbury of record at the close of business on are entitled to vote at the Special Meeting and any adjournment or postponement of the Special Meeting.

Q: What is the record date in connection with the Special Meeting?

A: The record date for the determination of holders of Denbury common stock entitled to notice of and to vote at the Special Meeting is September 27, 2023.

Q: What constitutes a quorum at the Special Meeting?

A: A quorum is necessary to conduct business at the Special Meeting. A quorum requires the presence at the Special Meeting, by attending the Special Meeting or being represented by proxy, of one-third of the outstanding shares of Denbury common stock entitled to vote on each matter considered at the Special Meeting.

Q: What do I need to do now?

A: After you have carefully read and considered the information contained in or incorporated by reference into this proxy statement/prospectus, please submit your proxy via the Internet or by telephone in accordance with the instructions set forth on the enclosed proxy card, or complete, sign, date and return the enclosed proxy card in the postage-prepaid envelope provided as soon as possible so that your shares will be represented and voted at the Special Meeting.

 

Q:What stockholder vote is required for the approval of each proposal?

6

A:The following are the vote requirements for the proposals:


Additional information on voting procedures can be found under “The Special Meeting” beginning on page 44 of this proxy statement/prospectus.

Q: How will my proxy be voted?

A: If you submit your proxy via the Internet, by telephone or by completing, signing, dating and returning the enclosed proxy card, your proxy will be voted in accordance with your instructions.

Additional information on voting procedures can be found under “The Special Meeting” beginning on page 44 of this proxy statement/prospectus.

Q: Who will count the votes?

A: The votes at the Special Meeting will be counted by an individual designated by the Denbury board of directors to serve as inspector of election.

Q: How do I vote my shares if I am a stockholder of record?

A: If you are a stockholder of record of Denbury common stock at the close of business on September 27, 2023, you may vote your shares in any one of the following ways:

 

  

Adoption ofYou may vote by mail. To vote by mail, you need to complete, date and sign the Merger Agreement: The affirmative vote of holders ofproxy card that accompanies this proxy statement/prospectus and promptly mail it in the enclosed postage-prepaid envelope. You do not need to put a majority of the shares of XTO Energy common stock outstanding and entitled to votestamp on the proposal. Accordingly, abstentions and unvoted shares will haveenclosed envelope if you mail it from within the same effect as votes “AGAINST” adoption.United States.

 

  

Adjournment (if necessary): The affirmativeYou may vote of holders of a majority ofby telephone. To vote by telephone through services provided by Broadridge Corporate Issuer Solutions, Inc., call 1-800-690-6903, and follow the shares of XTO Energy common stock present in person or represented by proxy at the special meeting and entitled to voteinstructions provided on the proposal.proxy card that accompanies this proxy statement/prospectus. If you vote by telephone, you do not need to complete and mail your proxy card.

 

Q:

What constitutes a quorumYou may vote over the Internet. To vote over the Internet through services provided by Broadridge Corporate Issuer Solutions, Inc., please go to the following website: www.proxyvote.com and follow the instructions at that site for submitting your proxy. If you vote over the special meeting?Internet, you do not need to complete and mail your proxy card.

 

A:A majority of the outstanding shares of XTO Energy common stock entitled to vote being present in person or represented by proxy constitutes a quorum for the special meeting.

Q:When is this proxy statement/prospectus being mailed?

A:This proxy statement/prospectus and the proxy card are first being sent to XTO Energy stockholders on or near [], 2010.

Q:Who is entitled toYou may vote at the special meeting?virtual Special Meeting.

A:All stockholders of record may vote online during the Special Meeting via the Internet at www.virtualshareholdermeeting.com/DEN2023SM. Street name holders of XTO Energy common stock who held shares atmay vote online during the close of businessSpecial Meeting if they receive a voting instruction form with a 16-digit control number. You may cast your vote electronically during the Special Meeting using the 16-digit control number found on the record date for the special meeting ([], 2010) are entitled to receive notice of and to vote at the special meeting provided that such shares remain outstanding on the date of the special meeting. As of the close of business on the record date, there were [] shares of XTO Energy common stock outstanding and entitled to vote at the special meeting. Each share of XTO Energy common stock is entitled to one vote.

Q:When and where is the special meeting?

A:The special meeting will be held at [] on [], 2010 at [], local time.

Q:How do I vote my shares at the special meeting?

A:your proxy card or voting instruction form. If you are entitled to vote at the XTO Energy special meeting and holddo not have a control number, please contact your shares in your own name,broker, bank or other nominee as soon as possible so that you can submitbe provided with a proxy or vote in person by completing a ballot at the special meeting. However, XTO Energy encourages you to submit a proxy before the special meeting even if you plan to attend the special meeting. A proxy is a legal designation of another person to vote your shares of XTO Energy common stock on your behalf. If you hold shares in your own name, you may submit a proxy for your shares by:control number.

calling the toll-free number specified on the enclosed proxy card and follow the instructions when prompted;

accessing the Internet web site specified on the enclosed proxy card and follow the instructions provided to you; or

filling out, signing and dating the enclosed proxy card and mailing it in the prepaid envelope included with these proxy materials.

If you submitare a proxy by telephonebeneficial holder of Denbury common stock, you are invited to attend the Special Meeting; however, because you are not a stockholder of record, you may not vote your shares at the Special Meeting unless you receive a voting instruction form with a 16-digit control number from your bank, broker or other nominee that is the Internet web site, please do not returnstockholder of record with respect to your shares of Denbury common stock.

Q: How can I vote during the Special Meeting?

A: All stockholders of record may vote online during the Special Meeting. Street name holders may vote online during the Special Meeting if they have a voting instruction form with a 16-digit control number, as described below. You may cast your vote electronically during the Special Meeting using the 16-digit control number

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found on your proxy card or voting instruction form. If you do not have a control number, please contact your broker, bank or other nominee as soon as possible so that you can be provided with a control number.

Whether you plan to attend the Special Meeting or not, we encourage you to vote by mail.proxy as soon as possible.

SeeQ: How can I submit a question at the responseSpecial Meeting?

A: Stockholders may submit questions during the Special Meeting. As part of the Special Meeting, we will hold a live question and answer session during which we intend to answer questions submitted during the next questionmeeting in accordance with the Special Meeting procedures which are pertinent to Denbury and the meeting matters, as time permits. Questions may be submitted during the Special Meeting through www.virtualshareholdermeeting.com/DEN2023SM. Questions and answers will be grouped by topic and substantially similar questions will be grouped and answered once.

Q: What if I need technical assistance?

A: We encourage you to access the Special Meeting before it begins. Online check-in will start shortly before the meeting on   , 2023   at Central Time. If you encounter any difficulties accessing the meeting during the check-in or meeting time, please call (800) 586-1548 (toll free) or (303) 562-9288 (international).

Q: What should I do if I receive more than one set of voting materials for the Special Meeting?

A: You may receive more than one set of voting materials for the Special Meeting, including multiple copies of this proxy statement/prospectus and multiple proxy cards or voting instruction forms. For example, if you hold your shares of Denbury common stock in more than one brokerage account, you will receive a separate voting instruction form for each brokerage account in which you hold shares. If you are a holder of record of Denbury common stock and your shares are registered in more than one name, you will receive more than one proxy card. Please submit each separate proxy or voting instruction form that you receive by following the instructions set forth in each separate proxy or voting instruction form.

Q: What’s the difference between holding shares as a stockholder of record and holding shares as a beneficial owner?

A: If your shares of Denbury common stock are registered directly in your name with Denbury’s transfer agent, Broadridge Corporate Issuer Solutions, Inc., you are considered, with respect to those shares, to be the stockholder of record. If you are a stockholder of record, then this proxy statement/prospectus and your proxy card have been sent directly to you by Denbury.

If your shares of Denbury common stock are held through a bank, broker or other nominee, you are considered the beneficial owner of shares of Denbury common stock held in “street name.” In that case, this proxy statement/prospectus has been forwarded to you by your bank, broker or other nominee who is considered, with respect to those shares, to be the stockholder of record. As the beneficial owner, you have the right to direct your bank, broker or other nominee how to vote your shares held throughby following their instructions for voting and you are also invited to attend the Special Meeting. But, because you are not the stockholder of record, you may not vote your shares at the Special Meeting unless you receive a voting instruction form with a 16-digit control number from your bank, broker or other nominee.

Q:If my shares are held in “street name” by my broker, will my broker automatically vote my shares for me?

A:No. If your shares are held in an account at a broker or through another nominee, you must instruct the broker or other nominee on how to vote your shares by following the instructions that the broker or other nominee provides to you with these materials. Most brokers offer the ability for stockholders to submit voting instructions by mail by completing a voting instruction card, by telephone and via the Internet.

Q: If my shares are held in “street name” by my broker, bank or other nominee, will my broker, bank or other nominee automatically vote my shares for me?

A: No. If your shares are held in the name of a broker, bank or other nominee, you do not provide votingwill receive separate instructions tofrom your broker, bank or other nominee describing how to vote your sharesshares. The availability of the

8


Internet or telephonic voting will not be voteddepend on any proposal on whichyour broker’s, bank’s or other nominee’s voting process. Please check with your broker, bank or other nominee and follow the voting procedures provided by your broker, bank or other nominee on your voting instruction form.

You should instruct your broker, bank or other nominee how to vote your shares. Under the rules applicable to broker-dealers, your broker, bank or other nominee has discretionary authority to vote on proposals that are considered routine but does not have discretionary authority to vote. This is called a broker non-vote. In these cases, the broker can registervote your shares as being presenton proposals that are considered non-routine, and each of the proposals to be voted on at the special meeting for purposes of determiningSpecial Meeting is considered non-routine. As a quorum, butresult, no broker will not be ablepermitted to vote your shares at the Special Meeting without receiving instructions from you. A so-called “broker non-vote” results when banks, brokers and other nominees return a valid proxy but do not vote on those matters for which specific authorization is required. Under the current rules of the New York Stock Exchange, brokersa particular proposal because they do not have discretionary authority to vote on the proposal to adoptmatter and have not received specific voting instructions from the merger agreement.Abeneficial owner of such shares.

Therefore, if you are a Denbury stockholder whose shares of common stock are held in street name and you do not instruct your broker, non-vote will have the same effect as a vote “AGAINST” adoption of the merger agreement.

If you hold shares through a brokerbank or other nominee and wishon how to vote your shares in person at the special meeting, you must obtain a proxy from your broker or other nominee and present it to the inspector of election with your ballot when you vote at the special meeting.shares:

Q:How will my shares be represented at the special meeting?

 

A:If you submit

your proxy by telephone, the Internet web sitebroker, bank or by signing and returning your proxy card, the officers named in your proxy card willother nominee may not vote your shares inon the manner you requested if you correctly submitted your proxy. If you sign your proxy card and return it without indicating how you would like to vote your shares, your proxy will be voted as the XTO Energy board of directors recommends,Merger Agreement proposal, which is:

FOR” the adoption of the merger agreement; and

FOR” the approval of the adjournment of the special meeting, if necessary to solicit additional proxies if there are not sufficient votes to adopt the merger agreement at the time of the special meeting.

Q:Who may attend the special meeting?

A:XTO Energy stockholders (or their authorized representatives) and XTO Energy’s invited guests may attend the special meeting. Stockholders may call the XTO Energy Office of the Corporate Secretary at (866) 255-0679 to obtain directions to the location of the special meeting.

Q:Is my vote important?

A:Yes, your vote is very important. If you do not submit a proxy or vote in person at the special meeting, it will be more difficult for XTO Energy to obtain the necessary quorum to hold the special meeting. In addition, an abstention or your failure to submit a proxy or to vote in person will have the same effect as a vote “AGAINSTthe adoption of the merger agreement. If you hold your shares through a broker or other nominee, your broker or other nominee will not be able to cast a vote on the adoption of the merger agreement without instructions from you.The XTO Energy board of directors recommends that you vote “FOR” the adoption of the merger agreement.such proposal; and

 

Q.Can I revoke my proxy or change my voting instructions?

your broker, bank or other nominee may not vote your shares on the Advisory Compensation Proposal, which will have no effect on the vote count for such proposal.

A:Yes. You may revoke your proxy and/or change your vote at any time before your proxy is voted at the special meeting. If you are a stockholder of record, you can do this by:

A quorum is necessary to conduct business at the Special Meeting. A quorum requires the presence at the Special Meeting of one-third of the outstanding shares of Denbury common stock entitled to vote on each matter considered at the Special Meeting, via the Special Meeting website or represented by proxy. For purposes of determining whether there is a quorum, all shares that are present will count towards the quorum, which will include proxies received but marked as abstentions and will exclude broker non-votes.

Additional information on voting procedures can be found under “The Special Meeting” beginning on page 44 of this proxy statement/prospectus.

Q: What do I do if I am a Denbury stockholder and I want to revoke my proxy?

A: Stockholders of record may revoke their proxies at any time before their shares of common stock are voted by proxy at the Special Meeting in any of the following ways:

 

sending a written notice stating that you revoke yourof revocation to Denbury at 5851 Legacy Circle, Suite 1200, Plano, TX 75024, Attention: Investor Relations, which notice must be received before shares are voted at the Special Meeting;

properly submitting a new, later-dated, proxy to XTO Energycard which must be received before shares are voted at 810 Houston Street, Fort Worth, Texas 76102, Attn: Corporate Secretary, that bears a date later than the date ofSpecial Meeting (in which case only the later-dated proxy is counted and the earlier proxy is received prior to the special meeting;revoked);

 

submitting a valid,proxy via the Internet or by telephone at a later date, which must be received by 11:59 p.m. Central Time on   , 2023 (in which case only the later-dated proxy by mail, telephone or Internet that is received prior tocounted and the special meeting;earlier proxy is revoked); or

 

attending the special meetingSpecial Meeting and voting by ballot in person (your attendance at the special meetingSpecial Meeting. Attendance at the Special Meeting will not, byhowever, in and of itself, revoke any proxy that you have previously given).constitute a vote or revocation of a prior proxy.

Beneficial owners of Denbury common stock may change their voting instruction by submitting new voting instructions to the brokers, banks or other nominees that hold their shares of record or by following the instructions for voting set forth on the voting instruction form with a 16-digit control number provided by their brokers, banks or other nominees and voting at the Special Meeting.

9


Additional information can be found under “The Special Meeting” beginning on page 44 of this proxy statement/prospectus.

Q: What happens if I sell or otherwise transfer my shares of Denbury common stock before the Special Meeting?

A: The record date for holders of Denbury common stock entitled to vote at the Special Meeting is September 27, 2023, which is earlier than the date of the Special Meeting. If you holdsell or otherwise transfer your shares throughafter the record date but before the Special Meeting, unless special arrangements (such as provision of a brokerproxy) are made between you and the person to whom you transfer your shares and each of you notifies Denbury in writing of such special arrangements, you will retain your right to vote such shares at the Special Meeting but will otherwise transfer ownership of your shares of Denbury common stock.

Q: What happens if I sell or other nominee,otherwise transfer my shares of Denbury common stock before the completion of the Merger?

A: Only holders of shares of Denbury common stock at the effective time will become entitled to receive the Merger Consideration. If you must followsell your shares of Denbury common stock prior to the directionscompletion of the Merger, you will not be entitled to receive the Merger Consideration by virtue of the Merger.

Q: Do any of the officers or directors of Denbury have interests in the Merger that may differ from your broker or other nomineebe in orderaddition to revokemy interests as a Denbury stockholder?

A: In considering the recommendation of the Denbury board of directors that Denbury stockholders vote to approve the Merger Agreement proposal and to approve the Advisory Compensation Proposal, Denbury stockholders should be aware that some of Denbury’s directors and executive officers have interests in the Merger that may be different from, or change your voting instructions.in addition to, the interests of Denbury stockholders generally. These interests may include, among others:

Q:What happens if I sell my shares after the record date but before the special meeting?

A:The record date for the special meeting is earlier than the date of the special meeting and the date that the merger is expected to be completed. If you sell or otherwise transfer your XTO Energy shares after the record date but before the date of the special meeting, you will retain your right to vote at the special meeting. However, you will not have the right to receive the merger consideration to be received by XTO Energy’s stockholders in the merger. In order to receive the merger consideration, you must hold your shares through completion of the merger.

Q:What do I do if I receive more than one set of voting materials?

A:You may receive more than one set of voting materials for the special meeting, including multiple copies of this proxy statement/prospectus, proxy cards and/or voting instruction forms. This can occur if you hold your shares in more than one brokerage account, if you hold shares directly as a record holder and also in “street name,” or otherwise through a nominee, and in certain other circumstances. If you receive more than one set of voting materials, each should be voted and/or returned separately in order to ensure that all of your shares are voted.

Q:Am I entitled to appraisal rights if I vote against the adoption of the merger agreement?

A:No. Appraisal rights confer on stockholders who vote against the merger the right to demand that the corporation pay the fair value for their shares as determined by a court in a judicial proceeding instead of receiving the consideration offered to stockholders in connection with the merger. Appraisal rights are not available under the Delaware General Corporation Law in connection with the merger.

Q:Is completion of the merger subject to any conditions?

A:Yes. In addition to the adoption of the merger agreement by XTO Energy stockholders, completion of the merger requires the receipt of the necessary governmental and regulatory approvals and the satisfaction or, to the extent permitted by applicable law, waiver of the other conditions specified in the merger agreement.

Q:When do you expect to complete the merger?

A:XTO Energy and ExxonMobil are working towards completing the merger promptly. XTO Energy and ExxonMobil currently expect to complete the merger in the second quarter of 2010, subject to receipt of XTO Energy’s stockholder approval, governmental and regulatory approvals and other usual and customary closing conditions. However, no assurance can be given as to when, or if, the merger will occur.

Q:Is the transaction expected to be taxable to XTO Energy stockholders?

A:XTO Energy and ExxonMobil have structured the merger as a reorganization for U.S. federal income tax purposes. Accordingly, XTO Energy stockholders will generally not be subject to U.S. federal income tax as a result of the exchange of their shares of XTO Energy common stock for ExxonMobil common stock in the merger, except in connection with any cash received in lieu of fractional shares of ExxonMobil common stock. See “The Merger—Material U.S. Federal Income Tax Consequences of the Merger” beginning on page [] of this proxy statement/prospectus.

Q:What do I need to do now?

A:Carefully read and consider the information contained in and incorporated by reference into this proxy statement/prospectus, including its annexes. Then, please vote your shares of XTO Energy common stock, which you may do by:

 

completing, dating, signingthe treatment of outstanding equity awards described in the section entitled “The Merger Agreement—Treatment and returningQuantification of Denbury Equity Awards” beginning on page 115 of this proxy statement/prospectus;

the entitlement of a Denbury executive officer to receive certain severance benefits under the Denbury change in control severance plan upon a termination of employment by Denbury without cause, or a resignation by the executive officer for good reason, in either case, during the period commencing six months prior to the consummation of a change in control and ending on the two year anniversary of the consummation of a change in control; and

continued indemnification and directors’ and officers’ liability insurance.

The Denbury board of directors was aware of and considered these potential interests, among other matters, in evaluating and negotiating the Merger Agreement and the transactions contemplated thereby, in approving the Merger and in recommending the adoption of the Merger Agreement and the approval of the Advisory Compensation Proposal.

For more information and quantification of these interests, see “Interests of Denbury’s Directors and Executive Officers in the Merger” beginning on page 140 of this proxy statement/prospectus.

Q: Where can I find voting results of the Special Meeting?

A: Denbury intends to announce preliminary voting results at the Special Meeting and publish the final results in a Current Report on Form 8-K that will be filed with the SEC following the Special Meeting. All reports that Denbury and ExxonMobil file with the SEC are publicly available when filed. See “Where You Can Find More Information” beginning on page 178 of this proxy statement/prospectus.

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Q: Do Denbury stockholders have dissenters’ or appraisal rights?

A: Denbury stockholders are not entitled to dissenters’ or appraisal rights in connection with the Merger. See “The Merger—No Dissenters’ or Appraisal Rights” beginning on page 109 of this proxy statement/prospectus.

Q: How can I find more information about ExxonMobil and Denbury?

A: You can find more information about ExxonMobil and Denbury from various sources described in “Where You Can Find More Information” beginning on page 178 of this proxy statement/prospectus.

Q: Who can answer any questions I may have about the Special Meeting, the Merger or the transactions contemplated by the Merger Agreement?

A: If you have any questions about the Special Meeting, the Merger or the other transactions contemplated by the Merger Agreement or how to submit your proxy, or if you need additional copies of this proxy statement/prospectus or documents incorporated by reference herein, the enclosed proxy card in the accompanying postage-paid envelope;or voting instructions, you should contact Denbury or Denbury’s proxy solicitor:

Denbury Inc.

5851 Legacy Circle, Suite 1200

Plano, TX 75024

Attention: Investor Relations

(972) 673-2000

or

Innisfree M&A Incorporated

501 Madison Avenue, 20th Floor

New York, New York 10022

Stockholders May Call Toll-Free: (877) 717-3905

Banks & Brokers May Call Collect: (212) 750-5833

 

submitting your proxy by telephone or via the Internet by following the instructions included on your proxy card; or11


attending the special meeting and voting by ballot in person.

If you hold shares through a broker or other nominee, please instruct your broker or nominee to vote your shares by following the instructions that the broker or nominee provides to you with these materials.

Q:Should I send in my stock certificates now?

A:No. XTO Energy stockholders should not send in their stock certificates at this time. After completion of the merger, ExxonMobil’s exchange agent will send you a letter of transmittal and instructions for exchanging your shares of XTO Energy common stock for the merger consideration. Unless you specifically request to receive ExxonMobil stock certificates, the shares of ExxonMobil stock you receive in the merger will be issued in book-entry form.

Q:Whom should I call with questions?

A:XTO Energy stockholders should call Innisfree M&A Incorporated, XTO Energy’s proxy solicitor, toll-free at (877) 750-5836 (banks and brokers call collect at (212) 750-5833) with any questions about the merger or the special meeting, or to obtain additional copies of this proxy statement/prospectus, proxy cards or voting instruction forms.

SUMMARY

This summary highlights selected information from this proxy statement/prospectus. It may not contain all of the information that is important to you. You are urged to read carefully the entire proxy statement/prospectus and the other documents referred to inor incorporated by reference into this proxy statement/prospectus in order to fully understand the merger agreementMerger Agreement and the proposed merger.Merger. See “Where You Can Find More Information” beginning on page []178 of this proxy statement/prospectus. Each item in this summary refers to the page of this proxy statement/prospectus on which that subject is discussed in more detail.

Information about ExxonMobil, XTO Energy and ExxonMobil Investment Corporation (See Page []).THE COMPANIES (SEE PAGE 43)

Exxon Mobil Corporation

Exxon Mobil Corporation, which is referred to in this proxy statement/prospectus as ExxonMobil, was incorporated in the State of New Jersey in 1882. Divisions and affiliated companies of ExxonMobil operate or market products in the United States and most other countries of the world. Their principal business is energy, involvinginvolves exploration for, and production of, crude oil and natural gas,gas; manufacture, of petroleum products and transportationtrade, transport and sale of crude oil, natural gas, and petroleum products. ExxonMobil is a major manufacturer and marketer of commodityproducts, petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a wide variety of specialty products. ExxonMobil also has interests in electric power generation facilities.products; and pursuit of lower-emission business opportunities including carbon capture and storage, hydrogen, and lower-emission fuels. Affiliates of ExxonMobil conduct extensive research programs in support of these businesses.

The principal trading market for ExxonMobil’s common stock (NYSE: XOM) is the New York Stock Exchange.NYSE.

The principal executive offices of ExxonMobil are located at 5959 Las Colinas Boulevard, Irving, TX 75039-2298,22777 Springwoods Village Parkway, Spring, Texas 77389-1425, its telephone number is (972) 444-1000940-6000 and its website iswww.exxonmobil.com. www.exxonmobil.com.

XTO EnergyThis proxy statement/prospectus incorporates important business and financial information about ExxonMobil from other documents that are not included in or delivered with this proxy statement/prospectus. For a list of the documents that are incorporated by reference in this proxy statement/prospectus, see “Where You Can Find More Information” beginning on page 178 of this proxy statement/prospectus.

Denbury Inc.

XTO EnergyDenbury Inc., which is referred to in this proxy statement/prospectus as XTO Energy,Denbury, a Delaware corporation, is engagedan independent energy company with operations focused in the acquisition, development, exploitation and exploration of both producing oil and gas properties and unproved properties, and in the production, processing, marketing and transportation of oil and natural gas. XTO Energy’s proved reserves are principally located in relatively long-lived fields with an extensive base of hydrocarbons in place and, in most cases, well-established production histories concentrated in the Eastern Region, including the East Texas Basin, Haynesville Shale, northwestern Louisiana and Mississippi; the North Texas Region, including the Barnett Shale; the Mid-ContinentGulf Coast and Rocky Mountain Region, includingregions of the Fayetteville, WoodfordUnited States. Denbury is differentiated by its focus on carbon dioxide (“CO2”)enhanced oil recovery (“EOR”) and Bakken Shales; the San Juan Region; the Permian Region; the South Texasemerging carbon capture, utilization and Gulf Coast Region, including the offshore Gulf of Mexico;storage (“CCUS”) industry, supported by Denbury’s CO2 EOR technical and other regions, including Marcellus Shaleoperational expertise and North Sea.its extensive CO2 pipeline infrastructure.

XTO Energy was incorporated in 1990 to acquire the business and properties of predecessor entities that were created from 1986 through 1989. XTO Energy’s initial public offering ofDenbury common stock was completed in May 1993. XTO Energy was formerly known as Cross Timbers Oil Company and changed its name to XTO Energy Inc. in June 2001.

The principal trading market for XTO Energy’sis traded on the NYSE under the symbol “DEN.” Following the Merger, Denbury common stock (NYSE: XTO) iswill be delisted from the New York Stock Exchange.NYSE.

The principal executive offices of XTO EnergyDenbury are located at 810 Houston Street, Fort Worth, TX 76102,5851 Legacy Circle, Suite 1200, Plano, Texas 75024, its telephone number is (817) 870-2800(972) 673-2000 and its website iswww.xtoenergy.com. www.denbury.com.

Additional information about Denbury and its subsidiaries are included in documents incorporated by reference into this proxy statement/prospectus. For a list of the documents that are incorporated by reference in this proxy statement/prospectus, see “Where You Can Find More Information” beginning on page 178 of this proxy statement/prospectus.

 

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ExxonMobil InvestmentEMPF Corporation

ExxonMobil InvestmentEMPF Corporation, which is referred to in this proxy statement/prospectus as Merger Sub, is a Delaware corporation andCorporation, is a wholly owned subsidiary of ExxonMobil. Merger Sub was formed solely for the purpose of consummatingcompleting the merger.Merger. Merger Sub has not carried on any activities to date, except for activities incidental to its formation and activities undertaken in connection with the merger.Merger.

Merger Sub was incorporated in the State of Delaware on July 3, 2023. The principal executive offices of Merger Sub are located at 5959 Las Colinas Boulevard, Irving, TX 75039-229822777 Springwoods Village Parkway, Spring, Texas 77389-1425, and its telephone number is (972) 444-1000.940-6000.

The Merger (See Page []).THE MERGER (SEE PAGE 50)

ExxonMobil, Merger Sub and XTO EnergyDenbury have entered into the Agreement and Plan of Merger dated as of December 13, 2009, which, as it may be amended from time to time, is referred to in this proxy statement/prospectus as the merger agreement.Agreement. Subject to the terms and conditions of the merger agreementMerger Agreement and in accordance with Delawareapplicable law, in the Merger, Merger Sub will be merged with and into XTO Energy,Denbury, with XTO EnergyDenbury continuing as the surviving corporation. UponFollowing completion of this transaction, which is referred to in this proxy statement/prospectus as the merger, XTO EnergyMerger, Denbury will be a wholly owned subsidiary of ExxonMobil, and XTO Energy commonExxonMobil. In connection with the Merger, Denbury stock will no longer be outstanding or publicly traded.delisted from the NYSE and deregistered under the Exchange Act.

A copy of the merger agreementMerger Agreement is attached as Annex A to this proxy statement/prospectus.You should read the merger agreementMerger Agreement carefully because it is the legal document that governs the merger.Merger.

THE SPECIAL MEETING (SEE PAGE 44)

Date, Time and Place of the Special Meeting of XTO Energy Stockholders (See Page []).

Meeting.. The special meetingSpecial Meeting will be held virtually at []www.virtualshareholdermeeting.com/DEN2023SM on    [], 20102023, at   [], local time. AtCentral Time. On or about   ,   2023, Denbury commenced mailing this proxy statement/prospectus and the special meeting, XTO Energyenclosed form of proxy to its stockholders entitled to vote at the Special Meeting.

The Special Meeting can be accessed by visiting www.virtualshareholdermeeting.com/DEN2023SM, where Denbury stockholders will be askedable to participate and vote online. Denbury encourages its stockholders to access the meeting prior to the start time leaving ample time for check-in. Please follow the instructions as outlined in this proxy statement/prospectus. This proxy statement/prospectus is first being furnished to Denbury’s stockholders on or about   , 2023.

Purposes of the Special Meeting. The Special Meeting is being held to consider and vote upon the following proposals:

 

to adopt the merger agreement;

Proposal 1—the Merger Agreement Proposal: to approve and adopt the Merger Agreement, a copy of which is attached as Annex A to this proxy statement/prospectus and the material provisions of which are summarized in “The Merger Agreement” beginning on page 112 of this proxy statement/prospectus, pursuant to which, among other things, Merger Sub will merge with and into Denbury and each outstanding share of Denbury common stock will be converted into the right to receive 0.840 shares of ExxonMobil common stock; and

Proposal 2—the Advisory Compensation Proposal: to approve, on an advisory basis, the compensation that may be paid or become payable to Denbury’s named executive officers that is based on or otherwise related to the Merger, the value of which is disclosed in the table in “Interests of Denbury’s Directors and Executive Officers in the Merger—Golden Parachute Compensation” beginning on page 144 of this proxy statement/prospectus.

 

13


to approve the adjournment of the special meeting, if necessary to solicit additional proxies if there are not sufficient votes to adopt the merger agreement at the time of the special meeting.

Record DateDate; Stockholders Entitled to Vote. Only XTO Energy stockholdersholders of record of Denbury common stock at the close of business on [], 2010September 27, 2023, the record date, will be entitled to receive notice of, and to vote at, the special meeting. As of the close of business onSpecial Meeting or any adjournment or postponement thereof.

On the record date, of [], 2010, there were   [] shares of XTO EnergyDenbury common stock outstanding and entitled to vote at the meeting.Special Meeting. Each holdershare of XTO EnergyDenbury common stock is entitledoutstanding on the record date entitles the holder thereof to one vote foron each shareproposal to be considered at the Special Meeting. Denbury stockholders may vote virtually at the meeting or by proxy through the Internet or by telephone or by a properly executed and delivered proxy card with respect to the Special Meeting.

Quorum. A quorum is necessary to conduct business at the Special Meeting. A quorum requires the presence at the Special Meeting, by attending the Special Meeting or being represented by proxy, of common stock owned as of the record date.one-third

Required Vote. To adopt the merger agreement, holders of a majority of the shares of XTO Energy common stock outstanding and entitled to vote on the proposal must vote in favor of adoption of the merger agreement.XTO Energy cannot complete the merger unless its stockholders adopt the merger agreement. Because approval is based on the affirmative vote of a majority of the outstanding shares of XTO EnergyDenbury common stockan XTO Energy stockholder’s failure entitled to vote an abstention from voting oron each matter considered at the failureSpecial Meeting.

For purposes of an XTO Energy stockholder who holds his or herdetermining whether there is a quorum, all shares that are present will count towards the quorum, which will include proxies received but marked as abstentions and will exclude broker non-votes. Broker non-votes occur when a beneficial owner holding shares in “street name” through adoes not instruct the broker, bank or other nominee to give voting instructions tothat is the record owner of such broker or other nominee will have the same effect as a vote “AGAINST” adoption of the merger agreement.

To approve the adjournment of the special meeting, if necessary to solicit additional proxies if there are not sufficient votes to adopt the merger agreement at the time of the special meeting, the affirmative vote of holders of a majority of thestockholder’s shares of XTO Energy common stock present in person or represented by proxy at the special meeting and entitledon how to vote at the special meeting is required. Because approvalthose shares on a particular proposal.

Required Vote; Treatment of thisAbstentions and Broker Non-Votes. The votes required for each proposal is based on theare as follows:

 

Proposal 1—the Merger Agreement Proposal. The affirmative vote of holders of a majority of the outstanding shares of Denbury common stock on the record date and entitled to vote thereon is required to adopt the Merger Agreement Proposal. The required vote on Proposal 1 is based on the number of outstanding shares—not the number of shares actually voted. The failure of any Denbury stockholder to submit a vote (i.e., by not submitting a proxy and not voting at the Special Meeting) and any abstention from voting by a Denbury stockholder will have the same effect as a vote against the Merger Agreement Proposal. Because the Merger Agreement Proposal is non-routine, brokers, banks and other nominees do not have discretionary authority to vote on the Merger Agreement Proposal, and will not be able to vote on the Merger Agreement Proposal absent instructions from the beneficial owner of any Denbury shares held of record by them. As a result, a broker non-vote will have the same effect as a vote “AGAINST” the Merger Agreement Proposal.

Proposal 2—the Advisory Compensation Proposal. The affirmative vote of the majority of the voting power present or represented by proxy at the Special Meeting, where a quorum is present, and entitled to vote thereon is required to approve the Advisory Compensation Proposal. The required vote on the Advisory Compensation Proposal is based on the number of shares present—not the number of outstanding shares. Abstentions from voting by a Denbury stockholder attending the Special Meeting or voting by proxy will have the same effect as a vote “AGAINST” the Advisory Compensation Proposal. A failure to attend the Special Meeting virtually or by proxy will have no effect on the outcome of the vote on the Advisory Compensation Proposal. Brokers do not have discretion to vote on this proposal without your instruction. If you do not instruct your broker how to vote on this proposal, your broker will deliver a non-vote on this proposal, and, as a result, broker non-votes will have no effect on the outcome of the vote on the Advisory Compensation Proposal. While the Denbury board of directors intends to consider the vote resulting from the Advisory Compensation Proposal, the vote is advisory only and therefore not binding on Denbury, and, if the proposed Merger is approved by Denbury stockholders and consummated, the compensation that is the subject of the Advisory Compensation Proposal will be payable even if the Advisory Compensation Proposal is not approved.

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affirmative vote of holders of a majority of the shares present in person or by proxy and entitled to vote, abstentions will have the same effect as a vote “AGAINST” such proposal, but failures to be present to vote and failures of XTO Energy stockholders who hold their shares in “street name” through brokers or other nominees to give voting instructions to such brokers or other nominees will have no effect on the vote held on such proposal.

Stock Ownership of andShare Ownership; Voting by XTO Energy’sDenbury’s Directors and Executive Officers.At the close of business on the record date for the special meeting, XTO Energy’sSpecial Meeting, Denbury’s directors and executive officers and their affiliates beneficially owned and had the right to vote []approximately     shares of XTO Energythe then-outstanding Denbury common stock at the special meeting, which representsSpecial Meeting, collectively representing approximately  []% of the XTO EnergyDenbury common stock outstanding and entitled to vote at the special meeting. It is expectedon that XTO Energy’sdate. We currently expect that Denbury’s directors and executive officers will vote their shares “FORthe adoption of the merger agreement,Proposal 1 (the Merger Agreement Proposal) and “FOR” Proposal 2 (the Advisory Compensation Proposal), although none of themno director or executive officer has entered into any agreement requiring themobligating him or her to do so.

What XTO Energy Stockholders Will Receive in the Merger (See Page []).WHAT DENBURY STOCKHOLDERS WILL RECEIVE IN THE MERGER (SEE PAGE 113)

If the mergerMerger is completed, XTO EnergyDenbury stockholders will be entitled to receive, in the merger,exchange for each share of XTO EnergyDenbury common stock that they own 0.7098immediately prior to the effective time of a share ofthe Merger (except for shares that are held by Denbury as treasury stock (other than those issuable in connection with Denbury’s benefit plans) or held by ExxonMobil common stock. The number ofor Merger Sub, which will be cancelled without consideration), 0.840 shares of ExxonMobil common stock, deliveredand cash payable in respectlieu of each share of XTO Energy common stock in the merger is referred to in this proxy statement/prospectus as the exchange ratio. ExxonMobil will not issue any fractional shares as described below.

No fractional shares of itsExxonMobil stock will be issued to any holder of shares of Denbury stock upon completion of the Merger. Instead, all fractional shares of ExxonMobil stock that a holder of shares of Denbury stock would otherwise be entitled to receive as a result of the Merger will be aggregated and, if a fractional share results from such aggregation, such holder will be entitled to receive, in lieu of such fractional share, an amount in cash determined by multiplying the fraction of the applicable share of ExxonMobil stock to which such holder would otherwise have been entitled by the closing price of such applicable share of ExxonMobil stock on the NYSE on the last trading day preceding the date of completion of Merger. No interest will be paid or accrued on cash payable in lieu of fractional shares of ExxonMobil stock.

Example: If you own 110 shares of Denbury common stock inat the merger. Instead,time the total number ofMerger is completed, you will be entitled to receive 92 shares of ExxonMobil common stock that each XTO Energy stockholder will receive in the mergerstock. In addition, you will be rounded downentitled to the nearest whole number, and each XTO Energy stockholder will receive cash, without interest, for any fractional shares of ExxonMobil common stock that he or she would otherwise receive in the merger. Thean amount of cash for fractional shares will be calculated by multiplying the fractionequal to 0.40 of a share of ExxonMobil common stock that the XTO Energy stockholder would otherwise be entitled to receive in the mergermultiplied by the closing sale price of a share of ExxonMobil common stock on the NYSE on the last trading day immediately preceding the date of completion of the merger. Merger.

The ExxonMobil common stock received based on the exchange ratio together with any cash received in lieu of fractional shares, is referred to in this proxy statement/prospectus as the merger consideration.

Example: If you currently own 100 shares of XTO Energy common stock, you will be entitled to receive 700.840 shares of ExxonMobil common stock and cash for the market valueeach share of 0.98 shares of ExxonMobilDenbury common stock at the closing sale price of a share of ExxonMobil common stock on the trading day immediately preceding the completion of the merger.

The exchange ratio of 0.7098 of a share of ExxonMobil common stock(the “exchange ratio”) is fixed, which means that it will not change between now and the date of the merger,Merger, regardless of whether the market price of shares of either ExxonMobil common stock or XTO EnergyDenbury common stock changes. Therefore, the value of the merger considerationMerger Consideration will depend on the marketclosing price of ExxonMobilExxonMobil’s common stock at the time XTO EnergyDenbury stockholders receive shares of ExxonMobil common stock in connection with the merger.Merger. Based on the closing price of $72.83 fora share of ExxonMobil common stock on the New York Stock ExchangeNYSE of $106.49 on December 11, 2009,July 12, 2023, the last trading day before theprior to public announcement of the merger agreement,Merger by ExxonMobil and Denbury, the merger considerationMerger Consideration represented approximately $51.69$89.45 in implied value for each share of XTO EnergyDenbury common stock. Based on the closing price of $68.61 fora share of ExxonMobil common stock on the New York Stock ExchangeNYSE of $    on       April 14, 2010,2023, the most recent practicable trading day prior to the date of this proxy statement/prospectus, the merger considerationMerger Consideration represented approximately $48.70$   in implied value for each share of XTO EnergyDenbury common stock.Because ExxonMobil will issue a fixed number of shares of ExxonMobil common stock in exchange for each share of Denbury common stock, the value of the Merger Consideration that Denbury stockholders will receive in the Merger will depend on the market price of ExxonMobil common stock at the time the Merger is completed. The market price of ExxonMobil common stock will fluctuate prior to the merger, and the market price of ExxonMobil common stock when received by XTO EnergyDenbury stockholders receive thoseshares after the mergerMerger is completed could be greater orthan, less than or the currentsame as the market price of ExxonMobil common stock.

Treatment of Equity Awards (See Page []).

Upon completion of the merger, each option to purchase shares of XTO Energy common stock granted under XTO Energy’s equity compensation plans outstanding immediately prior to the completion of the merger will be converted into an option to acquire a number of shares of ExxonMobil common stock (rounded downon the date of this proxy statement/prospectus or at the time of the Special Meeting.

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NO DISSENTERS’ OR APPRAISAL RIGHTS (SEE PAGE 109)

Denbury stockholders are not entitled to dissenters’ or appraisal rights in connection with the Merger.

TREATMENT OF DENBURY EQUITY AWARDS (SEE PAGE 115)

Except as otherwise agreed by ExxonMobil and the applicable Denbury equity award holder or as otherwise set forth in the confidential disclosure schedules to the nearest whole share) equal to the product of (a) the number of shares of XTO Energy common stock subject to the XTO Energy optionMerger Agreement, at or immediately prior to the completioneffective time of the merger multiplied by (b) the exchange ratio in the merger. The exercise price per share of ExxonMobil commonMerger, each Denbury restricted stock unit (each, a “Denbury RSU”), each Denbury deferred stock unit (each, a “Denbury DSU”) and each Denbury performance stock unit whose vesting is subject to performance goals related to absolute or relative total shareholder return (each, a converted option will be an amount (rounded up to the nearest whole cent) equal to the quotient of (1) the exercise price per share of XTO Energy common stock subject to the XTO Energy option immediately prior to the completion of the merger divided by (2) the exchange ratio in the merger. Options with vesting conditions contingent on the achievement of specified XTO Energy stock targets will be adjusted based on the exchange ratio in the merger (rounded up to the nearest whole cent). Each converted option will remain subject to the same terms and conditions (including vesting terms) as were applicable to the XTO Energy option immediately prior to the completion of the merger, except for those converted options held by Bob R. Simpson, Keith A. Hutton, Vaughn O. Vennerberg, II, Louis G. Baldwin and Timothy L. Petrus. See “Interests of Certain Persons in the Merger—XTO Energy Named Executive Officers—Treatment of Stock Options and Other Equity-Based Awards” beginning on page [] of this proxy statement/prospectus for a discussion of the terms and conditions applicable to converted options held by Messrs. Simpson, Hutton, Vennerberg, Baldwin and Petrus. Employees terminating employment at or within a stated period after the completion of the merger for reasons other than for cause or voluntary resignation without good reason (as defined in the applicable plans and arrangements) will have their option vesting accelerated upon such termination.

Upon completion of the merger, each restricted stock award or performance share award (which represents a share of XTO Energy common stock subject to vesting and forfeiture) granted under XTO Energy’s equity compensation plans“Denbury TSR Performance Award”) that is outstanding immediately prior to the completioneffective time of the mergerMerger, whether vested or unvested, will automatically become fully vested and will be canceled and converted into the right to receive the Merger Consideration in accordance with the Merger Agreement in respect of the total number of shares of Denbury common stock subject to each respective Denbury RSU, Denbury DSU and Denbury TSR Performance Award (in the case of the Denbury TSR Performance Awards, with such number determined based on actual performance levels, calculated in accordance with the underlying award agreements). Additionally, except as otherwise agreed by ExxonMobil and the applicable Denbury equity award holder or as otherwise set forth in the confidential disclosure schedules to the Merger Agreement, at or immediately prior to the effective time of the Merger, each unvested restricted share of Denbury common stock (each, a “Denbury Restricted Share”) that is outstanding immediately prior to the effective time of the Merger will automatically become a fully vested share of Denbury common stock and will be converted into a restricted stock award or performance share award, as applicable, relatingthe right to receive the Merger Consideration in accordance with the Merger Agreement.

RECOMMENDATION OF THE DENBURY BOARD OF DIRECTORS (SEE PAGE 73)

The Denbury board of directors unanimously recommends that Denbury stockholders vote “FOR” the Merger Agreement Proposal and “FOR” the Advisory Compensation Proposal.

In the course of reaching its decision for Denbury to enter into the Merger Agreement and effect the Merger, the Denbury board of directors considered a number of sharesfactors in its deliberations. For a more complete discussion of ExxonMobil common stock based on the exchange ratio in the merger (rounded down to the nearest whole share). Each converted restricted stock award or performance share award will remain subject to the same terms, restrictions and vesting schedules as were applicable to the XTO Energy restricted stock award or performance share award prior to the completionthese factors, see “The Merger—Recommendation of the merger (with any vesting conditions contingent onDenbury Board of Directors and Reasons for the achievement of specified XTO Energy stock targets adjusted based on the exchange ratio in the merger, rounded up to the nearest whole cent), except for those performance share awards granted to Messrs. Simpson, Hutton, Vennerberg, Baldwin and Petrus prior to November 2009, performance share awards granted to certain employees (including the executive officers, other than Mr. Simpson) in November 2009 and performance share awards granted to Mr. Simpson in January 2010 pursuant to the terms of his existing employment agreement. Performance share awards granted to Messrs. Simpson, Hutton, Vennerberg, Baldwin and Petrus prior to November 2009 and to Mr. Simpson in January 2010 will become fully vested upon completion of the merger. Performance share awards granted to Messrs. Hutton, Vennerberg, Baldwin and Petrus in November 2009 will be converted into time-based restricted shares of ExxonMobil common stock, based on the exchange ratio. See “Interests of Certain Persons in the Merger—XTO Energy Named Executive Officers—Treatment of Stock Options and Other Equity-Based Awards”Merger” beginning on page [] of this proxy statement/prospectus for a discussion of the terms, restrictions and vesting schedules applicable to converted performance share awards held by Messrs. Simpson, Hutton, Vennerberg, Baldwin and Petrus and “Interests of Certain Persons in the Merger—Other Executive Officers of XTO Energy—Treatment of Stock Options and Other Equity-Based Awards” beginning on page [] of this proxy statement/prospectus for a discussion of the terms, restrictions and vesting schedules applicable to performance share awards held by other executive officers of XTO Energy. Employees terminating employment at or within a stated period after the completion of the merger for reasons other than for cause or voluntary resignation without good reason (as defined in the applicable plans and arrangements) will have vesting of their restricted stock and performance stock awards accelerated upon such termination.

Recommendation of the XTO Energy Board of Directors (See Page []).

The XTO Energy board of directors (other than Jack P. Randall, who abstained from voting because he is a senior member of Jefferies & Company, Inc. (referred to in this proxy statement/prospectus as Jefferies), one of XTO Energy’s financial advisors) unanimously (i) determined that the merger agreement and the merger are advisable and in the best interests of XTO Energy and its stockholders, (ii) approved the merger and the merger agreement and (iii) resolved to recommend adoption of the merger agreement to the XTO Energy stockholders.The XTO Energy board of directors recommends that XTO Energy stockholders vote “FOR” adoption of the merger agreement.

For the factors considered by the XTO Energy board of directors in reaching its decision to approve the merger agreement, see “The Merger—XTO Energy Reasons for the Merger; Recommendation of the XTO Energy Board of Directors” beginning on page []73 of this proxy statement/prospectus.

In addition,OPINIONS OF DENBURY’S FINANCIAL ADVISORS (SEE PAGE 87)

Opinion of J.P. Morgan Securities LLC

At the XTO Energymeeting of the Denbury board of directors recommends that XTO Energy stockholders vote “FOR” the XTO Energy proposalon July 13, 2023, J.P. Morgan Securities LLC (which we refer to adjourn the special meeting, if necessary to solicit additional proxies if there are not sufficient votes to adopt the merger agreement at the timeas “J.P. Morgan”), a financial advisor of the special meeting.

Opinion of XTO Energy’s Financial Advisor (See Page []).

InDenbury in connection with the merger, on December 13, 2009, Barclays Capital Inc., referred to in this proxy statement/prospectus as Barclays Capital,Merger, rendered its oral opinion to XTO Energy’sthe Denbury board of directors, which was subsequently confirmed by delivery of a written opinion, dated July 13, 2023, to the effect that, as of such date and based upon and subject to the factors, assumptions, qualifications and any limitations and assumptions statedset forth in its written opinion, the Merger Consideration to be paid to the holders of Denbury common stock in the Merger was fair, from a financial point of view, the exchange ratio in the proposed merger was fair to XTO Energy’s stockholders. such holders.

The full text of Barclays Capital’sJ.P. Morgan’s written opinion, which sets forth, among other things, the procedures followed, factors considered, assumptions made and qualifications and limitationsdated as of the review undertaken in rendering its opinion,July 13, 2023, is attached as Annex B to this proxy statement/prospectus.prospectus and is incorporated herein by reference. The full text of the written opinion contains a discussion of, among other things, the assumptions made, matters considered and qualifications and any limitations on the opinion and the review undertaken by J.P. Morgan in connection with rendering its opinion. The summary of the opinion of J.P. Morgan set forth in this proxy statement/prospectus is qualified in its entirety by reference to the full text of such opinion. Denbury’s stockholders are urged to read the opinion carefully and in its entirety. J.P. Morgan’s opinion was deliveredaddressed to the XTO EnergyDenbury board of directors (in its capacity as

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such) in connection with and addressesfor the purposes of its evaluation of the Merger, was directed only to the Merger Consideration to be paid to the holders of Denbury common stock in the Merger and did not address any other aspect of the Merger or the other transactions contemplated by the Merger Agreement. The opinion does not constitute a recommendation to any stockholder of Denbury as to how such stockholder should vote with respect to the Merger or any other matter.

For a description of the opinion that the Denbury board of directors received from J.P. Morgan, see “The Merger—Opinions of Denbury’s Financial Advisors—Opinion of J.P. Morgan Securities LLC” beginning on page 87.

Opinion of TPH & Co.

On July 13, 2023, at a meeting of the Denbury board of directors held to evaluate the Merger, TPH & Co., the energy investment and merchant banking business of Perella Weinberg Partners LP (which we refer to as “TPH”), delivered an oral opinion to the effect that, as of such date and based upon and subject to the assumptions made, procedures followed, factors considered and qualifications and limitations on the review undertaken by TPH, as set forth in the written opinion delivered subsequently and based upon other matters as TPH considered relevant, the Merger Consideration to be received by the holders of outstanding shares of Denbury common stock (other than ExxonMobil and its affiliates) in the Merger pursuant to the Merger Agreement was fair, from a financial point of view, to such holders. TPH delivered its written opinion on July 13, 2023 to the Denbury board of directors.

TPH’s opinion was directed to the Denbury board of directors (in its capacity as such), and only addressed the fairness, from a financial point of view, to the holders of outstanding shares of Denbury common stock (other than ExxonMobil and its affiliates) of the exchange ratioMerger Consideration to be received by such holders in the proposed merger. The opinion doesMerger pursuant to the Merger Agreement and did not address any other term, aspect or implication (financial or otherwise) of the mergerMerger. The summary of TPH’s opinion in this proxy statement/prospectus is qualified in its entirety by reference to the full text of its written opinion, which is included as Annex C to this proxy statement/prospectus and sets forth the assumptions made, procedures followed, factors considered and qualifications and limitations on the review undertaken and other matters considered by TPH in preparing its opinion. However, neither TPH’s written opinion nor does itthe summary of its opinion and the related analyses set forth in this proxy statement/prospectus are intended to be, and they do not constitute, advice or a recommendation to any Denbury stockholder as to how such stockholderholder should vote or act on any matter relating to the Merger.

For additional information, see the section entitled “The Merger—Opinions of Denbury’s Financial Advisors—Opinion of TPH & Co.” beginning on page 92 and the full text of the written opinion of TPH attached as Annex C of this proxy statement/prospectus.

Opinion of PJT Partners LP

PJT Partners LP (“PJT Partners”) was retained by Denbury to act as its financial advisor in connection with the Merger and, upon Denbury’s request, to render its fairness opinion to the Denbury board of directors in connection therewith. Denbury selected PJT Partners to act as its financial advisor based on PJT Partners’ qualifications, expertise and reputation, its knowledge of Denbury’s industry and its knowledge and understanding of the business and affairs of Denbury. At a meeting of the Denbury board of directors on July 13, 2023, PJT Partners rendered its oral opinion, subsequently confirmed in its written opinion dated July 13, 2023, to the Denbury board of directors that, as of the date thereof and based upon and subject to, among other things, the assumptions made, procedures followed, matters considered, and qualifications and limitations on the review undertaken by PJT Partners in connection with the opinion (which are stated in its written opinion), the Merger

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Consideration to be received by the holders of shares of Denbury common stock (other than the shares to be cancelled in accordance with the Merger Agreement and any shares held by any subsidiary of either Denbury or ExxonMobil (other than Merger Sub)) in the Merger was fair to such holders from a financial point of view.

The full text of PJT Partners’ written opinion delivered to the Denbury board of directors, dated July 13, 2023, is attached as Annex D and incorporated into this proxy statement/prospectus by reference in its entirety. PJT Partners’ written opinion has been provided by PJT Partners at the request of the Denbury board of directors and is subject to, among other things, the assumptions made, procedures followed, matters considered, and qualifications and limitations on the review undertaken by PJT Partners in connection with the opinion (which are stated therein). You are encouraged to read the opinion carefully in its entirety. PJT Partners provided its opinion to the Denbury board of directors, in its capacity as such, in connection with and for purposes of its evaluation of the Merger only and PJT Partners’ opinion does not constitute a recommendation as to any action the Denbury board of directors should take with respect to the Merger or how any holder of Denbury common stock should vote or act with respect to any matters relating to the proposed mergerMerger or any other matter. The summary of the PJT Partners opinion contained in this proxy statement/prospectus is qualified in its entirety by reference to the full text of PJT Partners’ written opinion.

For a summary of PJT Partners’ opinion and the methodology that PJT Partners used to render its opinion, see the section titled “The Merger—Opinions of Denbury’s Financial Advisors—Opinion of PJT Partners LP” beginning on page 99 and the full text of the written opinion of PJT Partners attached as Annex D of this proxy statement/prospectus.

Ownership of ExxonMobil After the Merger (See Page []).OWNERSHIP OF SHARES OF EXXONMOBIL COMMON STOCK AFTER THE MERGER

Based on the number of shares of XTO EnergyDenbury common stock (including XTO Energy restricted stockand the Denbury equity awards and performance share awards) and XTO Energy options and warrants outstanding as of April 14, 2010 and the number ofrecord date for the Special Meeting, ExxonMobil estimates that it will issue approximately     shares of XTO EnergyExxonMobil common stock to be issued immediately prior to completion of the merger pursuant to certain grant agreements with the named executive officers of XTO Energy, ExxonMobil expects to issue approximately 416,448,236 shares of its common stock to XTO Energy stockholders pursuant to the mergerMerger Agreement, provided that if the Merger is not completed as of March 7, 2024 and additional Denbury equity awards are granted to certain Denbury employees as permitted under the Merger Agreement, ExxonMobil may be required to reserve for issuance approximately 12,698,032 additional shares of ExxonMobil common stock in connection with the exercisefor issuance (see “The Merger Agreement – Treatment and Quantification of Denbury Equity Awards – Treatment of Denbury RSUs and Denbury Restricted Shares Granted on or conversion of XTO Energy’s outstanding options.after March 7, 2024). The actual number of shares of ExxonMobil common stock to be issued and reserved for issuance pursuant toin connection with the mergerMerger will be determined at the completion of the mergerMerger based on the exchange ratio of 0.7098 and the number of shares of XTO EnergyDenbury common stock and XTO Energy options and warrantsthe Denbury equity awards outstanding at suchthat time. Immediately afterBased upon the estimated number of shares of common stock as well as the outstanding equity awards of the parties that are expected to be outstanding immediately prior to the consummation of the Merger, we estimate that, as of immediately following completion of the merger, it is expected that former XTO Energy stockholders will own approximately 8% of the outstanding common stockMerger, holders of ExxonMobil common stock based onas of immediately prior to the numberMerger will hold approximately  % and holders of Denbury common stock as of immediately prior to the Merger will hold approximately  % of the outstanding shares of XTO Energy and ExxonMobil common stock outstanding,(or, on a fully diluted basis, holders of ExxonMobil common stock as of April 14, 2010.

ExxonMobil Shareholder Approval Is Not Required.

ExxonMobil shareholders are not requiredimmediately prior to adopt the merger agreement or approveMerger will hold approximately  % and holders of Denbury common stock as of immediately prior to the merger or the issuanceMerger will hold approximately  % of the shares of ExxonMobil common stock in connection with the merger.stock).

InterestsINTERESTS OF DENBURY’S DIRECTORS AND EXECUTIVE OFFICERS IN THE MERGER (SEE PAGE 140)

Non-employee directors and executive officers of Certain PersonsDenbury have certain interests in the Merger (See Page []).

In considering the recommendation of the XTO Energy board of directors with respect to the merger agreement, XTO Energy stockholders shouldthat may be aware that the executive officers of XTO Energy and certain members of the XTO Energy board of directors have interests in the transactions contemplated by the merger agreement that are different from or in addition to the interests of XTO EnergyDenbury stockholders generally. These interests include, among others, the accelerated vesting of outstanding equity awards and deferred compensation pursuant to the Merger

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Agreement, potential severance benefits and other payments and rights to ongoing indemnification and insurance coverage. The XTO EnergyDenbury board of directors was aware of these interests, and considered them,those interests, among other matters, in evaluating and negotiatingreaching its unanimous decisions to (i) approve the merger agreementMerger and the merger,other transactions contemplated by the Merger Agreement, (ii) declare the Merger Agreement and the transactions contemplated by the Merger Agreement as advisable and fair to, and in recommending that XTO Energythe best interests of, Denbury and Denbury’s stockholders, adoptand (iii) resolve to recommend the merger agreement.

In particular, eachapproval and adoption of the named executive officersMerger Agreement to Denbury stockholders. See “Interests of XTO Energy entered into a consulting agreement with XTO EnergyDenbury’s Directors and ExxonMobil that provides for, among other things, the payment of an annual consulting fee and completion bonus, a one-time grant of restricted ExxonMobil common stock or stock units and payment of severance and accelerated vesting of the restricted ExxonMobil common stock or stock units upon termination of the consulting relationship under certain circumstances. The estimated aggregate payments to be made to the named executive officers of XTO Energy pursuant to the consulting agreements are approximately $190,340,000, which represents a reduction from the approximately $304,690,000 in aggregate payments and benefits to which such executive officers otherwise would have been entitled under the existing agreements and plans if they continued to provide services through the completion of the merger and remained employed for one year following the merger. In addition, the named executive officers of XTO Energy held,Executive Officers in the aggregate, asMerger” beginning on page 140 of April 14, 2010, 470,000 unvested performance sharesthis proxy statement/prospectus for a more detailed description of XTO Energy common stock and unvested options to purchase 2,290,410 shares of XTO Energy common stock thatthese interests.

LISTING OF SHARES OF EXXONMOBIL COMMON STOCK AND DELISTING AND DEREGISTRATION OF DENBURY COMMON STOCK (SEE PAGE 111)

Application will vest upon completion of the merger pursuant to the terms of the merger agreement.

Listing of ExxonMobil Stock and Delisting and Deregistration of XTO Energy Stock (See Page []).

ExxonMobil will applybe made to have the shares of itsExxonMobil common stock to be issued in connection with the mergerMerger approved for listing on the New York Stock Exchange,NYSE, where shares of ExxonMobil common stock isare currently traded. If the mergerMerger is completed, XTO Energy shares of Denbury stock will no longer be listed on the New York Stock Exchange,NYSE and will be deregistered under the Securities Exchange Act of 1934, as amended, which is referred toAct.

COMPLETION OF THE MERGER IS SUBJECT TO CERTAIN CONDITIONS (SEE PAGE 117)

As more fully described in this proxy statement/prospectus as the Exchange Act.

No Appraisal Rights Available (See Page []).

Under Delaware law, XTO Energy stockholders will not have appraisal rightsand in connection with the merger.

Completion of the Merger Is Subject to Certain Conditions (See Page []).

TheAgreement, the obligation of each of ExxonMobil, XTO EnergyDenbury and Merger Sub to complete the mergerMerger is subject to the satisfaction (or, to the extent permitted by applicable law, waiver) of a number of conditions, including the following:

 

adoptionthe absence of any injunction or order or applicable law preventing or making illegal the consummation of the merger agreement byMerger;

the affirmative vote of the holders of a majority of the outstanding shares of XTO EnergyDenbury common stock;stock outstanding and entitled to vote at the Special Meeting approving and adopting the Merger Agreement and the transactions contemplated by the Merger Agreement, including the Merger;

 

absence of any applicable law being in effect that prohibits completion of the merger;

expiration or termination of any applicable waiting period, (or extensions thereof) relating to the mergeror any extension thereof, under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations thereunder, which is referred to in this proxy statement/prospectus as the HSR Act, and the expiration of the applicable waiting period relating to the merger under the Dutch Competition Act (the Mededingingswet), as amended, and the rules and regulations thereunder, which is referred to in this

proxy statement/prospectus as the Dutch Competition Act, or receipt of an approval of the Dutch Competition Authority allowing the parties to complete the merger;

receipt of all other required consents and approvals of, and the making of all other required filings or registrations with, any governmental authority, subject to certain exceptions described under “The Merger Agreement—Conditions to the Completion of the Merger” beginning on page[] of this proxy statement/prospectus;Act;

 

this registration statement being declared effective and no stop order suspending the effectiveness of and the absence of any stop order with respect to, thethis registration statement on Form S-4 of which this proxy statement/prospectus forms a part;being in effect and no proceedings for such purpose pending or threatened by the SEC;

 

approval for the listing on the New York Stock Exchange of the shares of ExxonMobil common stock to be issued in the merger;Merger having been approved for listing on the NYSE, subject to official notice of issuance;

 

accuracy of the representations and warranties made in the merger agreementMerger Agreement by, in the other party,case of ExxonMobil and Merger Sub’s obligations to complete the Merger, Denbury and, in the case of Denbury’s obligation to complete the Merger, ExxonMobil and Merger Sub, in each case, as of the date of the Merger Agreement and as of the date of completion of the Merger, subject to certain materiality thresholds;

 

performance in all material respects by, in the other partycase of ExxonMobil and Merger Sub’s obligations to complete the Merger, Denbury and, in the case of Denbury’s obligation to complete the Merger, ExxonMobil and Merger Sub, of the obligations required to be performed by it at or prior to the completioneffective time of the merger;Merger;

 

receipt by eachthe absence since the date of ExxonMobil and XTO Energy of an opinion from its outside counsel that the merger will be a reorganization for U.S. federal income tax purposes; and

the absenceMerger Agreement of a material adverse effect on, in the other party sincecase of ExxonMobil and Merger Sub’s obligations to complete the dateMerger, Denbury and, in the case of Denbury’s obligation to complete the merger agreementMerger, ExxonMobil (see “The Merger Agreement—Definition

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of ‘Material Adverse Effect’” beginning on page 119 of this proxy statement/prospectus for the definition of material adverse effect);

receipt of a certificate signed by an executive officer of, in the case of ExxonMobil and Merger Sub’s obligations to complete the Merger, Denbury and, in the case of Denbury’s obligation to complete the Merger, ExxonMobil, as to the satisfaction of the conditions described in the preceding three bullets; and

(i) the absence of any injunction or order or applicable law preventing or making illegal the consummation of the Merger and (ii) the expiration or termination of any applicable waiting period, or any extension thereof, under the HSR Act, in each case, without the imposition of a Burdensome Condition (see “The Merger Agreement—Reasonable Best Efforts Covenant” beginning on page[] 128 of this proxy statement/prospectus for the definition of Burdensome Condition).

ExxonMobil and Denbury cannot be certain when, or if, the conditions to the Merger will be satisfied (or, to the extent permitted by law, waived), or that the Merger will be completed.

THE MERGER MAY NOT BE COMPLETED WITHOUT ALL REQUIRED REGULATORY APPROVALS (SEE PAGE 107)

Completion of the Merger is conditioned upon the expiration or termination of any applicable waiting period, or any extension thereof, under the HSR Act.

The process for obtaining the requisite regulatory approvals for the Merger is ongoing.

Under the HSR Act, certain transactions, including the Merger, may not be completed unless certain waiting period requirements have expired or been terminated. The HSR Act provides that each party must file a pre-merger notification (the “HSR notifications”) with the Federal Trade Commission (the “FTC”) and the Antitrust Division of the Department of Justice (the “DOJ”). A transaction notifiable under the HSR Act may not be completed until the expiration of a 30-day waiting period following the parties’ filings of their respective HSR notifications or the termination of that waiting period. If the DOJ or FTC issues a Request for Additional Information and Documentary Material (a “second request”) prior to the expiration of this initial 30-day waiting period, the transaction cannot close until the parties observe a second waiting period, which is 30 days by statute, but that can be extended through agreement and would begin to run only after both parties have substantially complied with the second request, unless such second waiting period is terminated earlier. The parties’ HSR notifications were filed with the FTC and the DOJ on August 10, 2023. The applicable waiting period expired on September 11, 2023 at 11:59 pm Eastern Time.

ExxonMobil and Denbury have agreed in the Merger Agreement to use their respective reasonable best efforts, subject to certain limitations, to make the required governmental filings or obtain the required governmental authorizations, as the case may be. However, ExxonMobil’s obligation to use reasonable best efforts to obtain regulatory approvals required to complete the Merger does not require ExxonMobil to:

sell, divest or discontinue any portion of the assets, liabilities, activities, businesses or operations of ExxonMobil or its subsidiaries existing prior to the effective time;

accept any other remedy with respect to ExxonMobil’s or any of its subsidiaries’ assets, liabilities, activities, businesses or operations;

accept any other remedy with respect to Denbury’s or any of its subsidiaries’ assets, liabilities, activities, businesses or operations (collectively, “Company Activities”) that would, in case of any such other remedy for purposes of this bullet, represent a material adverse effect; as is customary, “material adverse effect” is definedrestriction, limit or restraint on the ability of ExxonMobil or its subsidiaries to exclude from consideration effects resulting from certain occurrencesconduct or circumstances, including changesengage in applicable law, except that not excluded from consideration are effects resulting from changes in applicable lawCompany Activities after the effective time

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(it being understood and agreed that any remedy with respect to the Company Activities relating to Denbury’s CCUS business will represent a material restriction, limit or restraint on the ability of ExxonMobil or its subsidiaries to conduct or engage in Company Activities after the effective time); or

otherwise take or commit to hydraulic fracturing or similar processestake any actions with respect to Company Activities that would reasonably be expected to, either individually or in the aggregate, have thea material adverse effect of making illegal or commercially impracticable such hydraulic fracturing or similar processes).on Denbury and its subsidiaries.

In addition, the obligations of ExxonMobil and Merger Sub to complete the merger are subject to the satisfaction (or,bullets above, ExxonMobil and Denbury have agreed to use their reasonable best efforts to resist, defend against, lift or rescind the extent permitted by applicable law, waiver) of the following conditions:

absenceentry of any pending actioninjunction or proceeding byrestraining order or other order of any governmental authority that (i) challenges or seeks to make illegal, delay materially or otherwise directly or indirectly prohibitprohibiting the completion ofparties from consummating the merger, (ii) seeks to prohibit ExxonMobil’s ortransactions contemplated by the Merger Sub’s ability effectively to exercise full rights of ownership of XTO Energy’s common stock followingAgreement in accordance with the completion of the merger or (iii) seeks to compel ExxonMobil, XTO Energy or any of their respective subsidiaries to take any actionterms thereof.

These requirements are described in more detail under “The Merger Agreement—Reasonable Best Efforts Covenant” beginning on page[] 128 of this proxy statement/prospectus.

The regulatory approvals required for completion of the Merger are further described under “The Merger—Regulatory Approvals Required for the Merger” beginning on page 107 of this proxy statement/prospectus.

NO SOLICITATION BY DENBURY (SEE PAGE 125)

As more fully described in this proxy statement/prospectus that is not required to be effected pursuantand in the Merger Agreement, and subject to the terms of the merger agreement; and

absence of any applicable law enacted, enforced, promulgated or issued afterexceptions described below, from the date of the merger agreement by any governmental authority (other than antitrust or other competition laws), that would reasonably be likely to result in anyMerger Agreement until the effective time of the consequences referredMerger, Denbury has agreed not to, in the preceding bullet point.

ExxonMobil and XTO Energy cannot be certain when, or if, the conditionscause its subsidiaries and its and their directors and officers not to, the merger will be satisfied or waived, or that the merger will be completed.

The Merger May Not Be Completed Without All Required Regulatory Approvals (See Page []).

Completion of the merger is conditioned upon the receipt of certain governmental clearances or approvals, including, but not limited to, the expiration or termination of the applicable waiting period relating to the merger under the HSR Act and the expiration or termination of the applicable waiting period, or receipt of approval, under the Dutch Competition Act.

ExxonMobil and XTO Energy have agreed to use their reasonable best efforts to obtain all regulatory approvals required to consummate the merger. However, in using their reasonable best efforts to obtain these required regulatory approvals, under the terms of the merger agreement, ExxonMobil is not required, and XTO Energy is not permitted without the consent of ExxonMobil, to take certain actions (such as divesting or holding separate assets or entering into settlements or consent decrees with governmental authorities) that would reasonably be expected to, individually or in the aggregate, restrict in any material respect, or otherwise negatively and materially impact, the natural gas (including natural gas liquids) exploration, production and sales businesses of either XTO Energycause its and its subsidiaries, taken assubsidiaries’ representatives not to, directly or indirectly, among other things: (i) solicit, initiate or knowingly facilitate or knowingly encourage the submission by a whole, or ExxonMobil and its subsidiaries, taken as a whole.

ExxonMobil and XTO Energy each filed its required HSR notification and report form with respect to the mergerthird party of any Acquisition Proposal (as defined under “The Merger Agreement—No Solicitation” beginning on February 12, 2010, commencing the initial 30-day waiting period. This waiting period expired on March 15, 2010 without a request for additional information. ExxonMobil filed the required notification with respect to the merger under the Dutch Competition Act on February 11, 2010, and the Dutch Competition Authority approved the merger on March 9, 2010.

The Merger Is Expected to Occur in the Second Quarter of 2010 (See Page []).

The merger will occur within two business days after the conditions to its completion have been satisfied or, to the extent permissible, waived, unless otherwise mutually agreed upon by the parties. As of the datepage 125 of this proxy statement/prospectus, the merger is expected to occur in the second quarter of 2010. However, there can be no assurance as to when, or if, the merger will occur.

No Solicitation by XTO Energy (See Page []).

Neither XTO Energy nor any of its subsidiaries will, nor will XTO Energy or any of its subsidiaries authorize or permit any of its or their officers, directors, employees or representatives to (i) solicit, initiate or otherwise knowingly facilitate or encourage the submission of any competing proposal from any third party relating to an acquisition of XTO Energy,prospectus), (ii) enter into, engage in or participate in any discussions or negotiations regardingwith, furnish any such proposal or by furnishing any nonpublic information relating to XTO EnergyDenbury or any of its subsidiaries or afford access to the business, properties, assets, books, records, work papers and other documents related to Denbury or any of its subsidiaries to, suchotherwise knowingly cooperate in any way with, or knowingly assist, facilitate or encourage any effort by any third party, in each case, in connection with or in response to an Acquisition Proposal, or any inquiry that would reasonably be expected to lead an Acquisition Proposal, or (iii) failenter into any oral or written or binding or non-binding agreement in principle, letter of intent, indication of interest, term sheet, Merger Agreement, acquisition agreement, option agreement or other similar instrument contemplating an Acquisition Proposal; provided that notwithstanding anything to make, withdrawthe contrary in the Merger Agreement, Denbury or modifyany of its representatives may, (A) in response to an unsolicited inquiry or proposal, seek to clarify the terms and conditions of such inquiry or proposal and (B) in response to an inquiry or proposal from a manner adverse to ExxonMobil the recommendationthird party, inform a third party or its representative of the XTO Energy boardrestrictions imposed by the Merger Agreement. Denbury agrees not to release or permit the release of directors in favorany person from, or to waive or permit the waiver of, the adoption of the merger agreement, (iv) grant any waiver or release under any standstill or similar agreement (v) approvewith respect to any transaction,class of equity securities of Denbury or any third party becoming an “interested stockholder,”of its subsidiaries, and will enforce or cause to be enforced each such agreement in accordance with its terms at the request of ExxonMobil; provided, however, that Denbury may waive or fail to enforce any provision of such standstill or similar agreement of any person if the Denbury board of directors determines in good faith, after consultation with outside legal counsel, that the failure to take such action would be reasonably likely to be inconsistent with its fiduciary duties to Denbury’s stockholders under the Delaware anti-takeover statute or (vi) enter into an agreement relating to a competing acquisition proposal. Notwithstanding these restrictions, however, the merger agreementapplicable law. The Merger Agreement provides that under specified circumstancesany breach of the foregoing obligations by Denbury’s subsidiaries or Denbury’s or its subsidiaries’ representatives shall be deemed to be a breach of such obligations by Denbury.

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However, notwithstanding the foregoing, at any time prior to the adoption ofrequisite shareholder vote to adopt the merger agreement by XTO Energy stockholders:Merger Agreement and approve the Merger:

 

XTO Energy may, in response to an unsolicited acquisition proposal from a third party that the XTO Energy board of directors determines constitutes or could reasonably be expected to lead to a superior proposal (as defined under “The Merger Agreement—No Solicitation by XTO Energy” beginning on page [] of this proxy statement/prospectus), directly or indirectly engage or participate in negotiations or discussions with such party and furnish nonpublic information to such third party pursuant to a customary confidentiality agreement (provided that all such information is or has been provided or made available to ExxonMobil).

The XTO Energy board of directors may fail to make, withdraw or modify in a manner adverse to ExxonMobil its recommendation in favor of the adoption of the merger agreement either (a) following receipt of an unsolicited competing acquisition proposal made after the date of the merger agreement that XTO Energy’s board of directors determines constitutes a superior proposal or (b) solely in response to a material event, development, circumstance, occurrence or change in circumstances or facts not related to a competing acquisition proposal that was not known to XTO Energy’s board of

 

directorsDenbury, directly or indirectly through its representatives may (A) engage in the activities prohibited by clauses (i) through (iii) as described under the first paragraph above in “Summary—No Solicitation by Denbury” beginning on page 21 of this proxy statement/prospectus, with any third party and its representatives that has made after the date of the merger agreement (or if known,Merger Agreement a bona fide, written Acquisition Proposal that did not result from a breach of the magnitude or material consequencesapplicable section of which were not known or understood as of that date). However, the XTO Energy board of directors may not change its recommendation unless XTO Energy notifies ExxonMobil of its intention to do so at least three business days prior to taking such action and ExxonMobil does not, within three business days of receipt of such notice, make an offerMerger Agreement that the XTO EnergyDenbury board of directors determines in good faith, after consultation with its outside financiallegal counsel and legalfinancial advisors, is, at least asor is reasonably likely to lead to, a Superior Proposal (as defined under “The Merger Agreement—No Solicitation” beginning on page 125 of this proxy statement/prospectus), and (B) furnish to such third party or its representatives non-public information relating to Denbury or any of its subsidiaries and afford access to the business, properties, assets, books or records of Denbury or any of its subsidiaries pursuant to a confidentiality agreement (a copy of which shall be provided for informational purposes only to ExxonMobil) with such third party with terms no less favorable to XTO Energy’s stockholdersDenbury than those contained in the Confidentiality Agreement dated as of May 10, 2021 between Denbury and ExxonMobil; provided that all such information (to the extent that such information has not been previously provided or made available to ExxonMobil) is provided or made available to ExxonMobil, as the competing acquisitioncase may be, prior to or substantially concurrently with the time it is provided or made available to such third party or its representatives; and

the Denbury board of directors may (A) following receipt of a bona fide, written Acquisition Proposal that did not result from a breach of the Merger Agreement that the Denbury board of directors determines in good faith, after consultation with its outside legal counsel and financial advisors, constitutes a Superior Proposal, make an Adverse Recommendation Change (as defined under “The Merger Agreement—No Solicitation” beginning on page 125 of this proxy statement/prospectus) or terminate the Merger Agreement in order to enter into a definitive agreement for such Superior Proposal, or (B) in response to events, changes or developments in circumstances that are material to Denbury and its subsidiaries, taken as a whole, that were not known to the Denbury board of directors or if known the consequences of which were not reasonably foreseeable, in each case as of or prior to the date of the Merger Agreement, and that become known to the Denbury board of directors prior to the receipt of the requisite shareholder vote to adopt the Merger Agreement and approve the Merger (an “Intervening Event”), make an Adverse Recommendation Change; provided that in no event shall any of the following constitute or contribute to an Intervening Event: (1) any action taken by the parties pursuant to the affirmative covenants set forth in the applicable Section of the Merger Agreement, or the consequences of any such action, (2) any event, circumstance, development, occurrence, fact, condition, effect or change relating to ExxonMobil or its subsidiaries, (3) the fact that Denbury exceeds any internal or published projections, estimates or expectations of Denbury’s revenue, earnings or other financial performance or results of operations for any period; provided that any underlying event, circumstance, development, occurrence, fact, condition, effect or change that is the cause thereof may be taken into account, (4) changes in the price of Denbury’s stock or ExxonMobil’s stock or (5) the receipt, existence or terms of any Acquisition Proposal or any inquiry, offer, request or proposal (if the intended recommendation change relates to a competing acquisition proposal) or that would obviate the need for the recommendation change (if the intended recommendation change relatesreasonably be expected to any other event).lead to an Acquisition Proposal.

The actions described inEach of the preceding two bullets may be takenexceptions above will apply only if the XTO EnergyDenbury board of directors determines in good faith, after consultation with its outside legal advisors,counsel, that the failure to take such action would reasonably likely to be inconsistent with its fiduciary duties under Delaware law. These restrictionsIn addition, nothing contained in the merger agreement wereMerger Agreement shall prevent the result of negotiations between XTO Energy and ExxonMobil, and the XTO EnergyDenbury board of directors determined that these restrictions sought by ExxonMobil were reasonable and acceptable in light offrom complying with Rule 14e-2(a) or Rule 14d-9 under the overall terms of1934 Act with regard to an Acquisition Proposal so long as any action taken or statement made to so comply is consistent with the merger agreement, includingMerger Agreement.

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In addition, the economic and other terms being offered by ExxonMobil, and the fact that these restrictions would not unduly impede the ability of a third party to make a superior bid to acquire XTO Energy if that third party were interested in doing so. See “The Merger—Background of the Merger” and “The Merger—XTO Energy Reasons for the Merger; Recommendation of the XTO Energy Board of Directors” beginning on pages [] and [], respectively, of this proxy statement/prospectus.

ExxonMobil has the right to terminate the merger agreement if, prior to the special meeting, the XTO EnergyDenbury board of directors changes its recommendation in favoris not permitted to take any of the adoptionactions described in the first bullet above, unless Denbury has delivered to ExxonMobil a prior written notice advising ExxonMobil that it intends to take such action. In addition, Denbury will notify ExxonMobil promptly (but in no event later than 24 hours after a director or senior executive officer of Denbury becomes aware of such Acquisition Proposal or request) after receipt by Denbury (or any of its representatives) of any Acquisition Proposal or any request for information relating to Denbury or any of its subsidiaries with respect to any Acquisition Proposal or for access to the business, properties, assets, books, records, work papers or other documents relating to Denbury or any of its subsidiaries by any third party that has indicated it may be considering making, or has made, an Acquisition Proposal. Such notice shall identify the third party making, and the terms and conditions of, any such Acquisition Proposal, indication or request. Denbury shall keep ExxonMobil reasonably informed, on a reasonably current basis, of the merger agreementstatus and details of any such Acquisition Proposal, indication or request and shall promptly (but in a manner adverseno event later than 24 hours after receipt) provide to ExxonMobil. XTO Energy, however, does not have the rightExxonMobil copies of all correspondence and written materials sent or provided to terminate the merger agreement in connection with such a change of recommendation and, unless ExxonMobil terminates the merger agreement, XTO Energy would remain obligated to call and hold a special meetingDenbury or any of its stockholderssubsidiaries that describes any terms or conditions of any Acquisition Proposal (as well as written summaries of any oral communications addressing such matters). Any material amendment to any Acquisition Proposal will be deemed to be a new Acquisition Proposal for purposes of voting onDenbury’s compliance with the applicable section of the Merger Agreement.

Further, the Denbury board of directors shall not take any of the actions referred to in the second bullet above, unless (i) Denbury promptly notifies ExxonMobil, in writing at least four business days before taking that action, of its intention to do so, specifying in reasonable detail the reasons therefor (which notice shall not constitute an Adverse Recommendation Change), attaching (A) in the case of a proposalSuperior Proposal, the most current version of the proposed agreement under which such Superior Proposal is proposed to adoptbe consummated and identifying the merger agreement.

Terminationthird party making the Acquisition Proposal, or (B) in the case of an Intervening Event, a reasonably detailed description of such Intervening Event, (ii) Denbury has negotiated, and has caused its representatives to negotiate in good faith with ExxonMobil during such notice period any revisions to the terms of the Merger Agreement (See Page []that ExxonMobil proposes, (iii) following the end of such notice period, the Denbury board of directors shall have determined, in consultation with outside legal counsel and its independent financial advisor, and giving due consideration to such revisions proposed by ExxonMobil, (iv) in the case of a Superior Proposal, such Superior Proposal would nevertheless continue to constitute a Superior Proposal (assuming such revisions proposed by ExxonMobil were to be given effect) and (v) in the case of an Adverse Recommendation Change to be made pursuant to an Intervening Event, such Intervening Event would nevertheless necessitate the need for such Adverse Recommendation Change, and, in either case, the Denbury board of directors determines in good faith, after consultation with outside legal counsel, that the failure to take such action would be reasonably likely to be inconsistent with its fiduciary duties under Delaware law.

TERMINATION OF THE MERGER AGREEMENT (SEE PAGE 133).

The merger agreementMerger Agreement may be terminated at any time before the completion of the merger Merger in any of the following ways:

by mutual written consentagreement of ExxonMobil and XTO Energy.Denbury;

The merger agreement may also be terminated prior to the completion of the merger

by either Denbury or ExxonMobil, or XTO Energy if:

 

the mergerMerger has not been completed on or before September 15, 2010, unless the only reasoninitial end date (July 13, 2024) or, if all conditions to the merger hascompletion of the Merger have been satisfied on the initial end date other than certain conditions relating to regulatory approvals and either ExxonMobil or Denbury elects to extend the initial end date to an extended end date (January 13, 2025); however, the right to terminate the Merger Agreement at the initial end date or the extended end date, as applicable, or to extend the initial end date will not occurred by September 15, 2010 isbe available to any party to the Merger Agreement whose breach of any provision of the Merger Agreement results in the failure of certain conditions to the merger related to regulatory mattersMerger to be satisfied, in which casecompleted by such time;

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any governmental authority of competent jurisdiction issues an injunction, order or decree or enacted an applicable law that (A) prohibits or makes illegal consummation of the termination date will automatically be extended to December 31, 2010;Merger or (B) permanently enjoins ExxonMobil or Merger Sub from consummating the Merger, and such injunction, order, decree or applicable law referenced has become final and nonappealable; or

 

there is a permanent legal prohibition to completing the merger;

XTO EnergyDenbury stockholders fail to approve and adopt the merger agreementMerger Agreement upon a vote taken on a proposal to approve and adopt the Merger Agreement at the XTO Energya Denbury stockholders’ meeting called for that purpose (or at any adjournment or postponement thereof);purpose; or

 

thereby ExxonMobil, if:

before the requisite Denbury stockholder vote on a proposal to approve and adopt the Merger Agreement has been obtained, an Adverse Recommendation Change has occurred;

before the Merger has been completed, a breach by the other party of any representation or warranty or failure to perform any covenant or agreement on the part of Denbury set forth in the Merger Agreement has occurred that would result incause the failure of the other partyconditions to satisfy the applicable conditionclosing not to the closing related to accuracy of representations and warranties or performance of covenants,be satisfied and such conditionbreach or failure is incapable of being satisfied by September 15, 2010 (or, December 31, 2010, if extended as providedcured by the merger agreement).initial end date (July 13, 2024) or, if curable by the end date, is not cured by Denbury within 30 days after receipt by Denbury of written notice of such breach or failure; provided that, at the time of the delivery of such notice or thereafter, ExxonMobil or Merger Sub is not in material breach of its or their obligations under the Merger Agreement so as to cause any of the closing conditions not to be capable of being satisfied; or

 

The merger agreement may also be terminated a Specified Pipeline Event (see “The Merger Agreement—Termination of the Merger Agreement” beginning on page 133 of this proxy statement/prospectus for the definition of Specified Pipeline Event) has occurred and ExxonMobil exercises such termination right within twenty business days of becoming aware of the occurrence of a Specified Pipeline Event; or

by Denbury:

prior to the completion of the merger by ExxonMobil if:

the XTO Energy board of directors changes its recommendation in favor of theDenbury stockholders’ approval and adoption of the mergerMerger Agreement, in order to enter into an alternative acquisition agreement inwith respect to a manner adverse to ExxonMobilSuperior Proposal (see “The Merger Agreement—No Solicitation by XTO Energy”Solicitation” beginning on page []125 of this proxy statement/prospectus) prospectus for the definition of Superior Proposal), provided that prior to or concurrently with such termination, Denbury pays, or causes to be paid, to ExxonMobil, in immediately available funds the Company Termination Fee (see “The Merger Agreement—Termination of the Merger Agreement” beginning on page 133 of this proxy statement/ prospectus for the definition of Company Termination Fee); or

 

prior to the completion of the Merger, if a breach of any representation or warranty or failure to perform any covenant or agreement on the part of ExxonMobil set forth in this Agreement shall have occurred that would cause the closing conditions not to be satisfied and such breach or failure is incapable of being cured by the end date or, if curable by the end date, is not cured by ExxonMobil or Merger Sub within 30 days after receipt by ExxonMobil of written notice of such breach or failure; provided that, at the time of the delivery of such notice or thereafter, Denbury is not be in material breach of its obligations under the Merger Agreement so as to cause any of the closing conditions not to be capable of being satisfied.

If the Merger Agreement is validly terminated, the Merger Agreement will become void and of no effect without liability of any party to the Merger Agreement (or any stockholder, director, officer, employee, agent, consultant or representative of any party to the Merger Agreement) to the other parties, except that certain specified provisions will survive termination. However, neither ExxonMobil nor Denbury will be relieved or released from any liabilities or damages arising out of any (i) fraud by such party, (ii) willful breach by such

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party of any representation or warranty on the XTO Energy boardpart of directors failssuch party set forth in the Merger Agreement or (iii) the willful breach by such party of any covenant or agreement binding on such party set forth in the Merger Agreement.

If the Merger Agreement is terminated by ExxonMobil or Denbury due to reaffirm its recommendationan Adverse Recommendation Change (see “The Merger Agreement— No Solicitation” beginning on page 125 of this proxy statement/prospectus for the definition of Adverse Recommendation Change) or a Superior Proposal, Denbury agrees to pay to ExxonMobil $144,000,000 in favorimmediately available funds, in the case of the adoption of the merger agreementtermination by ExxonMobil, within 10three business days after receiptsuch termination and, in the case of termination by Denbury, contemporaneously with and as a condition to such termination. If (A) the Merger Agreement is terminated by ExxonMobil or Denbury because the requisite Denbury shareholder vote to approve the Merger has not been obtained or because prior to completion of the Merger there has been a breach of a written requestrepresentation or warranty or failure to do so from ExxonMobil; or

XTO Energy intentionally and materially breaches its obligationperform any covenant on the part of Denbury that has caused the closing conditions not to solicit competing acquisition proposals or its obligation to callbe satisfied, (B) after the date of this Agreement and hold a special meeting of its stockholders.

Termination Fee Payable by XTO Energy (See Page []).

XTO Energy has agreed to pay a fee of $900 million to ExxonMobil if the merger agreement is terminated under any of the following circumstances:

the XTO Energy board of directors changes its recommendation in favor of the adoption of the merger agreement in a manner adverse to ExxonMobil;

the XTO Energy board of directors fails to reaffirm its recommendation in favor of adoption of the merger agreement within 10 business days after receipt of a written request to do so from ExxonMobil;

XTO Energy intentionally and materially breaches its obligation not to solicit competing acquisition proposals or its obligation to call and hold a special meeting of its stockholders; and

(i) the failure of the merger to be completed by September 15, 2010 (or, December 31, 2010, if extended as provided by the merger agreement) and the XTO Energy stockholders’ meeting is not held on or prior to the fifth business day before the merger agreement is terminated (subject to certain limited exceptions)such termination, an Acquisition Proposal has been publicly announced or (ii) the failure of XTO Energy’s stockholders to adopt the merger agreement at a stockholders’ meeting called for that purpose, and in either case, (x) priorotherwise been communicated to the termination of the merger agreement or the stockholders’ meeting, as applicable, XTO Energy receives a competing acquisition proposal (that is not withdrawn)Denbury stockholders and (y)(C) within 12 months following the date of such termination, XTO Energy completes, entersDenbury or any of its subsidiaries shall have entered into a definitive agreement relatingwith respect to or recommends to XTO Energy stockholders, a competing acquisition proposal.

The XTO Energythe Denbury board of directors after consultationhas recommended to Denbury’s stockholders an Acquisition Proposal or an Acquisition Proposal shall have been consummated, then Denbury will pay to ExxonMobil in immediately available funds, prior to or concurrently with XTO Energy’s legalthe occurrence of the applicable event described in clause (C), $144,000,000.

If the Merger Agreement is terminated by ExxonMobil because a Specified Pipeline Event has occurred, ExxonMobil agrees to pay Denbury contemporaneously with and financial advisors, believed that, among other things, theas a condition to such termination, a termination fee payable by XTO Energyof $144,000,000, in such circumstances,immediately available funds.

SPECIFIC PERFORMANCE; REMEDIES (SEE PAGE 136)

Under the Merger Agreement, each of ExxonMobil and Denbury is entitled to an injunction (even if monetary damages are available) to prevent breaches of the Merger Agreement or to enforce specifically the terms and provisions of the Merger Agreement, in addition to any other remedy to which that party may be entitled at law or in equity.

U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE MERGER (SEE PAGE 137)

The Merger is intended to qualify as a percentage“reorganization” within the meaning of Section 368(a) of the equity valueCode, and ExxonMobil and Denbury intend to report the Merger consistent with such qualification. Each of ExxonMobil and Denbury has agreed in the Merger Agreement to use its reasonable best efforts (i) to cause the Merger to qualify as a “reorganization” within the meaning of Section 368(a) of the transaction, was reasonableCode and would(ii) not unduly impedeto, and not permit or cause any of its respective subsidiaries or affiliates to, take or cause to be taken any action reasonably likely to cause the abilityMerger to fail to qualify as a “reorganization” within the meaning of a third party to make a superior bid to acquire XTO Energy if such third party were interested in doing so, and was at a level consistent with, or favorable to, the fees payable in customary and comparable merger transactions. See “The Merger—XTO Energy Reasons for the Merger; RecommendationSection 368(a) of the XTO Energy BoardCode. As of Directors” beginning on page []the date of this proxy statement/prospectus, Davis Polk and Vinson & Elkins are of the opinion that the Merger will qualify as a “reorganization” within the meaning of Section 368(a) of the Code and have provided opinions to ExxonMobil and Denbury, respectively, to that effect. These opinions of counsel are based on customary assumptions and representations, covenants and undertakings of ExxonMobil, Denbury and Merger Sub, all as of the date hereof. If any of the assumptions, representations, covenants or undertakings is incorrect, incomplete, inaccurate, or is violated, the validity of the opinions may be affected and the U.S. federal income tax consequences of the Merger could differ materially from those described in this proxy statement/prospectus. The receipt of an opinion from counsel on the qualification of the Merger as a “reorganization” within the meaning of Section 368(a) of the Code is not a condition to either party’s obligation to complete the Merger. ExxonMobil and Denbury have not sought, and will not seek, any ruling from the IRS regarding any matters

Material25


related to the transactions, and, as a result, there can be no assurance that the IRS will agree with the opinions or would not assert, or that a court would not sustain, a position contrary to the treatment of the Merger as a “reorganization” within the meaning of Section 368(a) of the Code. Assuming that the Merger qualifies as a “reorganization” within the meaning of Section 368(a) of the Code, U.S. holders (as defined in “U.S. Federal Income Tax Consequences of the Merger (See Page []Merger”).

ExxonMobil and XTO Energy have structured the merger as a reorganization for U.S. federal income tax purposes. Accordingly, holders of shares of XTO Energy common stock generally will generally not recognize any gain or loss for U.S. federal income tax purposes, on the exchange of their shares of XTO Energy common stock for ExxonMobil common stock in the merger, except for any gain or loss recognized in connection with anyrespect to cash received in lieu of fractional shares of ExxonMobil shares. It iscommon stock. If the Merger does not qualify as a condition“reorganization”, the Merger generally would be a taxable transaction to U.S. holders, and each U.S. holder generally would recognize gain or loss in an amount equal to the obligationsdifference, if any, between (i) the sum of XTO Energythe value of the ExxonMobil common stock it receives in the Merger plus the amount of any cash it receives in lieu of fractional shares of ExxonMobil common stock and ExxonMobil to complete(ii) such holder’s adjusted tax basis in its shares of Denbury common stock exchanged in the merger that each receive a legal opinion from its respective outside counsel that the merger will be a reorganization forMerger.

The U.S. federal income tax purposes.consequences described above may not apply to all holders of Denbury common stock. You should read “U.S. Federal Income Tax Consequences of the Merger” beginning on page 137 of this proxy statement/prospectus for a more complete discussion of the U.S. federal income tax consequences of the Merger. Tax matters can be complicated and the tax consequences of the Merger to you will depend on your particular tax situation. You should consult your own tax advisor to determine the tax consequences of the Merger to you.

ACCOUNTING TREATMENT (SEE PAGE 111)

Accounting Treatment (See Page []).

In accordance with accounting principles generally accepted in the United States, ExxonMobilThe Merger will accountbe accounted for the merger as an acquisition of a business. ExxonMobil will record the net tangible and identifiable intangible assets acquired and liabilities assumed from Denbury at their respective fair values as of the closing date of the Merger. Any excess of the purchase price over the net assets acquired will be recorded as goodwill. The purchase price will be based on the closing date fair value of consideration paid by ExxonMobil, primarily ExxonMobil’s common stock to be issued to Denbury stockholders, in connection with the Merger.

RightsRIGHTS OF DENBURY STOCKHOLDERS WILL CHANGE AS A RESULT OF THE MERGER (SEE PAGE 151)

Denbury stockholders, whose rights are currently governed by Denbury’s third restated certificate of XTO Energy Stockholders Will Change as a Resultincorporation (the “Denbury certificate of incorporation”), Denbury’s fourth amended and restated bylaws (the “Denbury bylaws”), and Delaware law, will upon completion of the Merger (See Page [become stockholders of ExxonMobil and their rights will be governed by ExxonMobil’s restated certificate of incorporation, as amended effective June 20, 2001 (the “ExxonMobil restated certificate of incorporation”), ExxonMobil’s by-laws,] as revised October 25, 2022 (the “ExxonMobil by-laws”).

XTO Energy and New Jersey law. As a result, Denbury stockholders will have different rights once they become ExxonMobil shareholders due to differences between the laws of the state corporate law applicable to,of incorporation and the organizationalgoverning documents of ExxonMobilDenbury and XTO Energy.ExxonMobil. These differences are described in more detail underin “Comparison of ShareholderStockholder Rights” beginning on page []151 of this proxy statement/prospectus.

Litigation Relating toLITIGATION RELATED TO THE MERGER (SEE PAGE 109)

Since the Merger (See Page []).

Shortly following thepublic announcement of the merger, agreement, severalthree putative stockholder class actionlawsuits related to the merger have been filed.

As of September 27, 2023, three complaints and one non-class complaint, werehave been filed by purported Denbury stockholders in the United States District Court for the Southern District of New York against various combinations of XTO Energy,Denbury and the members of the XTO Energy board of directors, ExxonMobilDenbury board. The lawsuits are captioned Boyle v. Denbury Inc. et al., Docket No. 1:23-cv-08158-KPF, O’Dell v. Denbury Inc. et al., Docket No. 1:23-cv-08180-KPF, and Merger Sub in the Court of Chancery of the State of Delaware and in the state and federal courts of Texas. TheseWang v. Denbury Inc. et al., Docket No. 1:23-cv-

26


08180-KPF (collectively “the lawsuits”). The lawsuits challenge the proposed merger and generally allege, among other things, that the individual membersregistration statement on Form S-4 filed in connection with Denbury’s proposed merger with Exxon fails to disclose certain allegedly material information in violation of Sections 14(a) and 20(a) of the XTO Energy boardExchange Act and SEC Rule 14a-9. The lawsuits seek injunctive relief enjoining the merger, damages and costs, and other remedies.

Denbury has also received letters from two additional purported Denbury stockholders who contend that the registration statement on Form S-4 filed in connection with the merger fails to disclose certain allegedly material information and demands that Denbury make supplemental disclosures.

While Denbury believes that the contentions made in each of directorsthe lawsuits and letters described above are without merit, each of these matters is at a preliminary stage and defendants have breached their fiduciary duties owednot yet answered or otherwise responded to the publiccomplaints. Litigation is inherently uncertain, and there can be no assurance regarding the likelihood that Denbury’s defense of these lawsuits (or any other lawsuits related to the merger that may be filed in the future) will be successful, nor can Denbury predict the amount of time and expense that will be required to resolve the lawsuits.

For additional information, see the section entitled “The Merger—Litigation Relating to the Merger.”

RISK FACTORS (SEE PAGE 31)

You should also carefully consider the risks that are described in “Risk Factors” beginning on page 31 of this proxy statement/prospectus.

Risks Relating to the Merger

Because the exchange ratio is fixed and the market price of ExxonMobil common stock has fluctuated and will continue to fluctuate, Denbury stockholders cannot be sure of XTO Energy by approving the proposed merger and failing to take steps to maximize the value of XTO Energythe consideration they will receive in the Merger, if completed.

The market price of ExxonMobil common stock after the Merger may be affected by factors different from those affecting the market price of Denbury common stock.

After completion of the Merger, ExxonMobil may fail to its public stockholders; that XTO Energy,realize the anticipated benefits of creating a new and emerging networked carbon capture and storage business and the cost savings of the Merger versus organically building this infrastructure, which could adversely affect the value of ExxonMobil common stock.

Denbury may have difficulty attracting, motivating and retaining employees in light of the Merger.

Completion of the Merger is subject to certain conditions and if these conditions are not satisfied, waived or fulfilled in a timely manner, the Merger may be delayed or not be completed.

In order to complete the Merger, ExxonMobil and Denbury must make certain governmental filings and obtain certain governmental authorizations, and if such filings and authorizations are not made or granted or are granted with conditions to the parties, the closing of the Merger Sub aidedmay be jeopardized or the anticipated benefits of the Merger could be reduced.

If the Merger does not qualify as a “reorganization” within the meaning of Section 368(a) of the Code, the Denbury stockholders may be required to pay substantial U.S. federal income taxes.

The opinions of Denbury’s financial advisors will not reflect changes in circumstances between the signing of the Merger Agreement and abetted such breachesthe completion of fiduciary duties;the Merger.

ExxonMobil’s and Denbury’s business relationships may be subject to disruption due to uncertainty associated with the Merger.

27


Denbury may waive one or more of the Closing conditions without re-soliciting stockholder approval.

Completion of the Merger may trigger change in control or other provisions in certain agreements to which Denbury is a party.

Certain of Denbury’s executive officers and directors have interests in the Merger that may be different from your interests as a stockholder of Denbury or as a stockholder of ExxonMobil.

The Merger Agreement limits Denbury’s ability to pursue alternatives to the merger agreement improperly favorsMerger and may discourage other companies from trying to acquire Denbury for greater consideration than what ExxonMobil has agreed to pay pursuant to the Merger Agreement.

Failure to complete the Merger could negatively impact the stock price and the future business and financial results of Denbury.

The shares of ExxonMobil common stock to be received by Denbury stockholders upon completion of the Merger will have different rights from shares of Denbury common stock.

After the Merger, Denbury stockholders will have a significantly lower ownership and voting interest in ExxonMobil than they currently have in Denbury and will exercise less influence over management.

Denbury stockholders are not entitled to appraisal rights in connection with the Merger.

Potential litigation against ExxonMobil and unduly restricts XTO Energy’s ability to negotiate with rival bidders;Denbury could result in substantial costs, an injunction preventing the completion of the Merger and/or a judgment resulting in the payment of damages.

ExxonMobil and that the preliminary proxy statement/prospectus filedDenbury will incur significant transaction and Merger-related costs in connection with the United States SecuritiesMerger.

The Merger is predicated on a developing market for carbon capture and Exchange Commission,sequestration and other services and may be dilutive in both the short-term, medium-term and long-run, to ExxonMobil’s earnings per share, which is referredmay negatively affect the market price of ExxonMobil common stock following completion of the Merger.

Risks Relating to in this proxy statement/prospectus as the SEC, on February 1, 2010 is materially misleading or omissive. These lawsuits generally seek, among other things, compensatory damages, declaratoryExxonMobil and injunctive relief concerning the alleged fiduciary breaches and injunctive relief prohibiting the defendants from consummating the merger.Denbury

 

SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA OF EXXONMOBIL

The following table presents selected historical consolidated financial data of ExxonMobil. The data as of, and for the years ended, December 31, 2009, 2008, 2007, 2006 and 2005 are derived from ExxonMobil’s audited consolidated financial statements for those periods.

The information in the following table is only a summary and is not indicative of the results of future operations of ExxonMobil. You should read the following information together with ExxonMobil’s Annual Report on Form 10-K for the year ended December 31, 2009 and the other information that ExxonMobil has filed with the SEC and incorporated by reference into this proxy statement/prospectus. See “Where You Can Find More Information” beginning on page []178 of this proxy statement/prospectus.

ExxonMobil is not required to furnish pro forma financial information with respect to the merger in this proxy statement/prospectus because XTO Energy would not befor a significant subsidiary under anylisting of the financial conditions specified in Rule 1-02(w) of SEC Regulation S-X, substituting 20% for 10% in each of those conditions in accordance with Rule 11.01(b)(1) of SEC Regulation S-X.

  As of / for Year Ended December 31,
  2009 2008 2007 2006 2005
  (millions of dollars, except per share amounts)

Sales and other operating revenue(1)(2)

 $ 301,500 $ 459,579 $ 390,328 $ 365,467 $ 358,955

Net income attributable to ExxonMobil

 $19,280 $45,220 $40,610 $39,500 $36,130

Net income per common share attributable to ExxonMobil(3)

 $3.99 $8.70 $7.31 $6.64 $5.74

Net income per common share attributable to ExxonMobil—assuming dilution(3)

 $3.98 $8.66 $7.26 $6.60 $5.70

Cash dividends per common share

 $1.66 $1.55 $1.37 $1.28 $1.14

Total assets

 $233,323 $228,052 $242,082 $219,015 $208,335

Long-term debt

 $7,129 $7,025 $7,183 $6,645 $6,220

(1)Includes sales-based taxes of $25,936, $34,508, $31,728, $30,381 and $30,742 for the years ended December 31, 2009, 2008, 2007, 2006 and 2005, respectively.

(2)Includes amounts for purchases/sales contracts with the same counterparty for 2005.

(3)Effective January 1, 2009, ExxonMobil adopted the authoritative guidance for earnings per share as it relates to determining whether instruments granted in share based payment transactions are participating securities. As a result of adoption, ExxonMobil retrospectively adjusted the calculation of its prior periods’ earnings per share on a basis consistent with 2009.

SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA OF XTO ENERGY

The following table presents selected historical consolidated financial data of XTO Energy. The data as of, and for the years ended, December 31, 2009, 2008, 2007, 2006 and 2005 are derived from XTO Energy’s audited consolidated financial statements for those periods. All per share data has been adjusted for the 5-for-4 stock split effected in December 2007 and the 4-for-3 stock split effected in March 2005.

The information in the following table is only a summary and is not indicative of the results of future operations of XTO Energy. You should read the following information together with XTO Energy’s Annual Report on Form 10-K for the year ended December 31, 2009 and the other information that XTO Energy has filed with the SEC anddocuments incorporated by reference into this proxy statement/prospectus. See “Where You Can Find More Information” beginning on page [] of this proxy statement/prospectus.

  

 

As of / for Year Ended December 31,

 
  2009  2008  2007  2006  2005 
  

(in millions, except production, per share and per unit
data)

 

Consolidated Income Statement Data

     

Revenues

 $ 9,064   $7,695   $5,513   $4,576   $3,519  

Net Income

 $2,019   $1,912   $1,691   $1,860   $1,152  

Earnings per common share:(1)

     

Basic

 $3.48   $3.58   $3.57   $4.07   $2.57  

Diluted

 $3.46   $3.54   $3.52   $4.02   $2.52  

Cash dividends declared per common share

 $0.500   $0.480   $0.408   $0.252(2)  $0.180  

Consolidated Statement of Cash Flows Data

     

Cash provided (used) by:

     

Operating activities

 $5,954   $5,235   $3,639   $2,859   $2,094  

Investing activities

 $(4,057 $(13,006 $(7,345 $(3,036 $(2,908

Financing activities

 $(1,913 $7,796   $3,701   $180   $806  

Consolidated Balance Sheet Data

     

Property and equipment, net

 $31,934   $31,281   $17,200   $10,824   $8,508  

Total assets

 $36,255   $38,254   $18,922   $12,885   $9,857  

Total debt

 $10,487   $11,959   $6,320   $3,451   $3,109  

Stockholders’ equity

 $17,326   $17,347   $7,941   $5,865   $4,209  

Operating Data

     

Average daily production:

     

Gas (Mcf)

  2,342,488    1,905,443    1,457,802    1,186,330    1,033,143  

Natural gas liquids (Bbls)

  20,560    15,624    13,545    11,854    10,445  

Oil (Bbls)

  66,297    56,025    47,047    45,041    39,051  

Mcfe

  2,863,631    2,335,336    1,821,353    1,527,705    1,330,121  

Average realized sales price:

     

Gas (per Mcf)

 $7.13   $7.81   $7.50   $7.69   $7.04  

Natural gas liquids (per Bbl)

 $30.03   $48.76   $45.37   $37.03   $34.10  

Oil (per Bbl)

 $107.65   $87.59   $70.08   $60.96   $47.03  

Production expense (per Mcfe)

 $0.96   $1.10   $0.93   $0.88   $0.84  

Taxes, transportation and other expense (per Mcfe)

 $0.65   $0.82   $0.67   $0.67   $0.63  

Proved reserves:

     

Gas (Mcf)

  12,501.7    11,802.9    9,441.1    6,944.2    6,085.6  

Natural gas liquids (Bbls)

  93.2    75.8    66.8    53.0    47.4  

Oil (Bbls)

  294.4    267.5    241.2    214.4    208.7  

Mcfe

  14,827.2    13,862.4    11,289.0    8,548.6    7,622.2  

Other Data

     

Ratio of earnings to fixed charges(3)

  6.5    6.6    9.6    15.2    11.7  

(1)Effective January 1, 2009, XTO Energy adopted the authoritative guidance for earnings per share as it relates to determining whether instruments granted in share based payment transactions are participating securities. As a result of adoption, XTO Energy retrospectively adjusted the calculation of its prior periods’ earnings per share on a basis consistent with 2009.

(2)Excludes the May 2006 distribution of all of the Hugoton Royalty Trust units owned by XTO Energy to its stockholders as a dividend with a market value of approximately $1.35 per common share.

(3)For purposes of calculating this ratio, earnings are before income tax and fixed charges. Fixed charges include interest costs and the portion of rentals considered to be representative of the interest factor.

SELECTED PROVED OIL AND GAS RESERVES OF XTO ENERGY

The following table presents selected estimated quantities of proved reserves of XTO Energy as of December 31, 2009, 2008 and 2007. The data as of December 31, 2009, 2008 and 2007 are derived from XTO Energy’s consolidated financial statements for those periods.

The information in the following table is only a summary and is not indicative of the results of future operations of XTO Energy. You should read the following information together with XTO Energy’s Annual Report on Form 10-K for the year ended December 31, 2009 and the other information that XTO Energy has filed with the SEC and incorporated by reference into this proxy statement/prospectus. See “Where You Can Find More Information” beginning on page [] of this proxy statement/prospectus.

   As of December 31,
   2009  2008  2007
   (in millions)

Developed:

      

Gas (Mcf)

  7,353.1  7,290.3  6,031.5

Natural gas liquids (Bbls)

  62.7  52.5  52.9

Oil (Bbls)

  212.6  205.0  184.8

Mcfe

  9,004.6  8,835.4  7,457.7

Undeveloped:

      

Gas (Mcf)

  5,148.6  4,512.6  3,409.6

Natural gas liquids (Bbls)

  30.5  23.3  13.9

Oil (Bbls)

  81.8  62.5  56.4

Mcfe

  5,822.6  5,027.0  3,831.3

Total proved:

      

Gas (Mcf)

  12,501.7  11,802.9  9,441.1

Natural gas liquids (Bbls)

  93.2  75.8  66.8

Oil (Bbls)

  294.4  267.5  241.2

Mcfe

  14,827.2  13,862.4  11,289.0

The process of estimating oil and gas reserves is complex and requires significant judgment as discussed in Item 1A, Risk Factors, in XTO Energy’s Annual Report on Form 10-K for the year ended December 31, 2009. As a result, XTO Energy has developed internal policies and controls for estimating and recording reserves. XTO Energy’s policies regarding booking reserves require proved reserves to be in compliance with the SEC definitions and guidance. XTO Energy’s policies assign responsibilities for compliance in reserves bookings to its reserves engineering group and require that reserve estimates be made by qualified reserves estimators, as defined by the Society of Petroleum Engineers’ standards. All qualified reserves estimators are required to receive education covering the fundamentals of SEC proved reserves assignments.

XTO Energy’s reserves engineering group is responsible for the internal review of reserve estimates and includes the Senior Vice President—Engineering. The Senior Vice President—Engineering has more than 20 years experience as a reserve engineer. The reserves engineering group is independent of any of XTO Energy’s operating areas. XTO Energy’s Chief Executive Officer is directly responsible for overseeing the reserves engineering group. No portion of the reserves engineering group’s compensation is directly dependent on the quantity of reserves booked.

The reserves engineering group reviews reserve estimates with XTO Energy’s third-party petroleum consultants, Miller and Lents, Ltd., an independent petroleum engineering firm. Miller and Lents’ primary technical person responsible for calculating XTO Energy’s reserves has more than 30 years of experience as a reserve engineer. Miller and Lents prepared the estimates of XTO Energy’s proved reserves as of December 31, 2009, 2008 and 2007. As prescribed by the SEC, such proved reserves were estimated using 12-month average oil and gas prices, based on the first-day-of-the-month price for each month in the period, and year end production and development costs for the December 31, 2009 estimate, without escalation. In previous years, such proved reserves were estimated using oil and gas prices and production and development costs as of December 31 of each such year, without escalation. None of XTO Energy’s natural gas liquid proved reserves are attributable to gas plant ownership.

COMPARATIVE PER SHARE DATA

The following table sets forth selected historical and unaudited pro forma combined per share information of ExxonMobil and XTO Energy.

Pro Forma Combined Per Share Information of ExxonMobil. The unaudited pro forma combined per share information of ExxonMobil below gives effectprospectus containing applicable risks to the merger under the acquisition method of accounting, as if the merger had been effective on January 1, 2009, in the case of income from continuing operations, cash dividends data and book value per share data, and assuming that 0.7098 of a share of ExxonMobil common stock had been issued in exchange for each outstanding share of XTO Energy common stock. The unaudited pro forma combined per share information of ExxonMobil is derived from the audited financial statements as of, and for the year ended, December 31, 2009 for ExxonMobil and XTO Energy.

The accounting for an acquisition of a business is based on the authoritative guidance for Business Combinations, which ExxonMobil adopted on January 1, 2009, and uses the fair value measurement concepts, which ExxonMobil adopted as required. Acquisition accounting requires, among other things, that most assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. Acquisition accounting is dependent upon certain valuations of XTO Energy’s assets and liabilities and other studies that have yet to commence or progress to a stage where there is sufficient information for a definitive measurement. Accordingly, the pro forma adjustments reflect the assets and liabilities of XTO Energy at their preliminary estimated fair values. Differences between these preliminary estimates and the final acquisition accounting will occur and these differences could have a material impact on the unaudited pro forma combined per share information set forth in the following table.

The unaudited pro forma combined per share information of ExxonMobil does not purport to represent the actual results of operations that ExxonMobil would have achieved had the companies been combined during these periods or to project the future results of operations that ExxonMobil may achieve after the merger.

Historical Per Share Information of ExxonMobil and XTO Energy. The historical per share informationbusinesses of each of ExxonMobil and XTO Energy below is derived from the audited financial statements as of, and for the year ended, December 31, 2009 for each such company.Denbury.

Equivalent Pro Forma Combined Per Share Information of XTO Energy. The unaudited equivalent pro forma combined per share amounts of XTO Energy below are calculated by multiplying the unaudited pro forma combined per share amounts of ExxonMobil by the exchange ratio of 0.7098.

Generally. You should read the below information in conjunction with the selected historical financial information included elsewhere in this proxy statement/prospectus and the historical financial statements of ExxonMobil and XTO Energy and related notes that are incorporated into this proxy statement/prospectus by reference. See “Selected Historical Consolidated Financial Data of ExxonMobil”, “Selected Historical Consolidated Financial Data of XTO Energy” and “Where You Can Find More Information” beginning on pages [], [] and [], respectively, of this proxy statement/prospectus.

 

   As of / for the
Year Ended
December 31, 2009

ExxonMobil

  

Per common share data:

  

Income from continuing operations—basic

  

Historical

  $3.99

Pro forma

  $3.60

Income from continuing operations—diluted

  

Historical

  $3.98

Pro forma

  $3.59

Cash dividends

  

Historical

  $1.66

Pro forma(1)

  $1.66

Book value

  

Historical(2)

  $24.41

Pro forma(2)

  $28.01

XTO Energy

  

Per common share data:

  

Income from continuing operations—basic

  

Historical

  $3.48

Equivalent pro forma(3)

  $2.56

Income from continuing operations—diluted

  

Historical

  $3.46

Equivalent pro forma(3)

  $2.55

Cash dividends

  

Historical

  $0.50

Equivalent pro forma(1)(3)

   N/A

Book value

  

Historical(2)

  $29.72

Equivalent pro forma(2)(3)

  $19.88

(1)The dividend policy of ExxonMobil will be determined by the ExxonMobil board of directors following the closing of the merger.

(2)Amount is calculated by dividing shareholders’ equity by common shares outstanding at the end of the period.

(3)Amounts are calculated by multiplying the ExxonMobil pro forma combined per share amounts by the exchange ratio of 0.7098.

28


COMPARATIVE PER SHARE MARKET PRICE AND DIVIDEND INFORMATION

Market PricesMARKET PRICES

The following table sets forth, for the periods indicated, the intra-day high and low sales prices per share for ExxonMobil and XTO Energy common stock as reported on the New York Stock Exchange, which is the principal trading market for both ExxonMobil and XTO Energy common stock, and the cash dividends declared per share of ExxonMobil and XTO Energy common stock (as adjusted, in the case of XTO Energy, for the 5-for-4 stock split effective on December 13, 2007).

   ExxonMobil
Common Stock
  XTO Energy
Common Stock
   High  Low  Cash Dividend  High  Low  Cash Dividend

2007:

            

First Quarter

  $76.35  $69.02  $0.32  $44.66  $35.09  $0.096

Second Quarter

   86.58   75.28   0.35   51.19   43.29   0.096

Third Quarter

   93.66   78.76   0.35   51.42   40.40   0.096

Fourth Quarter

   95.27   83.37   0.35   53.99   47.62   0.120

2008:

            

First Quarter

  $94.74  $77.55  $0.35  $64.00  $45.56  $0.120

Second Quarter

   96.12   84.26   0.40   73.74   59.51   0.120

Third Quarter

   89.63   71.51   0.40   71.36   42.48   0.120

Fourth Quarter

   83.64   56.51   0.40   46.47   23.80   0.120

2009:

            

First Quarter

  $82.73  $61.86  $0.40  $41.90  $28.64  $0.125

Second Quarter

   74.83   64.50   0.42   45.63   29.75   0.125

Third Quarter

   72.79   64.46   0.42   43.86   32.87   0.125

Fourth Quarter

   76.54   66.11   0.42   49.10   38.31   0.125

2010:

            

First Quarter

  $70.60  $63.56  $0.42  $48.38  $44.05  $0.125

Second Quarter (through [], 2010)

   []   []   []   []   []   []

The following table sets forth the closing sale price per share of ExxonMobil common stock and XTO Energyper share of Denbury common stock as reported on the New York Stock Exchange as of December 11, 2009,NYSE on July 12, 2023, the last trading day before theprior to public announcement of the merger agreement,Merger by ExxonMobil and as of April 14, 2010,Denbury on July 13, 2023, and on       2023, the most recent practicable trading day prior to the date of this proxy statement/prospectus.prospectus for which this information was available. The table also shows the implied value of the merger consideration proposedMerger Consideration for each share of XTO EnergyDenbury common stock as of the same two dates. This implied value was calculated by multiplying the closing sale price of a share of ExxonMobil common stock on the relevant date by the exchange ratio of 0.7098.ratio.

 

   ExxonMobil
Common
Stock
  XTO Energy
Common
Stock
  Implied Per
Share Value
of Merger
Consideration

December 11, 2009

  $72.83  $41.49  $51.69

April 14, 2010

  $68.61  $48.22  $48.70
   ExxonMobil
Common
Stock
   Denbury
Common
Stock
   Implied Per Share
Value of Merger
Consideration
 

July 12, 2023

  $     106.49   $     87.75   $     89.45 

      2023

  $           $          $        

The market prices of shares of ExxonMobil and XTO Energy common stock and Denbury common stock have fluctuated since the date of the announcement of the Merger Agreement and will continue to fluctuate betweenfrom the date of this proxy statement/prospectus to the date of the Special Meeting and the completion ofdate the merger.Merger is completed. No assurance can be given concerning the market prices of shares of ExxonMobil or XTO Energycommon stock and shares of Denbury common stock before the completion of the mergerMerger or shares of ExxonMobil common stock after the completion of the merger. Because theMerger. The exchange ratio is fixed in the merger agreement,Merger Agreement, but the market price of shares of ExxonMobil common stock (and therefore the value of the ExxonMobil common stock that XTO EnergyMerger Consideration) when received by Denbury stockholders will receive in connection withafter the merger may vary significantly fromMerger is completed could be greater than, less than or the pricessame as shown in the table above. Accordingly, XTO EnergyDenbury stockholders are advised to obtain current market quotations for shares of ExxonMobil common stock and XTO Energyshares of Denbury common stock in deciding whether to vote for approval and adoption of the merger agreement.Merger Agreement.

DividendsDIVIDENDS

ExxonMobil currently pays a quarterly dividend on itsshares of ExxonMobil common stock and last paid a dividend on March 10, 2010 of $0.42 per share.

XTO Energy currently pays a quarterly dividend on its common stock and last paid a dividend on January 15, 2010September 11, 2023 of $0.125$0.91 per share. Under the terms of the merger agreement,Merger Agreement, during the period before the closingcompletion of the merger, XTO EnergyMerger, ExxonMobil is prohibited from declaring, settingpermitted to pay regular quarterly cash dividends including increases that are materially consistent with past practices.

Denbury does not currently pay a quarterly dividend on shares of Denbury common stock. Under the terms of the Merger Agreement, during the period before completion of the Merger, Denbury is not permitted to declare, authorize, establish a record date for, set aside or payingpay any dividend or other distribution except for its regular quarterly(whether in cash, dividend, which is not to exceed $0.125 per share. XTO Energy last paid a dividend on April 15, 2010 of $0.125 per share.

In addition, the merger agreement provides that ExxonMobil and XTO Energy will coordinate the declaration of dividendsstock or property or any combination thereof) in respect of each company’sDenbury capital stock (including Denbury common stock before thestock) other than dividends by any of its wholly owned subsidiaries.

After completion of the merger so that the holders of ExxonMobil and XTO Energy common stock receive, inMerger, any quarter, one and only one dividend in respect of the shares of XTO Energy or ExxonMobil common stock held prior to the completion of the merger and those shares of ExxonMobil common stock issued in connection with the merger.

Any former XTO EnergyDenbury stockholder who holds ExxonMobil common stockshares into which XTO Energyshares of Denbury common stock hashave been converted in connection with the mergerMerger will receive whatever dividends are declared and paid on ExxonMobil common stock after the completion of the merger.shares. However, no dividend or other distribution having a record date after the effective timecompletion of the mergerMerger will actually be paid with respect to any shares of ExxonMobil common stock exchangeableinto which shares of Denbury common stock have been converted in connection with the mergerMerger until the certificates if any, formerly representing shares of XTO EnergyDenbury common stock have been surrendered (or the book-entry shares formerly representing shares of Denbury common stock have been transferred), at which time any accrued dividends and other distributions on suchthose shares of ExxonMobil common stock with a payment date prior to such date will be paid without interest. AnySubject to the limitations set forth in the Merger Agreement, any future dividends by ExxonMobil will be made at the discretion of the

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ExxonMobil board of directors. Subject to the limitations set forth in the Merger Agreement, any future dividends by Denbury will be made at the discretion of the Denbury board of directors. There can be no assurance that any future dividends will be declared or paid by ExxonMobil or Denbury or as to the amount or timing of suchthose dividends, if any.

 

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RISK FACTORS

In addition to the other information contained in or incorporated by reference into this proxy statement/prospectus, including the matters addressed in “Cautionary Statement Regarding Forward-Looking Statements” beginning on page []41 of this proxy statement/prospectus, you should carefully consider the following risk factors should be considered carefully in determining whether to vote for the approval and adoption of the merger agreement.Merger Agreement. You should also read and consider the risk factors associated with each of the businesses of ExxonMobil and XTO EnergyDenbury because these risk factors may affect the operations and financial results of the combined company. These risk factors may be found under Part I, Item IA,1A, “Risk Factors” in each company’sof ExxonMobil’s and Denbury’s Annual ReportReports on Form 10-K for the year ended December 31, 2008, each of which is on file2022 filed with the SEC on February 22, 2023 and all ofFebruary 23, 2023, respectively, Item 8.01, “Other Events” in ExxonMobil’s Current Report on Form 8-K filed with the SEC on July 13, 2023, Item 1.01 “Entry into a Material Definitive Agreement” in Denbury’s Current Report on Form 8-K filed with the SEC on July 14, 2023, and in ExxonMobil’s and Denbury’s subsequent filings with the SEC, in each case, which are incorporated by reference into this proxy statement/prospectus. For information on where you can obtain copies of this information, see “Where You Can Find More Information” beginning on page 178 of this proxy statement/prospectus.

Risks relating to the Merger.

Because the exchange ratio is fixed and the market price of ExxonMobil common stock mayhas fluctuated and will continue to fluctuate, youDenbury stockholders cannot be sure of the value of the merger consideration youthey will receive.receive in the Merger, if completed.

Upon completion ofIf the merger,Merger is completed, each share of XTO EnergyDenbury common stock outstanding immediately prior to the merger (other than shares held by ExxonMobil and shares held by XTO Energy as treasury stock)Merger (except for the excluded shares) will automatically be converted into the right to receive 0.7098 of a share0.840 shares of ExxonMobil common stock. This exchange ratio is fixedstock, with cash to be paid in the merger agreement and will not be adjusted for changes in the market pricelieu of either ExxonMobil or XTO Energy common stock.fractional shares. Because the exchange ratio is fixed, any change in the value of the Merger Consideration will depend on the market price of ExxonMobil common stock priorat the time the Merger is completed. Prior to the completion of the merger will affectMerger, the valuemarket price of ExxonMobil common stock is also expected to impact the market price of the consideration that you will receive upon completion of the merger.Denbury common stock. The value of the merger consideration will vary fromMerger Consideration has fluctuated since the date of the announcement of the merger agreement,Merger Agreement and will continue to fluctuate from the date thatof this proxy statement/prospectus was mailed to XTO Energy stockholders, the date of the XTO Energy special meetingSpecial Meeting and the date the mergerMerger is completed and thereafter. The closing price per share of Denbury common stock as of July 12, 2023, the last trading day prior to public announcement of the Merger by ExxonMobil and Denbury, was $87.75, and the closing price per share has fluctuated as high as $   and as low as $   between July 12, 2023 and      , 2023, the most recent practicable trading day prior to the date of this proxy statement/prospectus. The closing price per share of ExxonMobil common stock as of July 12, 2023, the last trading day prior to public announcement of the Merger by ExxonMobil and Denbury, was $106.49, and the closing price per share has fluctuated as high as $    and as low as $    between July 12, 2023 and      , 2023, the most recent practicable trading day prior to the date of this proxy statement/prospectus. Accordingly, at the time of the XTO Energy special meeting, youSpecial Meeting, Denbury stockholders will not know or be able to determine the market value of the ExxonMobil common stock you willMerger Consideration they would receive upon completion of the merger.Merger. Stock price changes may result from a variety of factors, including, among others, general market and economic conditions, changes in ExxonMobil’s and XTO Energy’sDenbury’s respective businesses, operations and prospects, market assessments of the likelihood that the mergerMerger will be completed, the timing of the mergerMerger, regulatory considerations and regulatory considerations.COVID-19. Many of these factors are beyond ExxonMobil’s and XTO Energy’sDenbury’s control.

Based on the closing price of $72.83 for ExxonMobil common stock on the New York Stock Exchange on December 11, 2009, the last trading day before the public announcement of the merger agreement, the merger consideration represented approximately $51.69 in value for each share of XTO Energy common stock. Based on the closing price of $68.61 for ExxonMobil common stock on the New York Stock Exchange on April 14, 2010, the most recent practicable trading day prior to the date of this proxy statement/prospectus, the merger consideration represented approximately $48.70 in value for each share of XTO Energy common stock. You are urged to obtain current market quotations for ExxonMobileach of ExxonMobil’s and Denbury’s common stock traded on the NYSE (trading symbols “XOM” and “DEN”, respectively). In addition, ExxonMobil has historically paid quarterly dividends. There is no guarantee that ExxonMobil will continue to do so or, if it does so, that the Merger will close prior to any particular record date by which Denbury stockholders must hold ExxonMobil stock in deciding whetherorder to vote for the adoption of the merger agreement.be entitled to an applicable dividend.

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The market price of ExxonMobil common stock after the mergerMerger may be affected by factors different from those affecting sharesthe market price of XTO Energy stock currently.Denbury common stock.

Upon completion of the merger,Merger, holders of XTO Energyshares of Denbury common stock will become holders of shares of ExxonMobil common stock. The businesses of ExxonMobil differ from those of XTO EnergyDenbury in important respects, and, accordingly, the results of operations of ExxonMobil after the merger,Merger, as well as the market price of itsExxonMobil common stock, may be affected by factors different from those currently affecting the independent results of operations of XTO Energy.Denbury. For further information on the respective businesses of ExxonMobil and XTO EnergyDenbury and certain factors to consider in connection with those businesses, see the documents incorporated by reference into this proxy statement/prospectus and referred to underin “Where You Can Find More Information” beginning on page []178 of this proxy statement/prospectus.

Additionally, the market price of ExxonMobil common stock may fluctuate significantly following completion of the Merger.

Moreover, general fluctuations in stock markets could have a material adverse effect on the market for, or liquidity of, the ExxonMobil common stock, regardless of ExxonMobil’s actual operating performance.

After completion of the merger,Merger, ExxonMobil may fail to realize the anticipated benefits of creating a new and emerging networked carbon capture and storage business and the merger,cost savings of the Merger versus organically building this infrastructure, which could adversely affect the value of ExxonMobil’sExxonMobil common stock.

The success of the mergerMerger will depend, in significant part, on ExxonMobil’s ability to integrate effectivelyrealize the anticipated benefits of a new and emerging business providing carbon capture and storage services and cost savings from combining the businesses of ExxonMobil and XTO Energy andDenbury in comparison to ExxonMobil building this infrastructure from greenfield projects. The ability of ExxonMobil to realize thethese anticipated benefits from such combination. Asand cost savings is subject to certain risks including:

ExxonMobil’s ability to successfully combine the businesses of ExxonMobil and Denbury;

whether the date of this proxy statement/prospectus, ExxonMobil believes that these benefits, which include anticipated synergies from combining XTO Energy’s technical expertisenew combined business will perform as projected in unconventional resource development with ExxonMobil’s capital strength, project management abilitiesa new and research and development programs, are achievable. However, it is possibledeveloping market;

the possibility that ExxonMobil paid more for Denbury than the value ExxonMobil will not be able to achieve these benefits fully, or at all, or will not be able to achieve them withinderive from the anticipated timeframe. ExxonMobilnew carbon capture and XTO Energy have operatedstorage market; and until

the completionassumption of the merger, will continue to operate, independently,known and there can be no assurance that their businesses can be integrated successfully. If ExxonMobil’s expectations as to the benefitsunknown liabilities of the merger turn out to be incorrect, orDenbury.

If ExxonMobil is not able to successfully combine the businesses of ExxonMobil and XTO Energy for any other reason,Denbury within the anticipated time frame and successfully utilize Denbury’s assets in the development of a new and emerging carbon capture and storage business, or at all, the anticipated benefits of the Merger may not be realized fully, or at all, or may take longer to realize than expected, the combined business may not perform as expected and the value of ExxonMobil’sthe ExxonMobil common stockshares (including the stock issued as the merger consideration)Merger Consideration) may be adversely affected.

ExxonMobil and Denbury have operated and, until completion of the Merger, will continue to operate, independently, and there can be no assurances that their businesses can be integrated successfully. It is possible that the integration process could result in the loss of key XTO Energy employees, as well asDenbury expertise, the loss of clients, the disruption of eacheither company’s or both companies’ ongoing businesses or inconsistencies in standards, controls, proceduresunexpected integration issues, higher than expected integration costs and policies. Specifican overall post-completion integration process that takes longer than originally anticipated. Specifically, the following issues, thatamong others, must be addressed upon completionin integrating the operations of the mergerExxonMobil and Denbury in order to realize the anticipated benefits of the merger include, among other things:Merger so the combined business performs as expected:

 

integrating the companies’ natural gas explorationphysical assets and production operations;technologies;

 

applying each company’s best practices to the combined natural gas portfolio;coordinating sales, distribution and marketing efforts;

 

combining the companies’ natural gas processing, marketing and transportation operations;32


harmonizing the companies’ operating practices, employee development and compensation programs, internal controls and other polices,policies, procedures and processes;

 

integratingmaintaining existing agreements with commercial counterparties and avoiding delays in entering into new agreements with prospective commercial counterparties;

identifying and eliminating redundant and underperforming functions and assets;

combining certain of the companies’ operations, financial, reporting and corporate functions;

addressing possible differences in business backgrounds, corporate cultures and management philosophies;

consolidating the companies’ administrative and information technology infrastructure;

managing the movement of certain businesses and positions to different locations;

coordinating geographically dispersed organizations;

consolidating offices of ExxonMobil and Denbury that are currently in or near the same location; and

 

managing any tax costs or inefficiencies associatedeffecting potential actions that may be required in connection with integration.obtaining regulatory approvals.

In addition, at times, the attention of certain members of XTO Energy’seither company’s or both companies’ business or management and ExxonMobil’s management, and resources of the two companies, may be focused on the completion of the mergerMerger and the integration of the businesses of the two companies and diverted from day-to-day business operations.operations, which may disrupt each company’s ongoing business and the business of the combined company.

ExxonMobil’s future results may suffer if ExxonMobil does not effectively manage its new global unconventional resource organization following the merger.

Following the merger, ExxonMobil plans to establish a new global functional organization that combines the unconventional resource organizations of both companies. ExxonMobil’s future success depends, in part, upon its ability to manage this new organization, which will pose challenges for management, including challenges related to the management and monitoring of new operations and ExxonMobil’s ability to apply XTO Energy’s technical expertise to ExxonMobil’s unconventional resource operations abroad. ExxonMobil cannot assure you that it will be successful or that ExxonMobil will realize the expected operating efficiencies, cost savings, revenue enhancements and other benefits currently anticipated from the merger.

XTO EnergyDenbury may have difficulty attracting, motivating and retaining executives and other key employees in light of the merger.Merger.

Uncertainty about the effect of the mergerMerger on XTO EnergyDenbury employees may have an adverse effect on XTO Energy and consequently ExxonMobil. This uncertainty may impair XTO Energy’sDenbury’s ability to attract, retain and motivate key personnel untilprior to and following the merger is completed.Merger. Employee retention may be particularly challenging during

the pendency of the merger,Merger, as employees of Denbury may experience uncertainty about their future roles with ExxonMobil. If keythe combined business. In addition, pursuant to change-in-control provisions set forth in Denbury’s employee plans, certain employees of XTO EnergyDenbury are entitled to receive severance payments upon a constructive termination of employment. Such Denbury employees potentially could terminate their employment following specified circumstances set forth in Denbury’s employee plans, including certain changes in such employees’ position, compensation or benefits, and collect severance. Such circumstances could occur in connection with the Merger as a result of changes in roles and responsibilities. See “Interests of Denbury’s Directors and Executive Officers in the Merger” beginning on page 140 of this proxy statement/prospectus for a further discussion of some of these issues. If employees of Denbury depart, becausethe integration of issuesthe companies may be more difficult and the combined business following the Merger may be harmed. Furthermore, ExxonMobil may have to incur significant costs in identifying, hiring and retaining replacements for departing employees and may lose significant expertise and talent relating to the uncertainty and difficulty of integration or a desire not to become employeesbusinesses of ExxonMobil or Denbury, and ExxonMobil’s ability to realize the anticipated benefits of the mergerMerger may be adversely affected. In addition, there could otherwise be reduced.disruptions to or distractions for the workforce and management associated with integrating employees into ExxonMobil.

Completion of the Merger is subject to certain conditions and if these conditions are not satisfied, waived or fulfilled in a timely manner, the Merger may be delayed or not be completed.

The obligation of each of ExxonMobil, Denbury and Merger Sub to complete the Merger is subject to the satisfaction (or, to the extent permitted by applicable law, waiver) of a number of conditions, including, among others: (i) the affirmative vote of the holders of a majority of the shares of Denbury common stock outstanding and entitled to vote at the Special Meeting approving and adopting the Merger Agreement (which condition

33


described in this clause (i) may not be waived), (ii) the expiration or termination of any applicable waiting period, or any extension thereof, under the HSR Act (in the case of ExxonMobil and Merger Sub’s obligation to complete the Merger, without the imposition of a Burdensome Condition (see “The Merger Agreement—Reasonable Best Efforts Covenant” beginning on page 128 of this proxy statement/prospectus)), (iii) absence of any injunction or other order or applicable law preventing or making illegal the consummation of the Merger (in the case of ExxonMobil and Merger Sub’s obligation to complete the Merger, without the imposition of a Burdensome Condition to the extent such law or prohibition relates to the matters in clause (i) above (see “The Merger Agreement—Reasonable Best Efforts Covenant” beginning on page 128 of this proxy statement/prospectus)), (iv) this registration statement being declared effective and no stop order suspending the effectiveness of this registration statement being in effect and no proceedings for such purpose pending or threatened by the SEC, (v) approval for the listing on the NYSE of the shares of ExxonMobil common stock to be issued in connection with the Merger, subject to official notice of issuance, (vi) accuracy of the representations and warranties made in the Merger Agreement by, in the case of ExxonMobil and Merger Sub’s obligations to complete the Merger, Denbury and, in the case of Denbury’s obligation to complete the Merger, ExxonMobil and Merger Sub, in each case, as of the date of the Merger Agreement and as of the date of completion of the Merger, subject to certain materiality thresholds, (vi) performance in all material respects by, in the case of ExxonMobil and Merger Sub’s obligations to complete the Merger, Denbury and, in the case of Denbury’s obligation to complete the Merger, ExxonMobil and Merger Sub, of the obligations required to be performed by it at or prior to the effective time of the Merger, (vii) the absence since the date of the Merger Agreement of a material adverse effect on, in the case of ExxonMobil and Merger Sub’s obligations to complete the Merger, Denbury and (viii) the absence since the date of the Merger Agreement of a material adverse on, in the case of Denbury’s obligations to complete the Merger, ExxonMobil and Merger Sub (see “The Merger Agreement—Definition of ‘Material Adverse Effect’” beginning on page 119, of this proxy statement/prospectus for the definition of material adverse effect).

For a more complete summary of the conditions that must be satisfied or waived prior to completion of the Merger, see “The Merger Agreement—Conditions to Completion of the Merger” beginning on page 117 of this proxy statement/prospectus.

Many of the conditions to completion of the Merger are not within either Denbury’s or ExxonMobil’s control, and neither company can predict when, or if, these conditions will be satisfied. If any of these conditions are not satisfied or waived prior to July 13, 2024 (the “End Date”) (or January 13, 2025, if the End Date is extended in accordance with the terms of the Merger Agreement), it is possible that the Merger Agreement may be terminated. Although Denbury and ExxonMobil have agreed in the Merger Agreement to use reasonable best efforts, subject to certain limitations, to complete the Merger as promptly as practicable, these and other conditions to the completion of the Merger may fail to be satisfied. In addition, satisfying the conditions to and completion of the Merger may take longer, and could cost more, than Denbury and ExxonMobil expect.

Furthermore, the requirements for obtaining the required clearances and approvals could delay the completion of the Merger for a significant period of time or prevent the Merger from occurring. Any delay in completing the Merger may adversely affect the cost savings and other benefits that Denbury and ExxonMobil expect to achieve if the Merger and the integration of the companies’ respective businesses are not completed within the expected timeframe.

There can be no assurance that the conditions to the closing of the Merger will be satisfied, waived or fulfilled in a timely fashion or that the Merger will be completed. See “Risk Factors—Failure to complete the Merger could negatively impact the stock price and the future business and financial results of Denbury” beginning on page 37 of this proxy statement/prospectus.

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In order to complete the merger,Merger, ExxonMobil and XTO EnergyDenbury must make certain governmental filings and obtain certain governmental approvals,authorizations, and if such approvalsfilings and authorizations are not made or granted or are granted with conditions that become applicable to the parties, the completionclosing of the mergerMerger may be jeopardized or the anticipated benefits of the mergerMerger could be reduced.

CompletionThe closing of the mergerMerger is conditioned upon the receipt of certain governmental approvals, including, but not limited to, the expiration or termination of theany applicable waiting period, or any extension thereof, under the HSR Act (which waiting period expired on March 15, 2010) and the expiration of the applicable waiting period under the Dutch Competition Act or an approval of the Dutch Competition Authority allowing the merger to be completed (which approval was obtained on March 9, 2010).Act. Although ExxonMobil and XTO EnergyDenbury have agreed in the merger agreementMerger Agreement to use their reasonable best efforts, subject to specified limitations on remedies required to be accepted by ExxonMobil, to make certain governmental filings or obtain the requisiterequired governmental approvals,authorizations, as the case may be, there can be no assurance that these approvalsthe relevant waiting periods will expire or that the relevant authorizations will be obtained. In addition, the governmental authorities with or from which these approvalsauthorizations are required have broad discretion in administering the governing regulations. Adverse developments in ExxonMobil’s or Denbury’s regulatory standing or any other factors considered by regulators in granting such approvals; governmental, political or community group inquiries, investigations or opposition; or changes in legislation or the political environment generally could affect whether and when required governmental authorizations are granted. As a condition to approvalauthorization of the merger, theseMerger, governmental authorities may impose requirements, limitations or costs or require divestitures or place restrictions on the conduct of ExxonMobil’s business after the completion of the merger. UnderMerger. There can be no assurance that regulators will not impose conditions, terms, obligations or restrictions and that such conditions, terms, obligations or restrictions will not have the termseffect of delaying the closing of the merger agreement, ExxonMobil is not required, and XTO Energy is not permitted withoutMerger or imposing additional material costs on or materially limiting the consent of ExxonMobil, to take certain actions (such as divesting or holding separate assets or entering into settlements or consent decrees with governmental authorities) that would reasonably be expected to, individually or in the aggregate, restrict in any material respect, or otherwise negatively and materially impact, the natural gas (including natural gas liquids) exploration, production and sales businesses of either XTO Energy and its subsidiaries, taken as a whole, or ExxonMobil and its subsidiaries, taken as a whole. However, if, notwithstanding the provisionsrevenues of the merger agreement, either ExxonMobil or XTO Energy becomes subject to any term, condition, obligation or restriction (whether because such term, condition, obligation or restriction does not rise tocombined company following the specified level of materiality or ExxonMobil otherwise consents to its imposition), the imposition of such term, condition, obligation or restriction could adversely affect the ability to integrate XTO Energy’s operations into ExxonMobil’s operations, reduce the anticipated benefits of the mergerMerger, or otherwise adversely affectaffecting ExxonMobil’s businessbusinesses and results of operations after the completion of the merger.Merger. In addition, there can be no assurance that these terms, obligations or restrictions will not result in the delay or abandonment of the Merger. See “The Merger Agreement—Conditions to the Completion of the Merger” and “The Merger—Regulatory Approvals Required for the Merger”Merger Agreement—Reasonable Best Efforts” beginning on pages []117 and [],128, respectively, of this proxy statement/prospectus.

XTO Energy’sIf the Merger does not qualify as a “reorganization” within the meaning of Section 368(a) of the Code, the Denbury stockholders may be required to pay substantial U.S. federal income taxes.

The Merger is intended to qualify as a “reorganization” within the meaning of Section 368(a) of the Code, and ExxonMobil and Denbury intend to report the Merger consistent with such qualification. As of the date of this proxy statement/prospectus, Davis Polk and Vinson & Elkins are of the opinion that the Merger will qualify as a “reorganization” within the meaning of Section 368(a) of the Code and have provided opinions to ExxonMobil and Denbury, respectively, to that effect. These opinions of counsel are based on customary assumptions and representations, covenants and undertakings of ExxonMobil, Denbury and Merger Sub, all as of the date hereof. If any of the assumptions, representations, covenants or undertakings is incorrect, incomplete, inaccurate, or is violated, the validity of the opinions may be affected and the U.S. federal income tax consequences of the Merger could differ materially from those described in this proxy statement/prospectus. It is not a condition to Denbury’s or ExxonMobil’s obligation to complete the Merger that the Merger be treated as a “reorganization” within the meaning of Section 368(a) of the Code or that ExxonMobil or Denbury receive an opinion from counsel to that effect. ExxonMobil and Denbury have not sought, and will not seek, any ruling from the IRS regarding any matters relating to the transactions, and as a result, there can be no assurance that the IRS will agree with the opinions or would not assert, or that a court would not sustain, a position contrary to the treatment of the Merger as a “reorganization” within the meaning of Section 368(a) of the Code. If the IRS or a court determines that the Merger does not qualify as a “reorganization” within the meaning of Section 368(a) of the Code, a holder of Denbury common stock generally would recognize taxable gain or loss upon the exchange of Denbury common stock for ExxonMobil common stock pursuant to the Merger. See “U.S. Federal Income Tax Consequences of the Merger” beginning on page 137 of this proxy statement/prospectus.

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The opinions of Denbury’s financial advisors will not reflect changes in circumstances between the signing of the Merger Agreement and the completion of the Merger.

Denbury has received opinions from its financial advisors in connection with the signing of the Merger Agreement, but has not obtained any updated opinions from its financial advisors as of the date of this proxy statement/prospectus. Changes in the operations and prospects of ExxonMobil or Denbury, general market and economic conditions and other factors that may be beyond the control of ExxonMobil or Denbury, and on which Denbury’s financial advisors’ opinions were based, may significantly alter the value of ExxonMobil or Denbury or the prices of the shares of ExxonMobil common stock or Denbury common stock by the time the Merger is completed. The opinions do not speak as of the time the Merger will be completed or as of any date other than the date of each such opinion. Because Denbury does not currently anticipate asking its financial advisors to update their respective opinions, the opinions will not address the fairness of the Merger Consideration from a financial point of view at the time the Merger is completed. The Denbury board of director’s recommendation that Denbury stockholders vote “FOR” approval of the Merger Agreement Proposal and “FOR” the Advisory Compensation Proposal, however, is made as of the date of this proxy statement/prospectus.

For a description of the opinions that Denbury received from its financial advisors, see the section entitled “The Merger—Opinions of Denbury’s Financial Advisors” beginning on page 87. A copy of the opinions of each of J.P. Morgan Securities LLC, TPH & Co. and PJT Partners LP, Denbury’s financial advisors, is attached as Annex B, Annex C and Annex D, respectively, to this proxy statement/prospectus.

ExxonMobil’s and Denbury’s business relationships may be subject to disruption due to uncertainty associated with the merger.Merger.

Parties with which XTO EnergyExxonMobil or Denbury does business may experience uncertainty associated with the transaction,Merger, including with respect to current or future business relationships.relationships with ExxonMobil, Denbury or the combined business. ExxonMobil’s and Denbury’s business relationships may be subject to disruption as parties with which ExxonMobil or Denbury does business may attempt to negotiate changes in existing business relationships or consider entering into business relationships with parties other than ExxonMobil, Denbury or the combined business. These disruptions could have an adverse effect on the businesses, financial condition, results of operations or prospects of XTO Energy.the combined business, including an adverse effect on ExxonMobil’s ability to realize the anticipated benefits of the Merger. The risk, and adverse effect, of such disruptions could be exacerbated by a delay in the completion of the mergerMerger or termination of the mergerMerger Agreement.

Denbury may waive one or more of the Closing conditions without re-soliciting stockholder approval.

Denbury may determine to waive, in whole or part, one or more of the conditions to Closing prior to Denbury being obligated to consummate the Merger. Any determination whether to waive any conditions to Closing, or to re-solicit stockholder approval to amend or supplement this proxy statement/prospectus as a result of such a waiver, will be made by Denbury at the time of such waiver based on the facts and circumstances as they exist at that time.

Completion of the Merger may trigger change in control or other provisions in certain agreements to which Denbury is a party.

Denbury is a party to certain agreements that give the counterparty certain rights following a “change in control,” including in some cases the right to terminate such agreements. Under some such agreements, the Merger may constitute a change in control and therefore the counterparty may exercise certain rights under the agreement upon the closing of the Merger. Any such counterparty may request modifications of its respective agreements as a condition to granting a waiver or consent under its agreement. There is no assurance that such counterparties will not exercise their rights under the agreements, including termination rights where available and/or requiring payment of substantial financial penalties.

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Certain of XTO Energy’sDenbury’s executive officers and directors have interests in the mergerMerger that aremay be different from your interests as a stockholder of XTO Energy.Denbury or as a stockholder of ExxonMobil.

WhenIn considering the recommendation of XTO Energy’sthe Denbury board of directors that XTO Energy stockholdersto vote in favor offor the approval and adoption of the merger agreement, youMerger Agreement, Denbury stockholders should be aware that certain of the directors and executive officers and directors of XTO EnergyDenbury may have interests in the mergerMerger that are different from, or in addition to, yourthe interests as a stockholder of XTO Energy. In particular, each of the named executive officers of XTO Energy entered into a consulting agreement with XTO Energy and ExxonMobil that provides for, among other things, the payment of

an annual consulting fee and completion bonus, a one-time grant of restricted ExxonMobil common stock or stock units and payment of severance andDenbury stockholders generally, including potential accelerated vesting of the restricted ExxonMobil common stock or stock units upon termination of the consulting relationship underequity awards and severance payments and certain circumstances.arrangements and agreements with ExxonMobil. The estimated aggregate payments to be made to the named executive officers of XTO Energy pursuant to the consulting agreements are approximately $190,340,000. In addition, the named executive officers of XTO Energy held, in the aggregate, as of April 14, 2010, 470,000 unvested performance shares of XTO Energy common stock and unvested options to purchase 2,290,410 shares of XTO Energy common stock that will vest upon completion of the merger pursuant to the terms of the merger agreement.

XTO Energy’sDenbury board of directors was aware of these interests and considered them, among other things,matters, in evaluating and negotiating the merger agreementMerger Agreement and approving the mergerMerger, and in recommendingmaking its recommendation that XTO EnergyDenbury stockholders vote to approve and adopt the merger agreement. SeeMerger Agreement.

For more information, see “Interests of Certain PersonsDenbury’s Directors and Executive Officers in the Merger” beginning on page []140 of this proxy statement/prospectus for a further description of those interests.prospectus.

The receipt of compensation and other benefits by certain of XTO Energy’s employees in connection with the merger may make it more difficult for ExxonMobil to retain their services after the merger, or require ExxonMobil to expend additional sums of money to do so. In addition, while the named executive officers have agreed to render services to XTO Energy as full-time non-employee consultants for a one-year period beginning upon the completion of the merger, there can be no assurance that these individuals will provide these or similar services at any time before, as of or after the expiration of the one-year-consultancy period. See “Interests of Certain Persons in the Merger—XTO Energy Named Executive Officers—Consulting Agreements and Amendments to Share Grant Agreements” beginning on page [] of this proxy statement/prospectus for a further description of the terms of these consulting arrangements.

The merger agreementMerger Agreement limits XTO Energy’sDenbury’s ability to pursue alternatives to the merger.Merger and may discourage other companies from trying to acquire Denbury for greater consideration than what ExxonMobil has agreed to pay pursuant to the Merger Agreement.

The merger agreementMerger Agreement contains provisions that make it more difficult for XTO EnergyDenbury to sell its business to a party other than ExxonMobil. These provisions include a general prohibition on XTO EnergyDenbury soliciting any acquisition proposal or offer for a competing transaction,transaction. Further, subject to certain exceptions, the requirement that XTO Energy payDenbury board of directors will not withdraw or modify in a termination feemanner adverse to ExxonMobil the recommendation of $900 millionthe Denbury board of directors in favor of the aggregate if the merger agreement is terminated in specified circumstancesapproval and the requirement that XTO Energy submit the adoption of the merger agreementMerger Agreement, and ExxonMobil generally has a right to match any competing acquisition proposals that may be made. Notwithstanding the foregoing, at any time prior to the approval and adoption of the Merger Agreement by Denbury stockholders, the Denbury board of directors is permitted to withdraw or modify in a manner adverse to ExxonMobil the recommendation of the Denbury board of directors in favor of the approval and adoption of the Merger Agreement in certain circumstances if it determines in good faith that the failure to take such action would be reasonably likely to be inconsistent with its fiduciary duties to Denbury stockholders under applicable law. The Merger Agreement does not require that Denbury submit the approval and adoption of the Merger Agreement to a vote of XTO Energy’sDenbury stockholders even if the XTO EnergyDenbury board of directors changes its recommendation in favor of the approval and adoption of the merger agreementMerger Agreement in a manner adverse to ExxonMobil.ExxonMobil and terminates the Merger Agreement in order to enter into an alternative acquisition agreement with respect to a competing transaction in accordance with the terms of the Merger Agreement. In certain circumstances, upon termination of the Merger Agreement, Denbury will be required to pay a termination fee of $144 million to ExxonMobil, including if Denbury terminates the Merger Agreement prior to obtaining Denbury stockholder approval in order to enter into an alternative acquisition agreement with respect to a competing transaction in accordance with the terms of the Merger Agreement. See “The Merger Agreement—No Solicitation by XTO Energy”Termination of the Merger Agreement” and “The Merger Agreement—Termination Fee Payable by XTO Energy”Exclusive Remedy” beginning on pages []133 and [],135, respectively, of this proxy statement/prospectus.

While XTO Energy believesboth Denbury and ExxonMobil believe these provisions and agreements are reasonable and customary and are not preclusive of other offers, the provisionsrestrictions, including the added expense of the $144 million termination fee that may become payable by Denbury to ExxonMobil in certain circumstances, might discourage a third party that has an interest in acquiring all or a significant part of XTO EnergyDenbury from considering or proposing that acquisition, even if that party were prepared to pay consideration with a higher per shareper-share value than the currently proposed merger consideration. Furthermore, the termination fee may result in a potential competing acquirer proposing to pay a lower per share price to acquire XTO Energy than it might otherwise have proposed to pay because of the added expense of the $900 million termination fee that may becomeconsideration payable in certain circumstances.the Merger pursuant to the Merger Agreement.

Failure to complete the mergerMerger could negatively impact the stock price and the future business and financial results of XTO Energy.Denbury.

If the mergerMerger is not completed for any reason, including as a result of Denbury stockholders failing to approve the Merger or any other condition not being satisfied or waived, the ongoing businesses of XTO EnergyDenbury may

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be adversely affected, and without realizing any of the benefits of having completed the merger, XTO EnergyMerger, ExxonMobil and Denbury would be subject to a number of risks, including the following:

 

XTO EnergyDenbury may experience negative reactions from the financial markets, and XTO Energy’s customers and employees;

XTO Energy may be required to pay ExxonMobil a termination fee of $900 million if the merger is terminated under certain circumstances (see “The Merger Agreement—Termination Fee Payable by XTO Energy” beginningincluding negative impacts on page [] of this proxy statement/prospectus);its stock price;

 

XTO EnergyDenbury may experience negative reactions from its customers, vendors, joint venture and other business partners, regulators and employees;

Denbury will be required to pay certain costs relating to the merger,Merger, such as legal, accounting, financial advisor and printing fees, whether or not the mergerMerger is completed;

 

the merger agreementMerger Agreement places certain restrictions on the conduct of XTO Energy’s businessDenbury’s businesses prior to the completion of the merger or the termination of the merger agreement. SuchMerger, and such restrictions, the waiver of which is subject to the written consent of ExxonMobil (not(in certain cases, not to be unreasonably withheld, conditioned or delayed), and subject to certain exceptions and qualifications, may prevent XTO EnergyDenbury from making certain acquisitions, taking certain other specified actions or otherwise pursuing business opportunities during the pendency of the mergerMerger that Denbury would have made, taken or pursued if these restrictions were not in place (see “The Merger Agreement—Conduct of Business Pending the Merger” beginning on page []120 of this proxy statement/prospectus for a description of the restrictive covenants applicable to XTO Energy)Denbury); and

 

matters relating to the mergerMerger (including integration planning) maywill require substantial commitments of time and resources by XTO EnergyDenbury management, which would otherwise have been devoted to day-to-day operations and other opportunities that may have been beneficial to XTO EnergyDenbury as an independent company.company;

in the event of a termination of the Merger Agreement under certain circumstances specified in the Merger Agreement, Denbury may be required to pay a termination fee of $144 million to ExxonMobil. To the extent that a termination fee is not promptly paid by Denbury when due, Denbury will be required to pay ExxonMobil interest on such fee at the annual rate equal to the prime rate, as published in The Wall Street Journal in effect on the date such payment was required to be made, through the date such payment was actually received, or such lesser rate as is the maximum permitted by applicable law; and

litigation related to any failure to complete the Merger or related to any enforcement proceeding commenced against Denbury or ExxonMobil preventing the performance of their respective obligations pursuant to the Merger Agreement.

There can be no assurance that the risks described above will not materialize. If the Merger is not completed, these risks may materialize and if any of them do, they may materially and adversely affect XTO Energy’s business,ExxonMobil’s and/or Denbury’s businesses, financial condition, financial results, andratings, stock price.prices and/or bond prices.

The shares of ExxonMobil common stock to be received by XTO EnergyDenbury stockholders upon the completion of the mergerMerger will have different rights from shares of XTO EnergyDenbury common stock.

Upon completion of the merger, XTO EnergyMerger, Denbury stockholders will no longer be stockholders of XTO Energy,Denbury, a Delaware corporation, but will instead become shareholdersstockholders of ExxonMobil, a New Jersey corporation, and their rights as shareholdersstockholders will be governed by New Jersey law and ExxonMobil’s restated certificate of incorporation and by-laws. New Jersey law and the terms of ExxonMobil’s restated certificate of incorporation and by-laws may be materially different than Delaware law and the terms of XTO Energy’s restatedthe Denbury certificate of incorporation and amended and restated bylaws, which currently govern the rights of XTO EnergyDenbury stockholders. Please seeSee “Comparison of ShareholderStockholder Rights” beginning on page []151 of this proxy statement/prospectus for a discussion of the different rights associated with ExxonMobil common stock.shares.

XTO Energy

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After the Merger, Denbury stockholders will have a significantly reducedlower ownership and voting interest after the mergerin ExxonMobil than they currently have in Denbury and will exercise less influence over management.

Immediately after the completion of the merger, it is expected that former XTO Energy stockholders, who collectively own 100% of XTO Energy, will own approximately 8% of ExxonMobil, basedBased on the number of shares of XTO EnergyDenbury common stock and the Denbury equity awards outstanding as of the Denbury record date for the Special Meeting, ExxonMobil estimates that it will issue approximately   shares of ExxonMobil common stock pursuant to the Merger, provided that if the Merger is not completed as of March 7, 2024 and additional Denbury equity awards are granted to certain Denbury employees as permitted under the Merger Agreement, ExxonMobil may be required to reserve additional shares of ExxonMobil common stock for issuance (see “The Merger Agreement – Treatment and Quantification of Denbury Equity Awards – Treatment of Denbury RSUs and Denbury Restricted Shares Granted on or after March 7, 2024). The actual number of shares of ExxonMobil common stock to be issued and reserved for issuance in connection with the Merger will be determined at completion of the Merger based on the exchange ratio and the number of shares of Denbury common stock and the Denbury equity awards outstanding at that time. ExxonMobil has a significantly larger market capitalization than Denbury. Based on the number of shares of Denbury common stock outstanding as of      , 2023, and the number of shares of ExxonMobil common stock outstanding as of      , 2023, ExxonMobil and Denbury estimate that, as of immediately following completion of the Merger, holders of ExxonMobil common stock as of immediately prior to the Merger will hold approximately  % and holders of Denbury common stock immediately prior to the Merger will hold approximately  %, of the outstanding shares of ExxonMobil common stock (or, on a fully diluted basis, holders of ExxonMobil common stock as of April 14, 2010.immediately prior to the Merger will hold approximately  % and holders of Denbury common stock as of immediately prior to the Merger will hold approximately  % of the shares of ExxonMobil common stock). Consequently, XTO Energyformer Denbury stockholders will have materially less influence over the management and policies of ExxonMobil than they currently have over the management and policies of XTO Energy.Denbury.

MultipleDenbury stockholders are not entitled to appraisal rights in connection with the Merger.

Appraisal rights are statutory rights that enable stockholders to dissent from certain extraordinary transactions, such as certain mergers, and to demand that the corporation pay the fair value for their shares as determined by a court in a judicial proceeding instead of receiving the consideration offered to stockholders in connection with the applicable transaction. Under Delaware law, holders of shares of Denbury common stock will not have rights to an appraisal of the fair value of their shares in connection with the Merger. See “The Merger—No Dissenters’ or Appraisal Rights” beginning on page 109 of this proxy statement/prospectus.

Potential litigation against ExxonMobil and Denbury could result in substantial costs, an injunction preventing the completion of the Merger and/or a judgment resulting in the payment of damages.

Securities class action lawsuits and derivative lawsuits are often brought against public companies that have entered into merger agreements. Even if such a lawsuit is unsuccessful, defending against these claims can result in substantial costs.

Since the public announcement of the Merger, three putative stockholder lawsuits related to the Merger have been filed against XTO Energy and ExxonMobil challengingDenbury has received letters from two additional purported Denbury stockholders who contend that the registration statement on Form S-4 filed in connection with the merger and an adverse ruling in any such lawsuit may preventfails to disclose certain allegedly material information. For additional information, see the merger from being completed.

XTO Energy, members of the XTO Energy board of directors, ExxonMobil and Merger Sub have been named as defendants in fifteen purported class actions, and one non-class lawsuit, brought by XTO Energy stockholders challenging the merger, seeking, among other things, to enjoin ExxonMobil, XTO Energy and Merger Sub from completing the merger on the agreed terms. Seesection entitled “The Merger—Litigation Relating to the Merger.” These lawsuits could prevent or delay the completion of the Merger and result in significant costs to Denbury and/or ExxonMobil, including any costs associated with the indemnification of directors and officers. There can be no assurance that any of the defendants will be successful in the outcome of these lawsuits or any other potential lawsuits.

ExxonMobil and Denbury will incur significant transaction and Merger-related costs in connection with the Merger.

ExxonMobil and Denbury expect to incur a number of non-recurring costs associated with the Merger and combining the operations of the two companies. The significant, non-recurring costs associated with the Merger

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include, among others, fees and expenses of financial advisors (which are described in “The Merger—Opinions of Denbury’s Financial Advisors” beginning on page 87 of this proxy statement/prospectus) and other advisors and representatives, certain employment-related costs relating to employees of Denbury (which are described in “Interests of Denbury’s Directors and Executive Officers in the Merger” beginning on page []140 of this proxy statement/prospectusprospectus), filing fees due in connection with filings required under the HSR Act and filing fees and printing and mailing costs for more information aboutthis proxy statement/prospectus. Some of these costs have already been incurred or may be incurred regardless of whether the lawsuitsMerger is completed, including a portion of the fees and expenses of financial advisors and other advisors and representatives and filing fees for this proxy statement/prospectus. ExxonMobil also will incur transaction fees and costs related to formulating and implementing integration plans with respect to the merger that have been filed.

Onetwo companies, including facilities and systems consolidation costs. ExxonMobil continues to assess the magnitude of these costs, and additional unanticipated costs may be incurred in the Merger and the integration of the conditions to the closing of the mergertwo companies’ businesses.

The Merger is that no law, order, injunction, judgment, decree, ruling orpredicated on a developing market for carbon capture and sequestration and other similar requirement shall be in effect that prohibits the completion of the merger. Accordingly, if any of the plaintiffs is successful in obtaining an injunction prohibiting the completion of the merger, then such injunction may prevent the merger from becoming effective, or from becoming effective within the expected timeframe.

The merger will likely not be accretive,services and may be dilutive in both the short-term, medium-term and long-run, to ExxonMobil’s earnings per share, which may negatively affect the market price of ExxonMobil common stock.stock following completion of the Merger.

In connection with the completion of the Merger, ExxonMobil expects to issue approximately   ExxonMobil common shares, provided that if the Merger is not completed as of March 7, 2024 and additional Denbury equity awards are granted to certain Denbury employees as permitted under the Merger Agreement, ExxonMobil may be required to reserve additional shares of ExxonMobil common stock for issuance (see “The Merger Agreement – Treatment and Quantification of Denbury Equity Awards – Treatment of Denbury RSUs and Denbury Restricted Shares Granted on or after March 7, 2024). The issuance of new ExxonMobil common shares could have the effect of depressing the market price of ExxonMobil common shares in the short-term.

ExxonMobil anticipatescurrently projects that the mergerMerger will notresult in a number of benefits, including enhanced competitive positioning and a platform from which to create an end-to-end regional carbon capture and storage business and accelerate growth in this emerging market. The predictions for the business, and the carbon capture and storage market in general, are based on, among other things, preliminary estimates of future consumer demand, companies’ emission-reduction and net zero pledges, future technology developments to enable this business to be accretive,developed cost-effectively and at scale, and government policies, including the implementation and administration of regulations under the U.S. Inflation Reduction Act, all of which may be insufficiently robust to develop the emerging carbon capture and storage market or may materially change. The outcome of these factors will determine the extent to which the Merger may be dilutive to ExxonMobil’s earnings per share in the near term. This expectation is based on preliminary estimates thatmedium-term or long-run, and may materially change. In addition, future eventsbe further impacted by additional transaction and conditions could decreaseintegration related costs and other factors such as the failure to realize some or delay any accretion, resultall of the benefits anticipated in dilution or cause greater dilution than is currently expected, including adverse changes in energy market conditions; commodity prices for oil, natural gas and natural gas liquids; production levels; reserve levels; operating results; competitive conditions; laws and regulations affecting the energy business; capital expenditure obligations; and general economic conditions.Merger. Any dilution of or decrease or delay of any accretion to, ExxonMobil’s earnings per share could cause the price of ExxonMobil’sshares of ExxonMobil common stock to decline.decline or grow at a reduced rate.

Risks relating to ExxonMobil and XTO Energy.Denbury.

ExxonMobil and XTO EnergyDenbury are, and following completion of the merger,Merger ExxonMobil and XTO Energy will continue to be, subject to the risks described in (i) Part I, Item 1A, “Risk Factors” in ExxonMobil’s Annual Report on Form 10-K for the year ended December 31, 2009,2022 filed with the SEC on February 26, 201022, 2023 and Item 8.01, “Other Events” in ExxonMobil’s Current Report on Form 8-K filed with the SEC on July 13, 2023, (ii) Part I, Item 1A, “Risk Factors” in XTO Energy’sDenbury’s Annual Report on Form 10-K for the year ended December 31, 2009,2022 filed with the SEC on February 25, 2010,23, 2023 and Item 1.01 “Entry into a Material Definitive Agreement” in Denbury’s Current Report on Form 8-K filed with the SEC on July 14, 2023, and (iii) ExxonMobil’s and Denbury’s subsequent filings with the SEC, in each case, which are incorporated by reference into this proxy statement/prospectus. See “Where You Can Find More Information” beginning on page []178 of this proxy statement/prospectus.

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CAUTIONARY STATEMENT REGARDING

FORWARD-LOOKING STATEMENTS

This proxy statement/prospectus, andincluding the documentsinformation included or incorporated by reference, into this proxy statement/prospectus contain “forward lookingcontains “forward-looking statements” that are intended to be covered bywithin the safe harbor provided bymeaning of the Privatefederal securities laws, including Section 27A of the Securities Litigation Reform Act of 1995. Representatives1933, as amended (the “Securities Act”), and Section 21E of ExxonMobilthe Exchange Act. In this context, forward-looking statements often address future business and XTO Energy may also make forward-looking statements. Forward-looking statements are statements that are not historical facts,financial events, conditions, expectations, plans or ambitions, and are identified byoften contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “predict,“seek,“anticipate,” “contemplate,“see,” “will,” “may,” “might,” “continue,” “plan,” “estimate,” “objective”, “intend,” “project,” “budget,” “forecast,” “can,” “could,” “should,” “would,” “likely,“target,“potential”similar expressions, and similar expressions. Thesevariations or negatives of these words, but not all forward-looking statements include such words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the consummation of the proposed transaction and the anticipated benefits thereof. All such forward-looking statements are based upon current plans, estimates, expectations and ambitions that are subject to risks, uncertainties and assumptions, many of which are beyond the control of ExxonMobil and Denbury, that could cause actual results to differ materially from those expressed in such forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to, statements aboutto: the expected costs and benefitscompletion of the merger,proposed transaction on anticipated terms and timing, or at all, including obtaining regulatory approvals that may be required on anticipated terms and Denbury stockholder approval; anticipated tax treatment, unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies for the adoptionmanagement, expansion and growth of the merger agreement by XTO Energy’s stockholders, the satisfaction of the closingcombined company’s operations and other conditions to the merger, the timing of the completion of the merger, including the possibility that any of the anticipated benefits of the proposed transaction will not be realized or will not be realized within the expected time period; the ability of ExxonMobil and Denbury to integrate the business successfully and to achieve anticipated synergies and value creation; potential litigation relating to the proposed transaction that could be instituted against ExxonMobil, Denbury or their respective directors; the risk that disruptions from the proposed transaction will harm ExxonMobil’s or Denbury’s business, including current plans objectives and expectations afteroperations and that management’s time and attention will be diverted on transaction-related issues; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the merger.

Forward-looking statements are not guarantees of performance. These statements are based upon the current beliefsMerger; rating agency actions and expectations of management of ExxonMobil and XTO EnergyDenbury’s ability to access short- and are subject to numerous risks and uncertainties that could cause actual outcomes and results, including project completion dates, production rates, capital expenditures, costs and business plans, to be materially different from those projected or anticipated. In addition to the risks described under “Risk Factors” beginninglong-term debt markets on page [] of this proxy statement/prospectus and those risks described in documents that are incorporated by reference into this proxy statement/prospectus, the following factors, among others, could cause such differences:

Merger-Related Factors

XTO Energy stockholder approval may not be obtained in a timely manner, or at all;

theand affordable basis; legislative, regulatory approvals required for the merger may not be obtained on the proposed terms, on the anticipated schedule or at all;

the merger may not close due to the failure to satisfy anyand economic developments, including regulatory implementation of the closing conditions;

expected synergiesInflation Reduction Act, timely and value creation from the merger may not be realized;

key employees of XTO Energy may not be retained;

the businesses may not be harmonized successfully;attractive permitting for carbon capture and

management time may be diverted on merger-related matters.

Industry storage by applicable federal and Economic Factors

fluctuationsstate regulators, and other regulatory actions targeting public companies in the prices of crude oil naturaland gas and natural gas liquidsindustry and changes in margins on gasolinelocal, national, or international laws, regulations, and policies affecting ExxonMobil and Denbury including with respect to the environment; potential business uncertainty, including the outcome of commercial negotiations and changes to existing business relationships during the pendency of the Merger that could affect ExxonMobil’s and/or Denbury’s financial performance and operating results; certain restrictions during the pendency of the Merger that may impact Denbury’s ability to pursue certain business opportunities or strategic transactions or otherwise operate its business; acts of terrorism or outbreak of war, hostilities, civil unrest, attacks against ExxonMobil or Denbury, and other refined products;

general economic growth rates andpolitical or security disturbances; dilution caused by ExxonMobil’s issuance of additional shares of its common stock in connection with the occurrence of economic recessions or other periods of low or negative economic growth;

changes in demographics, including population growth rates;

technological advances, including advances in exploration, production, refining and petrochemical manufacturing technology and advances in technology relatingproposed transaction; the possibility that the transaction may be more expensive to energy efficiency;

weather, including seasonal patterns that affect regional energy demand (such as the demand for heating oil or gas in winter) as well as severe weather events (such as hurricanes) that can disrupt supplies or interrupt the operation of either company’s facilities;

the competitiveness of alternative energy sources;

the effect of worldwide energy conservation measures;

changes in consumer preferences (such as toward alternative fueled vehicles);

the development of new supply sources and technologies to enhance recovery from existing sources;

changes in refining or petrochemical manufacturing capacity;

the ability of members of the Organization of Petroleum Exporting Countries to agree upon and maintain oil prices and production levels;

supply disruptions,complete than anticipated, including as a result of warsunexpected factors or natural disasters;

events; changes in policy and consumer support for emission-reduction products and technology; the proximity toimpacts of pandemics or other public health crises, including the effects of government responses on people and capacity of transportation facilities;economies; global or regional changes in the supply and

actions of competitors, including actions that may affect either company’s ability to acquire producing properties and oil and gas leases and to obtain goods, services and labor.

Political and Regulatory Factors

restrictions on development, exploration, production, imports and exports;

restrictions on either company’s ability to do business with certain countries, or to engage in certain areas of business within a country;

political instability, lack of well developed and reliable legal systems or lack of clear regulatory frameworks demand for oil, and gas development in areas where either company operates;

changes in law, such as tax or royalty increases (including retroactive claims), implementation of price controls, changes in law related to hydraulic fracturing or similar processes or that increase the cost of compliance with environmental or other regulations, adoption of regulations mandating the use of alternative fuels or uncompetitive fuel components, unilateral cancellation or modification of contract terms and expropriation or forced divestiture of assets;

laws and regulations related to environmental or global climate change matters, including those addressing alternative energy sources and CO2 emissions; and

liability in litigation or for remedial actions, including removal and reclamation obligations under environmental regulations.

Operating Factors

unsuccessful exploration and development efforts, including unproductive exploratory drilling activities;

failure to achieve expected production from existing and future oil and natural gas, development projects,petrochemicals, and feedstocks and other market or economic conditions that impact demand, prices and differentials, including due to unexpected drilling conditions, unanticipated pressures or irregularities in formations, severe weather events, equipment failures or accidents, inability to model and optimize reservoir performance and the inherent uncertainties in predicting oil and gas reserves and oil and gas reservoir performance;

natural field decline;

the outcome of negotiations with joint venturers, partners, governments, suppliers, customers or others;

inability to develop markets for project outputs, including through long-term contracts or the development of effective spot markets;

changes in technical or operating conditions, and costs, including costs of third-party equipment or services such as drilling rigs and shipping and shortages or delays in the availability of equipment;

the occurrence of unforeseen technical difficulties (including technical problemsdifficulties; those risks described in Item 1A of ExxonMobil’s Annual Report on Form 10-K, filed with the SEC on February 22, 2023, and subsequent reports on Forms 10-Q and 8-K, as well as under the heading “Factors Affecting Future Results” on the Investors page of ExxonMobil’s website at www.exxonmobil.com (information included on or accessible through ExxonMobil’s website is not incorporated by reference into this communication); those risks described in Item 1A of Denbury’s Annual Report on Form 10-K, filed with the SEC on February 23, 2023, and subsequent reports on Forms 10-Q and 8-K; and those risks that may delay project start-up or interrupt production, or that may leadare described herein under “Risk Factors.” References to unexpected downtime or increased costs);

 

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accidentsresources or other quantities of oil or natural gas may include amounts that ExxonMobil or Denbury believe will ultimately be produced, but that are not yet classified as “proved reserves” under SEC definitions.

While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and other workplace safety issues; and

security concerns or actsuncertainties. Unlisted factors may present significant additional obstacles to the realization of terrorism that threaten or disrupt the safe operation of either company’s facilities.

forward-looking statements. You are cautioned not to place undue reliance on theExxonMobil’s and Denbury’s forward-looking statements, made in this proxy statement/prospectus or documents incorporated into this proxy statement/prospectus or by representatives of ExxonMobil or XTO Energy. These statementswhich speak only as of the date hereof,of this proxy statement/prospectus or in the casedate of statements in any documentinformation included or incorporated by reference as of the date of such document, or, in the case of statements made by representatives of ExxonMobil or XTO Energy, on the date those statements are made.this proxy statement/prospectus. All subsequent written and oral forward-looking statements concerning the merger, the combined companyMerger or any other mattermatters addressed in this proxy statement/prospectus and attributable to ExxonMobil XTO Energyor Denbury or any person acting on their behalf of either company are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Except to the extent required by applicable law or regulation, ExxonMobil and XTO Energy expressly disclaim anyDenbury undertake no obligation to update or publish revisedthese forward-looking statements to reflect events or circumstances after the date of such statementsthis proxy statement/prospectus or to reflect the occurrence of any unanticipated events.

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THE COMPANIES

ExxonMobilEXXON MOBIL CORPORATION

Exxon Mobil Corporation, which is referred to in this proxy statement/prospectus as ExxonMobil, was incorporated in the State of New Jersey in 1882. Divisions and affiliated companies of ExxonMobil operate or market products in the United States and most other countries of the world. Their principal business is energy, involvinginvolves exploration for, and production of, crude oil and natural gas,gas; manufacture, of petroleum products and transportationtrade, transport and sale of crude oil, natural gas, and petroleum products. ExxonMobil is a major manufacturer and marketer of commodityproducts, petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a wide variety of specialty products. ExxonMobil also has interests in electric power generation facilities.products; and pursuit of lower-emission business opportunities including carbon capture and storage, hydrogen, and lower-emission fuels. Affiliates of ExxonMobil conduct extensive research programs in support of these businesses.

The principal trading market for ExxonMobil’s common stock (NYSE: XOM) is the New York Stock Exchange.NYSE.

The principal executive offices of ExxonMobil are located at 5959 Las Colinas Boulevard, Irving, TX 75039-2298,22777 Springwoods Village Parkway, Spring, Texas 77389-1425, its telephone number is (972) 444-1000940-6000 and its website iswww.exxonmobil.com. www.exxonmobil.com.

This proxy statement/prospectus incorporates important business and financial information about ExxonMobil by reference to other documents that are not included in or delivered with this proxy statement/prospectus. For a list of the documents that are incorporated by reference, see “Where You Can Find More Information” beginning on page [] of this proxy statement/prospectus.

XTO Energy

XTO Energy, a Delaware corporation, is engaged in the acquisition, development, exploitation and exploration of both producing oil and gas properties and unproved properties, and in the production, processing, marketing and transportation of oil and natural gas. XTO Energy’s proved reserves are principally located in relatively long-lived fields with an extensive base of hydrocarbons in place and, in most cases, well-established production histories concentrated in the Eastern Region, including the East Texas Basin, Haynesville Shale, northwestern Louisiana and Mississippi; the North Texas Region, including the Barnett Shale; the Mid-Continent and Rocky Mountain Region, including the Fayetteville, Woodford and Bakken Shales; the San Juan Region; the Permian Region; the South Texas and Gulf Coast Region, including the offshore Gulf of Mexico; and other regions, including Marcellus Shale and North Sea.

XTO Energy was incorporated in 1990 to acquire the business and properties of predecessor entities that were created from 1986 through 1989. XTO Energy’s initial public offering of common stock was completed in May 1993. XTO Energy was formerly known as Cross Timbers Oil Company and changed its name to XTO Energy Inc. in June 2001.

The principal trading market for XTO Energy’s common stock (NYSE: XTO) is the New York Stock Exchange.

The principal executive offices of XTO Energy are located at 810 Houston Street, Fort Worth, TX 76102, its telephone number is (817) 870-2800 and its website iswww.xtoenergy.com.

This proxy statement/prospectus incorporates important business and financial information about XTO Energy from other documents that are not included in or delivered with this proxy statement/prospectus. For a list of the documents that are incorporated by reference in this proxy statement/prospectus, see “Where You Can Find More Information” beginning on page []178 of this proxy statement/prospectus.

ExxonMobil Investment CorporationDENBURY INC.

Denbury Inc., which is referred to in this proxy statement/prospectus as Denbury, a Delaware corporation, is an independent energy company with operations focused in the Gulf Coast and Rocky Mountain regions of the United States. Denbury is differentiated by its focus on CO2 EOR and the emerging CCUS industry, supported by Denbury’s CO2 EOR technical and operational expertise and its extensive CO2 pipeline infrastructure. The utilization of captured industrial-sourced CO2 in EOR significantly reduces the carbon footprint of the oil that Denbury produces, making Denbury’s Scope 1 and Scope 2 CO2 emissions negative today, with Denbury’s goal to reach Net Zero for its Scope 1, Scope 2 and Scope 3 CO2 emissions within this decade, primarily through increasing the amount of captured industrial-sourced CO2 used in its operations.

Denbury common stock is traded on the NYSE under the symbol “DEN.” Following the Merger, Denbury common stock will be delisted from the NYSE.

The principal executive offices of Denbury are located at 5851 Legacy Circle, Suite 1200, Plano, Texas 75024, its telephone number is (972) 673-2000 and its website is www.denbury.com.

Additional information about Denbury and its subsidiaries are included in documents incorporated by reference into this proxy statement/prospectus. For a list of the documents that are incorporated by reference in this proxy statement/prospectus, see “Where You Can Find More Information” beginning on page 178 of this proxy statement/prospectus.

EMPF CORPORATION

Merger Sub is a Delaware corporation and a wholly owned subsidiary of ExxonMobil. Merger Sub was formed solely for the purpose of consummatingcompleting the merger.Merger. Merger Sub has not carried on any activities to date, except for activities incidental to its formation and activities undertaken in connection with the merger.Merger.

Merger Sub was incorporated in the State of Delaware on July 3, 2023. The principal executive offices of Merger Sub are located at 5959 Las Colinas Boulevard, Irving, TX 75039-229822777 Springwoods Village Parkway, Spring, Texas 77389-1425, and its telephone number is (972) 444-1000.

940-6000.

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THE SPECIAL MEETING OF STOCKHOLDERS OF XTO ENERGY

XTO Energy is providing thisThis proxy statement/prospectus is being provided to itsthe Denbury stockholders in connection with theas part of a solicitation of proxies by the Denbury board of directors for use at the Special Meeting to be votedheld at the special meeting of stockholders that XTO Energy has called for the purpose of holding a vote upon a proposal to adopt the merger agreement with ExxonMobiltime and place specified below and at any properly convened meeting following an adjournment or postponement thereof. This proxy statement/prospectus constitutes a prospectus for ExxonMobil in connection with the issuance by ExxonMobil of its common stock in connection with the merger. This proxy statement/prospectus is first being mailed to XTO Energy’s stockholders on or about [], 2010 and provides XTO EnergyDenbury stockholders with the information they need to know to be able to vote or instruct their vote to be cast at the special meetingSpecial Meeting or any adjournment or postponement thereof and should be read carefully in its entirety. In addition, this proxy statement/prospectus constitutes a prospectus for ExxonMobil in connection with the issuance by ExxonMobil of XTO Energy stockholders.ExxonMobil common stock pursuant to the Merger Agreement.

Date, Time and Place of the Special Meeting

The special meetingSpecial Meeting will be held virtually at []www.virtualshareholdermeeting.com/DEN2023SM on   [], 20102023, at  [], local time.Central Time. On or about  , 2023, Denbury commenced mailing this proxy statement/prospectus and the enclosed form of proxy to its stockholders entitled to vote at the Special Meeting.

Purpose

At the special meeting, XTO EnergyThe Special Meeting can be accessed by visiting www.virtualshareholdermeeting.com/DEN2023SM, where Denbury stockholders will be askedable to participate and vote online. Denbury encourages its stockholders to access the meeting prior to the start time leaving ample time for check-in. Please follow the instructions as outlined in this proxy statement/prospectus. This proxy statement/prospectus is first being furnished to Denbury’s stockholders on or about    , 2023.

Denbury has chosen to hold the Special Meeting solely onvia live webcast and not in a physical location. Denbury has adopted a virtual format for the Special Meeting to make participation accessible for stockholders from any geographic location with Internet connectivity.

Purposes of the Special Meeting

The Special Meeting is being held to consider and vote upon the following proposals:

 

to adopt the merger agreement; and

Proposal 1—the Merger Agreement Proposal: to approve and adopt the Merger Agreement, a copy of which is attached as Annex A to this proxy statement/prospectus and the material provisions of which are summarized in “The Merger Agreement” beginning on page 112 of this proxy statement/prospectus, pursuant to which, among other things, Merger Sub will merge with and into Denbury and each outstanding share of Denbury common stock will be converted into the right to receive 0.840 shares of ExxonMobil common stock; and

 

Proposal 2—the Advisory Compensation Proposal: to approve, on an advisory basis, the compensation that may be paid or become payable to Denbury’s named executive officers that is based on or otherwise related to the Merger, the value of which is disclosed in the table in “Interests of Denbury’s Directors and Executive Officers in the Merger—Golden Parachute Compensation” beginning on page 144 of this proxy statement/prospectus.

to approve the adjournmentRecommendation of the specialDenbury Board of Directors

At a meeting if necessary to solicit additional proxies if there are not sufficient votes to adoptheld on July 13, 2023, the merger agreement at the time of the special meeting.

XTO Energy Board Recommendation

The XTO EnergyDenbury board of directors(other than Jack P. Randall who abstained from voting because he is a senior member of Jefferies, one of XTO Energy’s financial advisors)directors unanimously (i) determined that the merger agreementMerger Agreement and the mergertransactions contemplated thereby, including the Merger, are advisablefair to and in the best interests of XTO EnergyDenbury and its stockholders, (ii) approved, adopted and declared advisable the mergerMerger Agreement and the merger agreementtransactions contemplated thereby, including the Merger in accordance with the requirements of the Delaware General Corporation Law and (iii) resolved to recommend approval and adoption of the merger agreement toMerger Agreement by the XTO Energy stockholders. stockholders of Denbury. The XTO EnergyDenbury board of directors unanimously recommends that you vote “FORthe adoption of the agreementDenbury stockholders vote:

Proposal 1: “FOR” the Merger Agreement Proposal; and

Proposal 2: “FOR” the Advisory Compensation Proposal.

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This proxy statement/prospectus contains important information regarding these proposals and FOR” the adjournment of the special meeting, if necessaryfactors that Denbury stockholders should consider when deciding how to solicit additional proxies if therecast their votes. Denbury stockholders are not sufficient votesencouraged to adopt the merger agreement at the time of the special meeting. See “The Merger—XTO Energy Reasons for the Merger; Recommendation of the XTO Energy Board of Directors” beginning on page [] ofread carefully this proxy statement/prospectus.prospectus in its entirety, including the annexes to this proxy statement/prospectus and documents incorporated by reference into this proxy statement/prospectus, for more detailed information regarding the Merger Agreement and the Merger.

XTO Energy Record Date; Outstanding Shares; SharesStockholders Entitled to Vote

The record date for the XTO Energy special meeting is [], 2010. Only XTO Energy stockholdersholders of record of Denbury common stock at the close of business on [], 2010September 27, 2023, the record date, will be entitled to receive notice of, and to vote at, the special meetingSpecial Meeting or any adjournment or postponement of the meeting. Shares of XTO Energy common stock held by XTO Energy as treasury shares and by XTO Energy’s subsidiaries will not be entitled to vote.thereof.

As of the close of business onOn the record date, of [], 2010, there were   [] shares of XTO EnergyDenbury common stock outstanding and entitled to vote at the meeting.Special Meeting. Each holdershare of XTO EnergyDenbury common stock is entitledoutstanding on the record date entitles the holder thereof to one vote foron each share of common stock owned as ofproposal to be considered at the record date.Special Meeting. Denbury stockholders may vote virtually at the meeting or by proxy through the Internet or by telephone or by a properly executed and delivered proxy card with respect to the Special Meeting.

A complete list of XTO EnergyDenbury stockholders of record who are entitled to vote at the XTO Energy special meetingSpecial Meeting will be available for a period of at least ten days prior to the Special Meeting. If you would like to inspect the list of Denbury stockholders of record, please call the Investor Relations department at (972) 673-2000 to schedule an appointment or request access. A certified list of eligible Denbury stockholders will be available for inspection at the principal place of business of XTO Energy during regular business hours for a period of no less than ten days before the special meeting and at the place of the XTO Energy special meeting during the meeting.Special Meeting atwww.virtualshareholdermeeting.com/DEN2023SMby entering the control number provided on your proxy card, voting instruction form or notice.

Quorum

A quorum of stockholders is requirednecessary to adopt the merger agreementconduct business at the special meeting, but not to approve any adjournmentSpecial Meeting. A quorum requires the presence at the Special Meeting, by attending the Special Meeting or being represented by proxy, of the meeting. A majorityone-third of the outstanding shares of XTO EnergyDenbury common stock entitled to vote on each matter considered at the special meeting must be representedSpecial Meeting.

For purposes of determining whether there is a quorum, all shares that are present will count towards the quorum, which will include proxies received but marked as abstentions and will exclude broker non-votes. Broker non-votes occur when a beneficial owner holding shares in person“street name” does not instruct the broker, bank or other nominee that is the record owner of such stockholder’s shares on how to vote those shares on a particular proposal.

Required Vote; Treatment of Abstentions and Broker Non-Votes

The votes required for each proposal are as follows:

Proposal 1—the Merger Agreement Proposal. The affirmative vote of holders of a majority of the outstanding shares of Denbury common stock on the record date and entitled to vote thereon is required to adopt the Merger Agreement Proposal. The required vote on Proposal 1 is based on the number of outstanding shares—not the number of shares actually voted. The failure of any Denbury stockholder to submit a vote (i.e., by not submitting a proxy and not voting at the Special Meeting) and any abstention from voting by a Denbury stockholder will have the same effect as a vote “AGAINST” the Merger Agreement Proposal. Because the Merger Agreement Proposal is non-routine, brokers, banks and other nominees do not have discretionary authority to vote on the Merger Agreement Proposal, and will not be able to vote on the Merger Agreement Proposal absent instructions from the beneficial owner of any Denbury shares held of record by them. As a result, a broker non-vote will have the same effect as a vote “AGAINST” the Merger Agreement Proposal.

Proposal 2—the Advisory Compensation Proposal. The affirmative vote of the majority of the voting power present or represented by proxy at the Special Meeting, where a quorum is present, and entitled

45


to vote thereon is required to approve the Advisory Compensation Proposal. The required vote on the Advisory Compensation Proposal is based on the number of shares present—not the number of outstanding shares. Abstentions from voting by a Denbury stockholder attending the Special Meeting or voting by proxy will have the same effect as a vote “AGAINST” the Advisory Compensation Proposal. A failure to attend the Special Meeting virtually or by proxy will have no effect on the outcome of the vote on the Advisory Compensation Proposal. Brokers do not have discretion to vote on this proposal without your instruction. If you do not instruct your broker how to vote on this proposal, your broker will deliver a non-vote on this proposal, and, as a result, broker non-votes will have no effect on the outcome of the vote on the Advisory Compensation Proposal. While the Denbury board of directors intends to consider the vote resulting from the Advisory Compensation Proposal, the vote is advisory only and therefore not binding on Denbury, and, if the proposed Merger is approved by Denbury stockholders and consummated, the compensation that is the subject of the Advisory Compensation Proposal will be payable even if the Advisory Compensation Proposal is not approved.

Share Ownership; Voting by Denbury’s Directors and Executive Officers

At the close of business on the record date for the Special Meeting, Denbury’s directors and executive officers had the right to vote approximately     shares of the then-outstanding Denbury common stock at the meeting in order to

constitute a quorum. Any abstentions will be counted in determining whether a quorum is present at the special meeting. With respect to broker non-votes (as defined below), the adoptionSpecial Meeting, collectively representing approximately  % of the merger agreement is not considered a routine matter. Therefore, your broker will not be permittedDenbury common stock outstanding and entitled to vote on that date. We currently expect that Denbury’s directors and executive officers will vote their shares “FOR” Proposal 1 (the Merger Agreement Proposal) and “FOR” Proposal 2 (the Advisory Compensation Proposal), although no director or executive officer has entered into any agreement obligating him or her to do so.

Voting of Denbury Common Stock

Voting By Shareholders of Record

You are a stockholder of record if your shares of Denbury common stock are directly held by you and registered in your name with our transfer agent, Broadridge Corporate Issuer Solutions, Inc. If you are a stockholder of record, you may vote your shares via the adoptionInternet at www.proxyvote.com in accordance with the instructions in the Notice. You may also vote by touch-tone telephone from the United States by calling 1-800-690-6903, or by completing, signing and dating the proxy card and returning the proxy card in the prepaid envelope. In order to be valid and acted upon at the Special Meeting, your proxy must be received before 11:59 p.m. Central Time (CT) on   , 2023. Shares represented by proxy will be voted at the Special Meeting unless the proxy is revoked at any time prior to the time at which the shares covered by proxy are voted by: (i) timely submitting a proxy with new voting instructions via the Internet or telephone; (ii) timely delivering a valid, later-dated executed proxy card; (iii) delivering a written notice of revocation that is received by our Corporate Secretary at 5851 Legacy Circle, Suite 1200, Plano, Texas 75024, by 11:59 p.m. Central Time (CT) on   , 2023; or (iv) voting at the virtual Special Meeting by completing a ballot.

Attending the Special Meeting virtually without completing a ballot will not revoke any previously submitted proxy. If you properly complete and sign your proxy card but do not indicate how your shares should be voted on a matter, the shares represented by your proxy will be voted in accordance with the recommendation of the merger agreement withoutDenbury board of directors as discussed below.

Denbury stockholders are encouraged to submit a proxy promptly. Each valid proxy received in time will be voted at the Special Meeting according to the choice specified, if any. Executed but uninstructed proxies (i.e., proxies that are properly signed, dated and returned but are not marked to tell the proxies how to vote) will be voted in accordance with the recommendations of the Denbury board of directors.

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Voting By Beneficial Owners

Denbury stockholders who hold shares of Denbury common stock in a stock brokerage account or through a bank, broker or other nominee (“street name” stockholders) who wish to vote at the Special Meeting should be provided a voting instruction form by the bank, broker or other nominee that holds their shares. If you are a street name stockholder and this has not occurred, contact the bank, broker or other nominee that holds your shares of record. A number of banks and brokerage firms participate in a program that also permits “street name” stockholders to direct their vote by telephone or over the Internet. If your shares are held in an account at a bank or brokerage firm that participates in such a program, you may direct the vote of these shares by telephone or over the Internet by following the voting instructions enclosed with the proxy form from the bank or brokerage firm. The Internet and telephone proxy procedures are designed to authenticate stockholders’ identities, to allow stockholders to give their proxy voting instructions and to confirm that those instructions have been properly recorded. Votes directed by telephone or over the Internet through such a program must be received by 11:59 p.m. Central Time (CT), on  , 2023. Directing the voting of your shares will not affect your right to vote at the Special Meeting if you asdecide to attend the Special Meeting; however, you must use the 16-digit control number set forth on the voting instruction form received from your bank, broker or other nominee to vote your shares held in “street name” at the Special Meeting. Voting at the Special Meeting using the 16-digit control number set forth on the voting instruction form received from your bank, broker or other nominee prior to the deadline described above will automatically cancel any voting directions you have previously given by telephone or over the Internet with respect to your shares.

In accordance with the rules of the NYSE, brokers, banks and other nominees who hold shares of Denbury common stock in “street name” for their customers do not have discretionary authority to vote the shares with respect to the Merger Agreement Proposal and the Advisory Compensation Proposal. Accordingly, if brokers, banks or other nominees do not receive specific voting instructions from the beneficial owner of such shares, they may not vote such shares with respect to these proposals. Under such circumstance, a “broker non-vote” would arise. “Broker non-votes,” if any, will not be considered present at the shares of XTO Energy common stock. Broker non-votes will, however, be countedSpecial Meeting for purposes of determining whether a quorum is present at the special meeting.

Required Vote

To adopt the merger agreement, holders of a majority of the shares of XTO Energy common stock outstanding and entitled to vote on the proposal must vote in favor of adoption of the merger agreement.Because approval is based on the affirmative vote of a majority of the outstanding shares of XTO Energy common stock, an XTO Energy stockholder’s failure to submit a proxy card or to vote in person at the special meeting or an abstention from voting, or the failure of an XTO Energy stockholder who holds his or her shares in “street name” through a broker or other nominee to give voting instructions to such broker or other nominee, will have the same effect as a vote “AGAINST” adoption of the merger agreement.

To approve the adjournment of the special meeting, if necessary to solicit additional proxies if there are not sufficient votes to adopt the merger agreement at the time of the special meeting, the affirmative vote of holders of a majority of the shares of XTO Energy common stock present in person or represented by proxy at the special meeting and entitled to vote at the special meeting is required, regardless of whether a quorum is present. AbstentionsSpecial Meeting, will have the same effect as a vote “AGAINST” the proposal to adjourn the special meeting, while broker non-votesMerger Agreement Proposal and, shares not in attendance at the special meetingassuming a quorum is present, will have no effect on the outcome of any vote to adjourn the special meeting.

Stock Ownership of and Voting by XTO Energy’s Directors and Executive Officers

At the close of business on the record dateAdvisory Compensation Proposal. Thus, for the special meeting, XTO Energy’s directors and executive officers and their affiliates beneficially owned and had the right to vote [] shares of XTO EnergyDenbury common stock at the special meeting, which represents approximately []%held in “street name,” only shares of the XTO EnergyDenbury common stock entitled to vote at the special meeting. It is expected that XTO Energy’s directors and executive officers will vote their sharesaffirmatively votedFOR” the adoption of the merger agreement, although none of them has entered into any agreement requiring them to do so.

Voting of Shares by Holders of Record

If you are entitled to vote at the special meeting and hold your shares in your own name, you can submit a proxy or vote in person by completing a ballot at the special meeting. However, XTO Energy encourages you to submit a proxy before the special meeting even if you plan to attend the special meeting in order to ensure that your shares are voted. A proxy is a legal designation of another person to vote your shares of XTO Energy common stock on your behalf. If you hold shares in your own name, you may submit a proxy for your shares by:

calling the toll-free number specified on the enclosed proxy card and follow the instructions when prompted;

accessing the Internet web site specified on the enclosed proxy card and follow the instructions provided to you; or

filling out, signing and dating the enclosed proxy card and mailing it in the prepaid envelope included with these proxy materials.

When a stockholder submits a proxy by telephone or through the Internet, his or her proxy is recorded immediately. XTO Energy encourages its stockholders to submit their proxies using these methods whenever possible. If you submit a proxy by telephone or the Internet web site, please do not return your proxy card by mail.

All shares represented by each properly executed and valid proxy received before the special meetingMerger Agreement Proposal will be voted in accordance with the instructions given on the proxy. If an XTO Energy stockholder executes a proxy card without giving instructions, the shares of XTO Energy common stock represented by that proxy card will be voted “FOR” approval of the proposal to adopt the merger agreement.

Your vote is important. Accordingly, please submit your proxy by telephone, through the Internet or by mail, whether or not you plan to attend the meeting in person. Proxies must be received by [], local time, on [], 2010.

Voting of Shares Held in Street Name

If your shares are held in an account at a broker or through another nominee, you must instruct the broker or other nominee on how to vote your shares by following the instructions that the broker or other nominee provides to you with these proxy materials. Most brokers offer the ability for stockholders to submit voting instructions by mail by completing a voting instruction card, by telephone and via the Internet.

If you do not provide voting instructions to your broker, your shares will not be voted on any proposal on which your broker does not have discretionary authority to vote. This is referred to in this proxy statement/prospectus and in general as a broker non-vote. In these cases, the broker or other nominee can register your shares as being present at the special meeting for purposes of determining a quorum, but will not be able to vote your shares on those matters for which specific authorization is required. Under the current rules of the New York Stock Exchange, brokers do not have discretionary authority to vote on the proposal to adopt the merger agreement.Therefore, a broker non-vote will have the same effectcounted as a vote “AGAINST” adoptionin favor of the merger agreement.such proposal.

If you hold shares through a broker or other nominee and wish to vote your shares in person at the special meeting, you must obtain a proxy from your broker or other nominee and present it to the inspector of election with your ballot when you vote at the special meeting.

RevocabilityRevocation of Proxies; Changing Your VoteProxies

YouShareholders of Record

Denbury stockholders of record may revoke your proxy and/or change your votetheir proxies at any time before your proxy istheir shares are voted at the special meeting. If you are a stockholderSpecial Meeting in any of record, you can do this by:the following ways:

 

sending a written notice stating that you revoke your proxyof revocation to XTO EnergyDenbury at 810 Houston Street, Fort Worth,5851 Legacy Circle, Suite 1200, Plano, Texas 76102, Attn:75024, Attention: Corporate Secretary, that bearswhich notice must be received before shares are voted at the Special Meeting;

properly submitting a date later thannew, later-dated, proxy card which must be received before shares are voted at the date ofSpecial Meeting (in which case only the later-dated proxy is counted and the earlier proxy is received prior to the special meeting and states that you revoke your proxy;revoked);

 

submitting a valid,proxy via the Internet or by telephone at a later date, which must be received by 11:59 p.m. Central Time, on , 2023 (in which case only the later-dated proxy by mail, telephone or Internet that is received prior tocounted and the special meeting;earlier proxy is revoked); or

 

attending the special meetingSpecial Meeting and voting by ballot in person (your attendance at the special meetingSpecial Meeting. Attendance at the Special Meeting will not, byhowever, in and of itself, revoke any proxy that you have previously given).constitute a vote or revocation of a prior proxy.

If you

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Beneficial Owners

Beneficial owners of Denbury common stock may change their voting instruction by submitting new voting instructions to the brokers, banks or other nominees that hold yourtheir shares of record or by following the instructions for voting set forth on the voting instruction form with a 16-digit control number provided by their brokers, banks or other nominees and voting at the Special Meeting.

Denbury stockholders that hold their shares in “street name” through a broker, bank or other nominee you mustwill need to follow the directions you receive from yourinstructions provided by their broker, bank or other nominee in order to revoke their proxies or change your vote.submit new voting instructions.

Inspector of Elections; Tabulation of Votes

Voting results will be tabulated and certified by an individual designated by the Denbury board of directors to serve as inspector of election.

Solicitation of Proxies

Denbury will be responsible for the proxy solicitation costs related to the Special Meeting. This includes the entire cost of preparing, assembling, printing, mailing and distributing these proxy statement/prospectus is furnished in connection with the solicitationmaterials to Denbury stockholders. In addition to sending and making available these proxy materials, some of Denbury’s directors, officers and other employees may solicit proxies by the XTO Energy board of directors to be votedcontacting Denbury stockholders by telephone, by mail, by e-mail or at the XTO Energy special meeting. XTO EnergySpecial Meeting via the Special Meeting website. Denbury stockholders may also be solicited by press releases issued by Denbury and/or ExxonMobil, postings on Denbury’s or ExxonMobil’s websites and advertisements in periodicals. None of Denbury’s directors, officers or employees will bear all costs and expenses in connection with thereceive any extra compensation for their solicitation of proxies. XTO Energyservices. Denbury has engagedalso retained Innisfree M&A Incorporated to

assist in the solicitation of proxies for the meeting and XTO Energy estimates it will pay Innisfree M&A Incorporated a fee of approximately $50,000. XTO Energy hasexpected not to exceed $60,000, plus reasonable out-of-pocket expenses. Denbury and ExxonMobil may also agreed to reimburse Innisfree M&A Incorporated for reasonable out-of-pocket expenses and disbursements incurred in connection with the proxy solicitation and to indemnify Innisfree M&A Incorporated against certain losses, costs and expenses. In addition, XTO Energy may reimburse brokerage firmsbrokers, banks and other personsnominees representing beneficial owners of shares of XTO EnergyDenbury common stock for their reasonable expenses in forwardingsending proxy solicitation materials to such beneficial owners. Proxies may also be solicited by certain of XTO Energy’s directors, officersowners and employees by telephone, electronic mail, letter, facsimile or in person, but no additional compensation will be paid to them.

Shareholders should not send stock certificates withobtaining their proxies.A letter of transmittal and instructions for the surrender of XTO Energy common stock certificates will be mailed to XTO Energy stockholders shortly after the completion of the merger.

No Other Business

Under XTO Energy’s amended and restated bylaws, the business to be conducted at the special meeting will be limited to the purposes stated in the notice to XTO Energy stockholders provided with this proxy statement/prospectus.

Adjournments and Postponements

Adjournments may be made for the purpose of, among other things, soliciting additional proxies. Any adjournment may be made from time to time by the Chairman of the XTO Energy board of directors orIn accordance with the approvalFourth Amended and Restated Bylaws of a majority of the votes present in person or by proxy at the time of the vote,Denbury, whether or not a quorum exists. XTO Energy is present, the chairman of the Special Meeting will have the power to adjourn the Special Meeting in order to provide more time to solicit additional proxies in favor of adoption of the Merger Agreement Proposal.

If a sufficient number of shares of Denbury common stock is present or represented by proxy at the Special Meeting, and have voted in favor of the Merger Agreement Proposal at the Special Meeting such that the requisite Denbury stockholder approval shall have been obtained, Denbury does not requiredanticipate that it will adjourn or postpone the Special Meeting.

Any adjournment or postponement of the Special Meeting will allow Denbury stockholders who have already sent in their proxies to notify stockholders ofrevoke them at any time before their use at the Special Meeting that was adjourned or postponed. If the adjournment ofis for more than 30 days or less if the time and place of the adjourned meeting are announced at the meeting at which the adjournment is taken, unless after the adjournment a new record date is fixedset for the adjourned meeting. At anymeeting, a notice of the adjourned meeting XTO Energy may transact any business that it might have transactedmust be given to each stockholder of record entitled to vote at the original meeting, provided that a quorum is present at such adjourned meeting. ProxiesSpecial Meeting.

Other Matters

At this time, Denbury knows of no other matters to be submitted by XTO Energy stockholders for use at the special meetingSpecial Meeting other than those listed in the Notice.

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Householding of Proxy Statement/Prospectus

Under SEC rules, a single copy of this proxy statement will be useddelivered in one envelope to multiple stockholders having the same last name and address and to individuals with more than one account registered at Broadridge Corporate Issuer Solutions, Inc. with the same address, unless contrary instructions have been received from an affected stockholder. This procedure, referred to as “householding,” reduces the volume of duplicate materials that stockholders receive and reduces mailing expenses.

You may revoke your consent to future householding mailings or enroll in householding by submitting a written request to Denbury’s Corporate Secretary at Denbury’s principal offices located at 5851 Legacy Circle, Suite 1200, Plano, Texas 75024. You may also send an email to IR@denbury.com or call Denbury at (972) 673-2000.

Questions and Additional Information

Denbury stockholders may contact Denbury’s proxy solicitor, Innisfree M&A Incorporated, with any adjournmentquestions concerning the Merger Agreement or postponementthe Merger or the other transactions contemplated by the Merger Agreement, or the accompanying proxy statement/prospectus, or if they would like additional copies of the meeting. References to the XTO Energy special meeting in this proxy statement/prospectus are to such special meeting as adjourned or postponed.documents incorporated by reference herein, or need help voting their shares of Denbury common stock:

Assistance

If you need assistance in completing your proxy card or have questions regarding the special meeting, please contact Innisfree M&A Incorporated toll-free at

501 Madison Avenue, 20th Floor

New York, New York 10022

Stockholders may call toll free: (877) 750-5836 (banks717-3905

Banks and brokersBrokers may call collect atcollect: (212) 750-5833).

750-5833

Denbury stockholders should not return their stock certificates or send documents representing Denbury common stock with the enclosed proxy card. If the Merger is completed, the exchange agent for the Merger will send to Denbury stockholders a letter of transmittal and related materials and instructions for exchanging shares of Denbury common stock.

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THE MERGER

GeneralGENERAL

This proxy statement/prospectus is being provided to holders of XTO EnergyDenbury common stock in connection with the solicitation of proxies by the board of directors of XTO Energy to be voted at the special meeting,Special Meeting and at any adjournments or postponements of such meeting.the Special Meeting. At the special meeting, XTO EnergySpecial Meeting, Denbury will ask itsDenbury stockholders to consider and vote upon a proposal to adopton (i) the merger agreementMerger Agreement Proposal and a proposal to adjourn(ii) the XTO Energy special meeting if necessary to solicit additional proxies if there are not sufficient votes to adopt the merger agreement at the time of the special meeting.Advisory Compensation Proposal.

The merger agreementMerger Agreement provides for, among other things, the merger of Merger Sub with and into XTO Energy,Denbury, with XTO EnergyDenbury continuing as the surviving corporation.corporation and a wholly owned subsidiary of ExxonMobil. The mergerMerger will not be completed unless XTO Energy’sDenbury stockholders approve and adopt the merger agreement.Merger Agreement. A copy of the merger agreementMerger Agreement is attached as Annex A to this proxy statement/prospectus. You are urged to read the merger agreementMerger Agreement in its entirety because it is the legal document that governs the merger.Merger. For additional information about the merger,Merger, see “The Merger Agreement—Structure of the Merger” and “The Merger Agreement—Merger Consideration” beginning on pages []112 and [],113, respectively, of this proxy statement/prospectus.

Based onIf the numberMerger is completed, each outstanding share of shares of XTO EnergyDenbury common stock (including XTO Energy restricted stock awards and performance share awards) and XTO Energy options and warrants outstanding as of April 14, 2010 and the number of shares of XTO Energy common stock to(with certain exceptions described in this proxy statement/prospectus) will be issued immediately prior to completion of the merger pursuant to certain grant agreements with the named executive officers of XTO Energy, ExxonMobil expects to issue approximately 416,448,236 shares of its common stock to XTO Energy stockholders pursuantentitled to the merger and reserveright to receive the Merger Consideration, subject to any applicable withholding taxes for issuance approximately 12,698,032 additionalcash paid in lieu of fractional shares, of ExxonMobil common stock in connection witheach case without interest. Although the exercise or conversion of XTO Energy’s outstanding options. The actual number of shares of ExxonMobil common stock to be issued and reserved for issuance pursuant tothat Denbury stockholders will receive in the merger will be determined atMerger is fixed, the completionmarket value of the merger based onMerger Consideration will fluctuate with the exchange ratio of 0.7098 and the number of shares of XTO Energy common stock and XTO Energy options and warrants outstanding at such time. ExxonMobil and XTO Energy expect that, immediately after completion of the merger, former XTO Energy stockholders will own approximately 8% of the outstanding common stockmarket price of ExxonMobil common stock basedand will not be known at the time that Denbury stockholders vote to adopt the Merger Agreement. Based on the numberclosing price of ExxonMobil’s common stock on the NYSE on July 12, 2023, the last trading day before the public announcement of the Merger, the 0.840 exchange ratio represented approximately $89.45 in implied value for each share of Denbury common stock. Based on ExxonMobil’s closing price on      , 2023 of $   , the 0.840 exchange ratio represented approximately $   in implied value for each share of Denbury common stock. The market price of ExxonMobil common stock when Denbury stockholders receive those shares after the Merger is completed could be greater than, less than or the same as the market price of shares of XTO Energy and ExxonMobil common stock outstanding, on a fully diluted basis, asthe date of April 14, 2010.

Backgroundthis proxy statement/prospectus or at the time of the MergerSpecial Meeting.

XTO Energy’s board of directors has from time to time in recent years engaged with senior management in strategic reviews and considered XTO Energy’s performance and prospects in light of the business and economic environment, as well as developments in the U.S. oil and gas industry and prospective challenges facing exploration and production companies such as XTO Energy. These reviews have included consideration of potential transactions with third parties that would further its strategic objectives, as well as the company’s standalone business plans and prospects. In addition, these reviews have included potential acquisitions of companies or assets by XTO Energy, potential joint-venture opportunities with third parties and the potential for the strategic combination of XTO Energy with, or possible acquisition of XTO Energy by, a third party.THE PARTIES

ExxonMobil’s senior management regularly evaluates and periodically reviews with ExxonMobil’s board of directors strategies to enhance shareholder value in light of the changing competitive environment of the oil and gas industry, including opportunities to maximize the value of ExxonMobil’s portfolio of assets, as well as ExxonMobil’s overall position in the industry. In addition to its ongoing evaluation of, among other things, worldwide oil and natural gas exploration and development activities, midstream and downstream ventures and other alliances and acquisitions or dispositions of assets and properties, ExxonMobil has from time to time evaluated the possibility of strategic acquisitions of a number of companies, including XTO Energy.

Exxon Mobil Corporation

In late July 2009, Bob R. Simpson, XTO Energy’s Chairman of the Board and Founder, and Jack P. Randall, a member of the XTO Energy board of directors and a senior member of Jefferies, discussed developments and changes in the U.S. natural gas industry and the prospective challenges facing independent exploration and production companies such as XTO Energy, as well as challenges and potential opportunities identified by senior management of XTO Energy. Among other things, Messrs. Simpson and Randall discussed challenges facing the natural gas industry generally, and independent natural gas exploration and production companies in particular, including declining natural gas prices and the prospect of future price declines due to rising natural gas supplies, growing capital requirements and other factors. Messrs. Simpson and Randall also discussed, in general terms, the potential benefits to XTO Energy and its stockholders of a strategic transaction with one of the large major diversified oil and gas companies in order to better meet the prospective challenges facing the industry and discussed whether it was a viable option available for XTO Energy to consider. Messrs. Simpson and Randall considered, among other things, the financial and business characteristics (including financial capacity given the market conditions at the time), strategic focus and perceived commitment to onshore natural gas of the major diversified oil and gas companies. Based on their significant knowledge of the oil and gas industry and familiarity with the major diversified oil and gas companies, and taking into account XTO Energy’s size and asset base, Messrs. Simpson and Randall believed it was likely that only two such companies would be both interested in XTO Energy and in a position to offer a transaction alternative that could provide for a potential enhancement of value for XTO Energy’s stockholders (including a meaningful premium). Mr. Simpson suggested that Mr. Randall, given his industry contacts and Jefferies’ knowledge of the industry, could informally contact representatives of executive management at these two companies in order to gauge whether there was interest in further discussions regarding a potential strategic opportunity.

Following the discussion between Mr. Randall and Mr. Simpson, Mr. Randall, with Mr. Simpson’s approval, telephoned Rex W. Tillerson, Chairman of the Board and Chief Executive Officer of ExxonMobil, on July 29, 2009 to arrange a meeting to discuss a business matter relating to XTO Energy. On August 6, 2009, Mr. Randall met with Mr. Tillerson in Irving, Texas. Mr. Randall discussed business conditions in the natural gas industry and raised the possibility of a strategic combination involving XTO Energy and ExxonMobil. Mr. Tillerson indicated that he would consider the matter. On August 17, 2009, Mr. Tillerson telephoned Mr. Randall and suggested arranging a meeting with Mr. Simpson.

In early August 2009, Mr. Randall, with Mr. Simpson’s approval, also contacted a senior executive officer of the other major diversified oil and gas company that Messrs. Simpson and Randall had discussed during their July 2009 meeting, and Mr. Randall raised the topic of a potential strategic transaction with XTO Energy. During a follow-up meeting in September, the executive informed Mr. Randall that he did not believe a strategic transaction with XTO Energy would fit with such company’s current business objectives, and no further discussions occurred.

During the evening of August 25, 2009, Messrs. Simpson, Randall and Tillerson met in Fort Worth, Texas. During this meeting, they discussed a range of topics generally affecting the oil and gas industry and the possibility of exploring a potential strategic combination between XTO Energy and ExxonMobil. Among other matters, Messrs. Simpson and Tillerson discussed, in general terms, XTO Energy and ExxonMobil, the complementary aspects of their businesses and the potential benefits that a strategic business combination of XTO Energy and ExxonMobil could provide, including the expansion of XTO Energy’s business that ExxonMobil’s financial capacity could enable, the larger geographic footprint and increased natural gas production of the combined entity, the related potential benefits to stockholders, employees and other constituencies of both companies and, were negotiations to proceed and an agreement to be reached on material terms, the potential time frame of a possible transaction.

In early September 2009, XTO Energy contacted and discussed with representatives of the law firm Skadden, Arps, Slate, Meagher & Flom LLP (whichExxon Mobil Corporation, which is referred to in this proxy statement/prospectus as Skadden) and representatives of Barclays Capital, which from time to time had performed various investment banking services for XTO Energy, its preliminary consideration of a potential transaction with ExxonMobil.

During this period, Mr. Randall continued to assist in preliminary contacts and participatedExxonMobil, was incorporated in the initial exploratory discussions. Other Jefferies personnel compiledState of New Jersey in 1882. Divisions and reviewed publicly available information regarding XTO Energy,affiliated companies of ExxonMobil and certain precedent transactions.

Preliminary telephone discussions between Messrs. Simpson, Tillerson and Randall occurred intermittently during September 2009. During this period, Messrs. Simpson and Tillerson discussed, among other things, the businesses and operations of their respective companies, the potential benefits of a transaction to XTO Energy’s and ExxonMobil’s respective stockholders, the importance of preserving the expertise of XTO Energy’s organization, and the alternative forms of consideration that might be payableoperate or market products in the proposed transaction (including all cash, allUnited States and most other countries of the world. Their principal business involves exploration for, and production of, crude oil and natural gas; manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals, and a wide variety of specialty products; and pursuit of lower-emission business opportunities including carbon capture and storage, hydrogen, and lower-emission fuels. Affiliates of ExxonMobil conduct extensive research programs in support of these businesses.

The principal trading market for ExxonMobil’s common stock (NYSE: XOM) is the NYSE.

The principal executive offices of ExxonMobil are located at 22777 Springwoods Village Parkway, Spring, Texas 77389-1425, its telephone number is (972) 940-6000 and its website is www.exxonmobil.com.

This proxy statement/prospectus incorporates important business and financial information about ExxonMobil from other documents that are not included in or delivered with this proxy statement/prospectus. For a mixturelist of cash and stock). Mr. Tillerson indicatedthe documents that a key factorare incorporated by reference in considering a potential transaction between the companies would be retaining XTO Energy’s named executive officers. In addition, Mr. Tillerson indicated that, without discussing any specific terms, ExxonMobil would want to reduce and/or restructure the amount potentially payable to XTO Energy’s senior executive officers upon the occurrence of such a transaction and modify such payments to better serve retention objectives. As set forth in the tablethis proxy statement/prospectus, see “Where You Can Find More Information” beginning on page []178 of this proxy statement/prospectus.

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Denbury Inc.

Denbury Inc., which is referred to in this proxy statement/prospectus pursuant to existing employment agreements, grant agreementsas Denbury, a Delaware corporation, is an independent energy company with operations focused in the Gulf Coast and Rocky Mountain regions of the United States. Denbury is differentiated by its focus on CO2 EOR and the management severance plan, itemerging CCUS industry, supported by Denbury’s CO2 EOR technical and operational expertise and its extensive CO2 pipeline infrastructure.

Denbury common stock is estimated thattraded on the namedNYSE under the symbol “DEN.” Following the Merger, Denbury common stock will be delisted from the NYSE.

The principal executive officersoffices of XTO Energy would potentially have been entitled to receive approximately $304,690,000Denbury are located at 5851 Legacy Circle, Suite 1200, Plano, Texas 75024, its telephone number is (972) 673-2000 and its website is www.denbury.com.

Additional information about Denbury and its subsidiaries are included in the aggregate (based ondocuments incorporated by reference into this proxy statement/prospectus. For a $50.00 per share XTO Energy stock price at the timelist of the mergerdocuments that are incorporated by reference in this proxy statement/prospectus, see “Where You Can Find More Information” beginning on page 178 of this proxy statement/prospectus.

EMPF Corporation

Merger Sub is a wholly owned subsidiary of ExxonMobil. Merger Sub was formed solely for the purpose of completing the Merger. Merger Sub has not carried on any activities to date, except for activities incidental to its formation and certain other assumptions used in calculating the amount set forth above) upon the occurrence of certain triggering events, including the completion of the merger, and the continuation of employment for one year following the merger. A detailed description of the existing employment agreements, grant agreements and the management severance plan, including a description of how these arrangements were ultimately revisedactivities undertaken in connection with the proposed mergerMerger.

Merger Sub was incorporated in the State of Delaware on July 3, 2023. The principal executive offices of Merger Sub are located at 22777 Springwoods Village Parkway, Spring, Texas 77389-1425, and its telephone number is (972) 940-6000.

BACKGROUND OF THE MERGER

The Denbury board of directors and Denbury management regularly evaluate various strategic and financial alternatives to increase stockholder value. In that context, between early 2021 and July of 2023, Denbury held or authorized its advisors to hold discussions with over 28 parties, primarily related to a sale of the company, and Denbury signed confidentiality agreements with 17 of such parties. While a number of parties expressed various levels of interest at different points in time, ExxonMobil was the only party to provide an indication of interest above the current market price and submit a proposal to acquire Denbury. The implied value of ExxonMobil’s proposal of $89.45 per Denbury share represented an approximately 2% premium to Denbury’s closing price as of July 12, 2023, the day before announcement, and an approximately 17% premium to the unaffected 10-day average closing price on August 16, 2022, the day before the publication of the first of several news stories speculating on the potential sale of Denbury. Moreover, during the period from August 16, 2022 through July 10, 2023, Denbury’s indexed average trading performance was up 10%, compared to 1% for selected oil companies and negative 51% for selected energy transition companies, leading the Denbury board of directors to conclude that Denbury’s stock price was affected by takeover speculation. What follows is a detailed summary of the key events, meetings, and decisions that led the Denbury board of directors to approve the execution of the Merger Agreement on July 13, 2023.

Denbury Resources Inc. (the “Predecessor”) was an exploration and production company with operations focused in the Gulf Coast and Rocky Mountain regions of the United States, whose common stock traded publicly on the NYSE from 1997 until September 2020. During such time, the Predecessor focused its operations on a combination of exploitation, drilling and proven engineering extraction processes, with its primary focus on CO2EOR.

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The Predecessor began its CO2 operations in August 1999, with the acquisition of the Little Creek Field, followed by the acquisition of Jackson Dome CO2 reserves and the NEJD CO2 pipeline in 2001. Based upon successes at Little Creek and the ownership of the CO2 reserves, the Predecessor began to transition its capital spending and acquisition efforts to focus more heavily on CO2 EOR and, over time, transformed its strategy to focus primarily on owning and operating oil fields that are well suited for CO2 EOR projects and building out an extensive CO2 pipeline system in the Gulf Coast and Rocky Mountain regions to be utilized for transporting CO2 for EOR. In 2010, the Predecessor completed construction of the Green Pipeline, a 320-mile CO2 pipeline running from near Donaldsonville, Louisiana, to south of Houston, Texas, within close proximity to the highest concentration of industrial emissions in the United States. The Predecessor envisioned a day when CO2 would be captured from those industrial emissions and utilized in EOR, hence the name “Green Pipeline”.

In February 2018, the United States Congress passed legislation, which was signed into law by President Trump on February 9, 2018, that increased so-called 45Q tax credits for qualifying enterprises undertaking CCUS activities. The Denbury board of directors and Denbury management recognized that Denbury’s deep CO2 expertise and extensive CO2 pipeline infrastructure could be increasingly valuable, particularly considering these tax law changes and increasing public and investor pressure to reduce and/or restructureindustrial CO2 emissions. In January 2020, the payments and increase their retentive value, is set forth under “Interests of Certain PersonsPredecessor formed a “Denbury Carbon Solutions” team to advance the Predecessor’s leadership in the Merger—XTO Energy Named Executive Officers”anticipated high-growth CCUS industry, leveraging the company’s unique capabilities and assets that were developed over the prior 20-plus years through its focus on CO2 EOR.

Beginning in 2020, the COVID-19 pandemic’s effect on economic activity across the globe resulted in a rapid and precipitous drop in demand for oil, which in turn caused oil prices to plummet beginning in the first week of March 2020, negatively affecting the Predecessor’s cash flow, liquidity and financial position. These events worsened an already-deteriorated oil market that followed the early-March 2020 failure by the group of oil producing nations known as OPEC+ to reach an agreement over proposed oil production cuts. As a result, on page []March 5, 2020, the Predecessor was notified by the NYSE that the average closing price of this proxy statement/prospectus.its common stock, par value $0.001 per share, over the prior 30-consecutive trading day period was below $1.00 per share, which is the minimum average closing price per share required to maintain listing on the NYSE.

In response, the Predecessor took significant action with respect to its operations, announcing on March 31, 2020, that (i) it planned to reduce its 2020 capital budget by approximately $80 million, or 44%, (ii) it would defer its Cedar Creek Anticline CO2 tertiary flood development project beyond 2020, (iii) it would restructure certain of its hedges to increase downside protection against further declines in oil prices, and (iv) its Board of Directors would submit a proposal for approval at the Predecessor’s 2020 Annual Meeting of Stockholders, to effect a reverse stock split of the common stock and reduce its authorized common stock. On June 29, 2020, the Predecessor elected to draw $200 million under its credit facility. The Predecessor elected not to make the approximately $8 million interest payment due and payable on June 30, 2020 with respect to its 638% convertible senior notes due 2024 on the due date in order to evaluate certain strategic alternatives, none of which were ultimately implemented.

On July 30, 2020, the Predecessor and all of its wholly owned direct and indirect subsidiaries filed petitions for voluntary relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”).

On September 30, 2009,2, 2020, the Bankruptcy Court entered an order confirming that certain Joint Chapter 11 Plan of Reorganization of Denbury Resources Inc. and its Debtor Affiliates (the “Plan”), and on September 18, 2020 (the “Effective Date”), the Plan became effective in accordance with its terms and Denbury emerged from Chapter 11. As part of the transactions undertaken pursuant to the Plan, holders of the Predecessor’s approximate $2.1 billion in aggregate debt principal of previously issued notes were fully extinguished in exchange for Denbury common stock and/or warrants and holders of existing equity interests received warrants reflecting a maximum of 2.5% of the reorganized company’s equity interests.

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Denbury Inc. (“Denbury”) became the successor reporting company of the Predecessor. On September 21, 2020, Denbury common stock, par value $0.001 commenced trading on the NYSE under the ticker symbol “DEN.” Since re-listing on the NYSE less than three years ago through July 12, 2023, Denbury delivered an approximately 385% return for investors.

The Denbury board of directors and Denbury management have regularly reviewed and assessed Denbury’s performance, strategy, financial position, leverage, opportunities and risks in light of current business and economic conditions, developments in the oil and gas exploration and production sector, the emerging CCUS industry, and potential future industry developments since its emergence from bankruptcy protection.

Shortly after relisting on the NYSE, Denbury began receiving inbound solicitations from third parties seeking to partner with Denbury in various ways around its CCUS infrastructure. On December 11, 2020, Chris Kendall, Denbury’s President and Chief Executive Officer and a member of the Denbury board of directors, and Mark Allen, Denbury’s Executive Vice President, Chief Financial Officer, Treasurer and Assistant Secretary, accepted a meeting with the CCUS leadership team at Company A, an integrated, international oil and natural gas company, to discuss a potential joint venture centered around developing storage sites along the U.S. Gulf Coast.

In mid-December 2020, Denbury management provided the Denbury board of directors with an update on its strategy, vision and CCUS activities, including potential opportunities for storage sites and its CO2 pipeline network and interest from third parties, including Company A, in potential CCUS joint venture opportunities with Denbury. Denbury management also provided an update on other strategic opportunities around its conventional oil business, including potential strategic merger combinations and acquisition opportunities, each of which were discussed and evaluated during this time. In connection with these evaluations, the Denbury board of directors and Denbury management recognized that Denbury was well positioned as an operator of CO2 EOR assets and the largest owner and operator of CO2 pipelines in the U.S. to capitalize on its strategic position in the emerging CCUS business. Denbury’s Board became increasingly convinced that Denbury’s CO2 expertise and assets could be valuable to other parties. As such, the Denbury board of directors instructed management to continue to explore the universe of opportunities and develop its overall CCUS strategy while continuing to manage its baseline business, aligned with the Company’s vision to be recognized as the world leader in CO2 EOR, significant in scale, financially secure, and strategically positioned through its expertise and assets to lead the industry in the emerging CCUS industry.

On January 25, 2021, Messrs. Kendall and Allen accepted an introductory meeting with a business development executive at Company B, an integrated, international oil and natural gas company. At the meeting, the Company B executive suggested that Company B would be interested in a potential CCUS joint venture with Denbury. On January 27, 2021, in a follow-up phone call with Messrs. Kendall and Allen, the Company B executive reiterated Company B’s interest in a CCUS joint venture with Denbury.

On February 2, 2021, Denbury entered into a customary confidentiality agreement with Company B related to the consideration of a CCUS joint venture between the parties. This confidentiality agreement did not include a standstill provision.

On February 8 and 9, 2021, several members of Denbury’s management, including Messrs. Kendall and Allen, met with several members of Company B’s management to allow each party to provide a high level overview of its history, operations, financial results, reserves, energy transition and ESG strategy, sustainability initiatives and other matters, as well as a discussion of the CCUS business in particular.

In addition to Company A and Company B, several other third parties reached out periodically to gauge Denbury’s interest in a joint venture or other collaboration, including Company C, an integrated, international oil and natural gas company. Given the various third party interests, Denbury management reached out to representatives of J.P. Morgan in early February 2021 to assist Denbury management in considering Company B’s interest in a potential CCUS joint venture with Denbury, as well as other potential strategic alternatives.

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Representatives of J.P. Morgan suggested that, among other things, Denbury consider reaching out to ExxonMobil in light of ExxonMobil’s February 1, 2021 public announcement of its Low Carbon Solutions business to commercialize emission-reduction technology.

In late February 2021, at the direction of Denbury’s management, a representative of J.P. Morgan reached out to representatives of ExxonMobil to inquire as to whether exploring a strategic transaction with Denbury would further ExxonMobil’s Low Carbon Solution business goals.

On March 4, 2021, Company B provided Denbury with a non-binding term sheet for a potential CCUS joint venture. Thereafter on March 8, 2021, several members of Denbury’s management, including Messrs. Kendall and Allen, met with several members of Company B’s management to discuss Company B’s joint venture proposal.

The Denbury board of directors held a regularly scheduled meeting duringon March 31, 2021. As part of this meeting, Denbury management and representatives of J.P. Morgan provided the Denbury board of directors with a presentation covering, among other matters, an overview of the exploration and production market and Denbury’s positioning within that market, the role of CCUS and hydrogen in various decarbonization initiatives and an overview of potential strategic alternatives for Denbury, including acquisitions, joint ventures, and a sale of the company. Despite its conviction that Denbury was well positioned within the CCUS industry, the Denbury board of directors also recognized the challenges of optimizing its CCUS business and assets, including execution risks, regulatory risk and the need for significant capital expenditures to develop the CCUS business. Also at this meeting, members of Denbury’s management provided the Denbury board of directors with the results of management’s review of CCUS strategy, which included an aggressive expansion of the CCUS business. The Denbury board of directors approved management’s updated strategy that sought to aggressively grow a CCUS business led by Denbury to maximize stockholder value, while continuing to maintain its EOR-focused oil production business.

In furtherance of this strategy, on April 5, 2021, Denbury appointed Nik Wood as Senior Vice President and leader of the Denbury Carbon Solutions team, directly reporting to Mr. Kendall and charged with building out the team and executing Denbury’s CCUS strategy.

Throughout April 2021, Denbury and Company B held several due diligence and negotiation discussions. However, it was unclear to Denbury how the proposed joint venture could be in the best interest of Denbury stockholders. While a cash infusion would help funding for future capital needs, the total capital required to build out the CCUS business was unknown and it appeared too early in the evolution of the business to enter into such an arrangement. Moreover, Denbury management was concerned that the proposed joint venture with Company B would provide Company B with more control over the Denbury CCUS business and assets than Denbury management believed was appropriate, especially in light of the Denbury board of directors’ approval of an aggressive, “Denbury led” CCUS business.

On April 21, 2021, Denbury informed Company B that it was not interested in pursuing a joint venture and in May 2021, the parties returned or destroyed due diligence materials that had been provided by the other party.

On April 29, 2021, representatives of J.P. Morgan held a meeting with T.J. Wojnar, ExxonMobil’s Vice President, Corporate Strategic Planning. and Alex van Veldhoven, ExxonMobil’s then Senior Strategy Advisor, Corporate Strategic Planning, and provided an overview of Denbury, as directed by Messrs. Kendall and Allen. Messrs. Wojnar and van Veldhoven expressed interest in learning more about Denbury.

Given the interest of companies like Company A, Company B, Company C and ExxonMobil, in early May 2021, Denbury management reached out again to J.P. Morgan to assist the Denbury board of directors and management in evaluating strategic alternatives. J.P. Morgan was selected based on its industry experience and knowledge of Denbury and its assets and operations, as well as its knowledge of likely potential counterparties.

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Denbury also engaged Vinson & Elkins to act as its legal advisor related to the strategic alternative review process.

On May 10, 2021, Denbury entered into a customary confidentiality agreement with ExxonMobil. This confidentiality agreement did not include a standstill provision.

On May 21, 2021, Messrs. Kendall and Allen met with senior management of Company D, an oil and natural gas exploration and production company, at Company D’s headquarters to discuss, among other things, a potential for a strategic transaction.

The Denbury board of directors held regularly scheduled meetings on May 24 and 25, 2021. As part of these meetings, Denbury management, with the assistance of J.P. Morgan, discussed with the Denbury board of directors, among other matters, the details of potential strategic opportunities available to Denbury, potential counterparties to those opportunities and the mechanics of an exploratory process that would begin with organic discussions and general dialogue with potential counterparties to determine any genuine interest in a strategic transaction with Denbury. Following the discussion, the Denbury board of directors instructed Denbury management to work with J.P. Morgan to initiate the exploratory process.

On May 25, 2021, J.P. Morgan, on behalf of Denbury and as directed by the Denbury board of directors, began contacting and distributing marketing materials to potential counterparties identified by Denbury management with the assistance of J.P. Morgan, including exploration and production companies, integrated oil and natural gas companies, industrial gas companies, renewable energy companies, investment firms and companies interested in pursuing midstream/CCUS opportunities, among others. Throughout the entire process of exploring potential strategic opportunities involving Denbury, J.P. Morgan acted at the direction of Denbury management and regularly updated Denbury management regarding the process and its discussions with potential counterparties.

On June 2, 2021, Messrs. Kendall and Allen, together with other members of Denbury management, gave a presentation to ExxonMobil representatives, including Mr. van Veldhoven,Scott Darling, then Vice President, Finance, Marketing & Commercial Development of ExxonMobil’s Low Carbon Solutions business, and Guy Powell, then Vice President, Planning& Business Development, of ExxonMobil’s Low Carbon Solutions business,regarding Denbury’s history, operations, financial results, reserves, energy transition and ESG strategy, and sustainability initiatives and other matters. During the meeting, representatives of ExxonMobil provided ExxonMobil’s perspective regarding Denbury’s successes and management team, and indicated that an acquisition of Denbury would align with ExxonMobil’s focus on CCUS.

Between June 2 and June 7, 2021, Denbury entered into separate customary confidentiality agreements with Company E, a distributor of hydrogen and nitrogen products, Company F, an investment management organization with investments in midstream assets, and Company D. Denbury management directly interacted with Company E, whereas Companies D and F had been contacted by J.P. Morgan at the direction of Denbury. These confidentiality agreements did not include standstill provisions. Each of Company E, Company F and Company D were granted access to a virtual data room with due diligence materials about Denbury.

On June 7, 2021, a representative of J.P. Morgan discussed the merits of exploring a potential transaction involving Denbury with XTO Energy was discussed.an executive of Company G, an integrated, international oil and natural gas company. The Company G executive advised that Company G would be very interested in Denbury because, in the executive’s view, there were very few opportunities other than Denbury that involved real CCUS assets. Following this discussion, at the direction of Denbury management, J.P. Morgan sent Company G a draft confidentiality agreement.

The Denbury board of directors met on June 11, 2021 to discuss the exploratory process. A representative of J.P. Morgan noted for the Denbury board of directors that, among other things, J.P. Morgan had contacted or

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would soon contact at least 14 of the identified potential counterparties to gauge their interest in acquiring Denbury. The representative of J.P. Morgan summarized for the Denbury board of directors the details of recent discussions with ExxonMobil and Company G, as well as J.P. Morgan’s perspective on the interest levels of each of the other potential counterparties. The representative of J.P. Morgan also described an illustrative timeline and the potential due diligence process required by each potential counterparty. Following this discussion, the ExxonMobilDenbury board of directors concurredinstructed Denbury management, with Mr. Tillerson continuing discussions with XTO Energy regarding a possible transaction.

On October 2, 2009, Messrs. Simpson and Tillerson had a telephone conversation and again preliminarily discussed a possible transaction between ExxonMobil and XTO Energy. Messrs. Simpson and Tillerson discussed, among other things, ExxonMobil’s views regardingthe assistance of J.P. Morgan, to request indications of interest from the potential for a transaction, and ExxonMobil’s desire to retain key members of XTO Energy’s management and preserve XTO Energy’s organization. Messrs. Tillerson and Simpson both expressed the view that, taking into account the liquiditycounterparties in advance of the market for ExxonMobil common stock, an all-stock transaction would be most advantageous in that it would allow XTO Energy stockholders to choose whether to retain ExxonMobil shares received in a transaction (with no immediate tax impact) or to sell such shares (with the associated tax impact). Messrs. Tillerson and Simpson reviewed the current and historical stock price ratios between ExxonMobil common stock and XTO Energy common stock. Against that backdrop, Mr. Tillerson indicated that ExxonMobil could consider a potential transaction proposal to acquire 100% of XTO Energy’s common stock at an exchange ratio that represents a premium in the range of 15% over the companies’ relevant historical stock price ratios. Mr. Simpson indicated he thought that the exchange ratio implied by the premium suggested by Mr. Tillerson undervalued XTO Energy and would not be acceptable to XTO Energy’s board of directors. Messrs. Simpson and Tillerson agreed that they each would continue to consider a potential range of values for a possible transaction, and that further discussions regarding a possible transaction would depend on whether their preliminary views on valuation were close enough to warrant such discussions.

On October 6, 2009, Mr. Simpson telephoned Mr. Tillerson to discuss certain XTO Energy operational matters, including publicly available information about XTO Energy’s oil and gas reserves and proved developed reserve numbers. Mr. Simpson further indicated that, based on XTO Energy’s review of the relative trading histories of XTO Energy and ExxonMobil and a preliminary review of the historical stock price ratios of XTO

Energy common stock to ExxonMobil common stock, he believed an exchange ratio in the range of 0.71875 would represent a 25% premium to the relevant historical price ratios and would merit consideration by the XTO Energy board of directors. Mr. Simpson also believed such an exchange ratio would provide a basis for further discussion between the parties and commencement of the due diligence effort with theDenbury board of directors’ approval. Based onregularly scheduled July meeting. After representatives of J.P. Morgan exited the closing pricesmeeting, a representative of XTO Energy and ExxonMobil common stock as of October 6, 2009, an exchange ratio of 0.71875 implied a price per share of XTO Energy common stock of approximately $49.35 based onVinson & Elkins reviewed with the companies’ then-current trading prices and represented an approximately 20% premium over XTO Energy’s then-current trading price and an approximately 22% premium over XTO Energy’s prior 30-trading day average price. Without commenting specifically on Mr. Simpson’s proposal, Mr. Tillerson expressed the view that the potential transaction valuations that each party had in mind appeared to be within a range that would warrant further discussion. Messrs. Simpson and Tillerson also agreed that, if discussions between the companies were to progress, the companies should enter into a confidentiality agreement. Mr. Tillerson cautioned that, even if no material issues were identified through due diligence, the parties would not necessarily be able to reach a final agreement.

On October 8, 2009, Mr. Tillerson telephoned Mr. Simpson and indicated that ExxonMobil wished to continue discussions and begin due diligence regarding a possible acquisition of XTO Energy in an all-stock transaction. Specific exchange ratios and transaction valuation were not discussed by Messrs. Simpson and Tillerson. Following this conversation, ExxonMobil delivered a draft confidentiality agreement to XTO Energy.

During the period from October 9 to October 13, 2009, the parties negotiated the terms of a mutual confidentiality agreement. On October 12, 2009, Mr. Simpson began contacting each of the members of the XTO EnergyDenbury board of directors to inform thema summary of ExxonMobil’s possible interestdirectors’ fiduciary duties in a transaction with XTO Energy and to discuss in detail the status and substance of his preliminary conversations with Mr. Tillerson, including the proposed entry into a confidentiality agreement in advance of more detailed discussions regarding a potential transaction with ExxonMobil.

On October 13, 2009, the parties entered into a confidentiality agreement, which, among other things, contained mutual standstill restrictions that, in accordance with and subject to the terms of the confidentiality agreement, prohibited either party from making an unsolicited offer to acquire the other party’s stock for a period of two years.

On October 14, 2009, Mr. Tillerson sent a letter to Mr. Simpson indicating, among other things, that, in light of the fact that a confidentiality agreement had been executed by the parties, ExxonMobil was prepared to proceed with its due diligence review of XTO Energy.considering strategic alternatives. The letter further stated that William Colton, ExxonMobil’s Vice President of Corporate Strategic Planning, would contact Vaughn O. Vennerberg, II, President of XTO Energy, to discuss the due diligence process. In the letter, Mr. Tillerson expressed his belief that a proposed transaction between ExxonMobil and XTO Energy could potentially enhance stockholder value for both companies and indicated that ExxonMobil was preparing a draft merger agreement to be delivered to XTO Energy shortly thereafter.

Also on October 14, 2009, certain members of XTO Energy’s management team, including Mr. Simpson, met with legal and financial advisors from Skadden and Barclays Capital, respectively, in Fort Worth, Texas to discuss several topics, including the status of discussions with ExxonMobil, the potential process for negotiating and evaluating a potential transaction with ExxonMobil, the potential timing of a transaction and various strategic alternatives and options that could be considered as well.

From October 14, 2009 to October 21, 2009, ExxonMobil worked with Davis Polk & Wardwell LLP, its legal advisor in connection with the potential transaction and referred to in this proxy statement/prospectus as Davis Polk, to prepare an initial draft of the merger agreement. On October 21, 2009, ExxonMobil delivered to XTO Energy a draft merger agreement and a request for certain due diligence documents and materials relating to the company.

Also on October 21, 2009, XTO Energy’s board of directors held a special meeting in Fort Worth, Texas primarily to review and discuss the potential transaction with ExxonMobil (including the status of discussions to date), and to consider whether XTO Energy should continue discussions with ExxonMobil regarding such transaction. Representatives of Skadden and Barclays Capital were present for a portion of the meeting as were members of XTO Energy’s senior management, including Frank McDonald, Senior Vice President, General Counsel & Assistant Secretary of XTO Energy. Mr. Simpson reviewed with the XTO Energy board of directors the risks and challenges facing the company, including the challenges of continuing production and earnings growth at historic levels. Mr. Simpson then reviewed the possibility of a transaction with ExxonMobil and the events up to that point, including his discussions with Mr. Tillerson and Mr. Randall’s discussions with a senior executive officer of the other major diversified oil and gas company approached regarding a potential strategic transaction with XTO Energy. The board of directors then discussed the possibility of a transaction with ExxonMobil (including the range of values for XTO Energy common stock that had been discussed by Messrs. Simpson and Tillerson), XTO Energy’s potential strategic alternatives, including operating as an independent company and alternative strategic transactions that could enhance stockholder value, and the prospects of a third party other than ExxonMobil being able to engage in an alternative strategic transaction. Mr. Simpson noted to the directors that he had informed ExxonMobil that formal due diligence would not commence and that no confidential information would be shared with ExxonMobil until the XTO Energy board of directors met to discuss the potential transaction.

The XTO EnergyDenbury board of directors also discussed the fitterms of ExxonMobil’s and XTO Energy’s businesses anda proposed engagement of J.P. Morgan as its financial advisor.

Following the potentially compelling value proposition for XTO Energy stockholders in an all-stock transaction whereby XTO Energy stockholders could retain an interest inmeeting, as directed by the combined company. Mr. Simpson then indicated that management would be recommending to theDenbury board of directors, the servicesrepresentatives of Barclays CapitalJ.P. Morgan continued to contact potential counterparties and Jefferies as financial advisorsencouraged those who were interested to the companyprovide non-binding indications of interest in connection with considerationadvance of the potential transaction. RepresentativesDenbury board of Skadden revieweddirectors’ upcoming meeting scheduled for July 15, 2021.

On June 16, 2021, Messrs. Kendall and Allen met with the XTO Energychief executive officer and other members of senior management of Company E. Senior management of Company E expressed interest in a joint venture with Denbury and its Gulf Coast CCUS assets. Messrs. Kendall and Allen explained why a joint venture was not desirable for Denbury at the current time but suggested that Denbury would be open to a considering a corporate transaction. The chief executive officer of Company E advised that they would consider it and would discuss the potential opportunity with Company E’s board of directors certain legal matters relatingdirectors. 

On June 18, 2021, representatives of Company D advised J.P. Morgan that it was withdrawing from the process, citing valuation concerns and Company D’s unwillingness to its considerationissue common stock in an amount necessary to acquire Denbury.

On June 21, 2021, a representative of J.P. Morgan met with the chief executive officer of Company G to explore the merits of a potential transaction with ExxonMobil, includingDenbury. The chief executive of Company G reiterated that Company G was very interested in discussing the directors’ fiduciary duties. Thepotential opportunity. Following this discussion, J.P. Morgan introduced the Company G chief executive officer to Mr. Kendall.

Between June 22 and June 30, 2021, Denbury entered into separate customary confidentiality agreements with Company H, a large midstream company, Company I, an industrial gas company, Company J, a large energy and power company, Company K, an industrial gas company, and Company C. These confidentiality agreements either did not include standstill provisions or included standstill provisions that would terminate if Denbury agreed to be sold to a third party. Company C and Company K were subsequently granted access to a virtual data room with due diligence materials about Denbury.

On June 24, 2021, Messrs. Kendall and Allen, and other members of Denbury management, gave a presentation to Company F management regarding Denbury’s history, operations, financial results, reserves, energy transition and ESG strategy, and sustainability initiatives and other matters.

Also on June 24, 2021, representatives of Skadden notedCompany A, which had reached out to Denbury in late 2020 to discuss a potential CCUS joint venture, advised J.P. Morgan that ExxonMobil had delivered an initial draft merger agreement to XTO Energy earlier that dayCompany A was not interested in acquiring Denbury because it was not interested in acquiring any U.S. oil and gas assets; however, the representatives of Skadden describedCompany A expressed an interest in general termsexploring future partnership opportunities.

On June 25, 2021, a representative of J.P. Morgan discussed the structure proposedopportunity to explore a potential transaction with Denbury with Mr. van Veldhoven, including certain diligence matters, and the general contentencouraged ExxonMobil to provide an informal indication of interest in advance of the draft merger agreement as well as the general types of potential issues that often arise in transactions of the type provided for in the draft merger agreement. The XTO Energyscheduled Denbury board of directors meeting on July 15, 2021.

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On June 29, 2021, a representative of J.P. Morgan met with a business development executive at Company G to encourage Company G to enter into a confidentiality agreement with Denbury and schedule a management presentation. The Company G executive agreed to respond to the draft confidentiality agreement previously provided by J.P. Morgan and schedule a management presentation after the 4th of July holiday.

Also on June 29, 2021, representatives of Company E advised J.P. Morgan that it was withdrawing from the process because an acquisition of Denbury would either be highly dilutive to Company E’s shareholders or require the incurrence of substantial debt by Company E.

On June 30, 2021, a business development professional at Company B contacted Mr. Allen to advise that Company B had learned that Denbury was undergoing a strategic review process. Mr. Allen advised that if Denbury received serious interest from a third party regarding a combination or acquisition, Denbury would contact Company B.

On July 1, 2021, Messrs. Kendall and Allen and other members of management gave a presentation to representatives of Company C,regarding Denbury’s history, operations, financial results, reserves, energy transition and ESG strategy, and sustainability initiatives and other matters.

On July 7, 2021, Denbury entered into a customary confidentiality agreement with Company G. This confidentiality agreement included a standstill provision that would terminate if Denbury agreed to be sold to a third party. That same day, following the entry into the confidentiality agreement, Denbury management provided Company G management with a presentation regarding Denbury’s history, operations, financial results, reserves, energy transition and ESG strategy, and sustainability initiatives and other matters.

Also on July 7, 2021, Denbury management provided Company H management with a presentation regarding Denbury’s history, operations, financial results, reserves, energy transition and ESG strategy, and sustainability initiatives and other matters. Later that day, representatives of Company J advised J.P. Morgan that it was withdrawing from the process because Company J did not specifically discusswant to acquire Denbury’s EOR assets.

On July 8, 2021, a representative of J.P. Morgan met with Mr. van Veldhoven who advised that ExxonMobil was having difficulty valuing the termsCCUS business based on assumptions related to the number of the draft merger agreement and theemitters at an assumed $50 tax credit based on existing tax laws.

Also on July 8, 2021, representatives of Skadden notedCompany I advised J.P. Morgan that while they were interested in Denbury’s CCUS business and assets, they did not want to acquire Denbury’s EOR assets.

On July 12, 2021, executives of Company F advised representatives of J.P. Morgan that given recent increases in the trading price of Denbury common stock, Company F was not in a position to acquire the entire company; however, Company F would be interested in providing growth capital to Denbury.

Also on July 12, 2021, Denbury entered into a customary confidentiality agreement with Company L, an international oil and natural gas exploration and production company. This confidentiality agreement did not include a standstill provision.

On July 13, 2021, representatives of Company H advised J.P. Morgan that they would not be making a proposal because recent increases in the trading price of Denbury common stock had pushed Denbury’s valuation too high in Company H’s view relative to the expected timing of Denbury’s first CCUS cash flows.

On July 14, 2021, Messrs. Kendall and Allen, and other members of Denbury management, gave a presentation to representatives of Company K regarding Denbury’s history, operations, financial results, reserves, energy transition and ESG strategy, and sustainability initiatives and other matters. Following the meeting, representatives of Company K indicated to J.P. Morgan that Company K was very impressed with Denbury’s CCUS business, which in Company K’s view would fit well with Company K’s strategy; however, Company K advised that it would need to find a potential partner to acquire Denbury’s EOR business and assets.

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Also on July 14, 2021, an executive of Company G advised J.P. Morgan that while they were not yet prepared to review the draft merger agreement at the next meeting should the boardmake a formal indication of directors decideinterest, Company G was very interested in Denbury and requested additional due diligence materials. Later that day, Company C delivered a letter to continue discussions with ExxonMobil. Representatives of Barclays Capital discussed with the XTO Energy board of directors the various financial analyses regarding XTO Energy and the potential transaction with ExxonMobilJ.P. Morgan confirming that they would expect to perform and review with the board of directors at upcoming meetings should the board of directors decide to continue discussions with ExxonMobil and decide to retain Barclays Capital, as well as the various strategic alternatives and options (including XTO Energyit was strongly interested in continuing to operate onevaluate an all-cash acquisition of Denbury, but did not indicate a standalone basis) that the XTO Energy board of directors might consider. At the conclusion of the meeting, XTO Energy’s board of directors unanimously authorized members of senior management to continue discussions with ExxonMobil, including reviewing the draft merger agreement with the assistance and advice of Skadden and providing confidential due diligence information to ExxonMobil subject to the confidentiality agreement.purchase price.

On October 28, 2009, representatives of Skadden and representatives of Weil, Gotshal & Manges LLP and Covington & Burling LLP, ExxonMobil’s outside legal advisors on regulatory matters in connection with the potential transaction, held a conference call to begin preliminary discussions of regulatory approval aspects and the process relating thereto in connection with the proposed merger.

Also on October 28, 2009, the ExxonMobilThe Denbury board of directors held a regularly scheduled meeting during whichon July 15, 2021. As part of this meeting, a representative of J.P. Morgan summarized the status of the outreach to potential transaction with XTO Energy was discussed. Following this discussion,counterparties, including a summary of the ExxonMobilfeedback from the counterparties contacted, noting that 12 of those parties had executed confidentiality agreements and that seven had confirmed their interest in participating in the process. The Denbury board of directors concurred with management’s proposaldiscussed whether to continue discussions with XTO Energy regardingcontact additional potential counterparties, including Company B, and the proposed merger.

Between October 28, 2009 and November 3, 2009, XTO Energy’s senior management conducted due diligence sessions with ExxonMobil’s senior management in Irving, Texas regarding XTO Energy’s business and operations, and provided representativesreasons for not contacting such parties, including the risk of ExxonMobil with requested due diligence information and materials. During this time, each of XTO Energy and ExxonMobil and their respective advisors also reviewed certain publicly available information regarding the business of the other party.

On November 4, 2009, XTO Energy held a special meeting of its board of directors in Fort Worth, Texas during which, among other things, the board of directors received an update regarding the recent discussions with ExxonMobil and discussed matters relatingleaks to the proposed merger. Representatives of Skadden and Barclays Capital were present at this meeting. During this meeting, Mr. Simpson provided an update on the status of discussions with ExxonMobil to date and Messrs. Vennerberg and Keith A. Hutton, Chief Executive Officer of XTO Energy, and certain other members of XTO Energy’s senior management reported on the due diligence sessions that had been conducted. Representatives of Skadden again reviewed with the directors certain legal matters relating to their consideration of a proposed merger with ExxonMobil. Representatives from Skadden also reviewed and discussed with the board of directors the terms of the draft merger agreement provided by ExxonMobil on October 21, 2009, including, among other things, the restrictions on soliciting potential alternative transactionsmedia and the ability of XTO Energy to respond to unsolicited transaction proposals following entry into the agreement. During this discussion the board also discussed the potential advantages, disadvantages and consequences of a fixed exchange ratio of ExxonMobil common stock to XTO Energy common stock as provided in the draft merger agreement. Mr. Simpson discussed with the board of directors ExxonMobil’s concern regarding the amount and possible retention effects of payments to certain senior executive officers under certain existing employee compensation, benefit and severance arrangements relating tounlikelihood that such officers upon the occurrence of the proposed merger, and, together with representatives of Skadden, reviewed potential revisions to these arrangements to reduce and/or restructure the amounts thatcounterparties would be paid to these executive officersinterested in connection with the proposed mergeracquiring both Denbury’s CCUS assets and to enhance the retentive value of these arrangements. At this meeting, the XTO EnergyDenbury’s EOR assets. The Denbury board of directors also considereddiscussed the retentionimportance of financialpreventing the process from being a distraction on management, especially given the Denbury board of directors’ focus on building the CCUS business, executing on the EOR business and continuing to build value for Denbury stockholders. Following discussion, the Denbury board of directors determined to contact Company B and invite it to participate in the process. The Denbury board of directors, management and its advisors then discussed the next steps in connection with the proposed merger (with Mr. Randall excused from this portionprocess, including due diligence and management presentations. After discussion, the Denbury board of directors instructed J.P. Morgan to request that potential counterparties submit non-binding proposals by September 13, 2021. After the representatives of J.P. Morgan left the meeting, due to his employment with Jefferies and representatives of Barclays Capital excused as well). In considering the retention of Jefferies, the XTO EnergyDenbury board of directors discussed the proposed terms of an engagement letter with J.P. Morgan and instructed management to execute the J.P. Morgan engagement letter on the terms discussed with the Denbury board of directors.

On July 19, 2021, as directed by the Denbury board of directors, a representative of J.P. Morgan met with Mr. Randall’s role asvan Veldhoven to discuss next steps between Denbury and ExxonMobil. J.P. Morgan advised Mr. van Veldhoven that Denbury was in discussions with other potential counterparties and that the Denbury board of directors determined to formalize the process and seek proposals by September 13, 2021, the day before the scheduled Denbury board of directors meeting.

On July 22, 2021, Mr. Allen contacted a directorrepresentative of XTO Energy and a senior member of Jefferies and determinedCompany B to advise that engaging Jefferies as financial advisor toDenbury was gauging third party interest in acquiring the company and having accessinvited Company B to its expertise, including its significant expertiseparticipate in Denbury’s process. On July 26, 2021, after Company B indicated they were interested in participating in the oilprocess, J.P. Morgan sent Company B a draft confidentiality agreement.

Also on July 22, 2021, representatives of Company L advised J.P. Morgan that it was withdrawing from the process because Company L was focused on permanent geological carbon dioxide storage only and gas industry (and unconventional natural gas assets and companies) and industry-related transactions, would be valuablethat EOR as a transition to the company and outweighed any perceived conflictthis focus area was inconsistent with Company L’s plans.

On July 26, 2021, Denbury formally engaged J.P. Morgan (effective as of interest. The board (other than Mr. Randall, who did not participate) unanimously authorized entry into engagement letters with each of Barclays Capital and JefferiesMay 20, 2021) to act as XTO Energy’sits lead financial advisorsadvisor in connection with a possible transaction.

On July 30, 2021, Denbury entered into a separate customary confidentiality agreement with Company B, given the proposed merger. XTO Energy selected Barclays Capitalshift in focus from consideration of a CCUS joint venture to a corporate acquisition. This confidentiality agreement contained a standstill provision that would terminate if Denbury agreed to be sold to a third party. Company B was subsequently granted access to the virtual data room.

On August 3 and Jefferies asAugust 10, 2021, a representative of Company C contacted Mr. Kendall and a representative of J.P. Morgan, respectively, to discuss the timeline for submitting a non-binding proposal and indicated to J.P. Morgan that a September 13 submission timeline was reasonable.

On August 17, 2021, Messrs. Kendall and Allen and other members of Denbury management, together with J.P. Morgan, met with members of Company B management and its financial advisors to discuss prospective financial information.

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On August 19, 2021, Messrs. Kendall and Allen and other members of Denbury management, together with J.P. Morgan, met with ExxonMobil representatives, including Mr. van Veldhoven and Mr. Powell, to discuss prospective financial information. Later that day, Mr. van Veldhoven met with a representative of J.P. Morgan and advised that there remained an internal debate within ExxonMobil as to whether to pursue a transaction with Denbury.

On August 23, 2021, Mr. Kendall met with a member of Company B management to discuss the potential transaction, in connectionparticular Company B’s diligence efforts on the EOR business.

On August 24, 2021, Messrs. Kendall and Allen and other members of Denbury management, together with J.P. Morgan, met with members of Company G management and its financial advisors to discuss prospective financial information.

On August 25, 2021, at the proposed merger based upon, among other things, the fact that both are internationally recognized investment banking firms with knowledgedirection of Denbury management, J.P. Morgan distributed a bid procedures letter to each of the industriesfive potential counterparties who remained interested in which XTO Energy operates, substantial experienceacquiring Denbury outlining the procedures for submitting a non-binding proposal, on or before September 13, 2021, to acquire Denbury.

On August 30, 2021, executives of Company B contacted J.P. Morgan and advised that Company B would likely submit a proposal by September 13 but was not interested in transactions comparableDenbury’s EOR assets and would only bid on the CCUS business and assets.

On September 3, 2021, a representative of J.P. Morgan reached out to the proposed mergerchief executive officer of Company M, a large energy company backed by a large investment firm. Over several discussions, Company M’s chief executive officer said he thought Denbury was a very interesting company, but given the early stage nature and familiarity with XTO Energy. At this meeting and at subsequent meetings, the non-employee directors (William H. Adams III, Lane G. Collins, Phillip R. Kevil, Mr. Randall, Scott G. Sherman and Herbert D. Simons, each of whom, other than Mr. Randall, is an “independent” director under New York Stock Exchange rules) met in executive session with representatives from Skadden in order to provide outside directors with an opportunity to discuss, among other things, the proposed merger, compensation, benefit and severance matters and the potential waiver of amounts that might become payable under the terms of XTO Energy’s Amended and Restated Outside Directors Severance Plan, which provided that, upon various triggering events, including upon completionregulatory risk of the proposed merger, each non-employee director would receiveCCUS business, Company M thought the valuation was too high and it was not interested in the EOR assets. Company M therefore declined to pursue discussions further and did not enter into a lump-sum cash payment in accordance with the terms of the plan. Following the executive session of the non-employee directors, the full board of directors reconvened and following further discussion authorized continued discussions with ExxonMobil.confidentiality agreement.

On November 5, 2009, Skadden deliveredSeptember 8, 2021, a revised draftrepresentative of the merger agreement reflecting XTO Energy’s initial comments thereonCompany F informed a representative of J.P. Morgan that while Company F was highly interested in Denbury, it was not able to Davis Polk. Alsooffer sufficient valuation, and therefore, Company F would not submit a proposal on November 5, 2009, XTO EnergySeptember 13.

On September 9, 2021, Denbury entered into a financial advisory engagement lettercustomary confidentiality agreement with Barclays Capital.Company N, a major investment firm with focuses in the technology, energy, transportation and communications industries. This confidentiality agreement included a standstill provision that would terminate if Denbury agreed to be sold to a third party.

On November 6, 2009, members of senior management of XTO Energy, including Messrs. Simpson, Hutton and Vennerberg, and ExxonMobil, including Mr. Tillerson, Andrew P. Swiger, Senior Vice President of ExxonMobil, and Mark W. Albers, Senior Vice President of ExxonMobil, met in Irving, Texas to discuss, among other things, various XTO Energy operational matters and the status of the due diligence process to date, including the schedule for additional due diligence review by XTO Energy of ExxonMobil. At the conclusion of this meeting, Messrs. Simpson and Tillerson met separately and discussed, among other things, matters relating to the proposed merger, during which Mr. Simpson presented to Mr. Tillerson a summarySeptember 13, 2021, J.P. Morgan received feedback from several of the potential treatment of XTO Energy’s current compensation, benefit and severance arrangements in connection with the proposed merger applicable to XTO Energy employees, including potential changes to the arrangements affecting senior executive officers that would subject to continued service requirements certain payments due to senior executive officers upon completioncounterparties. None of the merger in order to facilitatecounterparties submitted a successful transaction and integration.

On November 9, 2009, XTO Energy held a special meeting of its board of directors in Fort Worth, Texas to discuss and consider the status of the proposed merger with ExxonMobil and related matters. Representatives of Skadden and Barclays Capital were present at this meeting. Messrs. Simpson, Hutton and Vennerberg reviewed with the board of directors, among other things, the substance of their discussions with Mr. Tillerson and the members of ExxonMobil’s management on November 6, 2009. Representatives of Barclays Capital reviewed with the XTO Energy board of directors, among other things, the financial position of XTO Energy, then-current economic challenges and the state of the global economy, the oil and gas industry and the mergers and acquisitions market. In this context, Barclays Capital reviewed a range of potential strategic alternatives and options for XTO Energy that the XTO Energy board of directors might consider, including XTO Energy continuing to operate as an independent company, certain recapitalization transactions (including a leveraged recapitalization and a sponsor-assisted recapitalization), a leveraged buyout and dividing XTO Energy’s oil and gas businesses. Representatives of Barclays Capital also discussed with the XTO Energy board of directors their viewconforming proposal. Company C advised that it was unlikelywithdrawing from the opportunity because it could not provide an attractive premium given that parties other than ExxonMobilthe trading price of Denbury common stock had increased above $70 per share. Company K declined to submit a proposal because it was unwilling to acquire Denbury’s EOR assets. Both Company C and Company K advised that each would be interested in acquiring Denbury’s CCUS business and assets if Denbury were to consider such a strategic transaction with XTO Energy attransaction. Company G advised that it remained interested but was not prepared to submit a meaningful premium. Priorproposal. Company B advised that it required more time internally before it could submit a proposal and was not certain whether it would be willing to acquire the meeting, Barclays Capital and Jefferies shared their views and perspectives relatingentire company. Mr. van Veldhoven similarly advised J.P. Morgan that ExxonMobil remained interested but was not prepared to the oil and gas industry environment and the various companies in the industry. In addition, Barclays Capital reviewed with the board of directors the relative price performance of XTO Energy and Exxon Mobil, illustrative exchange ratios and certain publicly available information regarding ExxonMobil. Representatives of Skadden reviewed certain legal matters relating to the board of directors’ consideration of the proposed merger with ExxonMobil. Following conclusion of the board of directors meeting, the non-employee directors (other than Mr. Simons, who had been present at the board meeting) met separately in executive session with representatives of Skadden in order to provide outside directors with an opportunity to discuss without members of management present, among other things, the information presented during the meeting of the full board of directors and the potential waiver of amounts that might become payable under the terms of XTO Energy’s Amended and Restated Outside Directors Severance Plan.submit a proposal.

On November 13, 2009, as part of the continuing due diligence process, Louis G. Baldwin, Executive Vice President & Chief Financial Officer of XTO Energy, and representatives of ExxonMobil met in Irving, Texas to discuss ExxonMobil’s financial due diligence of XTO Energy.

On November 16, 2009, Mr. Tillerson telephoned Mr. Simpson to discuss the current status of discussions and the due diligence process.

On November 17, 2009, XTO Energy’sThe Denbury board of directors held a regularly scheduled meeting on September 14, 2021. Denbury management and representatives of J.P. Morgan provided the Denbury board of directors with a summary of the feedback provided by the potential counterparties.

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On September 15, 2021, Messrs. Kendall and Allen, and other members of Denbury management, gave a presentation to representatives of Company N regarding Denbury’s history, operations, financial results, reserves, energy transition and ESG strategy, and sustainability initiatives and other matters.

On September 16, 2021, a representative of Company B informed J.P. Morgan and Mr. Kendall that it was not going to submit a proposal, citing Company B’s disinterest in Fort Worth, Texasthe EOR assets due to concerns over asset retirement obligations, and Company B’s difficulty valuing the CCUS business and assets, which it stated would require significant capital expenditures in the future to fully develop.

On September 17, 2021, a representative of Company N informed J.P. Morgan that Company N was withdrawing from the process because it viewed Denbury as primarily an EOR business and believed Denbury would need a long time and significant capital to achieve its CCUS goals.

On September 23, 2021, a business development executive of Company G advised J.P. Morgan that Company G was not going to submit a proposal at this time given Company G’s desire to maintain a certain level of cash on its balance sheet.

On November 5, 2021, Mr. van Veldhoven advised J.P. Morgan that the ExxonMobil management committee determined not to move forward with an acquisition of Denbury because the trading price of Denbury common stock had increased beyond ExxonMobil’s view on valuation.

On November 10, 2021, Mr. Kendall and Mr. Allen accepted an introductory meeting with the chief executive officer and chief financial officer of Company Y, an independent oil and gas company with a smaller market capitalization than Denbury. At the meeting, the chief executive officer of Company Y suggested that the companies should consider a merger. On December 10, 2021, senior management from Denbury, including Mr. Kendall and Mr. Allen, met with the senior management of Company Y to share presentations and information on the respective companies. At a meeting of the Denbury board of directors on December 16, 2022, the Board determined not to pursue a potential merger with Company Y due to lack of strategic alignment, local regulatory concerns and diversity in operations between Denbury and Company Y. 

Denbury management and J.P. Morgan, at the direction of the Denbury board of directors and Denbury management, maintained contact with several parties throughout the remainder of 2021 and into 2022 who continued to conduct due diligence during such time. High level discussions regarding a potential transaction between Denbury and such parties continued, but no offer was received during such time.

On January 20, 2022, Mr. Kendall had dinner with Neil Chapman, a Senior Vice President of ExxonMobil, at which the two discussed Denbury’s and ExxonMobil’s common interests in CCUS and potential future collaboration.

In June 2022, a representative of TPH&Co., the energy business of Perella Weinberg Partners (“TPH”), who had previously worked for J.P. Morgan, met with Messrs. Kendall and Allen to discuss reinitiating discussions with potential counterparties who may be interested in acquiring Denbury.

On June 28, 2022, the representative of TPH had dinner with Mr. Chapman and suggested that ExxonMobil should reevaluate Denbury, given the progress Denbury had made with its CCUS business plan. Mr. Chapman agreed that Denbury was worth looking into again and suggested that TPH meet with Dan Ammann, who had recently been hired as ExxonMobil’s President, Low Carbon Solutions. Following the dinner, Mr. Chapman introduced Mr. Ammann to the representative of TPH.

On June 29, 2022, the representative of TPH had dinner with Mr. van Veldhoven who agreed that discussing Denbury with Mr. Ammann was an appropriate next step.

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On July 6, 2022, the representative of TPH met with a senior executive of Company C, who advised that Company C remained interested in potential CCUS partnership opportunities with Denbury, but that due to senior executive changes at Company C, it would not be interested in acquiring Denbury.

On July 7, 2022, the representative of TPH had a videoconference with Mr. Ammann and provided Mr. Ammann with an overview of Denbury and the strategic rationale for a potential transaction. Mr. Ammann requested an introduction to Mr. Kendall and Mr. Allen. Thereafter, the representative of TPH coordinated a dinner between Denbury management and management of ExxonMobil’s Low Carbon Solutions business for the following week.

On July 14, 2022, Messrs. Kendall and Allen met with Mr. Ammann and Mr. Darling, during which Messrs. Kendall and Allen provided an overview of Denbury and its operations. Mr. Ammann expressed interest in conducting due diligence on Denbury.

On July 19, 2022, Mr. Ammann contacted Mr. Kendall to advise that he had spoken with Darren Woods, ExxonMobil’s Chairman and Chief Executive Officer, who agreed that ExxonMobil should undertake further due diligence in order to develop a deeper understanding of the potential opportunity. Over the course of the next few weeks, ExxonMobil and Denbury held a series of due diligence calls and Denbury provided ExxonMobil with due diligence materials via a virtual data room pursuant to the terms of the existing confidentiality agreement.

On July 27, 2022, Senators Chuck Schumer and Joe Manchin announced an agreement to pass legislation focused on climate change and taxes known as the Inflation Reduction Act (the “IRA”) that was signed into law by President Biden on August 16, 2022. The IRA was a landmark federal law that, among other things, increased the tax credit for capturing and storing carbon to $85 per ton. Given that Denbury owns the largest CO2 pipeline network in the United States, the passage of the IRA had a dramatic impact on the trading price of Denbury common stock. On the day prior to the announcement by Senators Schumer and Manchin, Denbury’s trading price was $61.95 per share, and by August 16, 2022, the date President Biden signed the IRA into law, the trading price had increased to $78.90 per share, a 27.4% increase.

On July 29, 2022, an executive of Company B and Mr. Kendall exchanged emails noting the positive legislative movement supporting CCUS policy, and agreed to meet later in the summer about renewing consideration of a potential strategic transaction.

On August 2, 2022, representatives of TPH had dinner with Messrs. Ammann and Darling during which Mr. Ammann expressed ongoing interest in moving forward with discussions with Denbury. A representative of TPH conveyed to Mr. Ammann that given other interested parties, such a transaction would need to be at a meaningful premium to Denbury’s trading price.

Also on August 2, 2022, the Denbury board of directors approved, and Denbury entered into, an engagement letter with TPH as a financial advisor in connection with a possible transaction. TPH was selected based on its industry experience and its knowledge of Denbury, ExxonMobil and other interested parties, as well as Denbury’s prior working relationship with a representative of TPH who previously worked for J.P. Morgan. Denbury and J.P. Morgan also revised the existing J.P. Morgan engagement letter to provide for both J.P. Morgan and TPH to work together on Denbury’s behalf.

On August 10, 2022, TPH contacted executives at Company H to see if Company H would consider reevaluating a strategic transaction with Denbury. The Company H executives conveyed that Company H remained uninterested in acquiring Denbury.

On August 17, 2022, Bloomberg published an article stating that Denbury was working with an adviser to explore options, including a sale of the company. The trading price of Denbury common stock increased 12.4% to $88.72 per share in one day following the publication of the Bloomberg article.

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Following the publication of the Bloomberg article and its impact on Denbury’s stock price, Messrs. Kendall and Ammann agreed to pause discussions.

Also following the publication of the Bloomberg article, several potentially interested third parties reached out to Denbury management to express interest in evaluating a strategic transaction, including Company O, a large midstream company, Company P, an oil and natural gas exploration and production company, and Company Q, an oil, chemical and alternative energy company.

In late August 2022, an executive of Company R, a large oil and gas exploration and production company, expressed some interest in Denbury; however, after discussions with Messrs. Kendall and Allen, and given recent news about Company R’s strategy, Denbury, with advice from TPH, determined the risk of further leaks was too high to engage in discussions with Company R. The Company R executive never followed up on the conversation or expressed further interest directly to Denbury.

On August 25, 2022, Company S, an oil and natural gas exploration and production company, reached out to a representative from J.P. Morgan to express interest in Denbury’s EOR assets.

On September 2, 2022, Mr. Kendall had lunch with an executive of Company B during which the Company B executive reiterated that Company B continued to struggle conceptually with a corporate acquisition that included Denbury’s oil and gas assets, particularly given abandonment liability concerns. Mr. Kendall suggested that a way to alleviate Company B’s concern would be to have representatives of Company B anonymously visit some of Denbury’s oil and gas properties and the two agreed to schedule such visits in the near term.

Later that afternoon, Mr. Kendall spoke with Mr. Ammann who advised Mr. Kendall that ExxonMobil was continuing to evaluate how a combination with Denbury could accelerate its CCUS efforts.

On September 20, 2022, Mr. Ammann conveyed to Mr. Kendall that ExxonMobil’s valuation was in line with Denbury’s current stock price, but Mr. Ammann stated that ExxonMobil was willing to do more work to understand if Denbury’s plans had additional value not yet reflected in ExxonMobil’s analysis. Mr. Ammann and Mr. Kendall agreed to hold a meeting on October 11, 2022 in Houston.

On September 21, 2022, a representative from Company S emailed a representative from J.P. Morgan to express that they would not be in a position to submit an indicative proposal for Denbury’s EOR assets.

On September 27, 2022, TPH contacted executives at Company G who advised that Company G remained uninterested in acquiring Denbury.

On October 6, 2022, Mr. Kendall had lunch with the chief executive officer of Company T, a large midstream company, who discussed a potential interest in a strategic transaction with Denbury; however, after further discussions with other executives, the chief executive officer of Company T called Mr. Kendall the next week and said that Company T was not interested in acquiring Denbury for valuation reasons.

Also on October 6, 2022, Mr. Allen met with representatives of Company U, a midstream company, to provide an overview of Denbury’s assets and operations.

On October 10, 2022, Bloomberg published an article stating that ExxonMobil was considering an acquisition of Denbury and that the talks were “at a preliminary stage.” Denbury’s common share price increased from $92.70 to $99.02, a 6.8% increase (in contrast, the market trading prices of both the selected oil companies and selected energy transition companies the Denbury board of directors reviewed were on average down 1.3% and 1.9%, respectively). In light of the news article, Mr. Kendall and Mr. Ammann agreed to cancel the meetings planned for the following day. An executive of Company B also contacted Mr. Kendall that day to inquire about the article and whether there was time for a transaction with Company B to be considered. Without confirming the contents of the article, Mr. Kendall replied that there was time, but that Company B should move quickly if it was serious about acquiring Denbury.

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On October 13, 2022, representatives of TPH met with an executive of Company V, an oil and gas exploration company, and discussed whether Company V might have interest in Denbury given the recent Bloomberg articles. The executive of Company V indicated there might be interest and agreed to discuss with other Company V executives.

On October 14, 2022, an executive of Company B contacted Mr. Kendall and advised him that Company B had a valuation below Denbury’s current stock price due to its valuation of the EOR business. The executive of Company B requested additional due diligence information in the hopes of improving its valuation of Denbury.

From October 14 through October 26, 2022, executives of Company I, Company U and Company V all confirmed to TPH that they were not interested in considering an acquisition of Denbury.

On October 19, 2022, Denbury entered into a customary confidentiality agreement with Company W, a large energy company. This confidentiality agreement did not include a standstill provision. Thereafter, Company W was granted access to a virtual data room with due diligence materials about Denbury.

On October 26, 2022, members of Denbury’s CCUS management met with representatives of Company B to provide additional due diligence concerning Denbury’s CCUS business.

The Denbury board of directors met on October 27, 2022. A representative of TPH summarized for the Denbury board of directors an overview of 28 potential counterparties. Of these, 18 of the potential counterparties had indicated that they were not interested in acquiring Denbury, largely due to disinterest in Denbury’s EOR assets and valuation concerns given Denbury’s trading price. Two of the potential counterparties had not been contacted but, it was noted, neither had reached out to Denbury management or to TPH or J.P. Morgan to inquire about Denbury after either of the Bloomberg articles. The representative of TPH then summarized the engagement with each of ExxonMobil, Company B, Company O, Company P, Company Q, Company R, Company S and Company W, noting that of these, ExxonMobil and Company B were the only ones actively engaged.

On November 1, 2022, members of Denbury management and ExxonMobil management met by videoconference to discuss additional information needed by ExxonMobil related to Denbury’s CCUS business and assets. Throughout November, December and early January 2023, members of Denbury’s CCUS management met numerous times with ExxonMobil management to provide technical due diligence around Denbury’s CCUS business and assets.

On November 11, 2022, representatives from Denbury held an introductory meeting with Company W to discuss respective business strategies and operations. Subsequently, representatives from Company W conveyed to Denbury that while it was not interested in pursuing an acquisition of Denbury, they would be interested in working together commercially in the future.

On November 16, 2022, a representative of TPH met with an executive of Company H who had led Company H’s evaluation of Denbury in 2021 to inquire whether Company H might be interested in reevaluating Denbury in light of the recent news articles about a potential sale of Denbury. The executive of Company H noted that the Company H executive team had discussed Denbury recently and there was no interest in pursuing discussions again.

On November 17, 2022, an executive from Company B reached out to Mr. Kendall to request a meeting after Thanksgiving. Thereafter, on December 9, 2022, representatives of Company B met with Messrs. Kendall and Allen as a follow-up from Company B’s recently completed site visits. During the course of this meeting, a representative of Company B advised Messrs. Kendall and Allen that Company B could not offer a valuation at or above Denbury’s current trading price.

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On December 13, 2022, Denbury hosted a CCUS business outlook event for public investors and analysts, during which Denbury management reviewed its CCUS strategy, accomplishments, growth plans and projected financial information that was broadly in line with projected financial information provided then and subsequently to potentially interested counterparties. During the presentation the Company highlighted its accomplishments to date, including 20 million tons per annum of CO2 transport and storage agreements with eight different counterparties, with the largest contracts associated with proposed blue ammonia plants, and the approximately two billion tons of potential CO2 storage spread across seven contracted sequestration sites. At various times following this event and through the spring of 2023, Denbury management and the Denbury board of directors heard concern from several existing stockholders about risks associated with development of several of the greenfield projects that Denbury had agreements with and the amount of capital Denbury would require to finance the expansion of the CCUS business. In particular, existing stockholders were concerned about the dilutive effect of issuing additional equity or equity-linked securities and its effect on Denbury’s stock price. Several stockholders urged Denbury to explore a sale of the company.

On January 12, 2023, during a CNBC broadcast, David Faber speculated that “Denbury might be something Exxon is still interested in.”

On January 18, 2023, Messrs. Kendall and Allen had a telephone call with Mr. Ammann. Mr. Ammann advised that he had recently discussed the potential acquisition with Mr. Woods and that ExxonMobil remained interested in Denbury. Mr. Ammann advised that ExxonMobil was still working on valuation but at the current trading price (mid $80s) it could only do a no-premium transaction.

On February 27, 2023, Mr. Kendall had a further conversation with Mr. Ammann, who continued to express interest and asked if it would be helpful if he put a proposal in writing. Mr. Kendall said that if it was on the right terms then a proposal in writing could be helpful. Mr. Ammann responded that he would work towards that.

On March 1, 2023, after the ExxonMobil management teams had substantially completed the diligence work on Denbury’s CCUS value potential, a representative of TPH contacted Mr. Ammann to discuss next steps, noting that any proposal would need to be at a decent premium to the then-stock price (low-to-mid $80s). Mr. Ammann advised that ExxonMobil believed that Denbury’s stock price still reflected an uplift due to takeover speculation and that a premium transaction would require ExxonMobil to give up a significant portion of the potential synergy value for an early stage business with meaningful execution risk, and would therefore not be something ExxonMobil would entertain. However, Mr. Ammann agreed to take into account the additional diligence information that Denbury’s CCUS team and TPH had provided and work towards making a proposal.

During an industry event in early March 2023, a senior executive of Company X, an oil and natural gas exploration and production company, met with a representative of TPH and mentioned a strategic interest in Denbury. A representative of TPH conveyed this interest to Messrs. Kendall and Allen and discussed the potential of Company X to undertake an acquisition of Denbury. Sensitive to recent leaks, Messrs. Kendall and considered, amongAllen authorized TPH to have a highly confidential meeting only with Company X’s chief executive officer and the senior executive who had conveyed Company X’s interest.

At the same industry event, Mr. Kendall met with a senior executive at Company A, who expressed a rekindled interest in discussing an acquisition of Denbury. However, in subsequent conversations, after conferring with Company A’s chief executive officer, the Company A executive advised that while there was interest, it was not high enough to warrant executing a confidentiality agreement or seriously evaluating an acquisition proposal.

On March 21, 2023, representatives of TPH had a meeting with executives at Company X, using only publicly available information. Following the meeting, an executive of Company X contacted a representative of TPH to advise that Company X was willing to enter into a confidentiality agreement to further explore an acquisition of Denbury. On March 24, 2023, Denbury entered into a customary confidentiality agreement with Company X. This confidentiality agreement did not include a standstill provision.

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On March 22, 2023, Mr. Kendall spoke with Mr. Ammann. Mr. Ammann indicated that ExxonMobil was prepared to make an all-cash offer to acquire Denbury. Later that day, ExxonMobil provided a written non-binding offer letter to Denbury proposing to acquire Denbury for $83.00 in cash per share of Denbury common stock (the “March 22 Offer”), which represented a 2.9% premium over Denbury’s trading day close price of $80.67. Management distributed the March 22 Offer to each member of the Denbury board of directors. Members of the Denbury board of directors requested that management and its advisors prepare an analysis of the March 22 Offer in advance of the regularly scheduled Denbury board of directors meeting scheduled for March 31, 2023.

In the days following receipt of the March 22 Offer, Denbury’s trading price, following the trend of other things,upstream companies during this period, increased to well above the proposed $83 per share price set forth in the March 22 Offer.

On March 27, 2023, Messrs. Kendall and Allen, and other members of Denbury management, gave a presentation to Company X management regarding Denbury’s history, operations, financial results, reserves, energy transition and ESG strategy, and sustainability initiatives and other matters.

The Denbury board of directors held a regularly scheduled meeting on March 31, 2023. As part of this meeting, a representative from Vinson & Elkins presented the Denbury board of directors with an overview of the fiduciary duties in considering a potential merger with ExxonMobil.or sale of the company. Representatives of SkaddenJ.P. Morgan and Barclays Capital were present at this meeting. Messrs. Simpson, Vennerberg and HuttonTPH provided an update regardingoverview of the current status of discussions with ExxonMobil, since the prior meetingCompany A, Company B, Company R and Company X. Mr. Kendall also provided a summary of the board of directors, including the status of ExxonMobil’s due diligence on XTO Energyhis recent communications with Company A and due diligence by XTO Energy on ExxonMobil. The Denbury board of directors discussed among other things, the various challengesprocess and opportunities faced by XTO Energy intimeline for executing a potential transaction, including a discussion of the marketplace, potential risks and challenges of

continuing as an independent company and potential benefits to XTO Energy and its stockholdersrisk of a merger with ExxonMobil. In this regard, the XTO Energy board of directors noted, among other things, that increasing competition in the U.S. natural gas industry together with technological advancements in drilling methods could result in increased natural gas supply and adversely affect the profitability of producers. The increased competition could make it more difficult for XTO Energy to continue its growth at historical levels, develop existing assets and pursue additional asset acquisitions given its financial resources and cost of capital. The board of directors discussed how a combination with a more diversified company like ExxonMobil could provide for a potential for enhancement of value for XTO Energy’s stockholders because the combined company would have significantly greater financial resources, easier access to capital, larger scale of operations and a deeper, more diverse portfolio of assets (including increased geographic scope, proved reserves and production capacity). Representatives of Barclays Capital reviewed with the XTO Energy board of directors its preliminary financial analyses regarding the proposed merger, which analyses had been discussed, along with related matters, priorleak to the meeting by representatives of Jefferiesmedia in conducting a broad outreach, and Barclays Capital. The XTO Energy board of directors discussedthe fact that prior outreach efforts with its financial advisors a number of matters, including the value that might be obtained by XTO Energy stockholders in the proposed merger as compared to the value of XTO Energy on a standalone basis. The XTO Energy board of directors also discussed with its financial advisors whether a third party was likely to propose an alternative strategic transaction with XTO Energy that could be competitive with the transaction being proposed by ExxonMobil, concluding that it was unlikely a third party could do so given the size of XTO Energy and the number of parties with the ability to andpotential counterparties did not generate other interest in (based on the strategic focusan acquisition of such parties) proposing such an alternative transaction. It was also noted that other potential strategic alternatives, including a transaction with a financial buyer, would require significant debt financing, the arrangement of which would add uncertainty of closing and would likely not be practical given the current economic and credit market conditions.Denbury. The board of directors also discussed with its advisors the potential risks of approaching other parties about an alternative strategic transaction, including the risk of such approaches becoming public or causing ExxonMobil to delay or terminate discussions with XTO Energy regarding the merger. It was also noted that conducting a market check could interfere with or distract from the operation of the business. In addition, the board of directors discussed with its advisors that if the board of directors ultimately approved the entry into a merger agreement with ExxonMobil, such a merger agreement would provide for the potential ability, subject to certain restrictions, to have discussions with unsolicited third parties that made an offer to XTO Energy following the execution of the merger agreement with ExxonMobil. At this meeting, XTO Energy’s non-employee directors met separately in executive session with representatives of Skadden in order to provide outside directors with an opportunity to review, among other things, the proposed merger, compensation, benefit and severance matters and the discussion between theDenbury board of directors and its financial advisors.

On November 18, 2009, Davis Polk deliveredadvisors discussed that ExxonMobil, Company A, Company B, Company R, and Company X were the most logical potential acquirers of Denbury given their size, strategic fit and prior interest in a revised draft of a merger agreementtransaction with Denbury. In these discussions it was noted that Company B was unlikely to Skadden reflecting ExxonMobil’s comments. Following receipt of the draft merger agreement, Skadden reviewed the draft merger agreementmove quickly given Denbury’s prior experience with members of XTO Energy senior management.

On November 19, 2009, Mr. Tillerson telephoned Mr. Simpson and discussed with him the potential changes to XTO Energy’s compensation, benefit and severance arrangements reflected in the initial proposal presented by Mr. Simpson to Mr. Tillerson at their meeting on November 6, 2009. Among other matters, Mr. Tillerson highlighted the need for further modifications to the compensation-related proposal, including modifications to enhance the retentive value of the arrangements. On November 23, 2009, Mr. Simpson communicated to Mr. Tillerson proposed revisions to such arrangements that would further reduce the overall payments to XTO Energy’s senior executive officers and enhance the retention features of these arrangements.

On November 20, 2009, XTO Energy submitted due diligence information requests to ExxonMobil.

On November 24, 2009, at a regularly scheduled meeting of the ExxonMobil board of directors attended by certain members of ExxonMobil’s senior management and a representative of Davis Polk, ExxonMobil’s senior management updated the ExxonMobil board of directors on discussions with XTO Energy. ExxonMobil’s management discussed with the ExxonMobil board of directors the rationale for the transaction, the effect of

integrating XTO Energy into ExxonMobil’s operating modelCompany B and the market valuation of XTO Energy. Also at the meeting, the Davis Polk representative provided an overview of the proposed merger, including the material transaction terms set forth in the draft merger agreement previously providedfact that Company B stated it would need to the ExxonMobil board of directors, and reviewed certain legal matters relating to the board of directors’ consideration of the proposed merger. Following discussion regarding the merits of the proposed merger with XTO Energy, the ExxonMobil board of directors agreed that management should continue its discussions with XTO Energypartner with a viewprivate equity firm in order to management presenting a possible transaction for approval toacquire the ExxonMobil board of directors within the next several weeks.

On December 2, 2009, Messrs. Simpson and Tillerson met in Irving, Texas to discuss the status of discussions between XTO Energy and ExxonMobil regarding the proposed merger. Referring to the draft merger agreement that had been delivered to XTO Energy on November 18, 2009, Mr. Simpson and Mr. Tillerson discussed certain principal terms of the draft merger agreement, including the end date after which either party could terminate the agreement, certain exceptions to the definition of “material adverse effect” and other provisions. Mr. Simpson expressed that he and the XTO Energy board of directors had instructed XTO Energy’s legal advisors to focus on provisions in the draft merger agreement relating to certainty of closing and value to the XTO Energy stockholders. Mr. Simpson also discussed his and the XTO Energy board of directors’ belief that maintaining the XTO Energy facilities and brand, at least for a transitional period of time, were important factors in successfully integrating XTO Energy’s business and culture within ExxonMobil following the closing of a potential transaction. Mr. Tillerson indicated that he also believedEOR business. Additionally, it was importantnoted that Company R was interested in acquiring a different upstream entity and unlikely to maintain certain key members of management, including Mr. Simpson, involved in the operations following the closing of any potential transaction. Messrs. Simpson and Tillerson reviewed the proposals regarding potential changes to XTO Energy’s existing compensation, benefit and severance arrangements affecting XTO Energy’s senior executive officers. Mr. Tillerson suggested that some form of consulting arrangement with each of the named executive officers, which conditions certain of the benefits to be paid as a result of the proposed merger on the performance of consulting services and includes appropriate covenants not to compete, would be appropriate and enable ExxonMobil to utilize the expertise of the named executive officers to help manage and continue to develop the combined company’s unconventional natural gas business for the benefit of the combined company’s stockholders. Messrs. Tillerson and Simpson also discussed the scheduling of future reviews by the companies’ respective boards of directors and possible time frames within which a definitive agreement might be reached. ExxonMobil also delivered to XTO Energy documents responsive to its due diligence requests on December 2, 2009.

Between December 2 and December 11, 2009, Messrs. Tillerson and Simpson spoke intermittently by telephone to update each other on the progress of negotiations on the merger agreement and the amendments to the XTO Energy compensation, benefit and severance arrangements, and to schedule an in-person meeting at which they would seek to resolve any remaining open issues, including negotiating the potential exchange ratio at which XTO Energy shares would be converted into shares of ExxonMobil common stock in the merger.

On the afternoon of December 4, 2009, the board of directors of XTO Energy held a special telephonic meeting with representatives of Skadden and Barclays Capital participating.consider acquiring Denbury. The XTO Energy board of directors reviewed the recent discussions with ExxonMobil since the board of directors’ prior meeting. The XTO EnergyDenbury board of directors also discussed the recent trading prices of XTO Energy and ExxonMobil common stock. Representatives of Skadden noted that they had prepared a mark-upreceipt of the draft merger agreement last distributed by Davis PolkMarch 22 Offer and reviewed with theDenbury’s potential responses. The Denbury board of directors, certain ofmanagement and their advisors discussed diligence materials and information required for the principal terms and conditions of the draft merger agreement, including certain provisions regarding the definition of “material adverse effect,” the circumstances under which XTO Energy’sDenbury board of directors could change or withdraw its recommendation inand management review, including, among other materials, updated and detailed financial projections and analyses, including detailed financial evaluations of Denbury and a detailed comparison of Denbury as a standalone company versus a strategic alternative. With respect ofto financial projections, the proposed merger, the circumstances under which the merger agreement could be terminated and the circumstances under which a termination fee would be payable by XTO Energy, the post-closing operation of the XTO Energy business within ExxonMobil and certain other provisions relating to closing certainty. In addition, the board of directors discussed restrictions in the draft merger agreement on XTO Energy’s ability to provide information to and have discussions with a third party that makes an unsolicited transaction proposal

following signing of the merger agreement (including prohibitions on the initiation or solicitation of alternative transaction proposals, the requirement to enter into a confidentiality agreement with such third parties and an obligation to provide prior notice to ExxonMobil of its intention to take certain actions or share information with third parties). These restrictions are discussed in detail under “The Merger Agreement—No Solicitation by XTO Energy” beginning on page [] of this proxy statement/prospectus. Following review of the draft merger agreement, the XTO Energy board of directors unanimously instructed Skadden to deliver a revised draft merger agreement to Davis Polk and ExxonMobil. Representatives of Barclays Capital and members of XTO Energy’s senior management described to the board of directors materials delivered to XTO Energy by ExxonMobil in response to XTO Energy’s due diligence request and noted that a due diligence session was scheduled to take place in Irving, Texas the following afternoon, during which representatives of Barclays Capital and members of XTO Energy’s senior management would meet with representatives of ExxonMobil to discuss matters concerning ExxonMobil.

On December 4, 2009, following the conclusion of the meeting of the XTO Energy board of directors, Skadden delivered a revised draft of the merger agreement to Davis Polk.

On December 5, 2009, representatives of ExxonMobil held a due diligence session that was attended by members of XTO Energy’s senior management and representatives of Barclays Capital, during which the ExxonMobil representatives presented information concerning ExxonMobil’s business and operations, financial results and legal matters.

On December 6, 2009, representatives of Skadden and Davis Polk had a conference call to discuss the terms of the draft merger agreement circulated by Skadden on December 4, 2009. Among other things, the representatives of Skadden and Davis Polk discussed XTO Energy’s and ExxonMobil’s respective positions regarding various provisions of the draft merger agreement and key open items, including the definition of “material adverse effect” and provisions relating to XTO Energy’s ability to provide information to, and have discussions with, a third party that makes a transaction proposal following signing of the merger agreement, certain regulatory requirements, the circumstances under which a termination fee would be payable, the post-closing operation of the XTO Energy business within ExxonMobil and other provisions relating to closing certainty.

From December 6, 2009 through December 10, 2009, XTO Energy’s and ExxonMobil’s respective senior management and legal advisors continued to engage in negotiations regarding the terms of the proposed merger, including exchanging several drafts of a merger agreement. In addition, during this period, XTO Energy’s and ExxonMobil’s respective senior management and legal advisors had discussions regarding the provisions of the consulting agreements to be entered into by and among XTO Energy and ExxonMobil and XTO Energy’s named executive officers, including certain restrictive covenants contained therein. During this period, XTO Energy’s and ExxonMobil’s respective senior management and legal advisors also negotiated the terms of certain amendments to the compensation, benefit and severance arrangements relating to certain of XTO Energy’s other executive officers, which are described under “Interests of Certain Persons in the Merger—Other Executive Officers of XTO Energy” beginning on page [] of this proxy statement/prospectus.

On December 10, 2009, XTO Energy held a special meeting of its board of directors in Fort Worth, Texas. All members of the XTO Energy board of directors were present in person, other than Mr. Randall, who joined telephonically. Also in attendance for the meeting were representatives of Skadden, Barclays Capital and Jefferies and members of XTO Energy’s senior management, including Mr. McDonald. At the meeting, representatives of Skadden again reviewed certain legal matters relating to the board of directors’ consideration of the proposed merger with ExxonMobil, including the directors’ fiduciary duties in relation thereto. In addition, members of XTO Energy’s senior management and representatives of Barclays Capital reviewed with the board of directors the results of the due diligence review of ExxonMobil to date. Representatives of Barclays Capital reviewed with the XTO Energy board of directors its further updated preliminary financial analyses of the proposed merger and various illustrative exchange ratios and premiums to XTO Energy’s stock price under

different scenarios, and noted the recent trading prices of XTO Energy and ExxonMobil common stock. Representatives of Barclays Capital noted that, because the final exchange ratio and premium were subject to further discussion and negotiation between XTO Energy and ExxonMobil, its financial analyses would be updated to reflect the final negotiated exchange ratio and premium if a transaction was agreed. Jefferies then reviewed and discussed with the XTO Energy board of directors selected energy market trends and outlook. During this discussion, Jefferies reviewed market conditions in the oil and gas industry, focusing on natural gas production in particular and noting that onshore unconventional sources (including coalbed methane gas, tight gas and shale gas) had recently surpassed onshore conventional sources in natural gas production. Jefferies also reviewed oil and natural gas pricing trends, noting that, in recent years, crude oil had traded at a significant premium to the average ratio of the price of crude oil to the price of natural gas since 2000. Jefferies also discussed its outlook for the industry and related matters, reviewing information showing that, since 2000, estimated U.S. natural gas reserves had increased from an estimated eight-year supply to in excess of a 100-year supply, with virtually all of the increase resulting from the commercialization of shale gas. In this context, Jefferies presented an analysis of leading U.S. natural gas producers as well as an analysis of the leading U.S. shale gas plays, including their estimated full-cycle economic returns at different natural gas prices. In addition, Jefferies reviewed certain major diversified oil and gas companies and their U.S. natural gas production operations, including the operating cash flows spent by such companies on dividends and share buybacks relative to the amount spent on capital expenditures in the U.S., as well as recent transactions and investments by such companies in U.S. shale gas assets.

During this meeting, the XTO EnergyDenbury board of directors discussed the complementary naturecommodity price assumptions, noting that strip pricing was a more appropriate assumption, since Wall Street consensus pricing tends to be slow to change, is not normally considered by buyers and sellers in the market and public upstream companies trade at a discount to net asset valuations based on Wall Street consensus pricing (for more information on such financial projections, see section entitled “The Merger—Certain Denbury Unaudited Prospective Financial Information” on page 80). Following additional discussion and inquiry, and upon the recommendation of XTO Energy’smanagement with advice, guidance and ExxonMobil’s businessesinput from J.P. Morgan, TPH and Vinson & Elkins, the compelling value enhancement for XTO Energy stockholders from a combination with ExxonMobil. Representatives of Skadden reviewed with theDenbury board of directors certain ofdetermined that (i) TPH should advise ExxonMobil that the principal terms and conditions of the draft merger agreement and the substance of recent negotiations between the parties on the merger agreement. Representatives of Skadden and theDenbury board of directors, discussed the regulatory requirements relating to the proposed merger and a number of provisions in the draft merger agreement, including the definition of “material adverse effect” contained in the draft merger agreement, commitments of XTO Energy to proceed with a meeting of its stockholders to consider the merger even in the presence of a superior bid for XTO Energy, the potential termination fee payable by XTO Energy and the circumstances under which such a termination fee would be payable, the circumstances under which XTO Energy’s board of directors could change or withdraw its recommendation in respect of the proposed merger and certain provisions relating to the post-closing operation of the XTO Energy business within ExxonMobil. Representatives of Skadden also reviewed with the directors the proposed changes to the XTO Energy compensation, benefit and severance arrangements that would have the effect of reducing and/or restructuring the overall payments to senior executive officers and would enhance the retention features of these arrangements. In addition, the XTO Energy directors discussed, among other things, the current state of the oil and natural gas industry, financial considerations relating to the combined company, various reasons for entering into the proposed merger, the anticipated timing required for signing a definitive merger agreement and completion of the proposed merger. The XTO Energy board of directors directed members of management and Skaddentheir advisors required additional time to engage with ExxonMobilfully review, consider and its legal advisors to finalize the terms of the proposed merger for possible further consideration by the XTO Energy board of directors at their meeting scheduled for the following Sunday, December 13, 2009. At the conclusion of the meeting, the non-employee directors of XTO Energy met separately in executive session with representatives of Skadden. The executive session provided the non-employee directors with an opportunity to review, in the absence of management, the matters discussed with the full board of directors. Among other things, the non-employee directors further reviewed Barclays Capital’s preliminary financial analysis, the principal terms and conditions of the draft merger agreement and the proposed treatment of and changes to the XTO Energy compensation, benefit and severance arrangements that had been discussed during the full board meeting.

During the evening of Friday, December 11, 2009, Messrs. Simpson and Tillerson met in Irving, Texas to discuss the remaining key open items of the proposed merger, including the proposed termination fee and proposed exchange ratio. Following discussion and negotiation, Messrs. Simpson and Tillerson agreed that a proposed termination fee of $900 million would be appropriate to present for consideration by their respective boards of directors. In light of ExxonMobil’s due diligence review of XTO Energy, the range of premiums offered in comparable transactions and current market, economic and industry conditions, among other things, Mr. Tillerson indicated that ExxonMobil would be willing to offer an exchange ratio that represented a premium over the companies’ relevant historical stock price ratios in excess of the 15% premium that ExxonMobil initially proposed and closer to the 25% premium subsequently proposed by XTO Energy. Messrs. Simpson and Tillerson then discussed each of XTO Energy’s and ExxonMobil’s respective views on the exchange ratio that would be appropriate in the proposed merger. Following discussion and negotiation of the terms of the proposed merger agreement, Messrs. Simpson and Tillerson agreed that they would present an exchange ratio of 0.7098 shares of ExxonMobil common stock for each share of XTO Energy common stock to their respective boards of directors. Based on the closing price of ExxonMobil common stock on the New York Stock Exchange on the day of the meeting, this exchange ratio represented an implied price per share of XTO Energy common stock of approximately $51.69 and a 25% premium over the closing price per share of XTO Energy common stock on that day and a 22% premium over XTO Energy’s prior 30-trading day average price. During this meeting, Messrs. Simpson and Tillerson also discussed the proposed changes to XTO Energy’s compensation, benefit and severance arrangements that would have the effect of reducing and/or restructuring the overall payments to senior executive officers and enhancing the retention features of these arrangements, as well as the proposed consulting agreements with the named executive officers. After further discussion, Mr. Simpson and Mr. Tillerson each agreed to present their agreement in principleinform themselves with respect to the March 22 Offer, and (ii) due to, among other factors and considerations, the potential risk of a leak to the media and timing considerations, current counterparty outreach by Denbury’s financial termsadvisors should be limited to ExxonMobil, Company A and Company X.

Following the March 27, 2023 meeting with Company X, activities with Company X’s due diligence team slowed and Company X deferred a key meeting with Denbury management for several weeks.

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On April 6, 2023, a meeting of the proposed merger, and the other terms discussed, to the respective boards of directors of the two companies for their consideration. Messrs. Simpson and Tillerson also indicated that they would instruct the parties’ respective legal advisors to work toward finalizing draft transaction agreements.

Following Mr. Simpson’s and Mr. Tillerson’s meeting on December 11, 2009, and through the morning of December 13, 2009, representatives of XTO Energy, ExxonMobil, Skadden and Davis Polk exchanged drafts of the transaction documents and continued to engage in discussions and negotiations regarding the final terms of such documents. During the same period, additional telephone discussions of these matters also occurred between Messrs. Tillerson and Simpson.

In the late morning of Sunday, December 13, 2009, theDenbury board of directors was held telephonically with members of XTO Energy held a special meetingsenior management in Fort Worth, Texasaddition to reviewrepresentatives of J.P. Morgan, TPH and consider the proposed merger with ExxonMobil. Present atVinson & Elkins. Representatives of TPH and J.P. Morgan began the meeting were representatives of Skadden, Barclays Capital and Jefferies. Mr. Simpson updatedby providing the board of directors regarding his discussion with Mr. Tillerson on December 11, 2009 and ExxonMobil’s final proposal of an exchange ratio equal to 0.7098 shares of ExxonMobil common stock for each share of XTO Energy common stock. Mr. Simpson also discussed the negotiations regarding the termination fee and ExxonMobil’s final proposal of $900 million. Members of XTO Energy’s senior management and representatives of Skadden provided theDenbury board of directors with an update regarding recent communications with Company X, noting that Company X was moving slowly in evaluating a potential transaction and had deferred a key meeting with Denbury management for several weeks. Representatives of J.P. Morgan and TPH then reviewed certain preliminary financial information related to the final negotiationsMarch 22 Offer, which was by then at a discount to Denbury’s then-present trading price of $92.75 per share. Denbury senior management discussed expected synergies and introduced whether Denbury should seek all or a portion of the consideration in ExxonMobil Common Stock. The TPH representative noted for the Denbury board of directors that he had several recent conversations with Mr. Ammann, who acknowledged during these conversations that Denbury’s trading price now exceeded the March 22 Offer. The Denbury board of directors agreed that it would not accept a proposal at a price below the current trading price of Denbury common stock. The Denbury board of directors also discussed the significant amount of potential financing needed over the next several years to fund the CCUS operations, which the Denbury board of directors noted would likely be dilutive to Denbury’s stockholders. The Denbury board of directors also discussed the execution risks of operating the CCUS business as a smaller, independent company, including risks of delay, potential cost overruns and regulatory risks. Discussion ensued about, among other things, a counterproposal and a negotiating strategy for improving the March 22 Offer, with the Denbury board of directors ultimately authorizing a counteroffer of $97 per share of Denbury common stock, which represented a 5% premium over Denbury’s then-current trading price. The Denbury board of directors authorized and instructed Mr. Kendall to contact Mr. Ammann and deliver Denbury’s counteroffer.

Mr. Kendall delivered a counteroffer to Mr. Ammann later that day.

On April 8, 2023, Mr. Ammann indicated to Mr. Kendall that the counteroffer was significantly outside of the range of anything that ExxonMobil would consider; however, in the meantime, the parties agreed to progress various workstreams related to definitive documentation and confirmatory due diligence.

On April 10, 2023, Mr. Kendall had a breakfast meeting with an executive of Company B. The Company B executive reiterated to Mr. Kendall that it would consider a joint venture with Denbury related to the CCUS business but would not seek to acquire the entire company.

On April 11, 2023, the Denbury board of directors met telephonically with members of senior management, as well as representatives of J.P. Morgan, TPH and Vinson & Elkins. At such meeting, the financial advisors recounted conversations with ExxonMobil and Citigroup Global Markets Inc. (“Citi”), ExxonMobil’s financial advisor, over the past several days relating to valuation. Mr. Kendall also reported at such meeting that he had reached out to Company A and Company X regarding the potential for an acquisition of Denbury. Company X did not respond to Mr. Kendall’s inquiry. Moreover, a senior executive officer of Company A told Mr. Kendall that it would not be proceeding with an acquisition of Denbury. Mr. Kendall also advised the Denbury board of directors of his meeting with Company B and Company B’s position that it was only interested in a joint venture with Denbury, not an acquisition of the entire company. The Denbury board of directors further discussed the possibility of stock as merger consideration in a potential acquisition by ExxonMobil, noting that this would allow Denbury stockholders to participate in the upside of ExxonMobil’s stock and ExxonMobil’s attractive dividend. All members of the Denbury board of directors agreed that they would be open to stock as consideration if the exchange ratio was at a level that would be in the best interest of Denbury’s stockholders.

On April 12, 2023, a senior executive from Company X contacted Mr. Kendall to advise that Company X had discussed a potential transaction at length and found Denbury to be a very interesting company, but given the cash flow profile and investment required in the CCUS business, Company X was not in a position to proceed with an acquisition.

Over the next several weeks, ExxonMobil and Denbury engaged in ongoing confirmatory due diligence efforts.

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On April 28, 2023, Mr. van Veldhoven delivered an initial draft of the Merger Agreement to a representative of TPH, who delivered the draft to Denbury, Vinson & Elkins and J.P. Morgan. This draft contemplated an all-cash offer. The draft expressly defined “Company Material Adverse Effect” to include any event, circumstance or condition that would reasonably be expected to cause ExxonMobil to be unable to realize the expected benefits and use of Denbury’s pipelines. The draft also expressly provided that ExxonMobil was not required to divest its own assets, accept any remedy with respect to its own assets, accept any remedy with respect to Denbury’s assets that materially restricted ExxonMobil’s ability to operate Denbury’s business going forward (with any remedy related to the CCUS business being deemed a material restriction), or otherwise take any action that would otherwise have a material adverse effect on Denbury in the event that U.S. antitrust authorities would require remedies of ExxonMobil under the HSR Act in order to complete the transaction. The Merger Agreement draft also contained a “force the vote” provision, requiring the Denbury board of directors to hold a stockholder vote on the ExxonMobil transaction even if the Denbury board of directors had subsequently changed its recommendation (to approve the ExxonMobil transaction) after receipt of a superior third party proposal. The draft also proposed a termination fee, payable by Denbury in certain circumstances, of 4% of the equity value of the proposed merger,transaction.

On May 4, 2023, a representative of TPH had a telephone conversation with Mr. Ammann to encourage ExxonMobil to increase its offer and consider stock consideration, which, among other things, would allow for a tax-free deal for Denbury stockholders and enable them to participate in the upside of the combined company. As part of this conversation, Mr. Ammann agreed to have Davis Polk, legal counsel to ExxonMobil, and Vinson & Elkins discuss and seek to progress the Merger Agreement while ExxonMobil considered a revised offer.

On May 6, 2023, representatives of Vinson & Elkins and Davis Polk discussed the proposed Merger Agreement, including matters related to regulatory approval, interim covenants, representations and warranties, deal certainty and deal protections. Following the discussion, Vinson & Elkins delivered a list of material issues to Davis Polk.

On May 9, 2023, Vinson & Elkins sent a revised draft of the Merger Agreement to Davis Polk. Among other things, this draft provided ExxonMobil with a termination right in the event of a material adverse effect related to Denbury’s Green Pipeline system, but required that such termination right be exercised within 10 business days and result in a termination fee payable by ExxonMobil to Denbury. The draft also included a substantially stronger covenant on the part of ExxonMobil to obtain necessary regulatory approvals and proposed that ExxonMobil pay a “reverse” break-up fee to Denbury in the event the Merger Agreement was terminated due to failure to obtain such approvals. The draft further included a right of Denbury to terminate the Merger Agreement if it received a superior proposal, with a reduced termination fee payable by Denbury of 2% of the aggregate equity value of the transaction. Finally, the draft included cutbacks to the interim operating covenants to which Denbury would be subject during the pendency of the Merger.

On May 11 and 12, 2023, members of Denbury management, representatives of Vinson & Elkins and members of the Denbury board of directors discussed whether to engage an additional investment banking firm that was independent of ExxonMobil and that would not have any compensation dependent on the consummation of the proposed transaction. Thereafter, Denbury management and Vinson & Elkins contacted PJT Partners, who was chosen as a proposed additional financial advisor for Denbury based on its industry experience, familiarity with Denbury and independence from ExxonMobil.

On May 19, 2023, Mr. Ammann indicated to a representative of TPH that ExxonMobil was prepared to make a counteroffer and desired to move quickly towards execution of definitive documentation soon thereafter. On May 21, 2023, Denbury received a written non-binding counteroffer, contemplating an all-stock transaction, in which each share of Denbury common stock would be exchanged for 0.782 shares of ExxonMobil Common Stock (the “May 21 Offer”). The May 21 Offer implied a per share price for Denbury common stock of $83.10 based on the companies’ trading prices as of May 19, 2023, which represented a 8.8% discount over the trading day close price.

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That same day, Davis Polk sent an updated draft of the Merger Agreement to Vinson & Elkins. The revised draft provided for an all-stock transaction and accepted the proposal of a termination right for ExxonMobil related to Denbury’s CCUS pipelines but lowered the standard from “material adverse effect” to “a material detriment in the ability to realize the benefits of or have the use of the Green Pipeline and NEJD Pipeline,” increased the time frame to exercise the termination right to 30 business days and rejected the obligation to pay Denbury a termination fee. The draft also reinstated ExxonMobil’s initial proposal on the various antitrust-related revisions, including removing the proposed reverse termination fee. The draft also reinserted the “force the vote” provision and 4% termination fee payable by Denbury.

On May 21, 2023, the Denbury board of directors approved the engagement of PJT Partners as an additional advisor to evaluate the fairness, from a financial point of view, of the consideration paid in a potential transaction to the Denbury stockholders.

On May 22, 2023, the Denbury board of directors met telephonically with members of senior management as well as representatives from J.P. Morgan, TPH and Vinson & Elkins to discuss the May 21 Offer and revised draft of the Merger Agreement. A representative of TPH summarized the terms of the May 21 Offer and the multiple calls that TPH had conducted with members of ExxonMobil management to attempt to increase ExxonMobil’s offer. The TPH representative noted that in these discussions, Mr. Ammann had reiterated that ExxonMobil’s offer was based on its view of Denbury’s intrinsic value. Representatives of J.P. Morgan and TPH then provided and discussed with the Denbury board of directors certain financial aspects of the May 21 Offer. The Denbury board of directors noted that while below Denbury’s then-current trading price, the May 21 Offer was within the range, and in several cases exceeded the range, of a reasonable valuation of Denbury based on customary valuation metrics. A discussion ensued with the Denbury board of directors regarding how a potential below-market transaction would be received by its stockholders. The representatives of J.P. Morgan and TPH then exited the meeting. A representative of Vinson & Elkins then provided the Denbury board of directors with a summary of the key issues within the Merger Agreement, including with respect to regulatory approval risk and deal protection, and an overview of the Denbury board of directors’ fiduciary duties in evaluating the May 21 Offer. Following discussion, the Board concluded that the May 21 Offer was unacceptable and instructed Mr. Kendall to communicate to Mr. Ammann that the Denbury board of directors was unwilling to enter into a transaction that did not have a premium to Denbury’s trading price.

Later that evening, Mr. Kendall called Mr. Ammann to advise him that given Denbury’s trading price, the Denbury board of directors had rejected ExxonMobil’s latest proposal. Mr. Kendall explained that the Denbury board of directors believed strongly in the merits of this combination, and the substantial synergies and value which could be achieved in completing a transaction in an all-stock deal, and accordingly, was hopeful the parties could find something that would work for both sides. Mr. Kendall indicated that he believed the Denbury board of directors would seriously consider an offer that was above the then-current market price and in the low-$90s per share trading price range based on recent trading activity. Mr. Kendall advised Mr. Ammann that while Denbury appreciated the change to all-stock consideration, the Denbury board of directors would likely be open to having a portion of the consideration in cash if it would help ExxonMobil in its internal valuation and would reflect an appropriate premium. Mr. Kendall also advised Mr. Ammann that the Denbury board of directors had reviewed the terms of the Merger Agreement draft and found several of the provisions to be imbalanced and off-market. As such, while valuation was an issue, it was also necessary for the business and legal teams to work together to find a compromise relative to certain of the matters, including appropriate risk allocation with respect to the antitrust provisions, as well as the treatment of alternative proposals and provisions concerning the impact of negative events related to the CCUS pipelines.

The following morning, a representative of TPH had a telephone call with Mr. van Veldhoven in which it was agreed that the parties should try to make progress on the Merger Agreement while ExxonMobil considered a revised proposal. Mr. van Veldhoven requested a list of Denbury’s key issues in the Merger Agreement to facilitate a small group discussion between each party’s management and legal counsel.

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On May 25, 2023, Vinson & Elkins sent an issues list to Davis Polk summarizing the key open legal points on the Merger Agreement, including the antitrust covenant, events involving the Green Pipeline and the NEJD Pipeline, a fiduciary out for Denbury in the event of a superior proposal, the size of the termination fee, the interim operating covenants and the representations and warranties.

On May 30, 2023, Mr. van Veldhoven, a Senior Counsel at ExxonMobil, and Davis Polk held a videoconference with Mr. Allen and Mr. James Matthews, Denbury’s Executive Vice President, Chief Administrative Officer, General Counsel and Secretary, and representatives of Skadden reviewedVinson & Elkins to discuss issues related to the specific termsrepresentations and conditionswarranties and the interim operating covenants in the draft Merger Agreement.

On May 31, 2023 and June 1, 2023, the Denbury board of directors held regularly scheduled meetings. During these meetings, representatives of J.P. Morgan and TPH provided an updated financial analysis of the mergerMay 21 Offer. The representative of TPH updated the Denbury board of directors on his discussions with Mr. van Veldhoven and the parties’ agreement that had been negotiatedto try to make progress on the Merger Agreement while ExxonMobil was considering a revised valuation proposal. A representative of Vinson & Elkins then summarized for the Denbury board of directors the key open issues and the May 30 call with ExxonMobil and its legal advisors. Representatives of Skadden also reviewed withDavis Polk on representations and warranties and interim operating covenants. After discussion, the directors their fiduciary duties as members of the XTO Energy board of directors. The XTO EnergyDenbury board of directors temporarily adjourned its meetinginstructed management and Vinson & Elkins to allowcontinue to negotiate the Merger Agreement with ExxonMobil management and Davis Polk.

On June 2, 2023, Vinson & Elkins sent Davis Polk a draft of certain schedules related to the interim operating covenants and requested a further call to discuss additional issues in the Merger Agreement.

Between June 4, 2023 and June 8, 2023, Davis Polk sent revised drafts of the representations and warranties provisions, interim operating covenant provisions and covenants related to employee matters to Vinson & Elkins.

On June 15, 2023, a representative of Citi had a telephone call with a representative of J.P. Morgan to discuss logistics if ExxonMobil were to make a revised proposal. The representative of Citi noted that ExxonMobil’s proposal was likely to be in the $80s per share price range. The representative of J.P. Morgan reiterated Mr. Kendall’s prior communication with Mr. Ammann that Denbury was unwilling to transact at a below market price. J.P. Morgan informed Denbury management of the discussion with Citi on that same day.

Also on June 15, 2023, Mr. van Veldhoven, a Senior Counsel at ExxonMobil and Davis Polk held a videoconference with Messrs. Allen and Matthews and representatives of Vinson & Elkins to discuss matters related to regulatory approval, events concerning the Green Pipeline and the NEJD Pipeline and the deal protection provisions, including Denbury’s insistence on a termination right for a meetingsuperior proposal and the size of the Compensation Committeebreak-up fee payable by Denbury if the agreement were terminated in certain circumstances.

On June 20, 2023, Vinson & Elkins sent a partial revised draft of the XTO Energy boardMerger Agreement to Davis Polk, containing revisions to the representations and warranties and interim operating covenant sections only. Additionally, Vinson & Elkins sent a draft of directors.disclosure schedules to Davis Polk.

A meetingOn June 25, 2023, Mr. Ammann met with a representative of TPH to advise that ExxonMobil was close to coming back with a revised proposal but given the all-stock nature of the Compensation Committeedeal as requested by Denbury, ExxonMobil believed that both parties stock prices and ExxonMobil’s view of Denbury’s intrinsic value needed to align, noting that ExxonMobil’s stock had recently traded lower.

On June 27, 2023, Vinson & Elkins sent a further revised Merger Agreement draft to Davis Polk including comments on all areas of the XTO EnergyMerger Agreement. This draft, among other things, reinserted the proposed antitrust-related reverse termination fee and covenants related to ExxonMobil’s M&A activities related to the CCUS business during the interim period, removed the “force the vote” provision and lowered Denbury’s termination fee to 3% of equity value.

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On July 2, 2023, Davis Polk sent a revised draft of the Merger Agreement addressing only the representations and warranties and interim operating covenant provisions, as well as comments to various disclosure schedules.

On July 10, 2023, the ExxonMobil board of directors which committee consists of Messrs. Adams, Sherman and Simons, was called to orderconvened a meeting via videoconference to review and consider the proposed consulting agreements for the named executive officers of XTO Energy and the proposed amendments to certain of XTO Energy’s existing compensation, benefit and severance arrangements in connection with the proposed merger. Representatives of Skadden described the proposed consulting agreements to be entered into by and among XTO Energy, ExxonMobil and XTO Energy’s named executive officers, the proposed cancellation of XTO Energy’s

employment agreements with certain of these officers, the proposed amendments to the share grant agreements with those officers and certain other compensation, benefits and severance arrangements affecting certain members of XTO Energy’s senior management. As a result of these actions, the named executive officers of XTO Energy agreed to reduce and/or restructure certain payments and benefits to which they otherwise would have been entitled upon consummation of the merger pursuant to existing agreements and plans. The estimated amounts that would have been payable to the named executive officers of XTO Energy under the existing agreements and plans if they remained employed through the completion of the merger and for one year following the merger, were reduced, in the aggregate, from approximately $304,690,000 to $190,340,000, or a total estimated reduction in value of approximately $114,350,000. See “Interests of Certain Persons in the Merger—XTO Energy Named Executive Officers—Consulting Agreements and Amendments to Share Grant Agreements” beginning on page [] of this proxy statement/prospectus for a more detailed description of the consulting agreements, and see the table on page [] of this proxy statement/prospectus for a description of the assumptions underlying the foregoing cost savings calculations and a more detailed description and quantification of the amounts attributable to each of the named executive officers of XTO Energy. The members of the Compensation Committee were not a party to (nor will any member be entitled to receive benefits under) any of the agreements and arrangements reviewed and considered by the committee and none of the XTO Energy employees or named executive officers subject to such agreements and arrangements (other than Mr. Simpson) negotiated such agreements or arrangements with representatives of ExxonMobil. The Compensation Committee unanimously recommended to the XTO Energy board of directors that the XTO Energy board of directors approve the proposed consulting agreements and proposed amendments to the compensation, benefit and severance arrangements.

The meeting of the XTO Energy board of directors resumed and Barclays Capital discussed with the board of directors its financial analyses in connection with the proposed merger and rendered its opinion to XTO Energy’s board of directors that, as of December 13, 2009 and based upon and subject to the qualifications, limitations and assumptions stated in its opinion, from a financial point of view, the exchange ratio in the proposed merger was fair to the XTO Energy stockholders. Barclays Capital’s opinion is attached as Annex B to this proxy statement/prospectus (see also “—Opinion of XTO Energy’s Financial Advisor” beginning on page [] of this proxy statement/prospectus). Jefferies then reviewed with the XTO Energy board of directors information and data concerning general market conditions in the oil and gas industry, natural gas pricing trends and related matters and noted that Jefferies had previously reviewed and discussed with Barclays Capital the financial analyses of Barclays Capital in connection with the proposed merger and the Barclays Capital opinion.

Following further discussion among the board of directors and its financial and legal advisors, members of XTO Energy’s management and representatives of Barclays Capital and Jefferies were excused from the meeting and XTO Energy’s non-employee directors met in executive session with representatives of Skadden. During the executive session, each non-employee director agreed to execute, at the conclusion of the meeting, a written waiver of the right to receive any payments that would otherwise become payable pursuant to the XTO Energy Amended and Restated Outside Directors Severance Plan upon the consummation of a merger with ExxonMobil. The non-employee directors determined that it would be appropriate to waive the benefits in light of the circumstances of the transaction as a whole. The non-employee directors did not receive any compensation for executing such waivers separate and apart from the consideration payable to them as holders of XTO Energy common stock and options upon completion of the merger. Following the conclusion of the executive session of the non-employee directors, the entire XTO Energy board reviewed and discussed the rationale for entering into the proposed merger, including a discussion of the factors described under “—XTO Energy Reasons for the Merger; Recommendation of the XTO Energy Board of Directors” beginning on page [] of this proxy statement/prospectus. The XTO Energy board of directors (other than Mr. Randall, who abstained from voting) unanimously determined that the merger agreementMerger Agreement and the transactions contemplated thereby including the merger, are advisable toMerger and the issuance of ExxonMobil common stock as consideration in the best interests of XTO Energy and its stockholders. Mr. Randall abstained from voting to avoid any perception of a potential conflict of interest arising out of his employment with Jefferies, one of XTO Energy’s two financial advisors in connection the proposed merger.

Also on the afternoon of December 13, 2009, the ExxonMobil board of directors convened a telephonic meeting to review and consider the proposed merger.Merger. Present at the meeting were members of ExxonMobil’s senior management and representatives of Citi and Davis Polk and J.P. Morgan Securities Inc., ExxonMobil’s financial advisor.Polk. At the meeting, ExxonMobil’s senior management briefed the board of directors on the status of negotiations that had occurred since their last update,regarding the transaction, reviewed the strategic rationale for the proposed transaction and provided an overview of the proposed consulting agreements with XTO Energy’s named executive officerseconomic analysis and use of ExxonMobil common stock as consideration in the proposed amendments to XTO Energy’s existing compensation, benefit and severance arrangements and recommended in favor of a transaction on the terms presented.Merger. Representatives of J.P. Morgan Securities Inc.Citi reviewed with the board of directors certain financial aspects of the proposed mergertransaction and a representative of Davis Polk discussed with the board of directors certain material terms of the merger agreementMerger Agreement and certain legal matters relating to the board of directors’ consideration of the proposed merger.transaction. Following consideration of the proposed terms of the proposed mergertransaction and discussion among the directors, senior management and ExxonMobil’s legal and financial advisors, the ExxonMobil board of directors unanimously approved the proposed mergertransaction and the related issuance of ExxonMobil common stock as consideration in the Merger, subject to resolution by senior management of final terms.

Later in the day on July 10, 2023, Mr. Ammann called Mr. Kendall to communicate that the ExxonMobil Board had met earlier that day and authorized managementan increase to enter intoa 0.840 exchange ratio as a final offer. Mr. Ammann advised Mr. Kendall that (i) Davis Polk would be sending a further revised draft of the Merger Agreement to Vinson & Elkins that day, which ExxonMobil considered as final, and (ii) ExxonMobil intended that the transaction would be announced no later than before the market opens on Thursday, July 13, 2023.

Following that call, Davis Polk sent a further revised draft of the Merger Agreement, containing comments outside of the previously transmitted representations and warranties and interim operating covenant sections. This draft deleted interim operating limitations on ExxonMobil’s ability to take certain actions in the CCUS space if such actions could reasonably be expected to result in increased antitrust scrutiny of the transaction and rejected an antitrust-related reverse termination fee, among other revisions. However, the July 10 draft accepted Denbury’s position with respect to the “force the vote” provision—providing the Denbury board of directors with the ability to terminate the transaction for a superior proposal. The draft further accepted Denbury’s requested termination fee of 3% of equity value and included a reverse termination fee (equal to Denbury’s termination fee) in the event ExxonMobil terminated due to the occurrence of certain events related to Denbury’s CCUS pipeline systems.

The Denbury board of directors met on July 11, 2023. Mr. Kendall provided the Board with a summary of his conversation with Mr. Ammann from the prior evening, including the proposed 0.840 exchange ratio and ExxonMobil’s desire to announce the transaction prior to market open on July 13, 2023. Representatives of TPH and J.P. Morgan summarized for the Denbury board of directors the history of Denbury’s strategic process over the last two years involving outreach to 28 potential counterparties, 17 of which signed confidentiality agreements. Representatives of each of J.P. Morgan and TPH then reviewed with the Denbury board of directors their financial analyses of the proposed transaction at a 0.840 exchange ratio. The Denbury board of directors discussed at length the fact that the implied value per share reflected in the proposed exchange ratio was (i) above the comparable company trading analyses and (ii) above or at the high end of discounted cash flow analyses performed by each of the financial advisors. Moreover, the Denbury board of directors considered a forecast that assumed a one-year delay in realizing the potential volumes from the CCUS business and noted the negative impact such a delay would have on Denbury’s revenue and EBITDA, the ability to achieve positive free cash flow in the near term, and the associated potential impact on Denbury’s valuation. A representative of Vinson & Elkins then summarized for the Denbury board of directors the key areas of the Merger Agreement, noting that ExxonMobil had agreed that Denbury could terminate the Merger Agreement if presented with a superior proposal and had agreed to a reduced termination fee of 3% of equity value, or $144 million. The

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representative of Vinson & Elkins also summarized for the Denbury board of directors the remaining open areas of the Merger Agreement including provisions related to regulatory approvals and potential adverse events affecting Denbury’s CCUS pipelines. The representative of Vinson & Elkins also noted for the Denbury board of directors that the merger agreementconsideration did not take into account the fact that ExxonMobil paid quarterly dividends. After lengthy discussion, the Denbury board of directors agreed to accept the proposed 0.840 exchange ratio but instructed management and the consulting agreementsadvisors to seek risk shifting concessions related to regulatory approval and to convey the Denbury board of directors’ view that a termination by ExxonMobil due to a specified pipeline event should require a termination fee of 5% of equity value. The Denbury board of directors further instructed management and the advisors to attempt to obtain an increase in the exchange ratio to account for ExxonMobil dividends paid while the transaction was pending.

On July 12, 2023, Mr. Kendall contacted Mr. Ammann and advised that the Denbury board of directors was prepared to agree to the 0.840 exchange ratio but required satisfactory resolution of certain Merger Agreement issues. Specifically, Mr. Kendall advised that with XTO Energy’s named executive officers.

The mergerrespect to regulatory approval, Denbury required a covenant that ExxonMobil would not acquire additional CCUS assets that could increase the risk of non-approval and provided Denbury with protection in the event approval under the HSR Act was not achieved. Mr. Kendall further advised that the Denbury board of directors was in conceptual agreement on the specified pipeline event termination right but would require a termination fee of 5% of the equity value of the transaction if ExxonMobil were to exercise that right. Lastly, Mr. Kendall advised that if the transaction was executednot closed by XTO Energy and ExxonMobil on December 13, 2009. On December 14, 2009,the payment of ExxonMobil’s third quarter 2023 dividend, the exchange ratio would increase to provide Denbury stockholders with the economic benefits of future dividends with a record date prior to closing. Shortly, thereafter, Vinson & Elkins sent a further revised draft of the commencementMerger Agreement to Davis Polk consistent with Mr. Kendall’s stipulations.

On July 12, 2023, at a meeting via videoconference attended by members of tradingExxonMobil’s management, including Mr. van Veldhoven and Mr. Darling, representatives of ExxonMobil answered due diligence questions from representatives of Denbury, with the assistance of J.P. Morgan, TPH, PJT Partners and Vinson & Elkins, regarding ExxonMobil’s businesses, properties and financial results and condition.

Later that day, shortly before the scheduled Denbury board of directors meeting, representatives of Davis Polk contacted representatives of Vinson & Elkins and advised that ExxonMobil was unwilling to agree to limitations on its ability to make acquisitions, the NYSE, XTO Energyproposed increase to the specified pipeline event termination fee or any adjustment to the exchange ratio for the payment of dividends in the interim period. Vinson & Elkins apprised Denbury management of ExxonMobil’s position.

Shortly thereafter, the Denbury board of directors met via videoconference with senior management and representatives of J.P. Morgan, TPH, PJT Partners and Vinson & Elkins. Representatives of J.P. Morgan, TPH and PJT Partners each reviewed with the Denbury board of directors their respective financial analyses regarding the transaction and the 0.840 exchange ratio, and, following discussion, each financial advisor advised the Denbury board of directors that, based on such analyses and if the Denbury board of directors so requested, it was prepared to render an opinion to the Denbury board of directors as to the fairness, from a financial point of view, to the holders of Denbury common stock, of the merger consideration to be paid to such holders in the potential transaction. Representatives of Vinson & Elkins presented materials summarizing the current draft of the Merger Agreement, supplemented by communications with Davis Polk throughout the day relating to key points of issue within the Merger Agreement. Namely, these included that ExxonMobil issuedwas unwilling to accept the exchange ratio adjustment for interim period dividends, the increased reverse termination fee or the antitrust-related interim covenant concepts in Vinson & Elkins’ latest draft. Vinson & Elkins advised that additional efforts to seek a joint press release announcingtermination right for Denbury in the event that antitrust approval had not been received within twelve months of the signing of the merger agreement.

XTO Energy Reasons for the Merger; Recommendation of the XTO Energy Board of Directors

Merger Agreement was also rejected by ExxonMobil. The XTO EnergyDenbury board of directors carefully evaluatedsubsequently discussed potential counteroffers relating to the merger agreementdisputed terms of the Merger Agreement and the transactions contemplated thereby and believeasked members of Denbury’s senior management whether they believed that the merger agreement andoperating covenants currently proposed would afford them enough flexibility to operate the transactions contemplated thereby, includingbusiness, focusing significantly on

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Denbury’s CCUS operations. Denbury management responded that they believed they could continue to operate the proposed merger, are advisablebusiness as planned, referencing ExxonMobil’s approval of, among other things, the capital expenditure schedule previously provided to and inDavis Polk, as well as the best interestsability of XTO Energy andDenbury to incur debt under the existing terms of its stockholders. Accordingly, at a meeting held on December 13, 2009,credit facility. Further discussion ensued among the XTO EnergyDenbury board of directors (other than Mr. Randall, who abstained from voting forregarding the reasons described under “The Merger—Backgroundmerits of the Merger” beginning on page [] of this proxy statement/prospectus) unanimously resolved to approvetransaction.

Following the merger agreement and the transactions contemplated thereby, including the proposed merger, and to recommend to the stockholders of XTO Energy that they vote “FOR” the adoption of the merger agreement.

In the course of reaching its recommendation, the XTO EnergyDenbury board of directors consultedmeeting, Vinson & Elkins sent a revised Merger Agreement to Davis Polk with XTO Energy’s senior management, financial advisors and outside legal counsel and considered a numberminor revisions to update the representations of substantive factors, both positive and negative, and potential benefits and detrimentsDenbury to the date thereof.

The Merger Agreement was in substantially final form by the early morning of July 13, 2023, when the merger to XTO Energy and its stockholders. The XTO EnergyDenbury board of directors believed that, taken as a whole, the following factors supported its decisionmet via videoconference to approve the proposed merger:

The exchange ratio of 0.7098 shares of ExxonMobil common stock for each share of XTO Energy common stock resulted in implied merger consideration as of December 13, 2009 of $51.69 per share (based on the $72.83 closing price of ExxonMobil common stock on December 11, 2009, the last trading day prior to December 13, 2009) and represented a significant premium over the market prices at which XTO Energy common stock had previously traded, including a premium of approximately:

24.6% over the closing price of XTO Energy common stock of $41.49 per share on December 11, 2009, the last trading day prior to public announcementconsider approval of the merger;

25.6% over the closing priceMerger Agreement, with members of XTO Energy common stockDenbury’s senior management and representatives of $41.15 per share on the fifth trading day prior to public announcementVinson & Elkins, J.P. Morgan, TPH and PJT Partners in attendance. At such meeting, each of the merger; and

24.4% overfinancial advisors referred to the closing price of XTO Energy common stock of $41.56 per share on the thirtieth trading day prior to public announcement of the merger.

The fact that the merger consideration will be paid in shares of ExxonMobil common stock provides XTO Energy stockholdersfinancial analyses reviewed with the opportunity to participate in any future earnings or growth of the combined company and future appreciation of ExxonMobil common stock following the merger,

should they determine to retain the ExxonMobil common stock payable in the merger. The board of directors also considered the fact that receiving shares of ExxonMobil common stock would provide liquidity for those XTO Energy stockholders who do not desire to continue holding their shares of ExxonMobil common stock and seek to sell their shares into the market following the merger.

The financial analyses of Barclays Capital presented to the XTO EnergyDenbury board of directors and Barclays Capital’s opinion to XTO Energy’sat the July 12 Denbury board of directors meeting and rendered to the Denbury board of directors its oral opinion, which was subsequently confirmed by delivery of a written opinion, dated DecemberJuly 13, 2009,2023, to the effect that, as of such date and based upon and subject to the assumptions, procedures, factors, qualifications and any limitations and assumptions statedother matters set forth in its written opinion, the merger consideration to be paid to the holders of Denbury common stock in the proposed merger was fair, from a financial point of view, to such holders. See section entitled “The Merger—Opinions of Denbury’s Financial Advisors” on page 87 for more information. Thereafter, after considering the exchange ratioproposed terms of the transaction with ExxonMobil, and taking into consideration the matters discussed during that meeting and prior meetings of the Denbury board of directors, including the factors described above and under the section entitled “The Merger—Recommendation of the Denbury Board of Directors and Reasons for the Merger,” the Denbury board of directors unanimously (i) determined that the Merger Agreement and the transactions contemplated thereby, including the Merger, were fair to and in the proposed mergerbest interests of Denbury and its stockholders, (b) approved, adopted and declared advisable the Merger Agreement and the transactions contemplated thereby, including the Merger, (c) resolved to recommend approval and adoption of the Merger Agreement by the Denbury stockholders and (d) directed that the Merger Agreement be submitted to the Denbury stockholders for adoption at a meeting of such stockholders.

Shortly thereafter, the parties executed the Merger Agreement. Later that morning, prior to the opening of trading, ExxonMobil and Denbury issued a press release announcing the transaction. 

CERTAIN RELATIONSHIPS BETWEEN EXXONMOBIL AND DENBURY

ExxonMobil and Denbury, or their respective affiliates, are parties to certain commercial arrangements with one another, which are not material, individually or in the aggregate to ExxonMobil. Specifically, (i) Denbury Onshore LLC and ExxonMobil Oil Corporation are parties to that certain Agreement No. 109834_A effective June 1, 2017, as amended from time to time, pursuant to which, among other things, ExxonMobil has an obligation to purchase a pre-determined quantity of crude oil barrels from Denbury in exchange for a purchase fee and (ii) Denbury Onshore, LLC and ExxonMobil Gas and Power Marketing Company (a former division of ExxonMobil) are parties to that certain Carbon Dioxide Delivery and Balancing Agreement effective December 21, 2012, as amended from time to time, pursuant to which, among other things, Denbury has an obligation to take delivery of pre-determined volumes of carbon dioxide from ExxonMobil in exchange for a processing fee. The value of aforementioned commercial arrangements in the calendar year ended December 31, 2022, or the two prior calendar years, was fair to XTO Energy’s stockholders. See “—Opinionless than 5% of XTO Energy’s Financial Advisor” beginning on page [] ofDenbury’s revenues for the calendar year in which such transaction occurred. Except as described in this proxy statement/prospectus, there are and have been no past, present or proposed material contracts, arrangements, understandings, relationships, negotiations or transactions during the current fiscal years of ExxonMobil and Denbury or the five immediately preceding fiscal years of ExxonMobil and Denbury, between ExxonMobil or its affiliates, on the one hand, and Denbury or its affiliates, on the other hand, concerning a merger, consolidation or acquisition, a tender offer for or other acquisition of securities, the election of directors, or the sale or other transfer of a fuller description. The full textmaterial amount of Barclays Capital’s written opinion, which sets forth, among other things,assets.

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RECOMMENDATION OF THE DENBURY BOARD OF DIRECTORS AND REASONS FOR THE MERGER

By unanimous vote, the procedures followed, factors considered, assumptions madeDenbury board of directors, at a meeting held on July 13, 2023, (a) determined that the Merger Agreement and qualificationsthe transactions contemplated thereby, including the Merger, are fair to and limitationsin the best interests of Denbury and its stockholders, (b) approved, adopted and declared advisable the Merger Agreement and the transactions contemplated thereby, including the Merger, in accordance with the requirements of the review undertakenDelaware General Corporation Law (the “DGCL”) and (c) resolved (subject to certain exceptions set forth in renderingthe Merger Agreement) to recommend the approval and adoption of the Merger Agreement and the transactions contemplated thereby, including the Merger, by the Denbury stockholders. The Denbury board of directors unanimously recommends that Denbury stockholders vote “FOR” the Merger Agreement Proposal, and “FOR” the Advisory Compensation Proposal.

In reaching its opinion, is attacheddeterminations and recommendations, the Denbury board of directors consulted extensively with company management and financial and legal advisors and considered a range of factors and scenarios, as Annex B to this proxy statement/prospectus.discussed below. Factors that weighed in favor of the Merger include:

Best Alternative for Maximizing Stockholder Value After a Thorough Strategic Alternative Process. Beginning in early 2021, the Denbury board of directors and management evaluated a significant number of alternative scenarios and potential transactions. Following this evaluation, the Denbury board of directors determined that entering into the Merger Agreement with ExxonMobil provided a superior path for sustaining and enhancing stockholder value and mitigating risk compared to pursuing an alternative transaction.

Denbury contacted or was contacted by 28 potentially interested parties, including exploration and production companies, integrated oil and natural gas companies, industrial gas companies, renewable energy companies, investment firms and companies interested in pursuing midstream/CCUS opportunities, among others;

 

XTO Energy stockholders, as stockholders of the combined company, will have the opportunity to participateDenbury entered into confidentiality agreements with 17 potentially interested parties in the benefits that are expected to result from the merger, including an enhanced competitive and financial position of the combined company, increased size and scale, diversity and depth in assets and geographic scope of the combined company, an increase in proved reserves and production capacity of the combined company and an increased financial capacity to develop existing assets and to pursue additional asset acquisitions.connection with a potential transaction;

 

That by becoming stockholders ofExxonMobil was the combined company following the merger, XTO Energy stockholders who continueonly party to hold ExxonMobil common stock will havesubmit a written offer to acquire Denbury, and other interested parties indicated that they could not support an investment in a much larger and integrated energy company with more diversified earnings and subject to less potential financial and business risk than XTO Energy.offer approaching or above Denbury’s recent share price;

 

Increasing competition inThe consideration to be paid to Denbury’s stockholders represented an approximately 2% premium to Denbury’s closing price as of July 12, 2023, the U.S. unconventional natural gas industry, together with technological advancements in drilling methods, could result in increased supplyday before announcement, and an approximately 17% premium to the unaffected 10-day average closing price on August 16, 2022, the day before the publication of natural gasthe first of several news stories speculating on the potential sale of Denbury;

During the period from August 16, 2022 through July 10, 2023, Denbury’s indexed average trading performance was up 10%, compared to 1% for selected oil companies and could adversely affect natural gas pricingnegative 51% for selected energy transition companies, leading the Denbury board of directors to conclude that Denbury’s stock price was affected by takeover speculation; and profitability of producers. Accordingly, ExxonMobil’s global scale and diversified asset base is better positioned to drive growth and profitability.

 

The fact that ExxonMobil intends to use XTO Energy as its platform for its unconventional exploration and production business, its agreement to maintain the XTO Energy facilities in Fort Worth for two years following completion of the merger, and ExxonMobil’s and XTO Energy’s entry into consulting agreements with key members of XTO Energy’s senior management. The combination of ExxonMobil’s global scale and financial resources (including access to a lower cost of capital than is or will be likely available to XTO Energy either presently on a standalone basis orDenbury’s stock increased by approximately 46% in the future)twelve months prior to signing, significantly outpacing all major indices.

As a result, the Denbury board of directors concluded, after discussion and analysis with XTO Energy’s proven capabilitiesits financial advisors and success in the unconventional natural gas business will provide XTO EnergyDenbury’s management, that it was unlikely that any other party would be prepared to pay a higher price to acquire Denbury.

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Greater Stockholder Value and Return Potential. The Denbury board of directors assessed the value and nature of the consideration to be received in the Merger by Denbury stockholders, including:

The stock-for-stock merger enables Denbury stockholders with a continuing opportunity to fully participate in the significant value in the unconventional natural gas exploration and production industry as stockholders in the combined company.opportunities of ExxonMobil, including its worldwide asset portfolio, dividends, share repurchases, and expected future growth;

 

The boardconsideration of directors’ review,ExxonMobil common stock to be paid to holders of Denbury common stock comes with XTO Energy’s legala reliable and financial advisors,growing cash dividend by ExxonMobil (most recently declared at $0.91 per share quarterly (or $3.64 annualized)). ExxonMobil has a history of 40 consecutive years of annual dividend growth and has publicly-stated the structure of the merger and the financial and other terms of the merger agreement. In particular, the XTO Energy board of directors considered the following specific aspects of the merger agreement:importance ExxonMobil places on its dividend in making capital allocation decisions;

 

ThatExxonMobil’s most recently announced plan to repurchase up to approximately $50 billion of its stock from 2022 through 2024;

Based on the mergerclosing trading price of ExxonMobil common stock of $106.49 on July 12, 2023, the last trading day prior to public announcement of the Merger, the Merger Consideration represented an implied value of $89.45 per share of Denbury common stock;

While there is trading correlation between Denbury’s and ExxonMobil’s common stock, the stock-for-stock transaction mitigates the impact of oil price volatility between signing and closing; and

The Merger is structured as a stock-for-stock transaction and is intended to qualify as a reorganizationtax-deferred “reorganization” within the meaning of Section 368(a) of the Code.

Risks Associated with Operating as a Standalone Business. The Denbury board of directors also considered the following risks inherent in maintaining the assets within the current or a somewhat larger standalone exploration, production and energy transition company, and determined that the ExxonMobil transaction eliminated, or significantly reduced, key risks including:

The execution risk (on both Denbury’s part and its counterparties’ part) of operating in a nascent industry, primarily related to the potential for U.S. federal tax purposesthe expected performance of the CCUS business to be delayed or not realized and the expectationrisk of cost overruns related to the development of Denbury’s CCUS infrastructure;

The risk that the receiptDenbury, as a smaller company in a dynamic and high growth potential CCUS industry with many competitors, has a higher cost of ExxonMobil common shares will generally not becapital than larger producers and CCUS developers and may become less competitive, on a taxable eventrelative basis, given scale-related advantages available to XTO Energy’s stockholders;larger companies;

 

The naturefact that as a smaller company, Denbury is required to provide letters of credit, bonds and/or insurance products to provide the closing conditions included infinancial assurances demanded by its customers and regulators, many of which are not clearly defined as to structure or cost and are dependent on the merger agreement, as well as the likelihoodcapacity and willingness of satisfaction of all conditionsthird parties to the completion of the merger;provide such support instruments;

 

XTO Energy’s rightThe Denbury burden of complying with increasing regulation, including potential changes to engagetax law or policy;

Developing the CCUS business will require significant capital investments, which may be challenging in negotiationsa high interest rate environment and would likely require Denbury, as a standalone company, to issue equity, equity-linked securities, or entering into joint venture arrangements that would be dilutive to existing stockholders; and

Denbury is reliant on its EOR business to provide cash flow that is deployed for its CCUS investments and pipeline infrastructure, and the performance of the EOR business is subject to commodity price fluctuations, and regulatory risks that can negatively impact the sustainability of future cash flows of the EOR business.

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Superior Alternative to Continuing Denbury as an Independent, Standalone Company. The Denbury board of directors determined that entering into the Merger Agreement with ExxonMobil provided the best alternative to create stockholder value from the Denbury assets on a short-, intermediate- and long-term basis, including as compared to continued operations on a standalone basis in light of the compelling value proposition of the ExxonMobil transaction. In reaching this conclusion, the Denbury board of directors examined four separate commodity price assumptions as described in the section entitled “The Merger—Certain Denbury Unaudited Prospective Financial Information” beginning on page 80.

The Denbury board of directors considered management forecasts based on various other assumptions, including, but not limited to, assumptions regarding the continuing nature of ordinary course operations that may be subject to change. In this regard, the Denbury board of directors considered that the implied per share value of $89.45 was within or above the ranges of implied equity values per share of Denbury common stock indicated by the financial analyses conducted by each of J.P. Morgan, TPH and PJT Partners, which analyses are described in the section entitled “The Merger—Opinions of Denbury’s Financial Advisors” beginning on page 87.

The Denbury board of directors further considered management forecasts that assumed a one-year delay in realizing the potential volumes from the CCUS business and the negative impact of that delay on revenue, EBITDA, ability to achieve positive free cash flow in the near term, and the associated potential impact on Denbury’s valuation.

Benefits of ExxonMobil After the Merger: Greater Scale and Financial Strength. The Denbury board of directors believed that the company resulting from the acquisition of Denbury by ExxonMobil would be extremely well positioned, with a top-tier market capitalization, global footprint and significant ability to finance the future growth of the CCUS business and establish the leadership of the combined entity in energy transition, both in the United States and globally.

The global scale and diversified portfolio of ExxonMobil, including its Upstream, Product Solutions, and Low Carbon Solutions businesses, will be expected to reduce cash flow volatility and better support future strategic investments compared to Denbury on a standalone basis;

The combined company is expected to hold the largest and most developed CCUS transport, storage and long-term management offering in the United States;

ExxonMobil has a greater ability to fund the development of the CCUS business and maximize returns than Denbury on a standalone basis;

ExxonMobil’s resources and scale allows for greater opportunities to participate in other areas along the CCUS value chain than Denbury on a standalone basis;

By working for ExxonMobil, Denbury’s employees will be part of a larger, more diversified and better-capitalized company, resulting in career development and advancement opportunities; and

The Merger significantly improves a number of key financial metrics to Denbury shareholders on a pro forma basis, including as follows:

Shareholders who retain ExxonMobil stock will be entitled to receive future cash dividends declared by ExxonMobil;

ExxonMobil generated over 150 times the cash flow from operations Denbury generated for the twelve months ending March 31, 2023; and

Strong, stable balance sheet with approximately $30 billion of cash at the end of the second quarter 2023 is well-positioned to weather downturns in the commodity and economic cycles, while continuing to invest in projects with attractive returns including lower-emission business opportunities.

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Receipt of Fairness Opinion from Financial Advisors. The Denbury board of directors considered the opinions it received from each of its three financial advisors, J.P. Morgan, TPH and PJT Partners:

the oral opinion of J.P. Morgan rendered to the Denbury board of directors on July 13, 2023, which opinion was subsequently confirmed by delivery to the Denbury board of directors of a written opinion dated as of the same date, to the effect that, as of such date and based upon and subject to the factors, assumptions, qualifications and any limitations set forth in J.P. Morgan’s written opinion, the Merger Consideration to be paid to the holders of the Denbury common stock in the proposed transaction was fair, from a financial point of view, to such holders, as more fully described below under the heading “The Merger—Opinions of Denbury’s Financial Advisors—Opinion of J.P. Morgan Securities LLC” beginning on page 87.

the opinion of TPH to the effect that, as of such date and based upon and subject to the assumptions made, procedures followed, factors considered and qualifications and limitations on the review undertaken by TPH, as set forth in such opinion and based upon other matters as TPH considered relevant, the Merger Consideration to be received by the holders of outstanding shares of Denbury common stock (other than ExxonMobil and its affiliates) in the proposed Merger pursuant to the Merger Agreement was fair, from a financial point of view, to such holders, as more fully described below under the heading “The Merger—Opinions of Denbury’s Financial Advisors—Opinion of TPH & Co.” beginning on page 92.

the oral opinion of PJT Partners rendered to the Denbury board of directors on July 13, 2023, subsequently confirmed in its written opinion dated July 13, 2023, that, as of the date thereof, and based upon and subject to, among other things, the assumptions made, procedures followed, matters considered, and qualifications and limitations on the review undertaken by PJT Partners in connection with the opinion (which are stated therein), the Merger Consideration to be received by the holders of shares of Denbury common stock in the Merger (other than the shares to be cancelled in accordance with the Merger Agreement and any shares held by any subsidiary of either Denbury or ExxonMobil (other than Merger Sub)) was fair to such holders from a financial point of view, as more fully described below under the heading “The Merger—Opinions of Denbury’s Financial Advisors—Opinion of PJT Partners LP” beginning on page 99. In this regard, the Denbury board of directors noted that PJT Partners compensation was fixed and not dependent on the consummation of the proposed Merger.

Synergies and Complementary Businesses. The complementary nature, quality and scale of assets of ExxonMobil and Denbury, including:

Denbury has the largest owned and operated dedicated CO2 pipeline network in the U.S. at approximately 1,300 miles, including nearly 925 miles of CO2 pipelines in Louisiana, Texas, and Mississippi – located within one of the largest U.S. markets for CO2 emissions, as well as 10 strategically located onshore sequestration sites. Denbury’s pipeline network is in close proximity to major emitters including ExxonMobil’s industrial locations and other third party customers. When combined with ExxonMobil’s Low Carbon Solutions business, Denbury’s business is expected to benefit Denbury stockholders by:

accelerating opportunities to deploy CCUS for ExxonMobil and third-party customers over the next decade and participating in multiple future lower-carbon value chains that potentially include CCUS, hydrogen, ammonia, biofuels, and direct air capture;

optimizing the combined company’s development plans to deliver greater economic efficiencies and positive energy transition outcomes. Once fully developed and optimized, the combination of assets and capabilities of Denbury and ExxonMobil has the potential to profitably reduce emissions by more than 100 million metric tons per year in one of the highest-emitting regions of the U.S.; and

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in the communities and the environment in which Denbury and ExxonMobil operate, both Denbury and ExxonMobil share a dedication to building on their track record of corporate citizenship, safety excellence, sustainability and responsibility.

Combining the capabilities, expertise and assets of ExxonMobil and Denbury creates a compelling customer decarbonization proposition by integrating ExxonMobil’s technology, scale, and project execution with Denbury’s pipeline network and expertise in managing CO2.

Shared Goals of Lower Emissions and Core Values. ExxonMobil and Denbury share similar philosophies in regard to a lower carbon energy future, including:

Denbury’s assets are expected to help propel ExxonMobil toward the companies’ shared goal of a lower carbon energy future while also safely delivering higher returns;

While Denbury and ExxonMobil are both working to be industry leaders in the energy transition, ExxonMobil after the Merger will have greater scale and resources to respond to the evolving regulatory environment in the energy transition; and

ExxonMobil and Denbury share core values of integrity, collaboration, accountability and caring for people and the environment, and the combined workforce is expected to continue to increase efficiency and deliver stockholder value. The Merger Agreement includes provisions that should facilitate the retention of Denbury employees and enhance their ability to provide value for shareholders of the combined company.

Opportunity to Receive Alternative Acquisition Proposals and to Terminate the Merger in Order to Accept a Superior Proposal. The Denbury board of directors considered the terms of the Merger Agreement related to Denbury’s ability to respond to unsolicited acquisition proposals and determined that the provisions of the Merger Agreement would not deter or preclude any third party from making a competing proposal and that the Denbury board of directors would be able, under certain circumstances, to furnish information and enter into discussions and negotiations in connection with a competing proposal. In this regard, the Denbury board of directors considered that:

experience demonstrates that an executed Merger Agreement is not a deterrent to a third party that makes an unsolicited written acquisition proposal,potential topping bids;

subject to compliance with the applicable provisions of the Merger Agreement, the Denbury board of directors may, before approval of the Merger with ExxonMobil by Denbury stockholders, change its recommendation to Denbury stockholders with respect to approval of the Merger if XTO Energy’sthe Denbury board of directors determines in good faith, after consultation with its outside legal and financial advisors, that such proposalfailing to make a change in its recommendation would reasonably likely be inconsistent with the Denbury board of directors’ fiduciary duties;

constitutes or could reasonably be expected to lead to a transaction that is more favorable, and would reasonably be expected to provide greater value, to XTO Energy’s stockholders than the merger;

 

The rightsubject to its compliance with the applicable provisions of XTO Energy’sthe Merger Agreement, the Denbury board of directors may terminate the Merger agreement in order to change its recommendation in favor of the merger upon receipt ofenter into a superior proposal or upon the occurrence of an intervening event (as defined in the merger agreementproposal; and discussed under “The Merger Agreement—No Solicitation by XTO Energy” beginning on page [] of this proxy statement/prospectus), in each case, if required by its fiduciary duties.

 

The circumstances under whichthe Denbury board of directors believed that the termination fee is payable by XTO Energy to ExxonMobil and the sizeof $144 million, which equals approximately 3% of the termination fee, whichaggregate equity value implied in the XTO Energy board of directors views astransaction, is reasonable in light of the sizecircumstances and benefitsthe overall terms of the transactionMerger Agreement, generally lower than fees in comparable transactions, and would not preclusivediscourage alternative acquisition proposals from credible third parties willing and able to make such proposals. Denbury would be required to pay the termination fee to ExxonMobil in certain circumstances, including if (i) ExxonMobil terminates the Merger Agreement in connection with a change in the Denbury board of directors’ recommendation to its stockholders with respect to approval of the Merger or (ii) Denbury terminates the Merger Agreement in order to enter into a definitive agreement with respect to a superior proposal, if one were to emerge.proposal.

 

Other Terms of the Merger Agreement. The Denbury board of directors reviewed and considered the terms of the Merger Agreement, taken as a whole, including the parties’ representations, warranties and

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covenants, and the circumstances under which the Merger Agreement may be terminated, and concluded that such terms are reasonable and fair to Denbury. The Denbury board of directors also reviewed and considered the conditions to the completion of the Merger, including regulatory approvals, which it believes are likely to be satisfied on a timely basis. The Denbury board of directors noted in particular that the completion of the Merger is not subject to any financing condition or any condition based upon ExxonMobil shareholder approval, which enhances the likelihood that the Merger will be completed.

The requirement that XTO Energy obtain stockholder approval as a condition to completionIn the course of its deliberations, the merger.

The requirement that ExxonMobil use reasonable best efforts to obtain required regulatory approvals and clearances to complete the merger, subject to certain exceptions described under “The Merger Agreement—Reasonable Best Efforts Covenant” beginning on page [] of this proxy statement/prospectus.

The belief that regulatory approvals and clearances necessary to complete the merger will likely be obtained without any material cost or burden to the combined company.

The belief that, after careful consideration of potential alternatives to the merger (such as, among others, XTO Energy continuing to operate as a standalone company and the pursuit of a transaction or business combination with a third party other than ExxonMobil), the merger with ExxonMobil is expected to yield greater benefits to XTO Energy stockholders (including the benefits discussed above) than would the range of alternatives considered.

In addition to considering the factors described above, the XTO EnergyDenbury board of directors also considered the following factors:

The recommendationa variety of senior management of XTO Energy that the merger is in the best interests of XTO Energy’s stockholders based on their knowledge of the current environment in the oilrisks and gas industry and markets, including economic conditions, changes in oil and gas prices, changes in the underlying demand for oil and gas, the prospects of natural gas supply and the potential of oversupply in the future, the potential for continued consolidation, current financial market conditions and the likely effects of these factors on XTO Energy’s and ExxonMobil’s potential growth, development, productivity and strategic options.

The board of directors’ knowledge of XTO Energy’s business, operations, financial condition, earnings and prospects and of ExxonMobil’s business, operations, financial condition, earnings and prospects, taking into account the results of XTO Energy’s due diligence of ExxonMobil.

The potential impact of pending legislation and potential regulatory changes.

The cash payments and other benefits to which members of senior management were contractually entitled upon completion of the merger, and the agreement by members of senior management to forego a significant portion of these payments and other benefits in connection with the merger.

The XTO Energy board of directors also considered certain potentially negative factors, in its deliberations concerning the merger, including but not limited to the following:

 

The fact that because the merger consideration is a fixed exchange ratio of shares of ExxonMobil common stock to XTO Energy common stock, XTO Energy stockholders could be adversely affected

 

byFixed Exchange Ratio; Modest Premium to Trading Price at Signing and Unaffected Trading Price. The Denbury board of directors considered that because the Merger Consideration is based on a fixed exchange ratio rather than a fixed value, Denbury stockholders will bear the risk of a decrease in the trading price of ExxonMobil common stock during the pendency of the mergerMerger and the fact that the merger agreementMerger Agreement does not provide XTO EnergyDenbury with a price-basedcollar or a value-based termination right or other similar protection.right. The XTO EnergyDenbury board of directors determinedalso considered that this structure was appropriatethe consideration to be paid to Denbury’s stockholders represented an approximately 2% premium to Denbury’s closing price as of July 12, 2023, the day before announcement, and an approximately 17% premium to the unaffected 10-day average closing price on August 16, 2022, the day before the publication of the first of several news stories speculating on the potential sale of Denbury.

Risks Associated with Regulatory Approval. The Merger is conditioned on the absence of an injunction prohibiting the consummation of the Merger, the expiration or termination of the waiting period under the HSR Act and the absence of a “burdensome condition” being imposed on ExxonMobil or its subsidiaries, including Denbury from and after closing. While each party is required to use reasonable best efforts to resist, defend against, lift or rescind the entry of any injunction or order prohibiting the parties from consummating the Merger, ExxonMobil is not obligated to accept or agree to certain divestiture or other remedies in obtaining regulatory approval nor is ExxonMobil obligated to compensate Denbury if regulatory approval of the Merger is not obtained.

Interim Operating Covenants. The Denbury board of directors considered the restrictions on the conduct of Denbury’s and its subsidiaries’ businesses during the period between the execution of the Merger Agreement and the completion of the Merger.

Risks Associated with the Pendency of the Merger. The risks and contingencies relating to the announcement and pendency of the Merger, including the potential for diversion of management and employee attention and the potential effect of the combination on the businesses of both companies and the restrictions on the conduct of Denbury’s business during the period between the execution of the Merger Agreement and the completion of the Merger.

Possible Failure to Integrate. The potential challenges and difficulties in integrating the operations of Denbury and ExxonMobil and the risk acceptablethat operational efficiencies between the two companies, or other anticipated benefits of the Merger, might not be realized or might take longer to realize than expected.

Termination Fee. The Denbury board of directors considered that Denbury would be required to pay to ExxonMobil a termination fee of $144 million in view of factors such as the XTO Energyevent Denbury were to terminate the Merger Agreement in order for Denbury to enter into a superior proposal, should one be made, or if the Merger Agreement were to be terminated by ExxonMobil in connection with a change in the Denbury board of directors’ reviewrecommendation to its stockholders with respect to adoption of the relative intrinsic values and financial performance of ExxonMobil and XTO Energy, as well the opportunity XTO Energy stockholders have as a result of the fixed exchange ratio to benefit from any increase in the trading price of ExxonMobil common stock between the announcement and completion of the merger.Merger Agreement.

 

Restrictions on Third-Party Discussions. The Denbury board of directors considered that the Merger Agreement required Denbury to terminate all discussions with potential alternative transaction counterparties while noting that Denbury would only have the right to respond to alternative proposals

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that might be made by such parties pursuant to and in accordance with the applicable terms of the Merger Agreement.

Small Pro Forma Ownership. The Denbury board of directors considered that, based on the implied value of the Merger Consideration as of July 13, 2023, Denbury stockholders would only own approximately 1% of ExxonMobil after the Merger.

Other Risks. The Denbury board of directors considered risks of the type and nature described under the sections entitled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” beginning on pages 41 and 31, respectively.

The riskDenbury board of directors believed that, overall, the potential benefits of the merger will not be realized or will not be realized withinMerger to Denbury stockholders outweighed the expected time period and thepotential risks and challenges associated with the integration by ExxonMobil of XTO Energy’s businesses, operations and workforce.

The risks and contingencies relating to the announcement and pendencyuncertainties of the merger and the risks and costs to XTO Energy if the closing of the merger is not timely or if the merger does not close at all, including the impact on XTO Energy’s relationships with employees and third parties and the effect a public announcement of termination of the merger agreement may have on the trading price of XTO Energy’s common stock and XTO Energy’s operating results.

The risk of diverting management focus, employee attention and resources from other strategic opportunities and from operational matters while working to complete the merger.

The risk associated with various provisions of the merger agreement, including:

The requirements that XTO Energy must submit the ExxonMobil transaction to XTO Energy stockholders even in the presence of a superior bid for XTO Energy by a third party and that XTO Energy must pay to ExxonMobil a termination fee of $900 million if the merger agreement is terminated under certain circumstances, which might discourage other parties potentially interested in an acquisition of, or combination with, XTO Energy from pursuing that opportunity. See “The Merger Agreement—Obligation of the XTO Energy Board of Directors to Recommend the Merger Agreement and Call a Stockholders’ Meeting” and “The Merger Agreement—Termination Fee Payable by XTO Energy” beginning on pages [] and [], respectively, of this proxy statement/prospectus. The XTO Energy board of directors, after consultation with XTO Energy’s legal and financial advisors, believed that the termination fee payable by XTO Energy in such circumstances, as a percentage of the equity value of the transaction, was reasonable and would not unduly impede the ability of a third party to make a superior bid to acquire XTO Energy if such third party were interested in doing so, and was at a level consistent with, or favorable to, the fees payable in customary and comparable merger transactions.

The requirement that XTO Energy conduct its business only in the ordinary course prior to the completion of the merger and subject to specified restrictions on the conduct of XTO Energy’s business without ExxonMobil’s consent (not to be unreasonably withheld, conditioned or delayed), which might delay or prevent XTO Energy from undertaking certain business opportunities that might arise pending completion of the merger.

The risks described in the section entitled “Risk Factors” beginning on page [] of this proxy statement/prospectus.

The XTO Energy board of directors concluded that the potentially negative factors associated with the proposed merger were outweighed by the potential benefits that it expected the XTO Energy stockholders would achieve as a result of the merger, including the belief of the XTO Energy board of directors that the proposed merger would maximize the value of XTO Energy’s stockholders’ shares and mitigate the risks and uncertainty affecting the future prospects of XTO Energy. Accordingly, the XTO Energy board of directors determined that the merger agreement and the transactions contemplated thereby, including the merger, are advisable to, and in the best interests of, XTO Energy and its stockholders.

Merger.

In addition, the XTO EnergyDenbury board of directors was aware of and considered the interests that XTO Energy’sDenbury’s directors and executive officers may have with respect tointerests in the mergerMerger that differmay be different from, or are in addition to, their interests as stockholders of XTO EnergyDenbury generally, as described inbelow under the heading “Interests of Certain PersonsDirectors and Executive Officers of Denbury in the Merger” beginning on page [] of this proxy statement/prospectus.140.

The foregoing discussion of the information and factors considered by the XTO EnergyDenbury board of directors is not intended to be exhaustive, but XTO Energy believes it includes the material factors considered by the XTO EnergyDenbury board of directors. In viewlight of the wide variety of factors considered in connection with its evaluation of the merger andMerger, the complexity of these matters, the XTO EnergyDenbury board of directors did not considerfind it practicable to, and did not, attempt to, quantify or otherwise assign relative orweights to the specific weight or values to anyfactors considered in reaching its determinations and recommendations. Moreover, each member of these factors. Rather, the XTO EnergyDenbury board of directors viewed its positionapplied his or her own personal business judgment to the process and recommendation as being based on an overall analysis and on the totality of the information presented to and factors considered by it. In addition, in considering the factors described above, individual directors may have given different weightsweight to different factors. After considering this information, the XTO EnergyThe Denbury board of directors approveddid not undertake to make any specific determination as to whether any factor, or any particular aspect of any factor, supported or did not support its ultimate determination. The Denbury board of directors based its recommendation on the merger agreement and the merger, and recommended that XTO Energy stockholders adopt the merger agreement.

This explanation of XTO Energy’s reasons for the merger and other information presented in this section is forward-looking in nature and, therefore, should be read in lightentirety of the factors described under “Cautionary Statement Regarding Forward-Looking Statements” beginning on page [] of this proxy statement/prospectus.information presented.

ExxonMobil Reasons for the MergerEXXONMOBIL’S REASONS FOR THE MERGER

ExxonMobil believes the mergerMerger will create sustainable long-term value for its shareholders.stockholders. Key strategic benefits to ExxonMobil include:

 

  

Outstanding asset base.Advantaged Infrastructure The merger. As a result of the Merger, ExxonMobil will give ExxonMobil access to XTO Energy’s significant diverse portfolioown and operate the largest CO2 pipeline network in the U.S. at 1,300 miles, including nearly 925 miles of high-quality unconventional gas assetsCO2 pipelines in Louisiana, Texas, and Mississippi, as well as exposure10 strategically located onshore sequestration sites. This advantaged CO2 infrastructure provides significant opportunities to emerging unconventional oil shale resources. XTO Energy’s unconventional gas interests are geographically dispersed acrossexpand and accelerate ExxonMobil’s low-carbon leadership and has the United Statespotential, once fully developed and include material exposureoptimized, to major unconventional gas plays. ExxonMobil views these assets as complementary to its own existing unconventional holdingsprofitably reduce emissions by more than 100 million metric tons per year in one of the highest-emitting regions of the U.S. and in the United States, Canada, Germany, Poland, Hungary and Argentina. Combining ExxonMobil’s and XTO Energy’s unconventional assets will create a world-class unconventional resource portfolio positionedmost difficult to support long-term production growth.decarbonize sectors.

 

  

Technical expertise.Expertise. The mergerMerger will give ExxonMobil access to XTO Energy’sDenbury’s technical capabilities and operating expertise with unconventional gas resources, including XTO Energy’s drilling capability. The breadth of Denbury’s network, and knowledgeover 20 years of expertise managing CO2, when added to ExxonMobil’s technology, scale, project execution and decades of experience and capabilities in well stimulationCCUS, underpins ExxonMobil’s commitment to low carbon value chains and productivity. XTO Energy’s employees, who are recognizedgives ExxonMobil the opportunity to play an even greater leadership role in the industry for their technical excellence and operating expertise, have substantial experience in all unconventional gas types, including tight gas, shale gas and coal bed methane, as well as shale oil. ExxonMobil will add to this its own drilling and completion expertise. This combined technical expertise will be applied to both ExxonMobil’s and XTO Energy’s unconventional holdings around the world, allowing those assets to be developed more effectively.a thoughtful energy transition.

 

  

Development synergies.Transaction Synergies. ExxonMobil believes the mergerMerger will create significant technicalsynergies that we expect will enable more than 100 million metric tons of emission reductions per year, driving strong growth and operational synergies by combining XTO Energy’s technicalreturns over time. Acquiring a cost-efficient transportation and storage system accelerates carbon capture and sequestration deployment for ExxonMobil and third-party customers over the next decade while reducing near-term capital outlay and enhancing storage capabilities and operating expertise with ExxonMobil’s own extensive research and development expertise, project management and operational skills, global scale and financial capacity. These synergies will allow the combined portfolio to be developed more effectively than either company would be able to accomplish on its own. Although ExxonMobil believes these synergies will enhance the value of ExxonMobil’s global unconventional resource operations, such benefits are likely to be realized over the course of many years after closing of the merger and cannot be quantified with certainty at present.

Global functional organization. The merger will be accompanied by ExxonMobil’s establishment of a new global organization that combines the unconventional resource organizations of both companies. Consistent with ExxonMobil’s successful global functional organization model, this new organization will facilitate rapid sharing of technologies and best practices across the combined company’s unconventional projects worldwide.optionality.

 

  

Meeting future demand.Near-Term Optionality.The increased supplies ofMerger will give ExxonMobil access to Denbury’s Gulf Coast and Rocky Mountain oil and natural gas available from the combined asset base will position ExxonMobil to better meet the growing demand for natural gas. ExxonMobil believes that natural gas demand will grow more rapidlyoperations, which consist of proved reserves totaling over the coming decades than any other major energy source given its availability and relatively low carbon profile.200 million

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barrels of oil equivalent, with 47,000 oil-equivalent barrels per day of current production, providing immediate operating cash flow and near-term optionality for CO2 offtake and execution of the carbon capture and sequestration business.

OpinionCERTAIN DENBURY UNAUDITED PROSPECTIVE FINANCIAL INFORMATION

Denbury does not, as a matter of XTO Energy’scourse, publicly disclose long-term consolidated forecasts as to future performance, earnings or other results given, among other reasons, the uncertainty, unpredictability and subjectivity of the underlying assumptions and estimates. In connection with Denbury’s board of directors’ consideration of the transaction, Denbury’s management prepared certain unaudited financial projections regarding Denbury’s future performance for the years 2023 through 2030 on a standalone basis without giving effect to the Merger (the “Denbury management forecast”), and provided the Denbury management forecast to the Denbury board of directors and to Denbury’s financial advisors for their use in connection with their financial analyses (see the sections described above in this proxy statement/prospectus entitled “The Merger—Opinions of Denbury’s Financial AdvisorAdvisors” beginning on page 87 of this proxy statement/prospectus). The Denbury management forecast is based upon the internal financial model that Denbury has historically used in connection with strategic planning.

XTO Energy engaged Barclays CapitalThe summaries of these projections are being included in this proxy statement/prospectus to actgive Denbury’s stockholders access to non-public information that was provided to the Denbury board of directors and Denbury’s financial advisors in the course of evaluating the proposed Merger, and are not intended to influence your decision whether to vote in favor of the Merger Agreement Proposal or any other proposal at the Special Meeting. The inclusion of this information should not be regarded as an indication that any of Denbury or its advisors or other representatives or any other recipient of this information considered, or now considers, it to be necessarily predictive of actual future performance or events, or that it should be construed as financial advisorguidance, and such summary projections set forth below should not be relied on as such.

While presented with numeric specificity, the Denbury management forecast reflects numerous estimates and assumptions that are inherently uncertain and may be beyond the control of Denbury, including, among others, Denbury’s assumptions about energy markets, production and sales volume levels, levels of oil, natural-gas and NGL reserves, demand for carbon dioxide capture and sequestration, ability to obtain approvals from third parties, the nature, timing and economic aspects of carbon capture, use and storage arrangements in connection with carbon capture, operating results, operating costs, competitive conditions, technology, availability of capital resources, levels of capital expenditures, contractual obligations, supply and demand for, the price of, and the commercialization and transporting of oil, natural gas, carbon dioxide, NGLs and other products or services, geopolitical and regulatory risks, and other matters described in the sections entitled “Cautionary Statement Regarding Forward-Looking Statements”, “Where You Can Find More Information” and “Risk Factors”, beginning on pages 41, 178 and 31, respectively. The Denbury management forecast reflects both assumptions as to certain business decisions that are subject to change and, in many respects, subjective judgment, and thus is susceptible to multiple interpretations and periodic revisions based on actual experience and business developments. Denbury can give no assurance that the Denbury management forecast and the underlying estimates and assumptions will be realized. In addition, since the Denbury management forecast covers multiple years, such information by its nature becomes more speculative with each successive year. This information constitutes “forward-looking statements” and actual results may differ materially and adversely from those projected.

The Denbury management forecast was not prepared with a view toward compliance with published guidelines of the SEC or the guidelines established by the American Institute of Certified Public Accountants for preparation or presentation of prospective financial information. The prospective financial information included in this document has been prepared by, and is the responsibility of, Denbury’s management. PricewaterhouseCoopers LLP has not audited, reviewed, examined, compiled nor applied agreed-upon procedures with respect to the proposed merger. accompanying prospective financial information and accordingly,

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PricewaterhouseCoopers LLP does not express an opinion or any other form of assurance with respect thereto. The reports of PricewaterhouseCoopers LLP, incorporated by reference into this proxy statement/prospectus, relate to Exxon’s and Denbury’s previously issued financial statements. They do not extend to the prospective financial information and should not be read to do so.

Furthermore, the Denbury management forecast does not take into account any circumstances or events occurring after the date it was prepared. Denbury can give no assurance that, had the Denbury management forecast been prepared as of the date of this proxy statement/prospectus, similar estimates and assumptions would be used. Except as required by applicable securities laws, Denbury does not intend to, and disclaims any obligation to, make publicly available any update or other revision to the Denbury management forecast to reflect circumstances existing since its preparation or to reflect the occurrence of unanticipated events, even in the event that any or all of the underlying assumptions are shown to be in error or to reflect changes in general economic or industry conditions. The Denbury management forecast does not take into account all the possible financial and other effects on Denbury of the Merger, the effect on Denbury of any business or strategic decision or action that has been or will be taken as a result of the Merger Agreement having been executed, or the effect of any business or strategic decisions or actions that would likely have been taken if the Merger Agreement had not been executed, but which were instead altered, accelerated, postponed or not taken in anticipation of the Merger. Further, the Denbury management forecast does not take into account the effect on Denbury of any possible failure of the Merger to occur. None of Denbury or its affiliates, officers, directors, advisors or other representatives has made, makes or is authorized in the future to make any representation to any Denbury stockholder or other person regarding Denbury’s ultimate performance compared to the information contained in the Denbury management forecast or to the effect that the forecasted results will be achieved. The inclusion of the Denbury management forecast herein should not be deemed an admission or representation by Denbury or its advisors or any other person that it is viewed as material information of Denbury, particularly in light of the inherent risks and uncertainties associated with such forecasts.

In light of the foregoing, and considering that the Special Meeting will be held several months after the Denbury management forecast was prepared, as well as the uncertainties inherent in any forecasted information, Denbury stockholders are cautioned not to place undue reliance on such information, and Denbury urges all Denbury stockholders to review its most recent SEC filings for a description of its reported financial results. See “Where You Can Find More Information” beginning on page 178.

Certain Assumptions

In preparing the prospective financial and operating information for Denbury described below, the management team of Denbury used price assumptions based on oil and gas strip pricing as of July 10, 2023 (which we refer to as “Strip”), Wall Street consensus pricing as of July 10, 2023 (which we refer to as “Consensus”), and 3-year historical average spot pricing of $73.91/bbl and $4.23/MMBtu (which we refer to as the “3-Year Historical Spot Price Case”). Specifically, the Denbury management forecasts examined four sets of commodity price assumptions, including: (i) Strip pricing for the years 2023-2027 and flat oil and gas prices of $60/bbl and $4.00/MMBtu, respectively, for the years 2028 onward (which we refer to as “Strip Pricing Through 2027E Case”), (ii) Strip pricing for the years 2023-2025 and flat oil and gas prices of $65/bbl and $4.00/MMBtu, respectively, for the years 2026 onward (which we refer to as “Strip Pricing Through 2025E Case”), (iii) Consensus pricing as of July 10, 2023 for the years 2023-2025 and flat oil and gas prices of $82/bbl and $4.18/MMBtu, respectively, for the years 2026 onward (which we refer to as “Consensus Pricing Through 2025E Case”), and (iv) the 3-Year Historical Spot Price Case.

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Additional detail about the specific commodity price assumptions underlying the Strip Pricing Through 2025E Case, Strip Pricing Through 2027E Case, Consensus Pricing Through 2025E Case and 3-Year Historical Spot Price Case commodity price decks is set forth in the tables below.

   Strip Pricing Through 2027E Case 
   2023E   2024E   2025E   2026E   2027E   2028E   2029E   2030E 

Commodity Prices

                

WTI oil ($/Bbl)

  $72.49   $70.16   $66.73   $63.95   $61.56   $60.00   $60.00   $60.00 

Henry Hub gas ($/MMBtu)

  $2.90   $3.50   $3.95   $3.92   $3.83   $4.00   $4.00   $4.00 
   Strip Pricing Through 2025E Case 
   2023E   2024E   2025E   2026E   2027E   2028E   2029E   2030E 

Commodity Prices

                

WTI oil ($/Bbl)

  $72.49   $70.16   $66.73   $65.00   $65.00   $65.00   $65.00   $65.00 

Henry Hub gas ($/MMBtu)

  $2.90   $3.50   $3.95   $4.00   $4.00   $4.00   $4.00   $4.00 
   Consensus Pricing Through 2025E Case 
   2023E   2024E   2025E   2026E   2027E   2028E   2029E   2030E 

Commodity Prices

                

WTI oil ($/Bbl)

  $76.10   $79.00   $82.00   $82.00   $82.00   $82.00   $82.00   $82.00 

Henry Hub gas ($/MMBtu)

  $2.80   $3.60   $4.18   $4.18   $4.18   $4.18   $4.18   $4.18 

   3-Year Historical Spot Price Case 
   2023E   2024E   2025E   2026E   2027E   2028E   2029E   2030E 

Commodity Prices

                

WTI oil ($/Bbl)

  $73.91   $73.91   $73.91   $73.91   $73.91   $73.91   $73.91   $73.91 

Henry Hub gas ($/MMBtu)

  $4.23   $4.23   $4.23   $4.23   $4.23   $4.23   $4.23   $4.23 

In addition to certain assumptions with respect to commodity prices, the Denbury management forecast is based on various other assumptions, including, but not limited to, assumptions regarding the continuing nature of ordinary course operations that may be subject to change. Specifically, the Denbury management forecast utilizes current cost estimates without the potential effects of future inflation and includes the effect of oil derivative positions that will settle in 2023 and 2024.

The following table summarizes the Denbury management forecast as of a July 10, 2023 valuation date for the fiscal years 2023 through 2030 ($ in millions):

Base Case 
   2023E  2024E  2025E  2026E  2027E  2028E  2029E  2030E 

Strip Pricing Through 2027E Case

         

Revenue

  $1,314  $1,365  $1,395  $1,565  $1,637  $1,950  $2,039  $2,227 

EBITDA(1)

  $552  $620  $626  $751  $770  $986  $1,054  $1,194 

Capital Expenditures(2)

  $(555 $(748 $(768 $(512 $(658 $(369 $(439 $(245

Unlevered Free Cash Flow(3)(4)

  $(5 $(167 $(198 $156  $28  $505  $492  $805 

Strip Pricing Through 2025E Case

         

Revenue

  $1,314  $1,365  $1,395  $1,583  $1,698  $2,045  $2,130  $2,314 

EBITDA(1)

  $552  $620  $626  $763  $818  $1,064  $1,129  $1,266 

Capital Expenditures(2)

  $(555 $(748 $(768 $(512 $(658 $(369 $(439 $(245

Unlevered Free Cash Flow(3)(5)

  $(5 $(167 $(200 $163  $65  $565  $550  $858 

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Base Case 
   2023E  2024E  2025E  2026E  2027E  2028E  2029E  2030E 

Consensus Pricing Through 2025E Case

         

Revenue

  $1,332  $1,518  $1,680  $1,876  $1,999  $2,368  $2,441  $2,612 

EBITDA(1)

  $567  $737  $866  $1,013  $1,075  $1,340  $1,396  $1,521 

Capital Expenditures(2)

  $(555 $(748 $(768 $(512 $(658 $(369 $(439 $(245

Unlevered Free Cash Flow(3)

  $9  $(91 $(11 $355  $260  $769  $743  $1,037 

3-Year Historical Spot Price Case

         

Revenue

  $1,323  $1,432  $1,529  $1,737  $1,856  $2,214  $2,293  $2,470 

EBITDA(1)

  $560  $670  $733  $891  $949  $1,205  $1,265  $1,396 

Capital Expenditures (2)

  $(555 $(748 $(768 $(512 $(658 $(369 $(439 $(245

Unlevered Free Cash Flow(3)

  $2  $(137 $(115 $261  $165  $668  $647  $948 

(1)

EBITDA is defined as net income (loss) before interest expense; income taxes; depreciation, depletion and amortization; asset impairments; noncash fair value losses (gains) on commodity derivative instruments; stock-based compensation and certain other non-recurring items or items whose timing or amount cannot be reasonably estimated. EBITDA is a non-GAAP financial measure as it excludes amounts included in net income (loss), the most directly comparable measure calculated in accordance with GAAP. This measure should not be considered as an alternative to net income (loss) or other measures derived in accordance with GAAP.

(2)

Includes estimated expenditures associated with asset retirement obligations, including plugging and abandonment costs.

(3)

Unlevered Free Cash Flow is defined as EBITDA less capital expenditures less cash income taxes and excludes the impact of share based compensation and certain other noncash items. Unlevered Free Cash Flow is a non-GAAP financial measure as it excludes amounts included in cash flow from operations, the most directly comparable measure calculated in accordance with GAAP. This measure should not be considered as an alternative to cash flow from operations or other measures derived in accordance with GAAP.

(4)

For purposes of their respective fairness analyses, Denbury’s financial advisors used the following projected unlevered free cash flow amounts ($ in millions), which were derived from the Unlevered Free Cash Flow amounts set forth in the “Strip Pricing Through 2027E Case” portion of the table above by subtracting stock-based compensation and certain other items and which were approved by Denbury management for use by Denbury’s financial advisors in their respective fairness analyses: -$13 for the second half of 2023E, -$183 for 2024E, -$215 for 2025E, $140 for 2026E, $12 for 2027E, $486 for 2028E, $473 for 2029E and $786 for 2030E.

(5)

For purposes of their respective fairness analyses, Denbury’s financial advisors used the following projected unlevered free cash flow amounts ($ in millions), which were derived from the Unlevered Free Cash Flow amounts set forth in the “Strip Pricing Through 2025E Case” portion of the table above by subtracting stock-based compensation and certain other items and which were approved by Denbury management for use by Denbury’s financial advisors in their respective fairness analyses: -$13 for the second half of 2023E, -$183 for 2024E, -$216 for 2025E, $146 for 2026E, $49 for 2027E, $547 for 2028E, $531 for 2029E and $839 for 2030E.

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Additionally, in connection with Denbury’s board of directors’ consideration of the transaction, Denbury management prepared projections for the Strip Pricing Through 2025E Case, Strip Pricing Through 2027E Case, Consensus Pricing Through 2025E Case and 3-Year Historical Spot Price Case that assumed a one-year delay in recognizing the volume from the CCUS business starting from year 2025E onwards (which we refer to as the “CCUS One-Year Delay Case”). The CCUS One-Year Delay Case was not used by any of Denbury’s financial advisors in the financial analyses underlying their fairness opinions. The following table summarizes the Denbury management forecast as of a July 10, 2023 valuation date for the fiscal years 2023 through 2030 ($ in millions) for the CCUS One-Year Delay Case:

CCUS One-Year Delay Case 
   2023E  2024E  2025E  2026E  2027E  2028E  2029E  2030E 

Strip Pricing Through 2027E Case

         

Revenue

  $1,314  $1,365  $1,301  $1,258  $1,545  $1,682  $1,899  $1,987 

EBITDA(1)

  $552  $620  $571  $522  $718  $818  $966  $1,045 

Capital Expenditures(2)

  $(555 $(541 $(533 $(743 $(514 $(597 $(397 $(398

Unlevered Free Cash Flow(3)

  $(5 $38  $(2 $(273 $125  $130  $454  $518 

Strip Pricing Through 2025E Case

         

Revenue

  $1,314  $1,365  $1,301  $1,276  $1,606  $1,777  $1,991  $2,075 

EBITDA(1)

  $552  $620  $571  $534  $766  $896  $1,042  $1,117 

Capital Expenditures(2)

  $(555 $(541 $(533 $(743 $(514 $(597 $(397 $(398

Unlevered Free Cash Flow(3)

  $(5 $38  $(4 $(265 $161  $191  $512  $572 

Consensus Pricing Through 2025E Case

         

Revenue

  $1,332  $1,518  $1,586  $1,570  $1,907  $2,100  $2,302  $2,372 

EBITDA(1)

  $567  $738  $811  $784  $1,023  $1,173  $1,308  $1,371 

Capital Expenditures(2)

  $(555 $(541 $(533 $(743 $(514 $(597 $(397 $(398

Unlevered Free Cash Flow(3)

  $9  $112  $176  $(67 $356  $398  $706  $754 

3-Year Historical Spot Price Case

         

Revenue

  $1,323  $1,432  $1,435  $1,430  $1,764  $1,946  $2,154  $2,231 

EBITDA(1)

  $560  $671  $679  $662  $897  $1,037  $1,177  $1,246 

Capital Expenditures (2)

  $(555 $(541 $(533 $(743 $(514 $(597 $(397 $(398

Unlevered Free Cash Flow(3)

  $2  $67  $74  $(162 $261  $297  $610  $664 

(1)

EBITDA is defined as net income (loss) before interest expense; income taxes; depreciation, depletion and amortization; asset impairments; noncash fair value losses (gains) on commodity derivative instruments; stock-based compensation and certain other non-recurring items or items whose timing or amount cannot be reasonably estimated. EBITDA is a non-GAAP financial measure as it excludes amounts included in net income (loss), the most directly comparable measure calculated in accordance with GAAP. This measure should not be considered as an alternative to net income (loss) or other measures derived in accordance with GAAP.

(2)

Includes estimated expenditures associated with asset retirement obligations, including plugging and abandonment costs.

(3)

Unlevered Free Cash Flow is defined as EBITDA less capital expenditures less cash income taxes and excludes the impact of share based compensation and certain other noncash items. Unlevered Free Cash Flow is a non-GAAP financial measure as it excludes amounts included in cash flow from operations, the most directly comparable measure calculated in accordance with GAAP. This measure should not be considered as an alternative to cash flow from operations or other measures derived in accordance with GAAP.

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On June 30, 2023, Denbury had approximately $85 million of debt outstanding under its bank credit facility and Denbury management projected such outstanding debt to increase to approximately $150 million by the end of 2023, driven by an estimated $65 million cash payment for withholding taxes for shares anticipated to be surrendered to Denbury for post-emergence equity awards granted in December 2020 and scheduled to be delivered to the recipients in December 2023.

Denbury does not intend to update or otherwise revise the above unaudited financial and operating forecasts to reflect circumstances existing after the date when made or to reflect the occurrence of future events, even in the event that any or all of the assumptions underlying such unaudited financial and operating forecasts are no longer appropriate, except as may be required by applicable law.

Important Information about the Unaudited Prospective Financial Information

The inclusion of the unaudited prospective financial information summarized above in “The Merger—Certain Denbury Unaudited Prospective Financial Information” beginning on page 80 of this proxy statement/prospectus (collectively, the “Unaudited Prospective Financial Information”) should not be regarded as an indication that any of Denbury, ExxonMobil, J.P. Morgan, TPH, PJT Partners, their respective advisors, or any of their respective affiliates, officers, directors, partners, advisors or other representatives or any other person considered, or now considers, those projections to be predictive of actual future performance or events, or that it should be construed as financial guidance, and the summary of the Unaudited Prospective Financial Information set forth above should not be relied on as such.

While presented with numeric specificity, the Unaudited Prospective Financial Information summarized above is subjective in many respects and reflects numerous estimates and assumptions made with respect to business, economic, market, competition, regulatory and financial conditions and matters specific to Denbury’s and ExxonMobil’s businesses that are inherently subject to significant uncertainties and contingencies, including risks and uncertainties described or incorporated by reference under “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” beginning on pages 31 and 41, respectively, of this proxy statement/prospectus, all of which are difficult to predict and many of which are beyond the control of Denbury and ExxonMobil and will be beyond the control of the combined company. The Unaudited Prospective Financial Information reflects both assumptions as to certain business decisions that are subject to change and, in many respects, subjective judgment, and thus is susceptible to multiple interpretations and periodic revisions based on actual experience and business developments. There can be no assurance that the Unaudited Prospective Financial Information and the underlying estimates and assumptions will be realized and actual results will likely differ, and may differ materially, from those reflected in the Unaudited Prospective Financial Information, whether or not the Merger is completed.

The Unaudited Prospective Financial Information constitutes forward-looking statements. In addition, because the Unaudited Prospective Financial Information covers multiple years, such information by its nature becomes less predictive with each successive year. Actual results may differ materially from those set forth above, and important factors that may affect actual results and cause the Unaudited Prospective Financial Information to be inaccurate include, but are not limited to, risks and uncertainties relating to ExxonMobil’s and Denbury’s businesses, industry performance, the regulatory environment, general business and economic conditions and other matters described under “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” beginning on pages 31 and 41, respectively, of this proxy statement/prospectus. As a result, the Unaudited Prospective Financial Information cannot be considered predictive of actual future operating results, and this information should not be relied on as such. Denbury stockholders and ExxonMobil shareholders are urged to review the SEC filings of Denbury and ExxonMobil for a description of risk factors with respect to the businesses of Denbury and ExxonMobil, as well as the risks and other factors described or incorporated by reference under “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” beginning on pages 31 and 41, respectively, of this proxy statement/prospectus. See also “Where You Can Find More Information” beginning on page 178 of this proxy statement/prospectus. The Unaudited Prospective Financial Information includes certain non-GAAP financial measures.

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The Unaudited Prospective Financial Information was not prepared with a view toward public disclosure, nor was it prepared with a view toward compliance with GAAP, published guidelines of the SEC or the guidelines established by the American Institute of Certified Public Accountants for preparation and presentation of prospective financial information. No independent registered public accounting firm has audited, reviewed, compiled, examined, applied or performed any procedures with respect to the Unaudited Prospective Financial Information contained herein, nor have they expressed nor do they express any opinion or any other form of assurance on such information or its achievability. The report of the respective independent registered public accounting firms of Denbury and ExxonMobil contained in their respective Annual Reports on Form 10-K for the year ended December 31, 2022, which have been filed with the SEC and are incorporated by reference into this proxy statement/prospectus, relate to historical financial information of Denbury and ExxonMobil, respectively, and such reports do not extend to the projections summarized above and should not be read to do so. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-GAAP financial measures as used by Denbury and ExxonMobil may not be comparable to similarly titled amounts used by other companies.

Furthermore, the Unaudited Prospective Financial Information does not take into account any circumstances or events occurring after the date it was prepared. There can be no assurance that, had the Unaudited Prospective Financial Information been prepared either as of the date of the Merger Agreement or as of the date of this proxy statement/prospectus, similar estimates and assumptions would be used. The Unaudited Prospective Financial Information does not take into account all the possible financial and other effects on Denbury or ExxonMobil of the Merger, the effect on Denbury or ExxonMobil of any business or strategic decision or action that has been or will be taken as a result of the Merger Agreement, or the effect of any business or strategic decisions or actions which would likely have been taken if the Merger Agreement had not been executed, but which were instead altered, accelerated, postponed or not taken in anticipation of the Merger. Further, the Unaudited Prospective Financial Information does not take into account the effect on Denbury or ExxonMobil of any possible failure of the Merger to occur. None of Denbury, ExxonMobil or any of their respective affiliates, officers, directors, partners, advisors or other representatives has made, makes or is authorized in the future to make any representation to any Denbury stockholder or ExxonMobil shareholder or other person regarding Denbury’s or ExxonMobil’s ultimate performance compared to the information contained in the Unaudited Prospective Financial Information or that the forecasted results will be achieved. The inclusion of the Unaudited Prospective Financial Information herein should not be deemed an admission or representation by Denbury, ExxonMobil, their respective advisors or any other person that it is viewed as material information of Denbury or ExxonMobil, particularly in light of the inherent risks and uncertainties associated with such information. There can be no assurance that the projected results will be realized or that actual results will not be materially lower or higher than estimated, whether or not the Merger is completed. The summary of the Unaudited Prospective Financial Information included above is not being included to influence any Denbury stockholder’s decision on whether to vote in favor of the Merger or any other proposal to be considered at the Special Meeting, but is being provided solely because it was made available to the Denbury board of directors, Denbury, ExxonMobil and Denbury’s financial advisors, as applicable, in connection with the Merger.

READERS OF THIS PROXY STATEMENT/PROSPECTUS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THE UNAUDITED PROSPECTIVE FINANCIAL INFORMATION. DENBURY AND EXXONMOBIL DO NOT INTEND TO UPDATE OR OTHERWISE REVISE THE UNAUDITED PROSPECTIVE FINANCIAL INFORMATION TO REFLECT CIRCUMSTANCES EXISTING AFTER THE DATE WHEN MADE OR TO REFLECT THE OCCURRENCE OF FUTURE EVENTS, EVEN IN THE EVENT THAT ANY OR ALL OF THE ASSUMPTIONS UNDERLYING THE UNAUDITED PROSPECTIVE FINANCIAL INFORMATION ARE NO LONGER APPROPRIATE, EXCEPT AS MAY BE REQUIRED BY LAW.

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OPINIONS OF DENBURY’S FINANCIAL ADVISORS

Opinion of J.P. Morgan Securities LLC

Pursuant to an engagement letter dated August 1, 2022, Denbury retained J.P. Morgan as a financial advisor in connection with a potential transaction (including the Merger). At the meeting of the Denbury board of directors on July 13, 2009, Barclays Capital2023, J.P. Morgan rendered its oral opinion to XTO Energy’sthe Denbury board of directors, which was subsequently confirmed by delivery of a written opinion, dated July 13, 2023, to the effect that, as of such date and based upon and subject to the factors, assumptions, qualifications and any limitations and assumptions statedset forth in its written opinion, the Merger Consideration to be paid to the holders of Denbury common stock in the Merger was fair, from a financial point of view, the exchange ratio of 0.7098 shares of ExxonMobil common stock for each share of XTO Energy common stock in the proposed merger was fair to XTO Energy’s stockholders.such holders.

The full text of Barclays Capital’sthe written opinion of J.P. Morgan dated as of DecemberJuly 13, 2009,2023, which sets forth, among other things, the assumptions made, matters considered and qualifications and any limitations on the opinion and the review undertaken by J.P. Morgan in connection with rendering its opinion, is attached as Annex B to this proxy statement/prospectus. Holdersprospectus and is incorporated herein by reference. The summary of XTO Energy’s common stockthe opinion of J.P. Morgan set forth in this proxy statement/prospectus is qualified in its entirety by reference to the full text of such opinion. Denbury’s stockholders are encouragedurged to read Barclays Capital’sthe opinion for a discussioncarefully and in its entirety. J.P. Morgan’s opinion was addressed to the Denbury board of the procedures followed, factors considered, assumptions made and qualifications and limitations of the review undertaken by Barclays Capitaldirectors (in its capacity as such) in connection with and for the purposes of its evaluation of the Merger, was directed only to the Merger Consideration to be paid to the holders of Denbury common stock in the Merger and did not address any other aspect of the Merger or the other transactions contemplated by the Merger Agreement. The issuance of J.P. Morgan’s opinion was approved by a fairness committee of J.P. Morgan. The opinion does not constitute a recommendation to any stockholder of Denbury as to how such stockholder should vote with respect to the Merger or any other matter.

In arriving at its opinion, J.P. Morgan, among other things:

reviewed the Merger Agreement;

reviewed certain publicly available business and financial information concerning Denbury and the industries in which it operates;

compared the financial and operating performance of Denbury with publicly available information concerning certain other companies J.P. Morgan deemed relevant and reviewed the current and historical market prices of the Denbury common stock and ExxonMobil common stock and certain publicly traded securities of such other companies;

reviewed certain internal financial analyses and forecasts prepared by the management of Denbury relating to its business (including the financial projections identified to J.P. Morgan by Denbury as the “Strip Pricing through 2027E Base Case,” the “Strip Pricing through 2027E CCUS Delay Case,” the “Strip Pricing through 2025E Base Case,” the “Strip Pricing through 2025E CCUS Delay Case,” the “Consensus Pricing through 2025E Base Case,” the “Consensus Pricing through 2025E CCUS Delay Case,” the “3-Year Historical Spot Price Average Base Case” and the “3-Year Historical Spot Price Average CCUS Delay Case”); and

performed such other financial studies and analyses and considered such other information as J.P. Morgan deemed appropriate for the purposes of its opinion.

In addition, J.P. Morgan held discussions with certain members of the management of Denbury and ExxonMobil with respect to certain aspects of the Merger, and the past and current business operations of Denbury, the financial condition and future prospects and operations of Denbury, and certain other matters J.P. Morgan believed necessary or appropriate to its inquiry.

In giving its opinion, J.P. Morgan relied upon and assumed the accuracy and completeness of all information that was publicly available or was furnished to or discussed with J.P. Morgan by Denbury and

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ExxonMobil or otherwise reviewed by or for J.P. Morgan. J.P. Morgan did not independently verify any such information or its accuracy or completeness and, pursuant to J.P. Morgan’s engagement letter with Denbury, J.P. Morgan did not assume any obligation to undertake any such independent verification. J.P. Morgan did not conduct and was not provided with any valuation or appraisal of any assets or liabilities, nor did J.P. Morgan evaluate the solvency of Denbury or ExxonMobil under any state or federal laws relating to bankruptcy, insolvency or similar matters. In relying on financial analyses and forecasts provided to J.P. Morgan or derived therefrom, J.P. Morgan assumed that they were reasonably prepared based on assumptions reflecting the best currently available estimates and judgments by management as to the expected future results of operations and financial condition of Denbury to which such analyses or forecasts relate. For purposes of J.P. Morgan’s opinion and financial analyses, the Denbury board of directors directed J.P. Morgan to use the “Strip Pricing through 2027E Base Case” and the “Strip Pricing through 2025E Base Case.” J.P. Morgan expresses no view as to such analyses or forecasts or the assumptions on which they were based or as to such direction by the Denbury board of directors. J.P. Morgan also assumed that the Merger and the other transactions contemplated by the Merger Agreement will qualify as a tax-free reorganization for United States federal income tax purposes, and will be consummated as described in the Merger Agreement. J.P. Morgan also assumed that the representations and warranties made by Denbury and ExxonMobil and Merger Sub in the Merger Agreement and the related agreements were and will be true and correct in all respects material to J.P. Morgan’s analysis. J.P. Morgan is not a legal, regulatory or tax expert and relied on the assessments made by advisors to Denbury with respect to such issues. J.P. Morgan further assumed that all material governmental, regulatory or other consents and approvals necessary for the consummation of the Merger will be obtained without any adverse effect on Denbury or on the contemplated benefits of the Merger.

J.P. Morgan’s opinion was necessarily based on economic, market and other conditions as in effect on, and the information made available to J.P. Morgan as of, the date of such opinion. J.P. Morgan’s opinion noted that subsequent developments may affect J.P. Morgan’s written opinion dated July 13, 2023, and that J.P. Morgan does not have any obligation to update, revise, or reaffirm such opinion. J.P. Morgan’s opinion is limited to the fairness, from a financial point of view, of the Merger Consideration to be paid to the holders of Denbury common stock in the Merger, and J.P. Morgan has expressed no opinion as to the fairness of any consideration to be paid in connection with the Merger to the holders of any other class of securities, creditors or other constituencies of Denbury or as to the underlying decision by Denbury to engage in the Merger. Furthermore, J.P. Morgan expressed no opinion with respect to the amount or nature of any compensation to any officers, directors, or employees of any party to the Merger, or any class of such persons relative to the Merger Consideration to be paid to the holders of Denbury common stock in the Merger or with respect to the fairness of any such compensation. J.P. Morgan expressed no opinion as to the price at which Denbury common stock or ExxonMobil common stock will trade at any future time.

The terms of the Merger Agreement, including the Merger Consideration, were determined through arm’s length negotiations between Denbury and ExxonMobil, and the decision to enter into the Merger Agreement was solely that of the Denbury board of directors. J.P. Morgan’s opinion and financial analyses were only one of the many factors considered by the Denbury board of directors in its evaluation of the Merger and should not be viewed as determinative of the views of the Denbury board of directors or management with respect to the Merger or the Merger Consideration.

In accordance with customary investment banking practice, J.P. Morgan employed generally accepted valuation methodologies in rendering its opinion to the Denbury board of directors on July 13, 2023 and in the financial analyses presented to the Denbury board of directors on such date in connection with the rendering of such opinion. The following is a summary of Barclays Capital’sthe material financial analyses utilized by J.P. Morgan in connection with rendering its opinion to the Denbury board of directors and contained in the presentation delivered to the Denbury board of directors on such date in connection with the rendering of such opinion and does not purport to be a complete description of the analyses or data presented by J.P. Morgan. Certain of the summaries of the financial analyses include information presented in tabular format. The tables are not intended to stand alone, and in order to more fully understand the financial analyses used by J.P. Morgan, the tables must

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be read together with the full text of each summary. Considering the data set forth below without considering the full narrative description of the financial analyses, including the methodologies and assumptions underlying the analyses, could create a misleading or incomplete view of J.P. Morgan’s analyses.

Sum-of-the-Parts — Selected Public Trading Multiples

Using publicly available information, J.P. Morgan compared selected financial data of Denbury’s enhanced oil recovery (which we refer to as the “EOR”) business and carbon capture, use and storage (which we refer to as the “CCUS”) business with similar data for certain selected publicly traded companies engaged in businesses which J.P. Morgan judged, based on its experience and familiarity with the industries in which Denbury operates, to be sufficiently analogous to Denbury’s EOR business or CCUS business, as applicable. The companies selected by J.P. Morgan were:

EOR companies:

Berry Corporation

Chord Energy Corporation

Crescent Point Energy Corp.

California Resources Corporation

Northern Oil and Gas, Inc.

CCUS companies:

Aker Carbon Capture ASA

Ballard Power Systems Inc.

Bloom Energy Corporation

FuelCell Energy, Inc.

Plug Power Inc.

None of the selected companies reviewed is identical or directly comparable to Denbury’s EOR business or CCUS business, and certain of these companies may have characteristics that are materially different from those of Denbury’s EOR business or CCUS business. However, these companies were selected, among other reasons, because they are publicly traded companies with operations and businesses that, for purposes of J.P. Morgan’s analysis, may be considered sufficiently similar in certain respects to Denbury’s EOR business or CCUS business. The analysis necessarily involves complex considerations and judgments concerning differences in financial and operational characteristics of the companies involved and other factors that could affect the companies differently than they would affect Denbury’s EOR business or CCUS business.

Using publicly available information as of July 12, 2023, J.P. Morgan calculated and compared:

the multiple of enterprise value (calculated as the market value of the company’s common stock on a fully diluted basis, plus debt and other adjustments, including non-controlling interests, less cash) to estimated EBITDA (calculated as earnings before interest, taxes, depreciation and amortization) for the fiscal year ending December 31, 2023 (which we refer to as “FYE 2023”) for each selected EOR company listed above and for Denbury; and

the multiple of enterprise value to estimated revenue for the fiscal year ending December 31, 2025 (which we refer to as “FYE 2025”) for each selected CCUS company listed above and for Denbury.

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Based on the results of this analysis and other factors which J.P. Morgan considered appropriate based on its experience and professional judgment, J.P. Morgan selected multiple reference ranges of 3.50x – 4.50x for enterprise value to FYE 2023 EBITDA (for Denbury’s EOR business) and 1.50x – 2.75x for enterprise value to estimated revenue for the fiscal year ending December 31, 2026 (which we refer to as “FYE 2026”) (for Denbury’s CCUS business).

J.P. Morgan then calculated ranges of implied enterprise values of Denbury’s EOR business and Denbury’s CCUS business by applying the applicable multiple reference range to the FYE 2023 EBITDA of Denbury’s EOR business and to the FYE 2026 revenue of Denbury’s CCUS business, in each case, based on Denbury management’s “Strip Pricing through 2027E Base Case” and “Strip Pricing through 2025E Base Case,” as directed by Denbury management. After aggregating the ranges of implied enterprise values for Denbury’s EOR and CCUS businesses, the analysis indicated a range of implied equity values per share of Denbury common stock of $46.50 – $66.25 (in each case, rounded to the nearest $0.25 per share).

This range of implied equity values per share was compared to (i) the closing price per share of Denbury common stock of $78.90 on August 16, 2022 (the trading day before certain media outlets first reported that Denbury was exploring options, including putting itself up for sale), (ii) the closing price per share of Denbury common stock of $87.75 on July 12, 2023 and (iii) the implied value of the Merger Consideration of $89.45 per share of Denbury common stock. The implied value of the Merger Consideration of $89.45 as used throughout this summary of J.P. Morgan’s analyses was calculated by multiplying the exchange ratio of 0.840 of a share of ExxonMobil common stock by $106.49, the closing price per share of ExxonMobil common stock on July 12, 2023.

Sum-of-the-Parts — Discounted Cash Flow Analysis

J.P. Morgan conducted a sum-of-the-parts discounted cash flow analysis for the purpose of determining an implied equity value per share for Denbury common stock based on two commodity price and activity cases provided to J.P. Morgan by Denbury management (which cases we refer to herein as the “Strip Pricing through 2027E Base Case” and the “Strip Pricing through 2025E Base Case”) as directed by the Denbury board of directors.

J.P. Morgan calculated the unlevered free cash flows, as of June 30, 2023, that each of Denbury’s EOR and CCUS businesses was forecasted to generate during the second half of fiscal year 2023 through the end of fiscal year 2030, based upon each of the Strip Pricing through 2027E Base Case and the Strip Pricing through 2025E Base Case. J.P. Morgan also calculated a range of terminal asset values for each of these businesses at the end of the seven-and-a-half-year period ending 2030 by applying, at the direction of Denbury management, terminal value growth rates ranging from (4%) to (2%) in the case of Denbury’s EOR business, and from 4% to 6% in the case of Denbury’s CCUS business, to estimates of the terminal unlevered free cash flows of each such business.

For each of the Strip Pricing through 2027E Base Case and the Strip Pricing through 2025E Base Case, the unlevered free cash flows and the range of terminal asset values were then discounted to present values, as of June 30, 2023, using a range of discount rates from 8.75% to 10.75% for Denbury’s EOR business and 12.25% to 14.25% for Denbury’s CCUS business, which ranges were chosen by J.P. Morgan based upon an analysis of the weighted average cost of capital of Denbury’s EOR business and CCUS business, as applicable. After aggregating the discounted values for the EOR business and the CCUS business for each of the Strip Pricing through 2027E Base Case and the Strip Pricing through 2025E Base Case, subtracting from each such aggregated value Denbury’s estimated net debt of approximately $85 million as of June 30, 2023 and dividing the resultant values by 54.5 million fully diluted shares of Denbury common stock (as provided by Denbury management), the analysis indicated a range of implied equity values per share of Denbury common stock of $56.75 to $93.25 for the Strip Pricing through 2027E Base Case and a range of implied equity values per share of Denbury common stock of $62.25 to $101.00 for the Strip Pricing through 2025E Base Case (in each case, rounded to the nearest $0.25 per share). These ranges of implied equity values per share were compared to (i) the closing price per share

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of Denbury common stock of $78.90 on August 16, 2022 (the trading day before certain media outlets first reported that Denbury was exploring options, including putting itself up for sale), (ii) the closing price per share of Denbury common stock of $87.75 on July 12, 2023 and (iii) the implied value of the Merger Consideration of $89.45 per share of Denbury common stock.

Historical Trading Range

For reference only and not as a component of its fairness analysis, J.P. Morgan reviewed the trading range for the Denbury common stock for the period beginning on September 21, 2020 (the date on which Denbury’s common stock began trading on the New York Stock Exchange after Denbury emerged from Chapter 11 proceedings) and ending on July 12, 2023, which range was $15.50 per share to $104.00 per share, and compared that range to (i) the closing price per share of Denbury common stock of $78.90 on August 16, 2022 (the trading day before certain media outlets first reported that Denbury was exploring options, including putting itself up for sale), (ii) the closing price per share of Denbury common stock of $87.75 on July 12, 2023 and (iii) the implied value of the Merger Consideration of $89.45 per share of Denbury common stock.

Analyst Price Target

For reference only and not as a component of its fairness analysis, J.P. Morgan reviewed certain publicly available equity research analyst price targets for the Denbury common stock available as of July 12, 2023, noted that the range of such price targets (discounted one year to the present at Denbury’s median cost of equity of 12.9%), was $64.75 to $124.00 per share and compared that range to (i) the closing price per share of Denbury common stock of $78.90 on August 16, 2022 (the trading day before certain media outlets first reported that Denbury was exploring options, including putting itself up for sale), (ii) the closing price per share of Denbury common stock of $87.75 on July 12, 2023 and (iii) the implied value of the Merger Consideration of $89.45 per share of Denbury common stock.

Miscellaneous

The foregoing summary of certain material financial analyses does not purport to be a complete description of the analyses or data presented by J.P. Morgan. The preparation of a fairness opinion is a complex process and is not necessarily susceptible to partial analysis or summary description. J.P. Morgan believes that the foregoing summary and its analyses must be considered as a whole and that selecting portions of the foregoing summary and these analyses, without considering all of its analyses as a whole, could create an incomplete view of the processes underlying the analyses and its opinion. As a result, the ranges of valuations resulting from any particular analysis or combination of analyses described above were merely utilized to create points of reference for analytical purposes and should not be taken to be the view of J.P. Morgan with respect to the actual value of Denbury. The order of analyses described does not represent the relative importance or weight given to those analyses by J.P. Morgan. In arriving at its opinion, J.P. Morgan did not attribute any particular weight to any analyses or factors considered by it and did not form an opinion as to whether any individual analysis or factor (positive or negative), considered in isolation, supported or failed to support its opinion. Rather, J.P. Morgan considered the totality of the factors and analyses performed in determining its opinion.

Analyses based upon forecasts of future results are inherently uncertain, as they are subject to numerous factors or events beyond the control of the parties and their advisors. Accordingly, forecasts and analyses used or made by J.P. Morgan are not necessarily indicative of actual future results, which may be significantly more or less favorable than suggested by those analyses. Moreover, J.P. Morgan’s analyses are not and do not purport to be appraisals or otherwise reflective of the prices at which businesses actually could be acquired or sold. None of the selected companies reviewed as described in the above summary is identical to Denbury, and none of the selected transactions reviewed was identical to the proposed Merger. However, the companies selected were chosen because they are publicly traded companies with operations and businesses that, for purposes of J.P. Morgan’s analysis, may be considered similar to those of Denbury. The transactions selected were similarly

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chosen because their participants, size and other factors, for purposes of J.P. Morgan’s analysis, may be considered similar to the proposed Merger. The analyses necessarily involve complex considerations and judgments concerning differences in financial and operational characteristics of the companies involved and other factors that could affect the companies compared to Denbury and the transactions compared to the proposed Merger.

As a part of its investment banking business, J.P. Morgan and its affiliates are continually engaged in the valuation of businesses and their securities in connection with mergers and acquisitions, investments for passive and control purposes, negotiated underwritings, secondary distributions of listed and unlisted securities, private placements, and valuations for corporate and other purposes. J.P. Morgan was selected to advise Denbury with respect to the Merger on the basis of, among other things, such experience and its qualifications and reputation in connection with such matters and its familiarity with Denbury and the industries in which it operates.

For services rendered in connection with the Merger and the delivery of its opinion, Denbury has agreed to pay J.P. Morgan a transaction fee, a portion of which became payable by Denbury to J.P. Morgan in connection with J.P. Morgan’s delivery of its opinion and the methodologybalance of which will become payable upon the closing of the Merger. In addition, Denbury has agreed to reimburse J.P. Morgan for its expenses incurred in connection with its services, including the fees and disbursements of counsel, and will indemnify J.P. Morgan against certain liabilities arising out of J.P. Morgan’s engagement. During the two years preceding the date of J.P. Morgan’s opinion, J.P. Morgan and its affiliates have had commercial or investment banking relationships with Denbury and ExxonMobil, for which J.P. Morgan and its affiliates have received compensation of approximately $2.0 million and $1.5 million from Denbury and ExxonMobil, respectively. Such services during such period have included acting as joint lead arranger and joint lead bookrunner on a credit facility of Denbury in May 2022 and acting as joint lead arranger and joint bookrunner on a credit facility of ExxonMobil in August 2021. In addition, J.P. Morgan’s commercial banking affiliate is an agent bank and a lender under outstanding credit facilities of Denbury, for which it receives customary compensation or other financial benefits. In addition, J.P. Morgan and its affiliates hold, on a proprietary basis, less than 1% of the outstanding common stock of each of Denbury and ExxonMobil. In the ordinary course of their businesses, J.P. Morgan and its affiliates may actively trade the debt and equity securities or financial instruments (including derivatives, bank loans or other obligations) of Denbury or ExxonMobil for its own account or for the accounts of customers and, accordingly, J.P. Morgan may at any time hold long or short positions in such securities or other financial instruments.

Opinion of TPH & Co.

Introduction

Denbury retained TPH to act as Denbury’s financial advisor and provide an opinion in connection with the Merger. The Denbury board of directors instructed TPH to evaluate the fairness, from a financial point of view, to the holders of outstanding shares of Denbury common stock (other than ExxonMobil and its affiliates) of the Merger Consideration to be received by such holders pursuant to the Merger Agreement.

On July 13, 2023, at a meeting of the Denbury board of directors held to evaluate the Merger, TPH delivered an oral opinion to the effect that, Barclays Capital usedas of such date and based upon and subject to renderthe assumptions made, procedures followed, factors considered and qualifications and limitations on the review undertaken by TPH, as set forth in the written opinion delivered subsequently and based upon other matters as TPH considered relevant, the Merger Consideration to be received by the holders of outstanding shares of Denbury common stock (other than ExxonMobil and its opinion. Thisaffiliates) in the Merger pursuant to the Merger Agreement was fair, from a financial point of view, to such holders. TPH delivered its written opinion on July 13, 2023 to the Denbury board of directors.

The TPH opinion speaks only as of the date and the time TPH rendered it and not as of the time the Merger may be completed or any other time. The TPH opinion does not reflect changes that may occur or may have occurred after its delivery, which could significantly alter the value, facts or elements on which the opinion was based.

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The full text of TPH’s written opinion, which describes, among other things, the assumptions made, procedures followed, factors considered and qualifications and limitations on the review TPH undertook, is attached as Annex C to this proxy statement/prospectus and is incorporated by reference in its entirety. The summary of TPH’s opinion set forth in this proxy statement/prospectus is qualified in its entirety by reference to the full text of the opinion.

Barclays Capital’s Denbury stockholders are encouraged to read the TPH opinion carefully in its entirety. TPH delivered its opinion for the issuanceinformation and assistance of which was approved by Barclays Capital’s Fairness Opinion Committee, is addressed to the Denbury board of directors in connection with the Denbury board of XTO Energy, addresses only the fairness, from a financial point of view,directors’ consideration of the exchange ratio to XTO Energy’s stockholdersMerger, and TPH’s opinion does not address any other aspect of the Merger Agreement and does not constitute a recommendation as to how any stockholder of XTO Energy as to how such stockholderDenbury or ExxonMobil should vote with respect to the proposed mergerMerger or any other matter. The terms of the proposed merger were determined through arm’s-length negotiations between XTO Energy and ExxonMobil and were approved by XTO Energy’s board of directors. Barclays Capital did not recommend any specific form or amount of consideration to XTO Energy’s board of directors or that any specific form or amount of consideration constituted the only appropriate consideration for the proposed merger. Barclays Capital was not requested to address, and

In connection with rendering its opinion, does not in any manner address, XTO Energy’s underlying business decision to proceed with or effect the proposed merger or to enter into or consummate the proposed merger at any particular time now or in the future. In addition, Barclays Capital expressed no opinion on, and its opinion does not in any manner address, the fairness of the amount or the nature of any compensation to any officers, directors or employees of any parties to the proposed merger, or any class of such persons, relative to the consideration to be offered to the stockholders of XTO Energy in the proposed merger. No limitations were imposed by XTO Energy’s board of directors upon Barclays Capital with respect to the investigations made or procedures followed by it in rendering its opinion.

In arriving at its opinion, Barclays Capital reviewed and analyzed,TPH, among other things:

 

the merger agreement and the specific terms of the proposed merger;

reviewed certain publicly available financial statements and other publicly available business and financial information with respect to Denbury and ExxonMobil, including equity research analyst reports;

 

publicly available information concerning XTO Energy and ExxonMobil that Barclays Capital believed to be relevant to its analysis, including, without limitation, each of XTO Energy’s and ExxonMobil’s Annual Reports on Form 10-K for the year ended December 31, 2008 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2009, June 30, 2009 and September 30, 2009;

reviewed certain internal financial statements, analyses and forecasts and other internal financial information and operating data relating to the business of Denbury, in each case, prepared and approved for TPH’s use by Denbury management (including the financial projections identified to TPH by Denbury as a “Strip Pricing through 2027E Base Case,” a “Strip Pricing through 2027E CCUS Delay Case,” a “Strip Pricing through 2025E Base Case,” a “Strip Pricing through 2025E CCUS Delay Case,” a “Consensus Pricing through 2025E Base Case,” a “Consensus Pricing through 2025E CCUS Delay Case,” a “3-Year Historical Spot Price Average Base Case” and a “3-Year Historical Spot Price Average CCUS Delay Case”);

 

financial and operating information with respect to the business, operations and prospects of XTO Energy furnished to Barclays Capital by XTO Energy;

discussed the past and current business, operations, financial condition and prospects of Denbury and the combined company with senior members of Denbury management, the Denbury board of directors, and other representatives and advisors of Denbury;

financial and operating information with respect to the business, operations and prospects of ExxonMobil furnished to Barclays Capital by ExxonMobil;

 

consensus estimates published by First Call of independent equity research analysts with respect to (i) the future financial performance of XTO Energy, which are referred to in this proxy statement/prospectus as the XTO Energy research projections, and (ii) the future financial performance of ExxonMobil, which are referred to in this proxy statement/prospectus as the ExxonMobil research projections;

discussed with senior members of Denbury management their assessment of the strategic rationale for, and the potential benefits of, the Merger;

 

estimates of certain (i) proved reserves of oil and gas, as of December 31, 2008, for XTO Energy as prepared by a third-party reserve engineer, or the XTO Year-End 2008 Engineered Proved Reserve Report, (ii) proved reserves of oil and gas, as of December 31, 2008, for XTO Energy prepared by the management of XTO Energy based upon the XTO Year-End 2008 Engineered Proved Reserve Report adjusted for different commodity price assumptions, or the Price Adjusted XTO Year-End 2008 Proved Reserve Report, and (iii) proved reserves of oil and gas, as of December 31, 2009, for XTO Energy based upon a roll-forward of the Price Adjusted XTO Year-End 2008 Proved Reserve Report and XTO Energy management guidance ((i) through (iii) are collectively referred to in this proxy statement/prospectus as the XTO reserve reports);

compared the financial performance of Denbury with that of certain publicly-traded companies that TPH believed to be generally relevant;

 

estimates of certain current non-proved oil and gas reserve potential for XTO Energy as estimated by the management of XTO Energy and classified by the management of XTO Energy between (i) “Low-Risk Upside Resource Potential” and (ii) “Additional Resource Potential” based upon the level of risk inherent in the resources ((i) through (ii) are collectively referred to in this proxy statement/prospectus as the XTO Energy non-proved resource potential);

the trading histories of XTO Energy common stock and ExxonMobil common stock from December 13, 2004 to December 11, 2009 and a comparison of those trading histories with each other and with those of other companies that Barclays Capital deemed relevant;

a comparison of the historical financial results and present financial condition of XTO Energy and ExxonMobil with each other’s and with those of other companies that Barclays Capital deemed relevant;

a comparison of the financial terms of the proposed merger with the financial terms of certain other transactions that Barclays Capital deemed relevant;

the relative contributions of XTO Energy and ExxonMobil to the current and future financial performance of the combined company on a pro forma basis; and

certain strategic alternatives available to XTO Energy.

In addition, Barclays Capital had discussionscompared the financial terms of the Merger with the managementspublicly available financial terms of XTO Energycertain transactions that TPH believed to be generally relevant;

reviewed the historical trading prices and trading activity for Denbury’s common stock and compared such price and trading activity with that of securities of certain publicly-traded companies that TPH believed to be generally relevant;

participated in discussions among representatives of Denbury and ExxonMobil concerningand their respective businesses, operations, assets, financial conditions, reserves, production profiles, hedging levels, commodity prices, development programs, exploration programsadvisors;

took into account the results of its efforts on behalf of Denbury to solicit, at the direction of Denbury, indications of interest and prospects,proposals from third parties with respect to a potential acquisition of Denbury;

reviewed a draft of the Merger Agreement dated July 13, 2023; and undertook

conducted such other financial studies, analyses and investigations, and considered such other factors, as Barclays Capitalit deemed appropriate.

In arriving atFor purposes of its opinion, Barclays CapitalTPH assumed and relied upon, the accuracy and completeness of the financial and other information used by Barclays Capital without assuming any responsibility for independent verification, the accuracy and completeness of suchall of the financial, accounting, legal, tax, regulatory and other information provided to, discussed with or reviewed by TPH (including information that was available

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from public sources) and alsofurther relied upon the assurances of the managements of XTO Energy and ExxonMobilDenbury management that they areDenbury management was not aware of any facts or circumstances that would make such information inaccurate or misleading.misleading in any material respect.

Barclays CapitalWith respect to the forecasts prepared and approved for its use by Denbury management, TPH was not providedadvised by Denbury management and assumed, with the consent of the Denbury board of directors, that such forecasts were reasonably prepared on a basis reflecting the best currently available estimates and did not have any accessgood faith judgments of Denbury management as to financial projections of XTO Energy prepared by the management of XTO Energy. Accordingly, upon the advice of XTO Energy, Barclays Capital assumed that the XTO Energy research projections were a reasonable basis upon which to evaluate the future financial performance of XTO EnergyDenbury and Barclays Capital usedthe other matters covered thereby, and TPH expressed no view as to the reasonableness of such projections in performing its analysis. In addition, forforecasts or the assumptions on which they were based. For purposes of its analysisTPH’s opinion and forfinancial analyses, the reasons discussed under “The Merger—Certain

Projected Financial Data Prepared by Barclays CapitalDenbury board of directors directed TPH to use the “Strip Pricing through 2027E Base Case” and the “Strip Pricing through 2025E Base Case.” In particular, the forecasts prepared and approved for Purposes of Rendering its Opinion” beginning on page [] of this proxy statement/prospectus, Barclays Capital also considered projected financial data prepared by Barclays Capital in consultation with the management of XTO Energy. Barclays Capital discussed such projected financial data with the management of XTO Energy and, based upon advice of XTO Energy management, Barclays Capital assumed that such projections were a reasonable basis upon which to evaluate the future performance of XTO Energy and management of XTO Energy had agreed with the appropriateness of the use of such projectionsTPH by Denbury management reflect certain assumptions regarding the industries or areas in performing Barclays Capital’s analysis. For a further discussion of the projected financial data prepared by Barclays Capital, see “The Merger—Certain Projected Financial Data Prepared by Barclays Capital for Purposes of Rendering its Opinion” beginning on page [] of this proxy statement/prospectus. Barclays Capital was not provided with, and did not have any accesswhich Denbury operates that are subject to financial projections of ExxonMobil prepared by the management of ExxonMobil. Accordingly, upon the advice of XTO Energy, Barclays Capital assumed that the ExxonMobil research projections were a reasonable basis upon which to evaluate the future financial performance of ExxonMobilsignificant uncertainty and that, ExxonMobil will perform substantially in accordance with such estimates. With respect to the XTO reserve reports, Barclays Capital discussed these reports with the management of XTO Energyif different than assumed, could have a material impact on TPH’s analysis and upon the advice of XTO Energy, assumed that the XTO reserve reports were a reasonable basis upon which to evaluate the proved reserve levels of XTO Energy. With respect to the XTO Energy non-proved resource potential, Barclays Capital discussed these estimates with the management of XTO Energy and, upon the advice of XTO Energy, assumed that the XTO Energy non-proved resource potential was a reasonable basis upon which to evaluate the non-proved resource levels of XTO Energy.opinion.

In arriving at its opinion, Barclays CapitalTPH did not make and was not provided with any independent valuation or appraisal of the assets or liabilities (including any contingent, derivative or off-balance-sheet assets or liabilities) of Denbury, ExxonMobil or any of their respective subsidiaries. TPH did not assume any obligation to conduct, anor did it conduct, any physical inspection of the properties andor facilities of XTO EnergyDenbury, ExxonMobil or ExxonMobil andany other party. In addition, TPH did not makeevaluate the solvency of any party to the Merger Agreement, or obtain any evaluations or appraisalsthe impact of the assetsMerger thereon, including under any applicable laws relating to bankruptcy, insolvency or liabilitiessimilar matters.

TPH assumed that the final Merger Agreement (together with the exhibits and schedules thereto) would not differ from the draft of XTO Energy or ExxonMobil. In addition, XTO Energy’s board of directors did not authorize Barclays Capital to solicit, and Barclays Capital did not solicit,the Merger Agreement dated July 13, 2023 that was reviewed by it in any indications of interest from any third party with respect material to the purchaseanalysis or opinion of all or a part of XTO Energy’s business. Barclays Capital’s opinion necessarily was based upon market, economic and other conditions as they existed on, and could be evaluated as of, the date of its opinion letter. Barclays CapitalTPH. TPH also assumed no responsibility for updating or revising its opinion based on events or circumstances that may occur after the date of its opinion letter.

Barclays Capital assumed the accuracy of(1) the representations and warranties contained inof all parties to the merger agreementMerger Agreement and all other related documents and instruments that are referred to therein were true and correct in all respects material to TPH’s analysis and opinion, (2) each party to the Merger Agreement and such other related documents and instruments would fully and timely perform all of the covenants and agreements related theretorequired to be performed by such party in all respects material to TPH’s analysis and uponopinion, and (3) the advice of XTO Energy, assumed that all material governmental, regulatory and third-party approvals, consents and releases for the proposed merger will be obtained within the constraints contemplated by the merger agreement and that the proposed merger willMerger would be consummated in a timely manner in accordance with the terms set forth in the Merger Agreement and such other related documents and instruments, without any modification, amendment, waiver or delay that would be material to the analysis or opinion of the merger agreement without waiver, modification or amendment of any material term, condition or agreement thereof.

Barclays Capital did not express any opinion as to any tax or other consequences that might result from the proposed merger, nor did Barclays Capital’s opinion address any legal, tax, regulatory or accounting matters, as to which Barclays Capital understood that XTO Energy had obtained such advice as it deemed necessary from qualified professionals.TPH. In addition, Barclays Capital expressedTPH assumed that in connection with the receipt of all approvals and consents required in connection with the Merger, no delays, limitations, conditions or restrictions would be imposed that would be material to its analysis.

TPH’s opinion was necessarily based on economic, monetary, market and other conditions in effect on, and the information made available to TPH as of, July 13, 2023. TPH assumed no obligation to update, revise or reaffirm its opinion and expressly disclaimed any responsibility to do so based on circumstances, developments or events occurring, or of which TPH becomes aware, after the date on which its opinion was rendered.

The estimates contained in TPH’s analysis and the results from any particular analysis are not necessarily indicative of future results, which may be significantly more or less favorable than suggested by any analysis. In addition, analyses relating to the value of businesses or assets neither purport to be appraisals nor do they necessarily reflect the prices at which shares of (i) XTO Energy common stockbusinesses or ExxonMobil common stock would trade at any time following the announcement of the proposed merger or (ii) ExxonMobil common stock would trade at any time following the consummation of the proposed merger. Barclays Capital’s opinion should notassets may actually be viewed as providing any assurance that the market value of the ExxonMobil common stocksold. Accordingly, TPH’s analysis and estimates are inherently subject to be held by the stockholders of XTO Energy after the consummation of the proposed merger will be in excess of the market value of the XTO Energy common stock owned by such stockholders at any time prior to announcement or consummation of the proposed merger.

In connection with rendering its opinion, Barclays Capital performed certain financial, comparative and other analyses as summarized below. In arriving at its opinion, Barclays Capital did not ascribe a specific range of values to the shares of XTO Energy common stock, but rather made its determination as to the fairness, from a financial point of view, of the exchange ratio in the proposed merger to XTO Energy’s stockholders on the basis

of the various financial, comparative and other analyses described below. The preparation of a fairness opinion is a complex process and involves various determinations as to the most appropriate and relevant methods of financial and comparative analyses and the application of those methods to the particular circumstances. Therefore, a fairness opinion is not readily susceptible to summary description.substantial uncertainty.

In arriving at its opinion, Barclays CapitalTPH did not attribute any particular weight to any singleparticular analysis or factor considered by it, but rather made qualitative judgments as to the significance and relevance of each analysis and factor relative to all otherfactor. TPH employed several analytical methodologies in its analyses, and factors performedno one single method of analysis should be regarded as dispositive of TPH’s overall conclusion. Each analytical technique has inherent strengths and considered by itweaknesses, and in the context and circumstancesnature of the proposed merger.available information may further affect the value of particular techniques. Accordingly, Barclays CapitalTPH believes that theseits analyses and factors must be considered as a whole as considering any portionand that selecting portions of these its

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analyses and of the factors considered by it, without considering all analyses and all factors as a whole,in their entirety, could create a misleading or incomplete view of the evaluation process underlying its opinion. TPH’s conclusion, therefore, is based upon the application of TPH’s own experience and judgment to all analyses and factors considered by it, taken as a whole. TPH’s opinion was reviewed and approved by its fairness opinion committee.

TPH’s opinion addressed only the fairness, from a financial point of view, as of July 13, 2023, to the holders of Denbury common stock (other than ExxonMobil and its affiliates) of the Merger Consideration to be received by such holders in the Merger pursuant to the Merger Agreement. TPH was not asked to, nor did it, offer any opinion as to any other term of the Merger Agreement or any other document contemplated by or entered into in connection with the Merger Agreement, the form or structure of the Merger or the likely timeframe in which the Merger would be consummated. In addition, TPH expressed no opinion as to the fairness of the amount or nature of any compensation to be received by any officers, directors or employees of any party to the Merger Agreement, or any class of such persons, whether relative to the Merger Consideration or otherwise. TPH expressed no opinion as to the fairness of the Merger to the holders of any other class of securities, creditors or other constituencies of Denbury, as to the underlying decision by Denbury to engage in the Merger or as to the relative merits of the Merger compared with any alternative transactions or business strategies. Nor did TPH express any opinion as to any tax or other consequences that may result from the transactions contemplated by the Merger Agreement or any other related document. TPH’s opinion did not address any legal, tax, regulatory or accounting matters, as to which TPH understood Denbury had received such advice as it deemed necessary from qualified professionals.

The following is a summary ofdata and analyses summarized below in this proxy statement/prospectus are from TPH’s presentation to the material financial, comparative and other analyses used by Barclays Capital in preparing its opinion for XTO Energy’sDenbury board of directors. Certain of thedirectors delivered on July 13, 2023. The analyses summarized below include information presented in tabular format. In order toTo fully understand fully the methodologies used by Barclays Capital and the results of its financial comparative and other analyses performed, the tables must be readconsidered together with the textual summary of the analyses and full text of each summary,TPH’s written opinion, which is included as the tables alone do not constitute a complete descriptionAnnex C of the financial, comparative and other analyses. None of XTO Energy, ExxonMobil, Barclays Capital or any other person assumes responsibility if future results are materially different from those discussed. Any estimates contained in these analyses are not necessarily indicative of actual values or predictive of future results or values, which may be significantly more or less favorable than as set forth below. In addition, analyses relating to the value of the businesses do not purport to be appraisals or to reflect the prices at which the businesses could actually be sold.this proxy statement/prospectus.

Summary of TPH’s Analyses

Barclays Capital analyzedCertain Financial Metrics

For purposes of the analyses described below, the following terms have the following meanings:

“EV” or “enterprise value” is calculated as the fully-diluted equity value of XTO Energy usinga company, plus book value of debt, any preferred equity and non-controlling interests, less cash and cash equivalents; and

“EBITDA” is calculated as earnings before interest, income taxes, depreciation, depletion and amortization expense.

Selected Public Companies Trading Analysis

TPH reviewed and analyzed certain financial information including valuation multiples related to Denbury’s EOR and CCUS businesses and selected companies with publicly traded equity securities and related operations, as applicable.

The financial information reviewed included:

for selected oil companies related to Denbury’s EOR operations, enterprise value as a multiple of estimated 2023 EBITDA, based on median research analysts’ consensus estimates per FactSet as of July 12, 2023 (which, for purposes of this section titled “— Opinion of TPH & Co., Denbury’s Financial Advisor,” we refer to as the following methodologies:“Wall Street consensus estimates”); and

for selected energy transition companies related to Denbury’s CCUS operations, enterprise value as a multiple of estimated 2025 revenue, based on Wall Street consensus estimates.

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The companies included in the analysis and their relevant financial metrics reviewed were as follows:

Oil companies (which we refer to, collectively, as the “selected oil companies”):

 

Company  EV /2023E EBITDA3

net asset valuation analysis,Chord Energy Corporation1,2

4.1x

Crescent Point Energy Corp.1

3.5x

California Resources Corporation

3.9x

Callon Petroleum Company1

3.2x

 

1

Pro forma for announced transactions.

2

Metrics for Chord Energy Corporation shown adjusted to reflect E&P-only multiple.

3

Excludes the impact of investments in associates and affiliates.

Energy transition companies (which we refer to, collectively, as the “selected energy transition companies”):

Company  EV /2025E Revenue2

comparable company analysis,Aker Carbon Capture ASA1

1.6x

Ballard Power Systems Inc.

1.8x

Bloom Energy Corporation1

1.9x

FuelCell Energy, Inc.

2.8x

Plug Power Inc.

2.1x

 

1

Metrics reflect comparable transaction analysis,100-day consensus window.

2

Excludes the impact of investments in associates and affiliates.

discounted cash flow analysis, and

analysis of equity research analyst price targets.

The implied equity value ranges per share of XTO Energy common stock derived from each of these methodologies were comparedNo selected oil company or group thereof is identical to the value of the proposed merger consideration. The value of the proposed merger consideration was calculated as the product of the closing equity value per share of ExxonMobil common stock on December 11, 2009 (the last trading day prior to the announcement of the proposed merger) of $72.83 per share and the exchange ratio of 0.7098 shares of ExxonMobil common stock for each share of XTO Energy common stock in the proposed merger. Based on the proposed merger consideration value of $51.69 per share resulting from this calculation, the implied equity value ranges in the proposed merger, derived using the various valuation methodologies listed above, supported the conclusion that, from a financial point of view, the exchange ratio in the proposed merger was fair to XTO Energy’s stockholders.

In addition to analyzing the value of XTO Energy, Barclays Capital also analyzed and reviewed (i) the pro forma impact of the proposed merger on the projected 2010 and 2011 earnings per share, or EPS, and discretionary cash flow (which is generally defined as net operating income plus depreciation, depletion and amortization, deferred taxes and exploration expense, adjusted for other non-cash charges but before changes in net working capital) per share, or DCFPS, for ExxonMobil and XTO Energy based on consensus estimates published by First Call of independent equity research analysts, (ii) certain publicly available information related to selected corporate transactions to calculate the amount of premiums paid by the acquirers to the acquired

companies’ stockholders, (iii) the daily historical closing prices of XTO Energy and ExxonMobil common stock from the period of December 13, 2004 to December 11, 2009 and (iv) the relative income statement and cash flow contribution of XTO Energy and ExxonMobil to the combined company based on 2010 and 2011 estimated financial data based on consensus estimates published by First Call of independent equity research analysts.

In particular, in applying the various valuation methodologies to the particular businesses, operations and prospects of XTO Energy and ExxonMobil, and the particular circumstances of the proposed merger, Barclays Capital made qualitative judgments as to the significance and relevance of each analysis. In addition, Barclays Capital made numerous assumptions with respect to industry performance, generalDenbury’s EOR business, and economic conditions and other matters, many of whichno selected energy transition company or group thereof is identical to Denbury’s CCUS business. Accordingly, TPH believes that purely quantitative analyses are beyond the control of XTO Energy or ExxonMobil. Accordingly, the methodologies and the implied common equity value range derived therefrom must be considered as a whole andnot, in isolation, determinative in the context of the narrative description of the financial analyses, including the assumptions underlying these analyses. Considering the implied common equity value ranges without considering the full narrative description of the financial analyses, including the assumptions underlying these analyses, could create a misleading or incomplete view of the process underlying, and conclusions represented by, Barclays Capital’s opinion.

Barclays Capital utilized the consensus estimates published by First Call of independent equity research analysts for selected Barclays Capital analyses. The First Call consensus estimates are summarized below.

   First Call Consensus
Estimates
       2010E          2011E    

XTO Energy

    

EPS

  $2.20  $2.21

DCFPS

  $9.21  $9.30

ExxonMobil

    

EPS

  $5.85  $7.46

DCFPS

  $8.64  $10.40

Net Asset Valuation Analysis

Barclays Capital estimated the present value of the future after-tax cash flows expected to be generated from XTO Energy’s proved reserves and XTO Energy non-proved resource potential as of December 31, 2009, based on reserve, production and capital cost estimates as of December 31, 2009. The present value of the future after-tax cash flow was determined using a range of discount rates and assuming a tax rate of 36.5%. Barclays Capital assumed a range of discount rates of between 6% and 18% for proved reserves and non-proved resource potential based on reserve category risk. The net asset valuation analysis was performed under four commodity price scenarios (Case I, Case II, Case III and Case IV), which are described below. All assumptions were applied consistently to each reserve category across each of the four commodity price scenarios.

Certain of the natural gas and oil price forecasts employed by Barclays Capital were based on New York Mercantile Exchange, or NYMEX, price forecasts (Henry Hub, Louisiana delivery for natural gas and West Texas Intermediate, Cushing, Oklahoma delivery for oil) to which adjustments were made to reflect location of the assets as compared to the price benchmark location including the cost to transport the oil and natural gas and quality differentials relative to the grade of the oil and natural gas. NYMEX gas price quotations stated in heating value equivalents per million British Thermal Units, or MMBtu, were adjusted to reflect the value per thousand cubic feet, or Mcf, of gas. NYMEX oil price quotations are stated in dollars per barrel, or Bbl, of crude oil.

The following table summarizes the natural gas and oil price forecasts Barclays Capital employed to estimate future after-tax cash flows for each of the reserve categories Barclays Capital considered for XTO Energy. Case I, Case II and Case III reflect assumed oil and gas prices under various scenarios. Case IV reflects the NYMEX strip as of the close of business on December 11, 2009.

   2010E  2011E  2012E  2013E  2014E  Thereafter

Gas — Henry Hub ($/Mcf)

            

Case I

  $5.00  $5.00  $5.00  $5.00  $5.00  $5.00

Case II

  $6.50  $6.50  $6.50  $6.50  $6.50  $6.50

Case III

  $8.00  $8.00  $8.00  $8.00  $8.00  $8.00

Case IV

  $5.57  $6.50  $6.73  $6.83  $7.01  $7.01

Oil — West Texas Intermediate ($/Bbl)

            

Case I

  $60.00  $60.00  $60.00  $60.00  $60.00  $60.00

Case II

  $80.00  $80.00  $80.00  $80.00  $80.00  $80.00

Case III

  $100.00  $100.00  $100.00  $100.00  $100.00  $100.00

Case IV

  $75.70  $81.46  $84.01  $85.87  $88.01  $88.01

For each case, Barclays Capital adjusted the enterprise value range impliedMerger contemplated by the net asset valuation for appropriate on-balance sheetMerger Agreement and off-balance sheet assets and liabilities based on its judgment and experience in the oil and gas exploration and production industry to arrive at an implied equity value. Barclays Capital then divided the equity value by diluted shares outstanding, comprised of outstanding shares and including the dilutive effect of outstanding options, restricted stock, performance shares and warrants, as appropriate, to arrive at an implied equity value range per share. The net asset valuation analyses yielded valuations for XTO Energy that implied an equity value range of $21.32 to $29.78 per share for Case I, an equity value range of $42.34 to $53.94 per share for Case II, an equity value range of $55.59 to $69.60 per share for Case III and an equity value range of $44.83 to $57.24 per share for Case IV, in each case as compared to the proposed merger consideration value of $51.69 per share. The value of the non-proved resource potential represented approximately 14% to 19% in Case I, 25% to 29% in Case II, 27% to 31% in Case III and 25% to 28% in Case IV of total enterprise value, respectively. Barclays Capital noted that the proposed merger consideration was above the implied equity value range per XTO Energy share in Case I, below the implied equity value range per XTO Energy share in Case III, and in line with the implied equity value range per XTO Energy share in Case II and Case IV, in each case as yielded by Barclays Capital’s net asset valuation analysis for XTO Energy.

Comparable Company Analysis

In order to assess how the public market values shares of similar publicly traded companies, Barclays Capital reviewed and compared specific financial and operating data relating to XTO Energy with selected companies that Barclays Capital deemed comparable to XTO Energy, based on its experience in the oil and gas exploration and production industry.

Barclays Capital reviewed the public stock market trading multiples for the following oil and gas exploration and production companies, which Barclays Capital selected because of their generally similar size and asset characteristics as compared to XTO Energy. Barclays Capital noted that all companies selected had an enterprise value of greater than $20 billion and were oil and natural gas producers predominantly located in North America. The companies selected were as follows:

Anadarko Petroleum Corporation

Apache Corporation

Chesapeake Energy Corporation

Devon Energy Corporation

EnCana Corporation

EOG Resources, Inc.

Using publicly available information, Barclays Capital calculated and analyzed enterprise value multiples of each comparable company’s proved reserves and latest daily production, pro forma for acquisition and divestiture activity, and equity value multiples for each company’s projected 2010 and 2011 discretionary cash flow per share based on consensus estimates published by First Call of independent equity research analysts. The enterprise value of each comparable company was obtained by adding its outstanding debt to the sum of the market value of its common stock using its stock price as of December 11, 2009, the book value of any preferred stock and the book value of any minority interest minus its cash balance, as appropriate. Barclays Capital calculated the enterprise value multiples of proved reserves and latest daily production by dividing each company’s calculated enterprise value by its proved reserves and latest daily production, respectively. Barclays Capital calculated the equity value multiples by dividing each company’s calculated equity value by its discretionary cash flow for 2010 and 2011. The pro forma proved reserve multiple ranged from $2.34 to $2.79, the latest daily production multiple ranged from $8,664 to $11,343 and the discretionary cash flow multiple ranged from 3.7x to 6.1x in 2010 and 3.4x to 6.0x in 2011. The results of the XTO Energy comparable company analysis are further summarized below:

   Multiple Range of Comparable
Companies of XTO Energy:
   Low  Median  High

Enterprise Value as a Multiple of:

      

12/31/08 Pro Forma Proved Reserves ($/Mcfe)

  $2.34  $2.49  $2.79

Latest Daily Production ($/Mcfe/d)

  $8,664  $10,351  $11,343

Equity Value as a Multiple of:

      

Discretionary Cash Flow

      

2010

   3.7x   5.2x   6.1x

2011

   3.4x   4.5x   6.0x

Barclays Capital selected the comparable companies listed above because their business and operating profiles were reasonably similar to that of XTO Energy. However, because of the inherent differences between the business, operations and prospects of XTO Energy and those of the selected comparable companies, Barclays Capital believed that it was inappropriate to, and therefore did not, rely solely on the quantitative results of the selected comparable company analysis. Accordingly, Barclays Capital also made qualitative judgments concerning differences between the business, financial and operating characteristics and prospects of XTO Energy(1) Denbury’s EOR business and the selected comparableoil companies and (2) Denbury’s CCUS business and the selected energy transition companies that could affect the public trading values of each in order to provide a context in which to consideralso are relevant.

Based on the results ofranges observed among the quantitative analysis. These qualitative judgments related primarily to the differing sizes, growth prospects, profitability levels and degrees of operational risk between XTO Energyselected oil companies and the selected energy transition companies, includedTPH applied selected multiples ranging from (1) 3.00x to 4.00x to the estimated 2023 EBITDA of Denbury’s EOR business and (2) 1.50x to 3.00x to the estimated 2026 revenue of Denbury’s CCUS business to derive implied enterprise values for each such business, in each case based on the comparable company analysis. Based upon these judgments, Barclays Capital selectedStrip Pricing through 2027E Base Case and the Strip Pricing through 2025E Base Case. TPH then added together the enterprise value multiplevalues of Denbury’s EOR and CCUS businesses, subtracted Denbury’s net debt (total debt minus cash and cash equivalents) therefrom, and divided the resulting equity values by the number of Denbury’s fully diluted shares outstanding as of July 12, 2023 to derive an implied per-share price for Denbury. TPH’s application of such ranges of $2.30 to $2.80 per proved thousand cubic feet equivalent, or Mcfe, and $10,000 to $12,500 per thousand cubic feet equivalent, or Mcfe/d, of daily production, and selected equity value multiple ranges of 4.50x to 6.00x and 3.75x to 5.25x, respectively, formultiples indicated the 2010 and 2011 discretionary cash flow. Barclays Capital applied these multiple ranges to XTO Energy’s 2008 proved reserves of 13,862 billion cubic feet equivalent, or Bcfe, to XTO Energy’s latest daily production of 2,948 million cubic feet equivalent per day, or Mmcfe/d, and to the 2010 and 2011 equity research consensus estimates published by First Call for discretionary cash flow. The comparable company analysisfollowing implied an equity valuereference range for XTO Energy of $35.65 to $49.80 per share as compared toof Denbury common stock for both the proposed merger consideration value of $51.69 per share. Barclays Capital noted that the proposed merger consideration was above the implied equity value range per XTO Energy share yielded by Barclays Capital’s comparable company analysis.

Comparable Transaction Analysis

Barclays Capital reviewed and compared the purchase prices and financial multiples paid in selected other transactions in the oil and gas industry with total transaction values in excess of $5 billion that Barclays Capital

deemed relevant, based on its experience with merger and acquisition transactions. Barclays Capital chose such transactions based on, among other things, the similarity of the applicable target companies in the transactions to XTO Energy with respect to size as determined by enterprise value and asset characteristics as determined by location and type of oil and gas assets. Barclays Capital excluded transactions in which less than 100% of the target company was acquired in the applicable transaction.

The following table sets forth the transactions analyzed based on such characteristicsStrip Pricing through 2027E Base Case and the results of such analysis:Strip Pricing through 2025E Base Case:

 

Implied Per Share Reference Ranges for Denbury Common Stock

Acquirer

Strip Pricing through 2027E Base Case
  

Target

Strip Pricing through 2025E Base Case
$40.90 – $62.41  

Announcement Date

China Petroleum & Chemical CorporationAddax Petroleum CorporationJune 24, 2009
Royal Dutch Shell plcDuvernay Oil Corp.July 14, 2008
Penn West Energy TrustCanetic Resources TrustOctober 31, 2007
Abu Dhabi National Energy Company PJSCPrimeWest Energy TrustSeptember 24, 2007
Statoil ASANorsk Hydro ASADecember 18, 2006
Anadarko Petroleum CorporationKerr-McGee CorporationJune 23, 2006
ConocoPhillipsBurlington Resources Inc.December 12, 2005
Chevron CorporationUnocal CorporationJuly 19, 2005
Devon Energy CorporationOcean Energy, Inc.February 24, 2003
Shell Resources P.L.C.Enterprise Oil plcApril 2, 2002
PanCanadian Energy CorporationAlberta Energy Company Ltd.January 27, 2002
Phillips Petroleum CompanyConoco Inc.November 19, 2001
Conoco Inc.Gulf Canada Resources LimitedMay 29, 2001
Eni S.p.A.Lasmo plcDecember 21, 2000
Chevron CorporationTexaco Inc.October 16, 2000
Anadarko Petroleum CorporationUnion Pacific Resources Group Inc.April 3, 2000
BP Amoco P.L.C.Atlantic Richfield CompanyApril 1, 1999
Exxon CorporationMobil CorporationDecember 1, 1998
Total, S.A.PetrofinaDecember 1, 1998
British Petroleum Co. plcAmoco CorporationAugust 11, 1998$40.90 – $62.41

Using publicly available information, Barclays Capital calculated and analyzed enterprise multiples for proved reserves and latest daily productionTPH compared this implied reference range to the implied value of the target companies in the comparable transactions. Barclays Capital adjusted each target company’s enterprise valueMerger Consideration of $89.45 per share of Denbury common stock. The implied by the comparable transaction to exclude the value of non-exploration and production assetsthe Merger Consideration of $89.45 as estimatedused throughout this summary was calculated by multiplying the exchange ratio of 0.840 of a third-party research firm that regularly publishes data inshare of ExxonMobil common stock by $106.49, the oil and gas industry and similarly adjusted the enterprise valueclosing price per share of XTO Energy implied by the proposed merger, which adjustments were estimated by the same third-party research firm. Barclays Capital calculated the enterprise value multiples of proved reserves and latest daily production by dividing each target company’s implied enterprise value, as so adjusted, by the disclosed proved reserves and latest daily production,

respectively. The proved reserves and latest daily production multiples ranged from $0.90 to $12.44 and $3,375 to $47,379, respectively, in the comparable transactions since January 1, 1998 and the proved reserves and latest daily production multiples ranged from $1.52 to $12.44 and $5,805 to $47,379, respectively, in the comparable transactions since January 1, 2005. The results of the comparable transaction analysis are summarized below for the comparable transactions announced in the period from January 1, 1998 to December 11, 2009 and in the period from January 1, 2005 to December 11, 2009:ExxonMobil common stock on July 12, 2023.

 

   Multiple Range of Comparable Transactions
Greater than $5 billion  Since January 1, 1998
       Low          Median          High    

Enterprise Value as a Multiple of:

      

Proved Reserves ($/Mcfe)

  $0.90  $1.36  $12.44

Latest Daily Production ($/Mcfe/d)

  $3,375  $5,234  $47,379

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   Multiple Range of Comparable Transactions
Greater than $5 billion  Since January 1, 2005
       Low          Median          High    

Enterprise Value as a Multiple of:

      

Proved Reserves ($/Mcfe)

  $1.52  $4.44  $12.44

Latest Daily Production ($/Mcfe/d)

  $5,805  $12,533  $47,379

The reasons for and the circumstances surrounding each of the selected comparable transactions analyzed were diverse and there are inherent differences between the businesses, operations, financial conditions and prospects of XTO Energy and the companies included in the comparable transaction analysis. Accordingly, Barclays Capital believed that a purely quantitative comparable transaction analysis would not be particularly meaningful in the context of considering the proposed merger. Barclays Capital therefore made qualitative judgments concerning differences between the characteristics of the selected comparable transactions and the proposed merger that would affect the acquisition values of the selected target companies and XTO Energy.


Based upon these judgments, Barclays Capital selected enterprise value multiple ranges of $2.75 to $3.25 per proved thousand cubic feet equivalent and $12,500 to $17,500 per thousand cubic feet equivalent of daily production. Barclays Capital then applied these enterprise value multiple ranges, as appropriate, to XTO Energy’s December 31, 2009 estimated proved reserves, as reflected in the XTO Energy reserve reports, and third quarter 2009 daily production to imply an equity value range for XTO Energy of $47.62 to $68.25 per share as compared to the proposed merger consideration value of $51.69 per share. Barclays Capital noted that the proposed merger consideration was in line with the implied equity value range per XTO Energy share yielded by Barclays Capital’s comparable transaction analysis for XTO Energy.

Discounted Cash Flow Analysis

TPH calculated the present value, as of June 30, 2023, of the standalone unlevered free cash flows expected to be generated by each of Denbury’s EOR and CCUS businesses, based on the Strip Pricing through 2027E Base Case and the Strip Pricing through 2025E Base Case. In performing its analysis with respect to Denbury’s EOR business, TPH applied unlevered discount rates ranging from 9.00% to 11.00%, in the case of Denbury’s EOR business, and 14.00% to 18.00%, in the case of Denbury’s CCUS business, to the (1) estimated unlevered free cash flows, utilizing a mid-year convention for discounting, and (2) estimated terminal value at the end of fiscal year 2029 of the applicable business. Such discount rates reflected estimates of the weighted average cost of capital for Denbury’s EOR and CCUS businesses, as applicable.

TPH calculated the terminal value of Denbury’s EOR business by applying EV/EBITDA multiples ranging from 3.00x to 4.00x to the estimated 2030 EBITDA of Denbury’s EOR business. It calculated the terminal value of Denbury’s CCUS business by applying EV/EBITDA multiples ranging from 8.00x to 10.00x to the estimated 2030 EBITDA of Denbury’s CCUS business. TPH determined this latter range of EV/EBITDA multiples with reference to the following EV to estimated 2023 EBITDA multiples, which TPH calculated for selected diversified midstream companies based on Wall Street consensus estimates:

CompanyEV /2023E EBITDA

Energy Transfer LP

7.6x

EnLink Midstream LLC

8.4x

Enterprise Products Partners L.P.

9.4x

Kinder Morgan Inc

9.4x

Magellan Midstream Partners, L.P.1

10.6x

ONEOK, Inc.1

9.0x

1

Multiples as of May 12, 2023, the date prior to the announcement of the acquisition of Magellan Midstream Partners, L.P. by ONEOK, Inc.

No selected diversified midstream company or group thereof is identical to Denbury’s CCUS business. Accordingly, TPH believes that purely quantitative analyses are not, in isolation, determinative in the context of the Merger contemplated by the Merger Agreement and that qualitative judgements concerning differences between the financial and operating characteristics and prospects of Denbury’s CCUS business and the selected diversified midstream companies that could affect the public trading values of each also are relevant.

The resulting enterprise values of Denbury’s EOR and CCUS businesses were then summed together to yield a company-level enterprise value, which in turn was adjusted by subtracting Denbury’s net debt (total debt minus cash and cash equivalents) to calculate a range of company-level equity values for Denbury. Such resulting equity values were divided by the number of fully diluted shares outstanding for Denbury to derive an implied price per share for Denbury common stock. The discounted cash flow analysis for Denbury indicated the following implied reference ranges per share of Denbury common stock:

Implied Per Share Reference Ranges for Denbury Common Stock
Strip Pricing through 2027E Base CaseStrip Pricing through 2025E Base Case
$59.41 – $88.62$63.26 – $93.66

TPH compared these implied reference ranges to the implied value of the Merger Consideration of $89.45 per share of Denbury common stock.

Summary of Additional Reference Data

In connection with conducting the analyses described above, TPH reviewed the following data, which were used for reference purposes only and were not used in TPH’s determination of the fairness, from a financial point

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of view, to the holders of outstanding shares of Denbury common stock (other than ExxonMobil and its affiliates) of the Merger Consideration to be received by such holders in the Merger pursuant to the Merger Agreement:

Historical trading range: TPH reviewed the historical daily volume-weighted average trading prices for shares of Denbury common stock for the fifty-two week period ending July 12, 2023, which range was $58.05 to $99.07 per share.

Equity research analysts’ price targets: TPH reviewed analyst price targets per share of Denbury common stock prepared and published by 13 equity research analysts prior to July 12, 2023. TPH assumed that such targets reflected each analyst’s estimate of the 12-month future public market trading price per share of Denbury common stock, and discounted them to present value using a discount rate of approximately 12.5%, which rate reflects the mid-point of Denbury’s implied standalone cost of equity based on its capital structure as of July 12, 2023. The range of such discounted price targets was $64.87 to $124.40 per share. The price targets published by equity research analysts do not necessarily reflect current market trading prices for shares of Denbury common stock and these estimates are subject to uncertainties, including the future financial performance of Denbury and future financial market conditions.

General

TPH and its affiliates, including Perella Weinberg Partners LP (which we refer to, collectively, as the “TPH Group”), as part of their investment banking business, are regularly engaged in performing financial analyses with respect to businesses and their securities in connection with mergers and acquisitions, negotiated underwritings, competitive biddings, secondary distributions of listed and unlisted securities, private placements and other transactions as well as for estate, corporate and other purposes.

The TPH Group also engages in securities trading and brokerage, asset management activities, equity research and other financial services, and in the ordinary course of these activities, the TPH Group may at any time hold long or short positions, and may trade or otherwise effect transactions, for its own account or the accounts of customers or clients, in (1) debt, equity or other securities (or related derivative securities) or financial instruments (including bank loans or other obligations) of Denbury, ExxonMobil or any of their respective affiliates and (2) any currency or commodity that may be material to the parties or otherwise involved in the Merger and/or the other matters contemplated by the Merger Agreement.

In addition, the TPH Group and certain of its employees, including members of the team performing services in connection with the Merger, as well as certain private equity funds and investment management funds associated or affiliated with TPH in which they may have financial interests, may from time to time acquire, hold or make direct or indirect investments in or otherwise finance a wide variety of companies, including Denbury, ExxonMobil, other potential merger participants or their respective equity holders or affiliates.

TPH is an internationally recognized investment banking firm that is regularly engaged in the valuation of businesses and securities in connection with mergers and acquisitions, negotiated underwritings, secondary distributions of listed and unlisted securities, private placements and valuations for corporate and other purposes. The Denbury board of directors selected TPH to act as its financial advisor in connection with the Merger on the basis of TPH’s experience in transactions similar to the Merger described in the Merger Agreement, its reputation in the investment community and its familiarity with Denbury and its business.

TPH acted as financial advisor to Denbury in connection with, and participated in certain negotiations leading to, the Merger. TPH expects to receive fees for its services, the principal portion of which is contingent upon the consummation of the Merger, and Denbury has agreed to reimburse certain of TPH’s expenses and indemnify TPH and certain related parties against certain liabilities arising out of its engagement. TPH may provide investment banking or other financial services to Denbury, ExxonMobil or any of the other parties to the Merger or their respective stockholders or affiliates in the future. In connection with such investment banking or other financial services, TPH may receive compensation.

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The description set forth above constitutes a summary of the analyses employed and factors considered by TPH in rendering its opinion to the Denbury board of directors. The preparation of a fairness opinion is a complex, analytical process involving various determinations as to the most appropriate and relevant methods of financial analysis and the application of those methods to the particular circumstances and is not necessarily susceptible to partial analysis or summary description.

For services rendered in connection with the Merger and the delivery of its opinion, Denbury has agreed to pay TPH a transaction fee, a portion of which became payable to TPH upon the Denbury board of directors’ request to TPH to deliver its opinion (regardless of the conclusion reached therein) and the balance of which will become payable to TPH upon the consummation of the Merger. In addition, Denbury has agreed to reimburse TPH for its reasonable out-of-pocket expenses incurred in connection with the engagement, including fees and disbursements of its legal counsel. Denbury also agreed to indemnify TPH, its affiliates and their respective officers, directors, partners, agents, employees and controlling persons for certain liabilities related to or arising out of its rendering of services under its engagement or to contribute to payments that TPH may be required to make in respect of these liabilities.

Opinion of PJT Partners LP

PJT Partners was retained by Denbury to act as its financial advisor in connection with the Merger and, upon Denbury’s request, to render its fairness opinion to the Denbury board of directors in connection therewith. Denbury selected PJT Partners to act as its financial advisor based on PJT Partners’ qualifications, expertise and reputation, its knowledge of Denbury’s industry and its knowledge and understanding of the business and affairs of Denbury. At a meeting of the Denbury board of directors on July 13, 2023, PJT Partners rendered its oral opinion, subsequently confirmed in its written opinion dated July 13, 2023, to the Denbury board of directors that, as of the date thereof and based upon and subject to, among other things, the assumptions made, procedures followed, matters considered, and qualifications and limitations on the review undertaken by PJT Partners in connection with the opinion (which are stated in its written opinion), the Merger Consideration to be received by the holders of shares of Denbury common stock (other than the shares to be cancelled in accordance with the Merger Agreement and any shares held by any subsidiary of either Denbury or ExxonMobil (other than Merger Sub)) in the Merger was fair to such holders from a financial point of view.

The full text of PJT Partners’ written opinion delivered to the Denbury board of directors, dated July 13, 2023, is attached as Annex D and incorporated into this proxy statement/prospectus by reference in its entirety. PJT Partners’ written opinion has been provided by PJT Partners at the request of the Denbury board of directors and is subject to, among other things, the assumptions made, procedures followed, matters considered, and qualifications and limitations upon the review undertaken by PJT Partners in connection with the opinion (which are stated therein). You are encouraged to read the opinion carefully in its entirety. PJT Partners provided its opinion to the Denbury board of directors, in its capacity as such, in connection with and for purposes of its evaluation of the Merger only and PJT Partners’ opinion does not constitute a recommendation as to any action the Denbury board of directors should take with respect to the Merger or how any holder of Denbury common stock should vote or act with respect to the Merger or any other matter. The following is a summary of PJT Partners’ opinion and the methodology that PJT Partners used to render its opinion. This summary of the PJT Partners opinion contained in this proxy statement/prospectus is qualified in its entirety by reference to the full text of PJT Partners’ written opinion.

In arriving at its opinion, PJT Partners, among other things:

reviewed certain publicly available information concerning the business, financial condition and operations of Denbury and ExxonMobil;

reviewed certain internal information concerning the business, financial condition and operations of Denbury prepared and furnished to PJT Partners by the management of Denbury;

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by or at the direction of the management of Denbury and approved for PJT Partners’ use by the Denbury board of directors, reviewed certain internal financial analyses, estimates and forecasts relating to Denbury, including the financial projections identified to PJT Partners by Denbury as the “Strip Pricing through 2027E Base Case,” the “Strip Pricing through 2025E Base Case,” and, solely for purposes of the “Selected Comparable Company Analysis – Sum-of-the-Parts” section and the “Selected Precedent Corporate Acquisition Analysis” section discussed below, the “Consensus Pricing through 2025E Base Case,” all of which projections were prepared by or at the direction of and approved for PJT Partners’ use by the management of Denbury;

held discussions with members of senior management of Denbury concerning, among other things, their evaluation of the Merger and Denbury’s business, operating and regulatory environment, financial condition, prospects and strategic objectives;

reviewed the historical market prices and trading activity for Denbury common stock;

compared certain publicly available financial and stock market data for Denbury with similar information for certain other companies that that PJT Partners deemed to be relevant;

compared the proposed financial terms of the Merger with publicly available financial terms of certain other business combinations that PJT Partners deemed to be relevant;

reviewed a draft, dated July 13, 2023 of the Merger Agreement; and

performed such other financial studies, analyses and investigations, and considered such other matters, as PJT Partners deemed necessary or appropriate for purposes of rendering its opinion.

In preparing its opinion, with the consent of the Denbury board of directors, PJT Partners relied upon and assumed the accuracy and completeness of the foregoing information and all other information discussed with or reviewed by PJT Partners, without independent verification thereof. PJT Partners assumed, with the consent of the Denbury board of directors, that the forecasts and the assumptions underlying the forecasts, and all other financial analyses, estimates and forecasts provided to PJT Partners by Denbury’s management, were reasonably prepared in accordance with industry practice and represented Denbury management’s best-then currently available estimates and judgments as to the business and operations and future financial performance of Denbury. PJT Partners assumed no responsibility for and expressed no opinion as to the Denbury forecasts, the assumptions upon which they were based or any other financial analyses, estimates and forecasts provided to PJT Partners by Denbury’s management. PJT Partners also assumed, with the consent of the Denbury board of directors, that there were no material changes in the assets, financial condition, results of operations, business or prospects of Denbury since the respective dates of the last financial statements of Denbury made available to PJT Partners. PJT Partners relied, with the consent of the Denbury board of directors, on Denbury management’s representations and/or projections regarding taxable income, standalone net operating loss utilization and other tax attributes of Denbury. PJT Partners further relied, with the consent of the Denbury board of directors, upon the assurances of the management of Denbury that they were not aware of any facts that would make the information and projections provided by them inaccurate, incomplete or misleading.

PJT Partners was not asked to undertake, and did not undertake, an independent verification of any information provided to or reviewed by it, nor was it furnished with any such verification and it did not assume any responsibility or liability for the accuracy or completeness thereof. PJT Partners did not conduct a physical inspection of any of the properties or assets of Denbury. PJT Partners did not make an independent evaluation or appraisal of the assets or the liabilities (contingent or otherwise) of Denbury, nor was it furnished with any such evaluations or appraisals, nor did it evaluate the solvency of Denbury or its subsidiaries under any applicable laws.

PJT Partners also assumed, with the consent of the Denbury board of directors, that the final executed form of the Merger Agreement would not differ in any material respects from the draft reviewed by PJT Partners and that the consummation of the Merger would be effected in accordance with the terms and conditions of the

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Merger Agreement, without waiver, modification or amendment of any material term, condition or agreement, and that, in the course of obtaining the necessary regulatory or third party consents and approvals (contractual or otherwise) for the Merger, no delay, limitation, restriction or condition would be imposed that would have an adverse effect on Denbury, ExxonMobil or the contemplated benefits of the Merger. PJT Partners also assumed that the representations and warranties made by Denbury and ExxonMobil in the Merger Agreement and the related agreements were and would be true and correct in all respects material to its analysis. At the Denbury board of directors’ discretion, PJT Partners assumed that it was intended for the Merger to qualify for U.S. federal income tax purposes as a “reorganization” within the meaning of Section 368(a) of the Code. PJT Partners did not express any opinion as to any tax or other consequences that might result from the Merger, nor did its opinion address any legal, tax, regulatory or accounting matters, as to which PJT Partners understood that Denbury obtained such advice as it deemed necessary from qualified professionals. PJT Partners is not a legal, tax or regulatory advisor and relied upon without independent verification the assessment of Denbury and its legal, tax and regulatory advisors with respect to such matters. PJT Partners did not express any opinion as to the relative fairness of the Merger Consideration to be received by any one holder of Denbury common stock as compared to any other holder of Denbury common stock.

In arriving at its opinion, PJT Partners was not asked to solicit, and did not solicit, interest from any party with respect to any sale, acquisition, business combination or other extraordinary transaction involving Denbury or its assets. PJT Partners did not consider the relative merits of the Merger as compared to any other business plan or opportunity that might be available to Denbury or the effect of any other arrangement in which Denbury might engage, and PJT Partners’ opinion did not address the underlying decision by Denbury to engage in the Merger. PJT Partners’ opinion was limited to the fairness as of the date of the opinion, from a financial point of view, to the holders of Denbury common stock of the Merger Consideration to be received by such holders in the Merger, and PJT Partners’ opinion did not address any other aspect or implication of the Merger, the Merger Agreement or any other agreement or understanding entered into in connection with the Merger or otherwise. PJT Partners further expressed no opinion or view as to the fairness of the Merger to the holders of any other class of securities, creditors or other constituencies of Denbury or as to the underlying decision by Denbury to engage in the Merger. PJT Partners also expressed no opinion as to the fairness of the amount or nature of the compensation to any of Denbury’s officers, directors or employees, or any class of such persons, relative to the Merger Consideration to be received by the holders of Denbury common stock or otherwise.

PJT Partners’ opinion was necessarily based upon economic, market, monetary, regulatory and other conditions as they existed and could be evaluated, and the information made available to PJT Partners, as of the date of the opinion. PJT Partners assumed no responsibility for updating or revising its opinion based on circumstances or events occurring after the date of the opinion. PJT Partners expressed no opinion as to the prices or trading ranges at which the shares of Denbury common stock or ExxonMobil common stock would trade at any time, as to the potential effects of volatility in the credit, financial and stock markets on Denbury, ExxonMobil or the Merger or as to the impact of the Merger on the solvency or viability of Denbury or ExxonMobil or the ability of Denbury or ExxonMobil to pay its obligations when they come due. The issuance of PJT Partners’ opinion was approved by a fairness committee of PJT Partners in accordance with established procedures.

PJT Partners’ advisory services and opinion were provided for the information and assistance of the Denbury board of directors, in its capacity as such, in connection with and for the purposes of its evaluation of the Merger and the opinion does not constitute a recommendation as to any action the Denbury board of directors should take with respect to the Merger. PJT Partners’ opinion does not constitute a recommendation to any holder of Denbury common stock as to how any stockholder should vote or act with respect to the Merger or any other matter.

Summary of Financial Analyses

In connection with rendering its opinion, PJT Partners performed certain financial, comparative and other analyses as summarized below. In arriving at its opinion, PJT Partners did not ascribe a specific range of values

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to the shares of Denbury common stock but rather made its determination as to fairness, from a financial point of view, to the holders of Denbury common stock of the Merger Consideration to be received by such holders pursuant to the Merger Agreement on the basis of various financial and comparative analyses. The preparation of a fairness opinion is a complex process and involves various determinations as to the most appropriate and relevant methods of financial and comparative analyses and the application of those methods to the particular circumstances. Therefore, a fairness opinion is not readily susceptible to summary description.

In arriving at its opinion, PJT Partners did not attribute any particular weight to any single analysis or factor considered by it but rather made qualitative judgments as to the significance and relevance of each analysis and factor relative to all other analyses and factors performed and considered by it and in the context of the circumstances of the merger. Accordingly, PJT Partners believes that its analyses must be considered as a whole, as considering any portion of such analyses and factors, without considering all analyses and factors as a whole, could create a misleading or incomplete view of the process underlying its opinion.

The following is a summary of the material financial analyses used by PJT Partners in preparing its opinion to the Denbury board of directors. Certain financial analyses summarized below include information presented in tabular format. In order to fully understand the financial analyses used by PJT Partners, the tables must be read together with the text of each summary, as the tables alone do not constitute a complete description of the financial analyses. In performing its analyses, PJT Partners made numerous assumptions with respect to industry performance, general business and economic conditions and other matters, many of which are beyond the control of Denbury and ExxonMobil. None of Denbury, ExxonMobil, PJT Partners, or any other person assumes responsibility if future results are materially different from those discussed. Any estimates contained in these analyses are not necessarily indicative of actual values or predictive of future results or values, which may be significantly more or less favorable than as set forth below. In addition, analyses relating to the value of the businesses do not purport to be appraisals or reflect the prices at which the businesses may actually be sold. The financial analyses summarized below were based on the forecasts and other financial information prepared and furnished to PJT Partners by or on behalf of the management of Denbury, and used at the direction of the management of Denbury and approved for PJT Partners’ use by the Denbury board of directors. The following summary does not purport to be a complete description of the financial analyses performed by PJT Partners. The following quantitative information, to the extent that it is based on market data, is based on market data as it existed, for Denbury, as of the closing trading price on July 12, 2023 (which represented the last trading day for Denbury common stock prior to the date of PJT Partners’ opinion), and is not necessarily indicative of current or future market conditions. Fully diluted share numbers for Denbury used below were provided by, and used at the direction of, Denbury’s management.

DESCRIPTION OF VALUATION ANALYSES

Selected Comparable Company Analysis – Sum-of-the-Parts

PJT Partners reviewed and compared specific financial, operating and public trading data relating to Denbury with selected publicly-traded companies in the (i) Exploration & Production sector with businesses and operating profiles reasonably similar to Denbury’s Enhanced Oil Recovery (“EOR”) business and (ii) Energy Transition and Gathering & Processing sectors with businesses and operating profiles reasonably similar to Denbury’s Carbon Capture, Utilization and Storage (“CCUS”) business.

The selected comparable companies (which we refer to collectively as the “Denbury Peers”) were the below:

Enhanced Oil Recovery peer group:

Whitecap Resources Inc.

California Resources Corporation

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Crescent Energy Company

Berry Corporation

Energy Transition peer group:

Bloom Energy Corporation

Plug Power Inc.

FuelCell Energy, Inc.

Aker Carbon Capture ASA

Ballard Power Systems Inc.

Gathering & Processing peer group:

Western Midstream Partners, LP

Enlink Midstream, LLC

Hess Midstream Partners, LP

Crestwood Equity Partners, LP

PJT Partners reviewed and compared such data in order to assess how the public market values shares of similar publicly traded companies and to provide a range of relative implied equity values per share of Denbury common stock on a standalone basis, in each case by reference to these companies.

As part of its selected comparable company analysis, PJT Partners calculated and analysed certain ratios and multiples, including for each of the Denbury Peers in the Enhanced Oil Recovery and Gathering & Processing peer groups, (1) the ratio of total enterprise value (calculated as the equity value based on fully diluted shares outstanding using the treasury stock method, plus debt and less cash and cash equivalents, after giving effect to certain adjustments for non-controlling interests and other relevant balance sheet items) (“TEV”) over estimated earnings before interest, taxes, depreciation, amortization and exploration expenses (where applicable) (“EBITDAX”) for calendar year 2023 (“TEV / 2023E EBITDAX”) and (2) the ratio of TEV to estimated EBITDAX for calendar year 2024 (“TEV / 2024E EBITDAX”), and, for each of the Denbury Peers in the Energy Transition sector, (1) the ratio of TEV over estimated revenue for calendar year 2025 (“TEV / 2025E Revenue”) and (2) the ratio of TEV over estimated earnings before interest, taxes, depreciation and amortization (“EBITDA”) for calendar year 2026 (“TEV / 2026E EBITDA”). All of these calculations were performed and based on publicly available financial data, market data (including share prices) as of the close of trading on July 12, 2023 and consensus estimates derived from sell-side research.

PJT Partners selected the comparable companies listed above because PJT Partners believed their businesses and operating profiles are reasonably similar to those of Denbury. However, because of the inherent differences between the business, operations and prospects of Denbury and those of the selected comparable companies, PJT Partners believed that it was inappropriate to, and therefore did not, rely solely on the quantitative results of the selected comparable company analysis. Accordingly, PJT Partners also made qualitative judgments concerning differences between the business, financial and operating characteristics and prospects of Denbury and the selected comparable companies that could affect the public trading values of each in order to provide a context in which to consider the results of the quantitative analysis. These qualitative judgments related primarily to the differing sizes, growth prospects, profitability levels and degree of operational risk between Denbury and the companies included in the selected company analysis.

Accordingly, PJT Partners selected, in each case for Denbury on a standalone basis, the following:

(i) for Denbury’s EOR line of business, a TEV / 2023E EBITDAX multiple reference range of 3.5x to 4.0x and (ii) for Denbury’s CCUS line of business, a TEV / 2025E Revenue multiple reference range of 1.5x to 2.5x; and

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(i) for Denbury’s EOR line of business, a TEV / 2024E EBITDAX multiple reference range of 3.0x to 4.0x and (ii) for Denbury’s CCUS line of business, a TEV / 2026E EBITDA multiple reference range of 5.0x to 9.0x.

In each case, PJT Partners applied such multiples to relevant metrics for each of Denbury’s lines of business included in the “Consensus Pricing Through 2025E Base Case” in order to calculate implied values of each of Denbury’s EOR and CCUS lines of businesses. For each pair of metrics identified below, PJT Partners then aggregated the ranges of implied values for Denbury’s EOR and CCUS lines of businesses in order to calculate a range of implied prices per share of Denbury common stock on a standalone basis based on the fully diluted number of shares of Denbury common stock. The following summarizes the results of these calculations:

Implied prices per share of Denbury
common stock

EOR: TEV/2023E EBITDAX

CCUS: TEV/2025E Revenue(1)

$46.26 – $58.87

EOR: TEV/EBITDAX ‘24E

CCUS: TEV/EBITDA ‘26E

$62.22 – $94.09

(1)

For purposes of this analysis, PJT Partners applied the TEV / 2025E Revenue multiple reference range to Denbury’s estimated revenue for Denbury’s CCUS line of business for calendar year 2026.

Selected Precedent Corporate Acquisition Analysis

PJT Partners reviewed, to the extent publicly available, and analysed the valuation and financial metrics relating to the following selected transactions involving companies in the Exploration & Production sector, which PJT Partners in its professional judgment considered generally relevant for comparative purposes:

Announcement Date

Target

Acquiror

December 21, 2020QEP Resources, Inc.Diamondback Energy, Inc.
March 7, 2022Whiting Petroleum CorporationOasis Petroleum Inc. (aka Chord Energy Corporation)
February 28, 2023Ranger Oil CorporationBaytex Energy Corp.
May 22, 2023PDC Energy, Inc.Chevron Corporation

For each precedent transaction, PJT Partners calculated as a multiple the ratio of (a) the corresponding total transaction value and (b) the target company’s estimated EBITDAX for the yet to be completed calendar year (12 months) in which the transaction was announced and at the time of announcement (“FY+1 EBITDAX”) (such ratio, “TEV / FY+1 EBITDAX”).

Estimated financial data of the selected transactions were based on publicly available information at the time of announcement of the relevant transaction.

PJT Partners also reviewed transaction precedents in the Gathering & Processing and Energy Transition sectors, which PJT Partners in its professional judgment considered not relevant for comparative purposes. As an alternative, PJT Partners used comparable company analysis, specifically TEV / 2023E EBITDA and TEV / 2024E EBITDA multiples associated with the Gathering & Processing peer group to inform its selected CCUS transaction multiple reference range.

The reasons for and the circumstances surrounding each of the selected precedent transactions analysed were diverse and there are inherent differences in the business, operations, financial conditions and prospects of Denbury and the companies included in the selected precedent transaction analysis, which PJT Partners discussed with the Denbury board of directors. In addition, certain of the selected precedent transactions involved the purchase and sale of certain assets and businesses rather than transactions

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involving whole companies, and the selected precedent transactions occurred during periods in which financial, economic and market conditions were different from those in existence as of the date of PJT Partners’ opinion. Accordingly, PJT Partners believed, and discussed with the Denbury board of directors, that a purely quantitative selected precedent transaction analysis would not be particularly meaningful in the context of considering the Merger. PJT Partners therefore made qualitative judgments concerning differences between the characteristics of the selected precedent transactions and the Merger which would affect the acquisition equity values of the selected target companies and Denbury. After reviewing the above analysis, PJT Partners selected (1) for the EOR line of business, a TEV / FY+1 EBITDAX multiple reference range of 3.0x to 4.0x on a standalone basis and (2) for the CCUS line of business, a TEV / FY+1 EBITDAX multiple reference range of 7.0x to 9.0x on a standalone basis. PJT Partners then applied such multiples to (1) the estimated EBITDAX for calendar year 2023 for Denbury’s EOR line of business and (2) the estimated EBITDA for calendar year 2026 for Denbury’s CCUS line of business, respectively, in each case as included in the “Consensus Pricing Through 2025E Base Case” in order to calculate implied values for each of Denbury’s EOR and CCUS lines of businesses. PJT Partners then aggregated the ranges of implied firm values for Denbury’s EOR and CCUS lines of business in order to calculate a range of implied prices per share of Denbury common stock on a standalone basis.

The following summarizes the result of these calculations:

Implied prices per share of Denbury

common stock

EOR: TEV / FY+1 EBITDAX on 2023E EBITDAX

CCUS: TEV / FY+1 EBITDAX on 2026E EBITDA

$61.80 – $81.41

Discounted Cash Flow Analysis

In order to estimate the present value of XTO EnergyDenbury common stock, Barclays CapitalPJT Partners performed a discounted cash flow analysis of XTO Energy.Denbury. A discounted cash flow analysis is a traditional valuation methodology used to derive thea valuation of an asset by calculating the “present value” of estimated future unlevered, free cash flows of the asset.generated by a company’s assets. “Present value” refers to the current value of future cash flows or amounts and is obtained by discounting those future unlevered, free cash flows or amounts by a range of discount ratesrate that takes into account macroeconomic assumptions and estimates of risk, the opportunity cost of capital, expected returns and other appropriate factors.

To calculate the estimated enterprise valuessum-of-the-parts (“SOTP”) intrinsic valuation of XTO EnergyDenbury using the discounted cash flow analysis, Barclays Capital addedmethod, PJT Partners utilized the following assumptions: (i) projected after-tax unlevered free cash flows (which is defined as discretionaryfor the EOR line of business, discount rates ranging from 11.5% to 9.5% and a perpetuity growth rate (“PGR”) ranging from -4% to -2% and (ii) for the CCUS line of business, discount rates ranging from 15.5% to 13.5% and a PGR ranging from +3% to +5%.

To calculate the intrinsic valuation of Denbury on a consolidated basis using the discounted cash flow plus tax-adjusted interest expense less capital expenditures,method, PJT Partners utilized discount rates ranging from 13.5% to 11.5% and adjusted for changes in net working capital) for fiscal

a PGR ranging from +1.5% to +3.5%.

years 2010 through 2014 based on the projected financial data prepared by Barclays Capital (for a further discussion of such projections, see “The Merger—Certain Projected Financial Data Prepared by Barclays Capital for Purposes of Rendering its Opinion” beginning on page [] of this proxy statement/prospectus) to (ii) the “terminal value” of XTO Energy as of 2014, and discounted such amounts to their present value using a rangeThe ranges of selected discount rates. Specifically, Barclays Capital used a discount rate range of 9.0% to 11.0%. The discount rates were selected based on Barclays Capital’sPJT Partners’ analysis of the weighted average cost of capital for XTO Energyof Denbury and each of its lines of business. The ranges of PGRs were informed by guidance from Denbury’s management and selected based upon historical and future estimates of the weighted average cost of capital for XTO Energy as well as the weighted average cost of capital for companies with similar size and with an oil and gas exploration and production focus. Barclays Capital’s analysis resulted in an implied weighted average cost of capital range of 9.0% to 11.0%. The after-tax unlevered free cash flows wereon PJT’s professional judgement.

Strip Pricing Through 2027E Base Case

PJT Partners then calculated by taking the tax-affected earnings before interest, tax expense, depreciation and amortization, excluding amortization of purchased intangibles, or EBITDA, and subtracting capital expenditures. The residual values of XTO Energy at the end of the forecast period, or “terminal values”, were estimated by applying multiples to estimates of XTO Energy’s 2014 proved reserves. For this purpose, Barclays Capital selected a range of terminal value proved reserve multiplesimplied equity values per share of $2.25 to $2.75 for XTO Energy based onDenbury common stock using both a SOTP analysis and a consolidated company analysis by discounting the trading multiplesestimated unlevered free cash

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flow estimates of selected comparable publicly traded companies as well asDenbury (on a consolidated basis) and each of its EOR and CCUS lines of business, using the termsranges of recently completed acquisitionsdiscount rates and ranges of similar assetsPGRs discussed above contained in the “Strip Pricing Through 2027E Base Case” (which financial projections were discussed with, and companies. The selected comparable companies and comparable transactions were the same as described under “—Comparable Company Analysis” and “—Comparable Transaction Analysis” above.

The enterprise value range for XTO Energy yieldedapproved by, the XTO Energy discounted cash flowDenbury board of directors for use by PJT Partners in connection with its financial analyses) and range of terminal values to present value as of June 30, 2023. For the SOTP analysis, implied an equity value range for XTO Energy of $38.99 to $54.75 per share as compared to the proposed merger consideration value of $51.69 per share. Barclays Capital noted that the proposed merger consideration was in line withPJT Partners then aggregated the implied equity value range per XTO Energy share yielded by Barclays Capital’s discounted cash flow analysis.

Research Analyst Price Targets

Barclays Capital evaluated the publicly available price targetsenterprise values of XTO Energy published by independent equity research analysts associated with various Wall Street firmsDenbury’s EOR and CCUS lines of business in order to calculate an implied present value of Denbury as a whole. The present value of the unlevered free cash flow estimates and the range of terminal values were then adjusted by subtracting Denbury’s estimated net debt as of June 30, 2023 and dividing such amount by the number of fully diluted shares outstanding of Denbury common stock, as provided by Denbury’s management.

The following summarizes the results of these calculations:

5-year Strip PricingImplied price per share of Denbury
common stock

SOTP:

$47.26 – $75.02

Consolidated

$53.72 – $89.62

Strip Pricing Through 2025E Base Case

PJT Partners then calculated a range of implied equity valuevalues per share range for XTO Energy. The independent equity research analyst target prices evaluated ranged from $42 per share to $80 per share,of Denbury common stock using both a SOTP analysis and Barclays Capital adviseda consolidated company analysis by discounting the XTO Energyestimated unlevered free cash flow estimates of Denbury (on a consolidated basis) and each of its EOR and CCUS lines of business using the ranges of discount rates and ranges of PGRs discussed above contained in the “Strip Pricing Through 2025E Base Case” (which financial projections were discussed with, and approved by, the Denbury board of directors for use by PJT Partners in connection with its financial analyses) and range of terminal values to present value as of June 30, 2023. For the SOTP analysis, PJT Partners then aggregated the implied enterprise values of Denbury’s EOR and CCUS lines of business in order to calculate an implied present value of Denbury as a whole. The present value of the unlevered free cash flow estimates and the range of terminal values were then adjusted by subtracting Denbury’s estimated net debt as of June 30, 2023 and dividing such amount by the number of fully diluted shares outstanding of Denbury common stock, as provided by Denbury’s management.

The following summarizes the results of these calculations:

3-year Strip PricingImplied price per share of Denbury
common stock

SOTP:

$51.85 – $81.24

Consolidated

$58.55 – $96.85

General

The preparation of a fairness opinion is a complex process and is not necessarily susceptible to partial analysis or summary description. Selecting portions of the analyses or of the summary set forth above, without considering the analyses as a whole, could create an incomplete view of the processes underlying PJT Partners’ opinion. In arriving at its fairness determination, PJT Partners considered the results of all of its analyses and did not attribute any particular weight to any factor or analysis considered by it. Rather, PJT Partners made its determination as to fairness on the basis of its experience and professional judgment after considering the results of all of its analyses. No company or transaction used in the above analyses as a comparison is directly comparable to Denbury, ExxonMobil or the contemplated transaction. The terms of the Merger Agreement, including the Merger Consideration, were determined through arm’s-length negotiations between Denbury and ExxonMobil, rather than PJT Partners, and the decision to enter into the Merger Agreement was solely that of Denbury and ExxonMobil.

PJT Partners prepared these target prices. It is customaryanalyses for financial advisors analyzing transactions similarpurposes of providing its opinion to the proposed merger to exclude outliers in the analysisDenbury board of equity research analyst target prices. Accordingly, based on its judgment, Barclays Capital also considered a narrower range which excluded the three highest and three lowest research analyst price targets for XTO Energy. This narrower equity value range of $48.00 to $60.00 per share was compareddirectors as to the proposed merger consideration valuefairness from a financial point of $51.69 per share. Barclays Capital noted that the proposed merger consideration was in line with this implied equity value range of $48.00 to $60.00 per XTO Energy share yielded by Barclays Capital’s research analyst price target analysis for XTO Energy.

Pro Forma Merger Consequences Analysis

Barclays Capital analyzed the pro forma impactview, as of the proposed merger on ExxonMobil’s and XTO Energy’s projected EPS and DCFPS based on consensus estimates publisheddate of the written opinion of PJT Partners, of the

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Merger Consideration to be received by First Callthe holders of independent equity research analysts. In the pro forma merger consequences analysis, Barclays Capital prepared a pro forma merger model which incorporated the consensus estimates published by First Callshares of independent equity research analysts for both XTO Energy and ExxonMobil for the years 2010 and 2011. Barclays Capital then compared the EPS and DCFPS of XTO Energy and ExxonMobil on a standalone basisDenbury common stock pursuant to the EPS and DCFPS attributableMerger. These analyses do not purport to eachbe appraisals nor do they necessarily reflect the prices at which businesses or securities actually may be sold. Analyses based upon forecasts of XTO Energy and ExxonMobil’s interest infuture results are not necessarily indicative of actual future results, which may be significantly more or less favorable than suggested by these analyses. Because these analyses are inherently subject to uncertainty, being based upon numerous factors or events beyond the pro forma combined company. The calculationcontrol of the EPS and DCFPS attributable to eachparties or their respective advisors, none of XTO Energy’s and ExxonMobil’s interests in the pro forma combined company included adjustments for the financing of the transaction and acquisition accounting. Barclays Capital noted that the proposed merger was accretive to the pro forma 2010 and 2011 consensus estimates published by

Denbury, PJT Partners or any other person assumes responsibility if future results are materially different from those forecast.

First Call of independent equity research analysts of EPS for XTO Energy and dilutive to the pro forma 2010 and 2011 consensus estimates published by First Call of independent equity research analysts of DCFPS for XTO Energy.

Premiums Analysis

Barclays Capital reviewed certain publicly available information related to selected corporate transactions to calculate the amount of the premiums paid by the acquirers to the acquired companies’ stockholders. Barclays Capital analyzed selected corporate oil and gas exploration and production transactions announced for the period from January 1, 1998 to December 11, 2009 with total transaction values in excess of $5 billion. Barclays Capital also analyzed all stock-for-stock corporate transactions involving target companies based in the United States for the period from January 1, 1998 to December 11, 2009 with total transaction values in excess of $10 billion.

For each of precedent transactions analyzed, Barclays Capital calculated the premiums paid by the acquirer by comparing the per share purchase price in each transaction to the historical stock price of the acquired company as of 1 day, 5 days and 30 days prior to the announcement date as well as based upon the 52-week high prior to the announcement date. Barclays Capital compared the premiums paid in the precedent transactions to the premium levels in the proposed merger consideration based on closing prices as of December 11, 2009. The table below sets forth the summary results of the analysis:

   Percentage Premium /(Discount) to the Closing
Price Prior to Transaction Announcement
 
   1 Day  5 Days  30 Days  52-Week High 

Selected E&P Corporate Transactions Greater than $5 billion since January 1, 1998

     

Median

  16.7 24.4 24.6 (0.3)% 

Mean

  21.5 25.4 27.8 (4.2)% 

High

  52.9 57.4 73.8 22.7

Low

  2.0 (6.7)%  (6.6)%  (55.2)% 

All Stock U.S. Target Corporate Transactions Greater than $10 billion since January 1, 1998

     

Median

  14.4 24.5 25.0 (0.6)% 

Mean

  20.2 24.3 35.1 0.1

High

  70.9 69.2 162.8 47.3

Low

  (1.5)%  (6.7)%  (16.5)%  (25.5)% 

Implied Premium Based on the exchange ratio in the proposed merger (as of December 11, 2009 close)

  24.6 25.6 24.4 11.2

The premiums paid analysis yielded median premiums per share ranging from (0.3%) to 24.6% and (0.6%) to 25.0%, respectively, for “Selected E&P Corporate Transactions Greater than $5 billion since January 1, 1998” and “All Stock U.S. Target Corporate Transactions Greater than $10 billion since January 1, 1998”, in each case as compared to the range of implied premiums of 11.2% to 25.6% based on the proposed merger consideration value of $51.69 per share.

Historical Common Stock Trading Analysis

Barclays Capital reviewed the daily historical closing prices of XTO Energy common stock and ExxonMobil common stock for the period from December 13, 2004 to December 11, 2009. Barclays Capital analyzed the ratio of the closing share price for XTO Energy to the closing share price of ExxonMobil on the same day as of December 11, 2009 as well as both 5 days and 30 days prior to December 11, 2009. Barclays Capital also analyzed the ratio of XTO Energy’s 52-week high and 52-week low common stock trading prices,

respectively, to ExxonMobil’s 52-week high and 52-week low common stock trading prices, respectively, as of December 11, 2009. In addition, Barclays Capital reviewed the ratio of the closing share prices for XTO Energy and ExxonMobil based on 5-day, 10-day, 30-day, 90-day, 1-year, 2-year, 3-year and 5-year averages, respectively, as of December 11, 2009. This analysis implied exchange ratios ranging from 0.4630 to 0.5889 shares of ExxonMobil common stock per share of XTO Energy common stock as compared to the exchange ratio in the proposed merger of 0.7098.

Contribution Analysis

Barclays Capital analyzed the relative income statement and cash flow contribution of XTO Energy and ExxonMobil to the combined company based on 2010 and 2011 estimated financial data based on consensus estimates published by First Call of independent equity research analysts for XTO Energy and ExxonMobil, respectively. Using consensus estimates published by First Call of independent equity research analysts, this analysis indicated that XTO Energy will contribute approximately 4.4% and 3.5% of the combined company’s net income and 11.5% and 9.9% of the combined company’s discretionary cash flow for the periods analyzed, implying an exchange ratio range of 0.2962 to 0.3761 shares and 0.8942 to 1.0660 shares of ExxonMobil common stock per share of XTO Energy common stock, respectively. At the exchange ratio in the proposed merger of 0.7098 shares of ExxonMobil common stock per share of XTO Energy common stock, XTO Energy stockholders will hold approximately 8% of the combined company’s equity. Barclays Capital notes that the primary shortcoming of contribution analysis is that it treats all cash flow and earnings the same regardless of capitalization, expected growth rates, upside potential or risk profile.

General

Barclays CapitalPJT Partners is an internationally recognized investment banking firm and, as part of its investment banking activities, is regularly engaged in the valuation of businesses and their securities in connection with mergers and acquisitions, investments for passive and control purposes, negotiated underwritings, competitive bids, secondary distributions of listed and unlisted securities, private placements and valuations for estate, corporate and other purposes. XTO Energy’sThe Denbury board of directors selected Barclays CapitalPJT Partners because of its qualifications, reputation and experience in the valuation of businesses and securities in connection with mergers and acquisitions generally knowledge ofand in the industries in which XTO Energy operates, as well as substantial experience in transactions comparable to the proposed merger and familiarity with XTO Energyoil industry specifically.

Barclays CapitalPJT Partners is acting as financial advisor to XTO Energythe Denbury board of directors in connection with the proposed merger.Merger. As compensation for its services in connection with the proposed merger, XTO Energy paid Barclays Capital $4,000,000Merger, PJT Partners is entitled to receive from Denbury a fee of $3 million, which became payable upon the delivery of Barclays Capital’s opinion. Additional compensationPJT Partners’ opinion to the Denbury board of $20,000,000 will be payable on completion of the proposed merger. In addition, XTO Energydirectors. Denbury has agreed to reimburse Barclays CapitalPJT Partners for a portion of its reasonableout-of-pocket expenses incurred in connection with the proposed merger and to indemnify Barclays CapitalPJT Partners for certain liabilities that may arisearising out of its engagement by XTO Energy andthe performance of such services (including the rendering of Barclays Capital’s opinion. Barclays Capital has performed various investment banking services for XTO Energy and its affiliates in the past, and has received customary fees for such services. Specifically, in the past two years, Barclays Capital has performed the following investment banking and financial services for XTO Energy and its affiliates, for which Barclays Capital has received customary compensation: (i) in August 2008, Barclays Capital acted as an underwriter on XTO Energy’s 6.75% senior notes due 2037, 5.00% senior notes due 2010, 5.75% senior notes due 2013 and 6.50% notes due 2018; (ii) in July 2008, Barclays Capital acted as an underwriter on XTO Energy’s common stock offering; (iii) in April 2008, Barclays Capital acted as an underwriter on XTO Energy’s 4.625% senior notes due 2013, 5.500% senior notes due 2018, and 6.375% senior notes due 2038; (iv) in February 2008, Barclays Capital acted as an underwriter on XTO Energy’s common stock offering; (v) between February 2009 and April 2009, Barclays Capital assisted XTO Energy in repurchasing outstanding bonds of XTO Energy on the open market; (vi) Barclays Capital is currently a lender under XTO Energy’s existing revolving credit facility and a dealer under XTO Energy’s commercial paper program; and (vii) Barclays Capital has served and may continue to serve as a counterparty to XTO Energy on certain

PJT Partners’ opinion).

commodity hedging and trading transactions. Barclays Capital received compensation from ExxonMobil of less than $1,000,000 in each of 2008 and 2009 for various capital market, commodities and foreign currency activities. Barclays Capital expects to perform investment banking and financial services for ExxonMobil and its affiliates in the future and expects to receive customary fees for such services.

Barclays Capital is a full service securities firm engaged in a wide range of businesses including investment and commercial banking, lending, asset management and other financial and non-financial services. In the ordinary course of PJT Partners and its business, Barclays Capitalaffiliates’ businesses, PJT Partners and its affiliates may actively trade and effect transactions in the equity, debt and/or other securities (and any derivatives thereof) and financial instruments (including loansprovide investment banking and other obligations)financial services to Denbury, ExxonMobil or their respective affiliates and may receive compensation for the rendering of XTO Energythese services. During the two years preceding the date of this opinion, PJT Partners has not advised or received compensation from Denbury or ExxonMobil.

REGULATORY APPROVALS REQUIRED FOR THE MERGER

Completion of the Merger is conditioned upon the receipt of certain governmental clearances or approvals, including the expiration or termination of any applicable waiting period, or any extension thereof, under the HSR Act and receipt of certain other governmental consents and approvals. The process for obtaining the requisite regulatory approvals for the Merger is ongoing.

Although ExxonMobil and their affiliates for its own account and forDenbury currently believe they should be able to obtain all required regulatory approvals in a timely manner, the accounts of its customers and, accordingly, may at any time hold longparties cannot be certain when or short positions and investments in such securities and financial instruments.

Certain Projected Financial Data Prepared by Barclays Capital for Purposes of Rendering its Opinion

XTO Energy doesif they will obtain them or, if obtained, whether the approvals will contain terms, conditions or restrictions not as a matter of course, prepare or make public projected financial data for extended periods and no projected financial data was provided by XTO Energycurrently contemplated that will be detrimental to Barclays Capital. In connection withExxonMobil after the financial analysis performed by Barclays Capital in preparation of, and in rendering, its opinion, dated December 13, 2009, to the XTO Energy board of directors, Barclays Capital in consultation with, and with the guidance of, XTO Energy’s management, prepared certain projected financial data relating to XTO Energy on a standalone, pre-merger basis. Barclays Capital prepared projected financial data relating to XTO Energy due to the limited scope of, and time periods covered by, the consensus estimates published by First Call of independent equity research analysts with respect to XTO Energy and the limited time periods covered by the information prepared by XTO Energy as part of its regular internal business planning process. Neither ExxonMobil, nor any of its representatives, were provided with, or had any access to, the projected financial data prepared by Barclays Capital prior to the announcementcompletion of the proposed merger.

A summaryMerger, or will contain a Burdensome Condition (see “The Merger Agreement—Reasonable Best Efforts Covenant” beginning on page 128 of the projected financial data prepared by Barclays Capital in consultation with, and with the guidance of, the management of XTO Energy is being included in this proxy statement/prospectus to provide you with certain projected financial data used by Barclays Capital in connection with rendering its opinion to the XTO Energy board of directors. The summary of the projected financial data is not being included in this proxy statement/prospectus for the purposedefinition of influencing your decision whetherBurdensome Condition).

The approval of an application for regulatory approval means only that the regulatory criteria for approval have been satisfied or waived. It does not mean that the approving regulatory authority has determined that the consideration to vote forbe received by holders of Denbury stock and/or the adoptionMerger are fair to Denbury stockholders. Regulatory approval does not constitute an endorsement or recommendation of the merger agreement. The projected financial data was not prepared with a view toward public disclosure and is inherently subject to uncertainty, being based upon numerous factors and events beyond the control of the parties and their respective advisors, and the inclusion of this information should not be regarded as an indication thatMerger by any of XTO Energy, ExxonMobil, Barclays Capital or any recipient of this information considered, or now considers, it to be necessarily predictive of actual future results.regulatory authority.

The projected financial data was used by Barclays Capital solely in performing its analysis and is subjective in many respects and thus subject to interpretation. While presented with numeric specificity, the summary of the projected financial data set forth below reflects numerous estimates and assumptions made by Barclays Capital with respect to industry performance and competition, general business, economic, market and financial conditions, commodity prices, demand for natural gas and oil, production growth, capacity utilization and additional matters specific to XTO Energy’s business, all of which are difficult to predict and many of which are beyond XTO Energy’s control. As a result, there can be no assurance that the projected financial data contained therein will be realized or that actual results will not be materially different than estimated in the projected financial data. Since the projected financial data covers multiple years, such information by its nature becomes less predictive with each successive year. You are urged to review XTO Energy’s most recent SEC filings for a description of risk factors with respect to XTO Energy’s business. See “Cautionary Statement Regarding Forward-Looking Statements” and “Where You Can Find More Information” beginning on pages [] and [], respectively, of this proxy statement/prospectus. The projected financial data was not prepared with a view toward complying with GAAP, the published guidelines of the SEC regarding projections or the guidelines

established by the American Institute of Certified Public Accountants for preparation and presentation of financial projections. Neither XTO Energy’s nor ExxonMobil’s independent registered public accounting firm has examined, compiled or performed any procedures with respect to the projected financial data and, accordingly, they do not express an opinion or any other form of assurance with respect thereto. The reports of the independent registered public accounting firms incorporated by reference in this proxy statement/prospectus relate to ExxonMobil’s and XTO Energy’s historical financial information. Those reports do not extend to the projected financial data and should not be read to do so. Furthermore, the projected financial data does not take into account any circumstance or event occurring after the date it was prepared. In particular, since the date of the projected financial data, XTO Energy has made publicly available its actual results of operations for the year ended December 31, 2009. You should review XTO Energy’s Annual Report on Form 10-K for the year ended December 31, 2009 for this information.

The following table presents a summary of projected financial data as of December 2009 for the fiscal years ending 2010 through 2014:

   Projected Financial Data
   2010  2011  2012  2013  2014

Production (Mmcfe/d)

   3,157   3,441   3,751   4,051   4,375

Benchmark Prices

          

Gas—Henry Hub ($/Mcf)

  $5.57  $6.50  $6.73  $6.83  $7.01

Oil—West Texas )

  $75.70  $81.46  $84.01  $85.87  $88.01

Intermediate ($/Bbl

          

EBITDA ($ in millions)

  $6,280  $6,287  $7,056  $7,771  $8,646

Capital Expenditures ($ in millions)

          

Drilling

  $3,350  $4,163  $4,690  $5,153  $5,711

Midstream

   550   600   653   706   762

Other Discretionary

   850   750   750   750   750
                    

Total Capital Expenditures

  $4,750  $5,513  $6,093  $6,609  $7,223
                    

Readers of this proxy statement/prospectus are cautioned not to place undue reliance on the summary of the projected financial data set forth above. No representation is made by XTO Energy, ExxonMobil, Barclays Capital or any other person to any stockholder of XTO Energy or any stockholder of ExxonMobil regarding the ultimate performance of XTO Energy compared to the information included in the above summary of the projected financial data. The inclusion of the summary of the projected financial data in this proxy statement/prospectus should not be regarded as an indication that such projected financial data will be an accurate prediction of future events nor construed as financial guidance, and they should not be relied on as such. XTO Energy has made no representation to Barclays Capital, ExxonMobil or any other person concerning the projected financial data.

NEITHER XTO ENERGY NOR BARCLAYS CAPITAL INTENDS TO UPDATE OR OTHERWISE REVISE THE PROJECTED FINANCIAL DATA TO REFLECT CIRCUMSTANCES EXISTING AFTER THE DATE WHEN MADE OR TO REFLECT THE OCCURRENCE OF FUTURE EVENTS, EVEN IN THE EVENT THAT ANY OR ALL OF THE ASSUMPTIONS UNDERLYING SUCH PROJECTED FINANCIAL DATA ARE NO LONGER APPROPRIATE.

Regulatory Approvals Required for the Merger

General

ExxonMobil and XTO Energy have agreed to use their reasonable best efforts to obtain all regulatory approvals required to consummate the merger. These approvals include approval under, or notices pursuant to, the HSR Act and the Dutch Competition Act. However, in using their reasonable best efforts to obtain these

required regulatory approvals, under the terms of the merger agreement, ExxonMobil is not required, and XTO Energy is not permitted without the consent of ExxonMobil, to take certain actions (such as divesting or holding separate assets or entering into settlements or consent decrees with governmental authorities) that would reasonably be expected to, individually or in the aggregate, restrict, in any material respect, or otherwise negatively and materially impact the natural gas (including natural gas liquids) exploration, production and sales businesses of either XTO Energy and its subsidiaries, taken as a whole, or ExxonMobil and its subsidiaries, taken as a whole.

Each of ExxonMobil’s, XTO Energy’s and Merger Sub’s obligation to effect the merger is conditioned upon, among other things, the expiration or termination of the applicable waiting period under the HSR Act and the expiration of the applicable waiting period under the Dutch Competition Act or an approval of the Dutch Competition Authority allowing the merger to be completed. See “The Merger Agreement—Conditions to the Completion of the Merger” beginning on page [] of this proxy statement/prospectus.

Department of Justice, Federal Trade Commission and Other U.S. Antitrust AuthoritiesFiling

Under the HSR Act, and the rules and regulations promulgated thereunder, certain transactions, including the merger,Merger, may not be consummatedcompleted unless certain waiting period requirements have expired or been terminated. The HSR Act provides that each party must file a pre-merger notificationtheir

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respective HSR notifications with the Federal Trade Commission, or the FTC and the Antitrust Division of the Department of Justice, or the DOJ. A transaction notifiable under the HSR Act may not be completed until the expiration or termination of a 30-calendar-day30-day waiting period following the parties’ filingfilings of their respective HSR Act notification formsnotifications or the early termination of that waiting period. If the DOJ or the FTC issues a Request for Additional Information and Documentary Materialsecond request prior to the expiration of thethis initial30-day waiting period, the transaction cannot close until the parties must observe a second 30-day waiting period, which is 30 days by statute, but that can be extended through agreement and would begin to run only after both parties have substantially complied with the second request, for additional information, unless thesuch second waiting period is terminated earlier.

ExxonMobilThe parties’ HSR notifications were filed with the FTC and XTO Energy each filed its required HSR notification and report form with respect to the mergerDOJ on February 12, 2010, commencing the initial 30-day waiting period. ThisAugust 10, 2023. The applicable waiting period expired on March 15, 2010 without a request for additional information.September 11, 2023 at 11:59 pm Eastern Time.

Notwithstanding such expiration, at any time before or after the merger is completed, either the DOJ or the FTC could take action under the antitrust laws in opposition to the merger, including seeking to enjoinSEC Clearance of Registration Statement

The completion of the merger, condition approvalMerger is conditioned on the registration statement of which this proxy statement/ prospectus is a part being declared effective and the absence of any stop order suspending the effectiveness of the merger uponregistration statement or proceedings for such purpose pending before or threatened by the divestiture of assetsSEC.

NYSE Listing

Pursuant to the Merger Agreement, the shares of ExxonMobil XTO Energy or their subsidiaries or impose restrictions on ExxonMobil’s post-merger operations. In addition, U.S. state attorneys general could take action under the antitrust laws as they deem necessary or desirablecommon stock to be issued in the public interest including without limitation seekingshare issuance must have been approved for listing on the NYSE, subject to enjoinofficial notice of issuance prior to the completion of the merger or permitting completion subject to regulatory concessions or conditions. Private parties may also seek to take legal action under the antitrust laws under some circumstances.Merger.

The Netherlands

Under the Dutch Competition Act, certain transactions, including the merger, may not be consummated unless certain waiting period requirements have expired or the Dutch Competition Authority (the Nederlandse Mededingingsautoriteit) has given its prior approval. A transaction subject to the Dutch Competition Act may not be completed until the expiration of a four-week waiting period following the filing of a complete notification or the Dutch Competition Authority’s earlier approval of the transaction. If, prior to the expiration of the initial four-week waiting period, the Dutch Competition Authority determines that the transaction requires a license to proceed, the parties must observe an additional 13-week waiting period, which would begin to run only after the parties have submitted their application for such a license. If, during either the initial four-week waiting period or the subsequent 13-week waiting period, the Dutch Competition Authority requests additional information, the applicable waiting period is tolled until the parties adequately provide the requested information.

ExxonMobil filed the required notification with respect to the merger with the Dutch Competition Authority on February 11, 2010, commencing the initial four-week waiting period. The Dutch Competition Authority approved the merger on March 9, 2010.

Other Governmental Approvals

Neither ExxonMobil nor XTO Energy isand Denbury are not aware of any material governmental approvals or actions that are required for completion of the mergerMerger other than those described above. It is presently contemplated that ifin “The Merger—Regulatory Approvals Required for the Merger” beginning on page 107 of this proxy statement/prospectus. If any such additional material governmental approvals or actions are required, thoseExxonMobil and Denbury will use their respective reasonable best efforts, subject to certain limitations, to obtain any such approvals or actions from any governmental authority that are required under applicable law in order to consummate the transactions contemplated by the Merger Agreement. There can be no assurance, however, that any additional approvals or actions will be sought.obtained.

Challenges by GovernmentalEfforts to Obtain Regulatory Approvals

ExxonMobil and Other EntitiesDenbury have agreed in the Merger Agreement to use their respective reasonable best efforts, subject to certain limitations, to make the required governmental filings or obtain the required governmental authorizations, as the case may be to complete the Merger. However, ExxonMobil’s obligation to use reasonable best efforts to obtain regulatory approvals required to complete the Merger does not require ExxonMobil to:

Notwithstanding the expiration

sell, divest or discontinue any portion of the initial waiting period underassets, liabilities, activities, businesses or operations of ExxonMobil or its subsidiaries existing prior to the HSR Acteffective time;

accept any other remedy with respect to ExxonMobil’s or any of its subsidiaries’ assets, liabilities, activities, businesses or operations;

accept any other remedy with to the Company Activities that would, in case of any such other remedy for purposes of this bullet, represent a material restriction, limit or restraint on the ability of ExxonMobil or its subsidiaries to conduct or engage in Company Activities after the effective time (it being understood and agreed that any remedy with respect to the approvalCompany Activities relating to Denbury’s CCUS business will represent a material restriction, limit or restraint on the ability of ExxonMobil or its subsidiaries to conduct or engage in Company Activities after the mergereffective time); or

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otherwise take or commit to take any actions with respect to Company Activities that would reasonably be expected to, either individually or in the aggregate, have a material adverse effect on Denbury and its subsidiaries.

In addition, subject to the bullets above, ExxonMobil and Denbury have agreed to use their reasonable best efforts to resist, defend against, lift or rescind the entry of any injunction or restraining order or other order of any governmental authority prohibiting the parties from consummating the transactions contemplated by the Dutch Competition Authority, thereMerger Agreement in accordance with the terms thereof.

These requirements are described in more detail under “The Merger Agreement—Reasonable Best Efforts Covenant” beginning on page 128 of this proxy statement/prospectus.

No Assurances of Obtaining Approvals

There can be no assuranceassurances that any of the governmental or other entitiesregulatory approvals described above, includingin “The Merger—Regulatory Approvals Required for the DOJ, the FTC, the Dutch Competition Authority, U.S. state attorneys general and private parties,Merger” beginning on page 107 of this proxy statement/prospectus will not challenge the merger on antitrust or competition groundsbe obtained and, if such a challenge is made,obtained, there can be no assurance as to its result.the timing of such approvals, the ability to obtain such approvals on satisfactory terms or the absence of any litigation challenging such approvals.

Timing

Subject to certain conditions, if the Merger is not completed on or before the initial end date (July 13, 2024), or, if all conditions to the completion of the Merger have been satisfied on the initial end date other than certain conditions relating to regulatory approvals and either ExxonMobil or Denbury elects to extend the initial end date to an extended end date (January 13, 2025), either ExxonMobil or Denbury may terminate the Merger Agreement. See “The Merger Agreement—Termination of the Merger Agreement” beginning on page 133 of this proxy statement/ prospectus.

No Appraisal RightsNO DISSENTERS’ OR APPRAISAL RIGHTS

Relevant state law may, under certain circumstances, giveDenbury stockholders of a corporationare not entitled to dissenters’ or appraisal or dissenters’ rights in connection with a proposed merger. However, XTO Energy stockholders will not have such rights in connection with the merger.Merger.

Under Section 262Appraisal rights are statutory rights that enable stockholders to dissent from an extraordinary transaction, such as a merger, and to demand that the corporation pay the fair value for their shares as determined by a court in a judicial proceeding instead of receiving the consideration offered to stockholders in connection with the transaction.

Holders of shares of Denbury common stock will not have rights to an appraisal of the fair value of their shares. Under Delaware General Corporation Law,law, appraisal rights are not available for the shares of stockany class or series if (i) suchthe shares were, atof the record date fixed to determine the stockholders entitled to receive notice of and to vote on the agreement of merger, either (a)class or series are listed on a national securities exchange such as the New York Stock Exchange, or (b) held of record by more than 2,000 holders and (ii)on the holders of suchrecord date, unless the stockholders receive in exchange for their shares will receiveanything other than shares of stock of anotherthe surviving or resulting corporation or of any other corporation that is publicly listed or held by more than 2,000 holders of record, cash in lieu of fractional shares or fractional depositary receipts or any combination of the foregoing. Shares of Denbury common stock are listed on a national securities exchange. Because XTO Energy common stock will be listed on the New York Stock Exchange onNYSE as of the applicable record date, and Denbury stockholders will uponreceive ExxonMobil common shares pursuant to the Merger Agreement and cash in lieu of fractional shares. Approval for the listing of the shares of ExxonMobil common stock on the NYSE is a condition to completion of the Merger.

LITIGATION RELATED TO THE MERGER

Since the public announcement of the merger, be converted intothree putative stockholder lawsuits related to the right to receive ExxonMobil common stock, which will also be listed onmerger have been filed.

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As of September 27, 2023, three complaints have been filed by purported Denbury stockholders in the United States District Court for the Southern District of New York Stockagainst Denbury and the members of the Denbury board. The lawsuits are captioned Boyle v. Denbury Inc. et al., Docket No. 1:23-cv-08158-KPF, O’Dell v. Denbury Inc. et al., Docket No. 1:23-cv-08180-KPF, and Wang v. Denbury Inc. et al., Docket No. 1:23-cv-08180-KPF (collectively “the lawsuits”). The lawsuits allege, among other things, that the registration statement on Form S-4 filed in connection with Denbury’s proposed merger with Exxon fails to disclose certain allegedly material information in violation of Sections 14(a) and 20(a) of the Exchange XTO EnergyAct and SEC Rule 14a-9. The lawsuits seek injunctive relief enjoining the merger, damages and costs, and other remedies.

Denbury has also received letters from two additional purported Denbury stockholders will not have appraisal rightswho contend that the registration statement on Form S-4 filed in connection with the merger. The foregoing discussion is not a complete statement of law pertainingmerger fails to appraisal rights under Delaware lawdisclose certain allegedly material information and is qualifieddemands that Denbury make supplemental disclosures.

While Denbury believes that the contentions made in its entirety by reference to Delaware law.

Material U.S. Federal Income Tax Consequenceseach of the Merger

Inlawsuits and letters described above are without merit, each of these matters is at a preliminary stage and defendants have not yet answered or otherwise responded to the opinioncomplaints. Litigation is inherently uncertain, and there can be no assurance regarding the likelihood that Denbury’s defense of Davis Polk & Wardwell LLP, counselthese lawsuits (or any other lawsuits related to ExxonMobil, and Skadden, Arps, Slate, Meagher & Flom LLP, counsel to XTO Energy (which are referred to in this proxy statement/prospectus as tax counsel), the following are the material U.S. federal income tax consequences of the merger to U.S. holders (as defined below) of XTO Energy common stock.

This discussion addresses only those U.S. holders that hold their XTO Energy common stock as a capital asset and does not address all aspects of federal income taxation that may be relevantfiled in the future) will be successful, nor can Denbury predict the amount of time and expense that will be required to a resolve the lawsuits.

U.S. holder of XTO Energy common stock in light of that stockholder’s particular circumstances orFEDERAL INCOME TAX CONSEQUENCES OF THE MERGER

The Merger is intended to a stockholder subject to special rules, including:

a stockholder that is not a citizen or resident of the United States;

a financial institution or insurance company;

a mutual fund;

a tax-exempt organization;

a dealer or broker in securities, commodities or foreign currencies;

a trader in securities that elects to apply a mark-to-market method of accounting;

a stockholder that holds XTO Energy common stock as part of a hedge, appreciated financial position, straddle, conversion, or other risk reduction transaction; or

a stockholder that acquired XTO Energy common stock pursuant to the exercise of options or similar derivative securities or otherwise as compensation.

If a partnership, or any entity treatedqualify as a partnership for U.S. federal income tax purposes, holds XTO Energy common stock, the tax treatment of a partner in such partnership generally will depend on the status of the partners and the activities of the partnership. A partner in a partnership holding XTO Energy common stock should consult its tax advisor.

The following discussion is not binding on the Internal Revenue Service, which is referred to in this proxy statement/prospectus as the IRS. It is based on the Internal Revenue Code of 1986, as amended from time to time, which is referred to in this proxy statement/prospectus as the Code, applicable Treasury regulations, administrative interpretations and court decisions, each as in effect as of the date of this proxy statement/prospectus and all of which are subject to change, possibly with retroactive effect. The tax consequences under U.S. state and local and foreign laws and U.S. federal laws other than U.S. federal income tax laws are not addressed. For purposes of this discussion, a “U.S. holder” is a beneficial owner of XTO Energy common stock that is for U.S. federal income tax purposes:

a citizen or resident of the United States;

a corporation, or other entity taxable as a corporation for U.S. federal income tax purposes, created or organized in or under the laws of the United States or of any political subdivision thereof;

an estate the income of which is subject to U.S. federal income taxation regardless of its source; or

a trust (i) if a court within the United States is able to exercise primary supervision over its administration and one or more U.S. persons have the authority to control all substantial decisions of such trust, or (ii) that has made a valid election to be treated as a U.S. person for U.S. federal income tax purposes.

U.S. holders should consult their tax advisors as to the specific tax consequences to them of the merger, including the applicability and effect of U.S. federal, state and local and foreign income and other tax laws in light of their particular circumstances.

General

Based on certain representations, covenants and assumptions described below, all of which must continue to be true and accurate in all material respects as of the effective time of the merger, it is the opinion of tax counsel for each of ExxonMobil and XTO Energy as of the date of this proxy statement/prospectus that the merger will be treated for U.S. federal income tax purposes as a reorganization“reorganization” within the meaning of Section 368(a) of the Code, and eachExxonMobil and Denbury intend to report the Merger consistent with such qualification. Each of ExxonMobil and XTO Energy will beDenbury has agreed in the Merger Agreement to use its reasonable best efforts (i) to cause the Merger to qualify as a party to that reorganization“reorganization” within the meaning of Section 368(b)368(a) of the Code.

It isCode and (ii) not to, and not permit or cause any of its respective subsidiaries or affiliates to, take or cause to be taken any action reasonably likely to cause the Merger to fail to qualify as a condition to“reorganization” within the obligationmeaning of each of ExxonMobil and XTO Energy to complete the merger that the relevant tax counsel confirm its opinion asSection 368(a) of the closing dateCode. As of the merger, which is referred to in this proxy statement/prospectus as the closing date opinion. Neither ExxonMobil nor XTO Energy intends to waive this condition.

In rendering its opinion, each tax counsel has relied, and will each rely for the closing date opinion, on (1) representations and covenants made by ExxonMobil and XTO Energy, including those contained in certificates of officers of ExxonMobil and XTO Energy, and (2) specified assumptions, including an assumption that the merger will be completed in the manner contemplated by the merger agreement. In addition, in rendering their opinions, tax counsel have assumed, and tax counsel’s ability to provide the closing date opinions will depend on, the absence of changes in existing facts or in law between the date of this proxy statement/prospectus, Davis Polk and the closing dateVinson & Elkins are of the merger.opinion that the Merger will qualify as a “reorganization” within the meaning of Section 368(a) of the Code and have provided opinions to ExxonMobil and Denbury, respectively, to that effect. These opinions of counsel are based on customary assumptions and representations, covenants and undertakings of ExxonMobil, Denbury and Merger Sub, all as of the date hereof. If any representation, covenant or assumption is inaccurate, tax counsel may not be able to provide the required closing date opinion or the tax consequences of the merger could differ from those described below.

An opinion of tax counsel neither bindsassumptions, representations, covenants or undertakings is incorrect, incomplete, inaccurate, or is violated, the IRS nor precludes the IRS or the courts from adopting a contrary position. Neither ExxonMobil nor XTO Energy intends to obtain a ruling from the IRS on the tax consequencesvalidity of the merger.

Based on such opinions may be affected and the material U.S. federal income tax consequences of the merger areMerger could differ materially from those described in this proxy statement/prospectus. The receipt of an opinion from counsel on the qualification of the Merger as follows:

a “reorganization” within the meaning of Section 368(a) of the Code is not a condition to either party’s obligation to complete the Merger. ExxonMobil and Denbury have not sought and will not seek any ruling from the IRS regarding the qualification of the Merger as a “reorganization” within the meaning of Section 368(a) of the Code and, as a result, there can be no assurance that the IRS will agree with the opinions or would not assert, or that a court would not sustain, a position contrary to the treatment of the Merger as a “reorganization” within the meaning of Section 368(a) of the Code. Assuming that the Merger qualifies as a “reorganization” within the meaning of Section 368(a) of the Code, U.S. holders (as defined in “U.S. Federal Income Tax Consequences to ExxonMobil, Merger Sub and XTO Energy

None of ExxonMobil, Merger Sub and XTO Energythe Merger”) generally will not recognize any gain or loss for U.S. federal income tax purposes, as a result of the merger.

U.S. Federal Income Tax Consequences to U.S. Holders

A U.S. holder of XTO Energy common stock will not recognize any gain or loss as a result of the receipt of ExxonMobil common stock in the merger other thanexcept with respect to cash received in lieu of a fractional shareshares of ExxonMobil common stock. InIf the case of cash received in lieu ofMerger does not qualify as a fractional share,“reorganization”, the Merger generally would be a taxable transaction to U.S. holders, and each U.S. holder will be treated as receiving such fractional share of ExxonMobil common stock in the merger, then immediately transferring such common stock for cash in a taxable transaction. Such U.S. holder will have an adjusted tax basis in the ExxonMobil common stock received in the merger, including any fractional share for which cash is received, equal to the adjusted tax basis of XTO Energy common stock surrendered by that holder in the merger. A U.S. holder’s holding period for ExxonMobil common stock received in the merger, including any fractional share for which cash is received, will include the holding period for the XTO Energy common stock surrendered therefor. A U.S. holder willgenerally would recognize gain or loss in respect of any cash received in lieu of a fractional share of ExxonMobil common stockan amount equal to the difference, if any, between (i) the amount of cash received in lieusum of the fractional share and the portion of the holder’s adjusted tax basis that is allocable to such fractional share. Such gain or loss generally will be long-term capital gain or loss if the holding period in such fractional share is more than one year as of the closing date of the merger.

In the case of a holder of XTO Energy common stock that holds shares of XTO Energy common stock with differing tax bases and/or holding periods, the preceding rules must be applied to each identifiable block of XTO Energy common stock.

Information Reporting and Backup Withholding

A U.S. holder of XTO Energy common stock may be subject to information reporting and backup withholding in respect of certain cash payments received in lieu of a fractional share of ExxonMobil common stock unless such holder provides proof of an applicable exemption or a correct taxpayer identification number and otherwise complies with the applicable requirements of the backup withholding rules. The amounts withheld under the backup withholding rules are not an additional tax and may be refunded or credited against the holder’s U.S. federal income tax liability, provided the required information is properly furnished.

Reporting Requirements

A U.S. holder that receives ExxonMobil common stock as a result of the merger will be required to retain records pertaining to the merger. In addition, each U.S. holder that owns at least five percent of XTO Energy’s common stock will be required to file with its U.S. federal income tax return for the year in which the merger takes place a statement setting forth facts relating to the merger, including:

the cost or other basis of such holder’s shares of XTO Energy common stock surrendered in the merger; and

the fair market value of the ExxonMobil common stock andit receives in the Merger plus the amount of any cash the U.S. holderit receives in lieu of fractional shares of ExxonMobil common stock and (ii) such holder’s adjusted tax basis in its shares of Denbury common stock exchanged in the merger.Merger.

This discussion is intendedThe U.S. federal income tax consequences described above may not apply to provide only a general summaryall holders of Denbury common stock. You should read “U.S. Federal Income Tax Consequences of the materialMerger” beginning on page 137

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of this proxy statement/prospectus for a more complete discussion of the U.S. federal income tax consequences of the merger,Merger. Tax matters can be complicated and is not a complete analysis or description of all potential U.S. federal incomethe tax consequences of the merger. This discussion does not addressMerger to you will depend on your particular tax consequences that may vary with, or are contingent on, individual circumstances. In addition, it does not address any non-income tax or any foreign, state or local tax consequences of the merger.Accordingly, a holdersituation. You should consult his or heryour own tax advisor to determine the particular U.S. federal, state or local or foreign income or other tax consequences to that stockholder of the merger.Merger to you.

Accounting TreatmentACCOUNTING TREATMENT

The mergerMerger will be accounted for as an acquisition of a business. ExxonMobil will record the net tangible and identifiable intangible assets acquired and liabilities assumed from XTO EnergyDenbury at their respective fair values atas of the closing date of the completion of the merger.Merger. Any excess of the purchase price which will equal the market value, at the date of the completion of the merger, of the ExxonMobil common stock issued as consideration for the merger, over the net fair value of such assets and liabilitiesacquired will be recorded as goodwill. The purchase price will be based on the closing date fair value of consideration paid by ExxonMobil, primarily ExxonMobil’s common stock to be issued to Denbury stockholders, in connection with the Merger.

The financial condition and results of operations of ExxonMobil after completion of the mergerMerger will reflect XTO Energy’sDenbury’s balances and results after completion of the transaction but will not be restated retroactively to reflect the historical financial condition or results of operations of XTO Energy.Denbury. The earnings of ExxonMobil following the completion of the mergerMerger will reflect acquisition accounting adjustments, includinginclude the effect of changes in the carrying value forof assets and liabilities on depreciationliabilities. Goodwill and amortization expense. Intangibleintangible assets with indefinite useful lives and goodwill will not be amortized, but will be tested for impairment at least annually, and all assets including goodwill(including goodwill) will be tested for impairment when certain indicators are present. If, in the future, ExxonMobil determines that tangible or intangible assets (including goodwill) are impaired, ExxonMobil would record an impairment charge at that time.

Listing of ExxonMobil Stock and Delisting and Deregistration of XTO Energy StockLISTING OF SHARES OF EXXONMOBIL COMMON STOCK AND DELISTING AND DEREGISTRATION OF SHARES OF DENBURY STOCK

Application will be made to have the shares of ExxonMobil common stock to be issued in the mergerMerger approved for listing on the New York Stock Exchange,NYSE, where shares of ExxonMobil common stock isare currently traded. If the mergerMerger is completed, XTO Energy commonshares of Denbury stock will no longer be listed on the New York Stock ExchangeNYSE and will be deregistered under the Exchange Act.

Litigation Relating to the Merger

Beginning on December 14, 2009, several putative stockholder class action complaints, and one non-class complaint, were filed against various combinations of XTO Energy, ExxonMobil, Merger Sub and the individual members of the XTO Energy board of directors challenging the proposed merger in the Texas state district court in Tarrant County, the Court of Chancery of the State of Delaware and the United States District Court for the Northern District of Texas.111


Texas State Court

Beginning on December 14, 2009, 11 putative stockholder class action petitions were filed against various combinations of XTO Energy, ExxonMobil, Merger Sub and the individual members of the XTO Energy board of directors in the District Court of Tarrant County, Texas challenging the proposed merger and seeking declaratory, injunctive, rescissory and other equitable relief. The petitions generally alleged, among other things, that the members of the XTO Energy board of directors had breached their fiduciary duties owed to the public stockholders of XTO Energy by approving the proposed merger and failing to take steps to maximize the value of XTO Energy to its public stockholders and by engaging in self-dealing, and that XTO Energy, ExxonMobil and Merger Sub had colluded in or aided and abetted such breaches of fiduciary duties. In addition, the petitions alleged that the merger agreement improperly favors ExxonMobil and unduly restricts XTO Energy’s ability to negotiate with rival bidders. In one of the actions, the plaintiff also purported to bring a derivative action on behalf of XTO Energy against the individual members of the XTO Energy board of directors. The petitions generally sought, among other things, declaratory and injunctive relief concerning the alleged fiduciary breaches, injunctive relief prohibiting the defendants from consummating the merger, imposition of constructive trusts in favor of plaintiffs and putative class members and unspecified monetary damages.

Beginning on December 16, 2009, various plaintiffs in these lawsuits filed competing motions to consolidate the suits, to appoint their counsel as interim class counsel and to compel expedited discovery. Other plaintiffs also sought regular document discovery and oral depositions from defendants and their advisors. Certain defendants filed motions to quash the discovery requests and for protective orders and in opposition to the motion to compel expedited discovery.

On January 7, 2010, Judge Bob McGrath held an initial status conference and, among other things, ordered a hearing for January 12, 2010 to discuss potential consolidation and other case management issues. On January 12, 2010, Judge McGrath held a hearing on plaintiffs’ competing motions to consolidate and for appointment of interim class counsel. Following the hearing, Judge McGrath entered orders consolidating the complaints filed as of that date under the caption In re XTO Energy Shareholder Class Action Litigation, which is referred to in this proxy statement/prospectus as the consolidated Texas state action, and designating plaintiffs’ interim co-lead counsel. Judge McGrath did not take up any of the discovery issues at the January 12, 2010 hearing.

On January 19, 2010, interim class counsel in the consolidated Texas state action filed a second amended original petition that added allegations concerning certain payments to be received by certain XTO Energy officers in connection with the merger; the remaining allegations were similar to those asserted in the previously filed complaints. The second amended original petition also purported to bring a derivative action on behalf of XTO Energy against the individual members of the XTO Energy board of directors.

On February 1, 2010, nine of the plaintiffs who had filed petitions in the District Court of Tarrant County filed notices of non-suit.

On February 5, 2010, the court entered an Agreed Confidentiality Stipulation and Protective Order governing discovery in the action. Also on February 5, 2010, the court entered an Agreed Level 3 Discovery Control Plan and Scheduling Order setting forth deadlines with respect to the filing of a consolidated petition, discovery and further motion practice, including the potential filing of a motion for temporary injunction. On February 15, 2010, the parties commenced discovery, which is ongoing.

On February 16, 2010, plaintiffs filed a consolidated petition based upon breach of fiduciary duty challenging the proposed merger. The consolidated petition realleges the fiduciary duty allegations in the earlier-filed petitions and further alleges that the XTO Energy board of directors, aided and abetted by ExxonMobil and Merger Sub, filed with the SEC, on February 1, 2010, a preliminary proxy statement/prospectus that is materially misleading or omissive. On February 25, 2010, the defendants filed special exceptions to the consolidated petition.

Delaware Chancery Court

Beginning on December 17, 2009, two putative stockholder class action complaints were filed against XTO Energy, ExxonMobil, Merger Sub and the individual members of the XTO Energy board of directors in the Court of Chancery of the State of Delaware challenging the proposed merger and seeking monetary damages, as well as declaratory, injunctive and other equitable relief. The complaints generally alleged, among other things, that the members of the XTO Energy board of directors had breached their fiduciary duties owed to the public stockholders of XTO Energy by approving the proposed merger and failing to take steps to maximize the value of XTO Energy to its public stockholders, and that XTO Energy, ExxonMobil and Merger Sub had aided and abetted such breaches of fiduciary duties. In addition, the complaints alleged that the merger agreement improperly favors ExxonMobil and unduly restricts XTO Energy’s ability to negotiate with rival bidders. The complaints generally sought, among other things, compensatory damages and injunctive relief prohibiting the defendants from consummating the merger.

On December 22, 2009, the Court of Chancery entered an order consolidating the complaints filed as of that date under the caption In re XTO Energy Inc. Shareholders Litigation, which is referred to in this proxy statement/prospectus as the consolidated Delaware action, and designating plaintiffs’ co-lead counsel and plaintiffs’ liaison counsel. On December 29, 2009, XTO Energy and the individual members of the XTO Energy board of directors filed an answer and moved for judgment on the pleadings. On January 7, 2010, the Court of Chancery entered a scheduling order establishing a briefing schedule on that motion and staying discovery pending the resolution of that motion. On January 8, 2010, ExxonMobil and Merger Sub filed an answer and moved for judgment on the pleadings. On January 11, 2010, the Court of Chancery entered a scheduling order providing for deadlines for plaintiffs to respond to defendants’ motions for judgment on the pleadings and staying discovery pending resolution of those motions. On February 2, 2010, the court entered a scheduling order providing plaintiffs with an extension of time in which to file their responses to the pending motions for judgment on the pleadings or, in the alternative, to file an amended complaint.

On February 4, 2010, plaintiffs filed a verified consolidated amended complaint challenging the proposed merger. The verified consolidated amended complaint realleges the fiduciary duty allegations in the earlier-filed complaints and further alleges that the preliminary proxy statement/prospectus filed with the SEC on February 1, 2010 is materially misleading or omissive.

On February 5, 2010, plaintiffs filed a motion to expedite proceedings, including expedited discovery. On February 9, 2010, the parties agreed to make the schedule and content of discovery co-extensive with the discovery proceeding in the litigation pending in the District Court of Tarrant County, Texas, which plaintiffs agreed resolved their motion.

On February 15, 2010, the parties commenced discovery, which is ongoing.

On February 22, 2010, XTO Energy and the individual members of the XTO Energy board of directors filed an answer to the verified consolidated amended complaint and moved for judgment on the pleadings. On February 25, 2010, ExxonMobil and Merger Sub filed an answer to the verified consolidated amended complaint and moved for judgment on the pleadings. On March 16, 2010, the Court of Chancery entered a scheduling order setting a schedule for plaintiffs to move for leave to file a second amended complaint.

Texas Federal District Court

Beginning on December 28, 2009, two putative stockholder class action complaints and one complaint on behalf of individual stockholders were filed against XTO Energy, ExxonMobil, Merger Sub and the individual members of the XTO Energy board of directors in the United States District Court for the Northern District of Texas challenging the proposed merger and generally alleging, among other things, that the members of the XTO Energy board of directors had breached their fiduciary duties owed to the public stockholders of XTO Energy by

approving the proposed merger and failing to take steps to maximize the value of XTO Energy to its public stockholders, and that XTO Energy, ExxonMobil and Merger Sub had aided and abetted such breaches of fiduciary duties. The complaints generally sought, among other things, compensatory damages, declaratory and injunctive relief concerning the alleged fiduciary breaches and injunctive relief prohibiting the defendants from consummating the merger.

On January 4, 2010, a plaintiff in one of these putative class action lawsuits filed a motion to expedite discovery proceedings, which was denied on January 8, 2010. On January 16, 2010, a plaintiff in one of these putative class action lawsuits filed an amended complaint, which added a description of the ExxonMobil entities; the remaining allegations were similar to those asserted in the previously filed complaints. On February 5, 2010, plaintiffs filed an amended class action complaint challenging the proposed merger. The amended complaint realleges the fiduciary duty allegations in the earlier-filed complaints and further alleges that the XTO Energy board of directors, aided and abetted by ExxonMobil and Merger Sub, filed with the SEC, on February 1, 2010, a preliminary proxy statement/prospectus that is materially misleading or omissive.

On February 8, 2010, plaintiffs in these putative class action lawsuits moved to expedite discovery proceedings.

On February 11, 2010, a non-class shareholder complaint on behalf of several purported holders of XTO Energy common stock was filed in the United States District Court for the Northern District of Texas challenging the proposed merger. The complaint was filed on behalf of seven of the nine plaintiffs who had filed notices of non-suits in the action pending in Texas state court after their counsel was not selected interim class counsel. The complaint generally alleges, among other things, that the XTO Energy board of directors and ExxonMobil have violated sections 14(a) and 20(a) of the Exchange Act and SEC Rule 14a-9 promulgated thereunder in connection with the February 1, 2010 filing of the preliminary proxy statement/prospectus with the SEC. The complaint alleges that the preliminary proxy statement/prospectus is materially misleading or omissive. The complaint generally seeks, among other things, injunctive relief prohibiting the defendants from consummating the merger unless and until they comply with sections 14(a) and 20(a) of the Exchange Act.

On February 24, 2010, the plaintiffs in the non-class shareholder action moved to expedite discovery proceedings and for a preliminary injunction.

On February 25, 2010, the district court entered orders consolidating the three cases filed in the United States District Court for the Northern District of Texas and setting a schedule for certain motion practice.

On March 1, 2010, XTO Energy and the individual members of the XTO Energy board of directors moved to dismiss or stay the lawsuits pending in the United States District Court for the Northern District of Texas, opposed plaintiffs’ motion to expedite discovery proceedings and moved to stay discovery pending resolution of threshold issues. ExxonMobil and Merger Sub joined in these motions. Plaintiffs have opposed the motion to stay the proceedings.

On March 2, 2010, the plaintiffs in the putative class actions moved for a preliminary injunction. Defendants have opposed this motion.

On March 5, 2010, XTO Energy and the individual members of the XTO Energy board of directors moved to dismiss the putative class actions for lack of subject-matter jurisdiction and for failure to state a claim for relief. ExxonMobil and Merger Sub joined in this motion and separately moved to dismiss the complaints for failure to state a claim for relief related to the aiding and abetting allegations against ExxonMobil and Merger Sub.

On March 22, 2010, XTO Energy and the individual members of the XTO Energy board of directors moved to dismiss the non-class shareholder action for failure to state a claim. ExxonMobil and Merger Sub joined this motion and separately moved to dismiss the complaint for failure to state a claim relating to the allegations against ExxonMobil and Merger Sub. Plaintiffs have opposed these motions.

On April 8, 2010, the United States District Court for the Northern District of Texas granted the defendants’ motion to dismiss the putative class actions for lack of subject-matter jurisdiction and denied the defendants’ motion to stay or dismiss the non-class shareholder action in deference to the proceedings in Texas state court and Delaware Chancery Court.

On April 15, 2010, plaintiffs in the putative class action lawsuits filed a second amended class action complaint challenging the proposed merger and attempting to re-allege subject-matter jurisdiction. The second amended class action complaint reiterates the allegations in the earlier-filed class action complaints and further alleges that Amendment No. 1 to the preliminary proxy statement/prospectus, filed by ExxonMobil on March 24, 2010, is materially misleading or omissive.

Congressional Subcommittee Hearing

On January 20, 2010, Rex W. Tillerson, Chairman of the Board and Chief Executive Officer of ExxonMobil, and Bob R. Simpson, Chairman of the Board and Founder of XTO Energy, each appeared in Washington, D.C. before the House of Representatives of the United States Congress, Committee on Energy and Commerce, Subcommittee on Energy and Environment, at the request of the chairman of the subcommittee, to testify at a hearing entitled “The ExxonMobil-XTO Merger: Impacts on U.S. Energy Markets.” The hearing reviewed the proposed merger.

Since then, the Subcommittee has submitted a small number of additional written questions to ExxonMobil, for its response, that generally relate to post-merger integration, regulatory and tax policies with respect to the development of natural gas resources and the cost of state regulation of hydraulic fracturing. The Subcommittee has also submitted a small number of additional written questions to XTO Energy, for its response, that generally relate to post-merger integration, the cost of state regulation of hydraulic fracturing, the use of long-term natural gas contracts, commodity price hedging and post-merger employee retention and job creation.

THE MERGER AGREEMENT

The following is a summary of the material terms and conditions of the merger agreement.Merger Agreement. This summary may not contain all the information about the merger agreementMerger Agreement that is important to you. This summary is qualified in its entirety by reference to the merger agreementMerger Agreement attached as Annex A to, and incorporated by reference into, this proxy statement/prospectus. You are encouraged to read the merger agreementMerger Agreement in its entirety because it is the legal document that governs the merger.Merger.

Explanatory Note Regarding theEXPLANATORY NOTE

The Merger Agreement and the Summary of the Merger Agreement: Representations, Warranties and Covenants in the Merger Agreement Are Not Intended to Function or Be Relied on as Public Disclosures

The merger agreement and the summary of its terms and conditions in this proxy statement/prospectus have been included to provide information about the terms and conditions of the merger agreement.Merger Agreement. The Merger Agreement and the summary of its terms and information in the merger agreementconditions are not intended to provide any other public disclosure of factual information about ExxonMobil, XTO EnergyMerger Sub, Denbury or any of their respective subsidiaries or affiliates. The representations, warranties, covenants and covenantsagreements contained in the merger agreement areMerger Agreement: were made by ExxonMobil, XTO Energy and Merger Sub and Denbury only for the purposes of the merger agreementMerger Agreement and were qualified and subject to certain limitations and exceptions agreed to by ExxonMobil, XTO Energy and Merger Sub in connection with negotiating the termsas of the merger agreement. In particular, in your review of the representations and warranties contained in the merger agreement and described in this summary, it is important to bear in mind that the representations and warrantiesspecific dates; were made solely for the benefit of the parties to the merger agreement and were negotiated forMerger Agreement; may be subject to limitations agreed upon by the purposecontracting parties, including being qualified by confidential disclosures; may not have been intended to be statements of fact, but rather, as a method of allocating contractual risk amongand governing the contractual rights and relationships between the parties to the merger agreement rather than to establish matters as facts. The representationsMerger Agreement; and warranties may also be subject to a contractual standardstandards of materiality or material adverse effect differentapplicable to contracting parties that differ from those generally applicable to shareholders and reports and documents filed with the SEC and in some cases may be qualified by disclosures made by one party to the other, which areinvestors. Investors should not necessarily reflected in the merger agreement. Moreover, information concerning the subject matter of the representations and warranties, which do not purport to be accurate as of the date of this proxy statement/prospectus, may have changed since the date of the merger agreement, and subsequent developments or new information qualifying a representation or warranty may have been included in or incorporated by reference into this proxy statement/prospectus.

For the foregoing reasons,rely on the representations, warranties, covenants and covenantsagreements or any descriptions of those provisions should not be read alone or relied uponthereof as characterizations of the actual state of facts or condition of ExxonMobil, XTO EnergyMerger Sub, Denbury or any of their respective subsidiaries or affiliates. Instead, suchMoreover, information concerning the subject matter of the representations, warranties, covenants and agreements may change after the date of the Merger Agreement, which subsequent information may or may not be fully reflected in ExxonMobil’s or Denbury’s public disclosures.

For the foregoing reasons, the representations, warranties, covenants and agreements in the Merger Agreement and any description of those provisions or descriptionsin this proxy statement/prospectus should be read only in conjunction with the other information provided elsewhere in this documentproxy statement/prospectus or incorporated by reference into this proxy statement/prospectus.

Structure of the MergerSTRUCTURE OF THE MERGER

The merger agreementMerger Agreement provides for a transaction in which Merger Sub will merge with and into XTO Energy. XTO EnergyDenbury, upon the terms and subject to the conditions set forth in the Merger Agreement. Denbury will be the surviving corporation in the mergerMerger (Denbury, as the surviving corporation in the Merger, the “Surviving Corporation”) and will, following completion of the merger,Merger, be a wholly owned subsidiary of ExxonMobil.

After completion of the merger,Merger, the certificate of incorporation of the Surviving Corporation will be amended and restated as set forth in Exhibit A to the Merger Agreement and the bylaws of Merger Sub in effect as ofat the effective time of the mergerMerger will be the certificate of incorporation and bylaws respectively, of the surviving corporation,Surviving Corporation (except that references to the name of Merger Sub will be replaced with reference to the Surviving Corporation), in each case, until amended in accordance with applicable law.

After completion of the merger,Merger, the directors and officers of Merger Sub andat the officerseffective time of XTO Energythe Merger will be the directors and officers, respectively, of the surviving corporationSurviving Corporation, in each case, until their successors are duly elected or appointed and qualified in accordance with Merger Sub’s bylaws and applicable law.

Closing and Effective Time of the MergerCOMPLETION AND EFFECTIVENESS OF THE MERGER

The mergerMerger will be completed and become effective at such time as thea certificate of merger with respect to the Merger is duly filed with the Delaware Secretary of State (or at such later time as agreed to by XTO Energy ExxonMobil

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and ExxonMobilDenbury and specified in thesuch certificate of merger). Unless another date and time are agreed to by ExxonMobil and XTO Energy,Denbury, completion of the closingMerger will

occur as soon as possible, but in any event no later than twofour business days following the satisfaction or, to the extent permitted underby applicable law, waiver of the conditions to completion of the mergerMerger (other than those conditions that by their nature are to be satisfied at completion of the closing,Merger, but subject to the satisfaction or, to the extent permitted by applicable law, waiver of such conditions at the time of closing)completion of the Merger) described under “—“The Merger Agreement—Conditions to the Completion of the Merger” beginning on page []117 of this proxy statement/prospectus.

AsAssuming receipt of required regulatory approvals and timely satisfaction of other closing conditions, including the approval by Denbury’s stockholders of the date of this proxy statement/prospectus,Merger Agreement Proposal, ExxonMobil and Denbury expect that the merger is expected toMerger will be completed in the secondfourth quarter of 2010. However, completion of the merger is subject to the satisfaction (or waiver, to the extent permissible) of conditions to the merger, which are summarized below.2023. There can be no assurances as to when, or if, the mergerMerger will occur. If the mergerMerger is not completed on or before September 15, 2010 (whichthe initial end date may be automatically extended under certain circumstances to December 31, 2010)(July 13, 2024), either ExxonMobil or XTO EnergyDenbury may terminate the merger agreement, unless the failureMerger Agreement (unless all conditions to complete the merger by that date is due to a breachcompletion of the merger agreementMerger have been satisfied (or in the case of conditions that by their terms are to be satisfied at completion of the party seekingMerger, are capable of being satisfied on that date) or waived on the initial end date other than certain conditions relating to regulatory approvals, including regulatory approvals that may propose to impose requirements upon ExxonMobil or Denbury to sell, divest or discontinue their assets, businesses or operations, in which case either ExxonMobil or Denbury may elect to extend the initial end date to the extended end date (January 13, 2025) and, if the Merger is not completed on or before the extended end date, either ExxonMobil or Denbury may terminate the Merger Agreement). The right to terminate the merger agreement.Merger Agreement after the initial end date or the extended end date, as applicable, or to extend the initial end date, will not be available to ExxonMobil or Denbury, as applicable, if that party’s breach of any provision of the Merger Agreement resulted in the failure of the Merger to be completed by either the initial end date or the extended end date, as applicable. See “—“The Merger Agreement—Conditions to the Completion of the Merger” and “—“The Merger Agreement—Termination of the Merger Agreement” beginning on pages []117 and [],133, respectively, of this proxy statement/prospectus.

Merger ConsiderationMERGER CONSIDERATION

At the effective timecompletion of the merger,Merger, each share of XTO EnergyDenbury common stock outstanding immediately prior to the effective time notof the Merger (including the Denbury RSUs, but excluding shares of Denbury common stock held by XTO Energy as(1) in treasury (excluding Denbury common stock subject to or issuable in connection with a Denbury employee benefit plan) or (2) by ExxonMobil or Merger Sub, which are to be cancelled at the effective time of the Merger) will automatically be converted into the right to receive 0.7098 of a share0.840 shares of ExxonMobil common stock and the(with cash payable in lieu of any fractional shares as described under “—“The Merger Agreement—Fractional Shares” beginning on page []114 of this proxy statement/prospectus. Each shareprospectus). As of XTO Energy common stock held by XTO Energy as treasury stock or by ExxonMobil immediately prior to the effective time of the mergerMerger, all such shares of Denbury common stock so converted will no longer be outstanding and will automatically be canceled and no paymentretired and will be made with respect thereto.cease to exist, and will thereafter represent only the right to receive the Merger Consideration and the right to receive any dividends or other distributions pursuant to the Merger Agreement, subject to applicable law.

If, between the date of the merger agreementMerger Agreement and the effective time of the Merger, any change in the outstanding shares of capital stock of XTO EnergyExxonMobil or ExxonMobil are changed intoDenbury occurs as a different number of shares or a different class by reasonresult of any reclassification, recapitalization, stock split or combination, exchange or readjustment of shares, respectively, or any stock dividend thereon with a record date during such period or any other similar event (excluding(but, for the avoidance of doubt, excluding any change resultingthat results from (i) the exercise of Denbury’s outstanding warrants, stock options or other equity awards to purchase shares of ExxonMobil or XTO Energy common stock or Denbury common stock (as disclosed in the Merger Agreement), (ii) the settlement of any other equity awards to purchase or otherwise acquire ExxonMobil common stock or Denbury common stock or (iii) the grant of stock-basedequity-based compensation to directors or employees of ExxonMobil or Denbury (other than any such grants not made in accordance with the terms of the merger agreement) XTO EnergyMerger Agreement) under ExxonMobilExxonMobil’s or XTO Energy’sDenbury’s, as applicable, stock option or compensation plans or arrangements), appropriate adjustments will be made to the merger considerationMerger Consideration and any other amounts payable pursuant to the merger agreement.Merger Agreement will be appropriately adjusted to eliminate the effect of such event thereon.

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Fractional SharesFRACTIONAL SHARES

No fractional shares of ExxonMobil common stock will be issued to any holder of XTO Energyshares of Denbury common stock upon completion of the merger. AllMerger. Instead, all fractional shares of ExxonMobil common stock that a holder of XTO Energyshares of Denbury common stock would otherwise be entitled to receive as a result of the mergerMerger will be aggregated and, if a fractional share results from thatsuch aggregation, thesuch holder will be entitled to receive, cash in lieu of such fractional share, an amount equal to that fraction multipliedin cash determined by multiplying the closing sale price of an ExxonMobil common stockshare on the New York Stock ExchangeNYSE on the trading day immediately preceding the effective time of Merger by the merger.fraction of a share of ExxonMobil common stock to which such holder would otherwise have been entitled. No interest will be paid or accrued on cash payable in lieu of fractional shares of ExxonMobil common stock.

Procedures for Surrendering XTO Energy Stock CertificatesPROCEDURES FOR SURRENDERING DENBURY STOCK CERTIFICATES

The conversion of XTO EnergyDenbury common stock into the right to receive the merger considerationMerger Consideration will occur automatically at the effective timecompletion of the merger.Merger. Prior to completion of the merger,Merger, ExxonMobil will appoint an exchange agent that is both a nationally recognized financial institution and also reasonably acceptable to XTO EnergyDenbury and enter into an exchange agent agreement with the exchange agent providing for the exchange agent to handle the exchange of XTO Energy stock certificates in the merger for ExxonMobilshares of Denbury common stock represented by certificates (each such certificate, a “Certificate”), and the payment of cash for fractionaluncertificated shares of ExxonMobil common stock.Denbury stock (each such share, an “Uncertificated Share”), for the Merger Consideration. At or prior to the effective time of the merger,Merger, ExxonMobil will deposit with or otherwise make available to the

merger consideration payable exchange agent, the Merger Consideration to be paid in respect of XTO Energythe Certificates, the Uncertificated Shares (other than the Denbury RSUs) and certain Denbury equity awards that are held by non-employees of Denbury (as provided under the terms of Merger Agreement). ExxonMobil will also make available to the exchange agent, from time to time as needed, additional cash sufficient to pay any dividends or other distributions to which holders of shares of Denbury common stock.stock are entitled pursuant to the Merger Agreement or cash in lieu of any fractional share of Denbury common stock to which any of those holders are entitled pursuant to the Merger Agreement. Within tenfive business days followingafter the effective time of the merger,Merger, ExxonMobil will send, or will cause the exchange agent willto send, a letter of transmittal to each person who is a record holder of XTO EnergyDenbury common stock at the effective time of the merger for useMerger (other than the Denbury RSUs), a letter of transmittal and instructions in the exchange and instructionscustomary form that is reasonably acceptable to Denbury explaining how to surrender XTO Energy stock certificatesCertificates or transfer Uncertificated Shares to the exchange agent.

XTO EnergyDenbury stockholders who surrender their stock certificates, together withsubmit a properly completed letter of transmittal, together with their Certificates (in the case of certificated shares of Denbury common stock) or an “agent’s message” or other evidence of transfer requested by the exchange agent (in the case of a book-entry transfer of Uncertificated Shares), will receive the applicable Merger Consideration into which such shares of ExxonMobil common stock into which the shares of XTO EnergyDenbury common stock were converted in the merger. SuchMerger. The shares of ExxonMobil common stock constituting part of the Merger Consideration will be delivered to XTO Energy stockholders in book-entry form through the Direct Registration System maintained by ExxonMobil’s transfer agent, unless an XTO Energy stockholder specifically requests a physical certificate. certificate is required under applicable law.

After the effective datecompletion of the merger,Merger, each certificateCertificate that previously represented shares of XTO EnergyDenbury common stock and each Uncertificated Share will only represent the right to receive the Merger Consideration into which those shares of Denbury common stock have been converted (and cash in lieu of any fractional shares of ExxonMobil common stock) as described above under “Merger Agreement—Factional Shares” beginning on page 114 of this proxy statement/prospectus, and any dividends on the shares of ExxonMobil common stock (and cash in lieu of fractions thereof) into which thosesuch shares of XTO EnergyDenbury common stock have been converted.converted as described below under this “The Merger Agreement—Procedures for Surrendering Denbury Stock Certificates”.

Neither ExxonMobil nor XTO EnergyDenbury will be responsible for payment of any transfer or other similar taxes and fees (including any penalties and interests) incurred solely by holders of XTO EnergyDenbury common stock in connection with the mergerMerger and thusother transactions contemplated under the Merger Agreement. The payment obligations of such transfer or other similar taxes and fees, if any, will be the sole responsibility of such holder. Denbury stockholders.

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In addition, if there is a transfer of ownership of XTO EnergyDenbury common stock that is not registered in XTO Energy’sthe records of Denbury’s transfer agent’s records,agent, payment of the merger considerationMerger Consideration as described above (and cash in lieu of any fractional shares of ExxonMobil common stock as described under “The Merger Agreement – Fractional Shares” beginning on page 114 of this proxy statement/prospectus, and any dividends on the shares of ExxonMobil common stock into which such shares of Denbury common stock have been converted as described below in this “The Merger Agreement—Procedures for Surrendering Denbury Stock Certificates”) will be made to a person other than the person in whose name the certificateCertificate or Uncertificated Share so surrendered is registered only if the certificateCertificate is properly endorsed or otherwise is in proper form for transfer;transfer or the Uncertificated Share is properly transferred, and the person requesting such payment must pay to the exchange must satisfyagent any transfer or other similar taxes required as a result of such payment or establish to the satisfaction of the exchange agent that any such transfer or other similar taxes required by reason of the payment of the merger consideration to such other person have been paid or that no payment of such taxes is necessary.are not payable.

After the completion of the merger,Merger, ExxonMobil will not pay dividends or other distributions with a record date on or after the effective time of the mergerMerger to any holder of any XTO EnergyCertificates or Uncertificated Shares with respect to the shares of ExxonMobil common stock certificatescomprising the Merger Consideration which the holder of Denbury common stock has the right to receive, until the holder of such Denbury common stock surrenders the XTO Energy stock certificates.Certificates or transfers the Uncertificated Shares in accordance with the Merger Agreement. However, once those certificatesCertificates or Uncertificated Shares are surrendered ExxonMobilor transferred, the exchange agent will promptly pay to the holder, without interest, any dividends that have been declared after the effective date of the mergeror other distributions on the shares into which those XTO Energy shares have been converted.

Treatment of XTO Energy Equity Awards

XTO Energy Stock Options

Upon completion of the merger, each option to purchase shares of XTO Energy common stock granted under XTO Energy’s equity compensation plans outstanding immediately prior to the completion of the merger will be converted into an option to acquire a number of shares of ExxonMobil common stock (rounded down tocomprising the nearest whole share) equal toMerger Consideration which the productholder of (a) the number of shares of XTO EnergyDenbury common stock subjecthas the right to receive, with a record date on or after the XTO Energy option immediatelyeffective time of the Merger that have been paid prior to the completionsuch surrender or transfer, as applicable.

TREATMENT AND QUANTIFICATION OF DENBURY EQUITY AWARDS

Treatment of the merger multipliedDenbury RSUs

Except as otherwise agreed by (b) the exchange ratio in the merger. The exercise price per share of ExxonMobil common stock subject to a converted option will be an amount (rounded up to the nearest whole cent) equal to the quotient of (1) the exercise price per share of XTO Energy common stock subject to the XTO Energy option immediately prior to the completion of the merger divided by (2) the exchange ratio in the merger. Under the terms of certain of the XTO Energy stock options, the vesting of the options is contingent upon the attainment of specified per share stock price thresholds for the XTO Energy common stock ranging from $50 to $90 per share. To the extent that these vesting targets have not been achieved before the completion of the merger, the vesting condition will be adjusted based on the exchange ratio by dividingand the applicable XTO Energy share price target by the 0.7098 merger exchange ratio (and rounding the adjusted amount up to the nearest whole cent). For example, an XTO Energy option for which the vesting was conditioned upon attainment of a trading price of $50 per share of XTO Energy common stock will be converted into an option on ExxonMobil common stock that will vest upon the attainment of a trading price of $70.45 per share of ExxonMobil common stock ($50 divided by the 0.7098 merger exchange ratio equals $70.45). Otherwise, each converted option will remain subject to the same terms and conditions (including vesting terms) as were applicable to the XTO Energy option immediately prior to the completion of the merger, except for those converted options held by Bob R.

Simpson, Keith A. Hutton, Vaughn O. Vennerberg, II, Louis G. Baldwin and Timothy L. Petrus. See “Interests of Certain Persons in the Merger—XTO Energy Named Executive Officers—Treatment of Stock Options and Other Equity-Based Awards” beginning on page [] of this proxy statement/prospectus for a discussion of the terms and conditions applicable to converted options held by Messrs. Simpson, Hutton, Vennerberg, Baldwin and Petrus. Employees terminating employmentDenbury equity award holder, at or within a stated period after the completion of the merger for reasons other than for cause or voluntary resignation without good reason (as defined in the applicable plans and arrangements) will have their option vesting accelerated upon such termination.

XTO Energy Restricted Stock and Performance Shares

Upon completion of the merger, each restricted stock award or performance share award (which represents a share of XTO Energy common stock subject to vesting and forfeiture) granted under XTO Energy’s equity compensation plans outstanding immediately prior to the completion of the merger will be converted into a restricted stock award or performance share award, as applicable, relating to a number of shares of ExxonMobil common stock based on the exchange ratio in the merger (rounded down to the nearest whole share). Vesting of the XTO Energy performance shares is contingent upon the attainment of specified per share stock price thresholds for the XTO Energy common stock ranging from $50 to $85 per share. To the extent that these vesting targets have not been achieved before the completion of the merger, the vesting condition will be adjusted based on the exchange ratio by dividing the applicable XTO Energy share price target by the 0.7098 merger exchange ratio (and rounding the adjusted amount up to the nearest whole cent). For example, an XTO Energy performance share for which the vesting was conditioned upon attainment of a trading price of $50 per share of XTO Energy common stock will be converted into a performance share of ExxonMobil common stock that will vest upon the attainment of a trading price of $70.45 per share of ExxonMobil common stock ($50 divided by the 0.7098 merger exchange ratio equals $70.45). Otherwise, each converted restricted stock award or performance share award will remain subject to the same terms, restrictions and vesting schedules as were applicable to the XTO Energy restricted stock award or performance share award prior to the completion of the merger (with any vesting conditions contingent on the achievement of specified XTO Energy stock targets adjusted based on the exchange ratio in the merger, rounded up to the nearest whole cent), except for those performance share awards granted to Messrs. Simpson, Hutton, Vennerberg, Baldwin and Petrus prior to November 2009, performance share awards granted to certain employees (including the executive officers, other than Mr. Simpson) in November 2009 and performance share awards granted to Mr. Simpson in January 2010 pursuant to the terms of his existing employment agreement. Performance share awards granted to Messrs. Simpson, Hutton, Vennerberg, Baldwin and Petrus prior to November 2009 and to Mr. Simpson in January 2010 will become fully vested upon completion of the merger. Performance share awards granted to Messrs. Hutton, Vennerberg, Baldwin and Petrus in November 2009 will be converted into time-based restricted shares of ExxonMobil common stock, based on the exchange ratio. See “Interests of Certain Persons in the Merger—XTO Energy Named Executive Officers—Treatment of Stock Options and Other Equity-Based Awards” beginning on page [] of this proxy statement/prospectus for a discussion of the terms, restrictions and vesting schedules applicable to converted performance share awards held by Messrs. Simpson, Hutton, Vennerberg, Baldwin and Petrus and “Interests of Certain Persons in the Merger—Other Executive Officers of XTO Energy—Treatment of Stock Options and Other Equity-Based Awards” beginning on page [] of this proxy statement/prospectus for a discussion of the terms, restrictions and vesting schedules applicable to performance share awards held by other executive officers of XTO Energy. Employees terminating employment at or within a stated period after the completion of the merger for reasons other than for cause or voluntary resignation without good reason (as defined in the applicable plans and arrangements) will have vesting of their restricted stock and performance stock awards accelerated upon such termination.

Treatment of XTO Energy Warrants

In accordance with the terms of the merger agreement, warrants to purchase XTO Energy common stock will be converted into converted warrants to purchase ExxonMobil common stock having the same contractual terms and conditions as were in effect immediately prior to the effective time of the merger. The number of

shares of ExxonMobil common stock subject toMerger, each converted warrant will equal (rounded downDenbury RSU granted prior to the nearest whole share)date of the product of (i) the number of shares of XTO Energy common stock subject to the XTO Energy warrantMerger Agreement that is outstanding immediately prior to the effective time of the merger multiplied by (ii)Merger, whether vested or unvested, will automatically become fully vested and will be canceled and converted into the exchange ratioright to receive the Merger Consideration in accordance with the merger. The exercise price per shareMerger Agreement in respect of ExxonMobilthe total number of shares of Denbury common stock subject to a converted warrant will be an amount (rounded up to the nearest whole cent) equal to the quotientsuch Denbury RSU.

Treatment of (i) the exercise price per share of XTO Energy common stock subject to the XTO Energy warrantDenbury DSUs

At or immediately prior to the effective time of the merger dividedMerger, each Denbury DSU that is outstanding immediately prior to the effective time of the Merger, whether vested or unvested, will automatically become fully vested and will be canceled and converted into the right to receive the Merger Consideration in accordance with the Merger Agreement in respect of the total number of shares of Denbury common stock subject to such Denbury DSU.

Treatment of Denbury TSR Performance Awards

Except as otherwise agreed by (ii)ExxonMobil and the applicable Denbury equity award holder, at or immediately prior to the effective time of the Merger, each Denbury TSR Performance Award that is outstanding immediately prior to the effective time of the Merger, whether vested or unvested, will automatically become fully vested and will be canceled and converted into the right to receive the Merger Consideration in accordance with the Merger Agreement in respect of the total number of shares of Denbury common stock subject to such Denbury TSR Performance Award, with such number determined based on actual performance levels, calculated in accordance with the underlying award agreements.

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Treatment of Denbury Restricted Shares

Except as otherwise agreed by ExxonMobil and the applicable Denbury equity award holder, at or immediately prior to the effective time of the Merger, each Denbury Restricted Share granted prior to the date of the Merger Agreement that is outstanding immediately prior to the effective time of the Merger will automatically become a fully vested share of Denbury common stock and will be converted into the right to receive the Merger Consideration in accordance with the Merger Agreement.

Treatment of Denbury RSUs and Denbury Restricted Shares Granted on or after March 7, 2024

If the Merger has not been completed as of March 7, 2024, Denbury is permitted to make annual equity award grants and certain other equity award grants to its employees in the form of Denbury RSUs or Denbury Restricted Shares in the ordinary course of business, with the aggregate grant date fair value of the 2024 annual equity awards not to exceed $30,641,000. Upon the effective time of the Merger, such Denbury RSUs and Denbury Restricted Shares will not vest but will instead be converted into equivalent equity awards of ExxonMobil (taking into account the exchange ratioratio) on substantially the same terms and conditions (including applicable vesting provisions), provided that in the merger. All warrantscase of awards to purchase XTO Energy common stockDenbury’s senior management, such awards will expirebe subject to three-year cliff vesting and will be forfeited in the event of termination of employment for any reason prior to, on April  1, 2010 pursuantor following the effective time.

Treatment of Denbury Employee Stock Purchase Plan

Denbury will take such actions as are necessary with respect to the Denbury Employee Stock Purchase Plan (the “Denbury ESPP”) to provide that (i) no new participants will commence participation in the Denbury ESPP following the date of the Merger Agreement, (ii) no participant in the Denbury ESPP will increase his or her payroll contribution rate in effect as of the date of the Merger Agreement or make separate non-payroll contributions following the date of the Merger Agreement and (iii) no new offering periods under the Denbury ESPP will commence or be extended following the date of the Merger Agreement. The Denbury ESPP will terminate no later than immediately prior to the effective time of the Merger.

Quantification of Denbury Equity Awards

See “Interests of Denbury’s Directors and Executive Officers in the Merger—Golden Parachute Compensation” beginning on page 144 of this proxy statement/prospectus for an estimate of the amounts that would become payable to each Denbury executive officer in respect of his or her unvested Denbury RSUs, Denbury TSR Performance Awards and Denbury Restricted Shares. Based on the assumptions described above under “Interests of Denbury’s Directors and Executive Officers in the Merger—Certain Assumptions” beginning on page 140 of this proxy statement/prospectus, the estimated aggregate amounts that would become payable to Denbury’s seven non-employee directors in respect of their terms.unvested Denbury DSUs is $1,117,102.

Listing of ExxonMobil Stock and Delisting and Deregistration of XTO Energy StockLISTING OF SHARES OF EXXONMOBIL COMMON STOCK

The merger agreementMerger Agreement obligates ExxonMobil to use its reasonable best efforts to havecause the shares of ExxonMobil common stock to be issued in connection withas part of the merger approved for listingMerger Consideration to be listed on the New York Stock Exchange,NYSE subject to official notice of issuance, prior to the effective time of the merger. issuance.

Approval for listing on the New York Stock ExchangeNYSE of the shares of ExxonMobil common stock issuable to the XTO EnergyDenbury stockholders in the merger,Merger, subject only to official notice of issuance, is a condition to the obligations of ExxonMobil, Denbury and XTO EnergyMerger Sub to complete the merger. Upon completionMerger.

GOVERNANCE MATTERS FOLLOWING COMPLETION OF THE MERGER.

From and after the effective time of the merger, XTO Energy common stockMerger, until successors are duly elected or appointed and qualified in accordance with applicable law, (a) the directors of Merger Sub at the effective time will be delisted from the New York Stock Exchangedirectors of

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the Surviving Corporation and deregistered under(b) the Exchange Act.officers of Merger Sub at the effective time will be the officers of the Surviving Corporation.

CONDITIONS TO COMPLETION OF THE MERGER

Mutual Conditions to the Completion of the Merger

Mutual Closing Conditions.The obligation of each of ExxonMobil, XTO EnergyDenbury and Merger Sub to complete the mergerMerger is subject to the satisfaction (or, to the extent permitted by applicable law, waiver) of a number of conditions, including the following:

 

adoptionthe absence of any injunction or order or applicable law preventing or making illegal the consummation of the merger agreement byMerger;

the affirmative vote of the holders of a majority of the outstanding shares of XTO EnergyDenbury common stock in accordance with Delaware General Corporation Law;outstanding and entitled to vote at the Special Meeting approving and adopting the Merger Agreement and the transactions contemplated by the Merger Agreement, including the Merger;

 

absence of any applicable law being in effect that prohibits completion of the merger;

expiration or termination of any applicable waiting period, (or extensions thereof) relating to the mergeror any extension thereof, under the HSR ActAct;

this registration statement being declared effective and no stop order suspending the expirationeffectiveness of this registration statement being in effect and no proceedings for such purpose pending or threatened by the applicable waiting period relatingSEC; and

the shares of ExxonMobil to be issued in the Merger having been approved for listing on the NYSE, subject to official notice of issuance.

Additional Conditions to Completion for the Benefit of ExxonMobil and Merger Sub

In addition to the merger under the Dutch Competition Act or receiptconditions of an approval of the Dutch Competition Authority allowing the partiesall parties’ obligations to complete the merger;Merger, the obligation of each of ExxonMobil and Merger Sub to complete the Merger is subject to the satisfaction (or, to the extent permitted by applicable law, waiver by ExxonMobil) of the following conditions:

 

performance in all other consents and approvalsmaterial respects by Denbury of (oreach of its obligations under the making of all other filings or registrations with) any governmental authorityMerger Agreement required in connection with the execution, delivery and performance of the merger agreement having been made or obtained, except for (i) filings to be made afterperformed by it at or prior to the effective time of the mergerMerger;

the accuracy of the representations and (ii)warranties made in the Merger Agreement by Denbury as of the date of the Merger Agreement and as of the date of completion of the Merger, subject to certain materiality thresholds;

the absence since the date of the Merger Agreement of any consents, approvals, filingsevent, circumstance, development, occurrence, fact, condition, effect or registrations the failure of which to obtainchange that has had or make would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on XTO EnergyDenbury’s condition, business, assets, or ExxonMobil;results of operations, with certain customary exceptions (see “The Merger Agreement—Definition of ‘Material Adverse Effect’” beginning on page 119 of this proxy statement/prospectus for the definition of material adverse effect);

 

effectivenessreceipt of a certificate signed by an executive officer of Denbury, dated as of the registration statement forclosing date, as to the ExxonMobil common stock being issuedsatisfaction of the conditions described in the merger (of which this proxy statement/prospectus forms a part)preceding three bullets; and

(i) the absence of any stopinjunction or order suspending such effectivenessor applicable law preventing or making illegal the consummation of the Merger and (ii) the expiration or termination of any applicable waiting period, or any proceedingsextension thereof, under the HSR Act, in each case, without the imposition of a Burdensome Condition (see “The Merger Agreement—Reasonable Best Efforts Covenant” beginning on page 128 of this proxy statement/prospectus for such purpose pending by the SEC;definition of Burdensome Condition).

 

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approvalAdditional Conditions to Completion for the listing onBenefit of Denbury

In addition to the New York Stock Exchangeconditions to all parties’ obligations to complete the Merger, the obligation of Denbury to complete the Merger is subject to the satisfaction (or, to the extent permitted by applicable law, waiver by Denbury) of the sharesfollowing conditions:

performance in all material respects by ExxonMobil and Merger Sub of ExxonMobil common stockeach of their obligations under the Merger Agreement required to be issued inperformed by them at or prior to the merger, subject to official noticeeffective time of issuance;the Merger;

 

the accuracy in all material respects as of the effective time of the merger (or, in the case of representations and warranties that by their terms address matters only as of another specified time, as of that time) of certain representations and warranties made in the merger agreementMerger Agreement by the other party regarding, among other matters, corporate existence, corporate authority relative to the merger agreementExxonMobil and related transactions, including the merger, such party’s capital structure, fees payable to financial advisors in connection with the merger, the inapplicability of certain antitakeover laws and, with respect to XTO Energy, the required vote of the XTO Energy stockholders, and with respect to ExxonMobil, that approval of the ExxonMobil shareholders is not required;

the accuracy of all other representations and warranties made in the merger agreement by the other party (disregarding any materiality or material adverse effect qualifications contained in such representations and warranties)Merger Sub as of the effective timedate of the merger (or, in the case of representationsMerger Agreement and warranties that by their terms address matters only as of another specified time, asthe date of completion of the Merger, subject to certain materiality thresholds;

the absence since the date of the Merger Agreement of any event, circumstance, development, occurrence, fact, condition, effect or change that time), except for any such inaccuracies that have nothas had andor would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on such party;

performance in allExxonMobil’s condition, business, assets, or results of operations, with certain customary exceptions (see “The Merger Agreement—Definition of ‘Material Adverse Effect’” beginning on page 119 of this proxy statement/prospectus for the definition of material respects by the other party of the obligations required to be performed by it at or prior to the effective time of the merger;

delivery of opinions of ExxonMobil’s counsel, in the case of ExxonMobil, and XTO Energy’s counsel, in the case of XTO Energy, that the merger will qualify as a reorganization for U.S. federal income tax purposes;adverse effect); and

 

the absencereceipt of a certificate signed by an executive officer of ExxonMobil, dated as of the occurrence and continuation of any event, occurrence, development or state of circumstances or facts from theclosing date, of the merger agreement to the effective time of the merger which, individually or in the aggregate, has had a material adverse effect on the other party.

Additional Closing Conditions for ExxonMobil’s and Merger Sub’s Benefit. In addition, the obligation of ExxonMobil and Merger Sub to complete the merger is subjectas to the satisfaction (or, to the extent permitted by applicable law, waiver) of the following conditions:

absence of any pending action or proceeding by any governmental authority that:

challenges or seeks to make illegal, delay materially or otherwise directly or indirectly prohibit the completion of the merger;

seeks to prohibit ExxonMobil’s or Merger Sub’s ability effectively to exercise full rights of ownership of XTO Energy’s common stock, including the right to vote any shares of XTO Energy common stock acquired or owned by ExxonMobil or Merger Sub following the effective time of the merger on all matters properly presented to XTO Energy’s stockholders; or

seeks to compel ExxonMobil, XTO Energy or any of their respective subsidiaries to take any actionconditions described under “—Reasonable Best Efforts Covenant” beginning on page [] of this proxy statement/prospectus that is not required to be effected pursuant to the terms of the merger agreement; and

absence of any applicable law that is enacted, enforced, promulgated or issued after the date of the merger agreement by any governmental authority, other than the applicable waiting period provisions of the HSR Act and any applicable provisions of any foreign antitrust laws, that would reasonably be likely to result in any of the consequences referred to in the preceding three sub-bullet points.bullets.

Representations and WarrantiesREPRESENTATIONS AND WARRANTIES

The merger agreementMerger Agreement contains a number of representations and warranties made by bothDenbury, on the one hand, and ExxonMobil, on the other hand, made solely for the benefit of the other, and XTO Energy that are subject in some cases to exceptions and qualifications, (including exceptions that do not result in,including, among other things, as to materiality and would not reasonably be expected to have, a “materialmaterial adverse effect”). See also “—effect (see “The Merger Agreement—Definition of ‘Material Adverse Effect’” beginning on page []119 of this proxy statement/prospectus.prospectus for the definition of material adverse effect). Furthermore, the assertions embodied in those representations and warranties are qualified by information in the confidential disclosure schedules that the parties have exchanged in connection with signing the Merger Agreement. The confidential disclosure schedules to the Merger Agreement contain information that modifies, qualifies and creates exceptions to the representations and warranties set forth in the Merger Agreement. The representations and warranties made by the parties in the merger agreementMerger Agreement relate to and include, as applicable to such party, among other things:

 

corporate existence, good standing and qualification to conductdo business;

 

due authorization, execution delivery and validity of the merger agreement;Merger Agreement and the applicable ancillary agreements;

 

governmental and third-party consents necessary to complete the merger;transactions contemplated by the Merger Agreement;

 

absence of any conflict with or violation or breach of organizational documents, or any violation of agreements, laws or regulations or agreements as a result of the execution, delivery or performance of the merger agreementMerger Agreement and completion of the merger;Merger and the other transactions contemplated by the Merger Agreement;

capital structure;capitalization;

 

subsidiaries;

 

SEC filings, the absence of material misstatements or omissions from suchregulatory reports and filings and compliance with the Sarbanes-Oxley Act;internal controls over financial reporting;

 

financial statements;

 

information provided by the applicable party for inclusion in disclosure documents to be filed with the SEC in connection with the merger;Merger;

 

absenceconduct of certain changes since September 30, 2009 through the date of the merger agreement, including changes that have had or would, individually or in the aggregate, reasonably be expected to have a material adverse effect;

absence of undisclosed material liabilities;

compliance with laws and court orders;

litigation;

tax matters;

fees payable to financial advisors in connection with the merger; and

no representations other than those contained in the merger agreement.

XTO Energy also makes representations and warranties relating to, among other things, regulatory matters, reserve reports, derivatives, properties, intellectual property, employees and employee benefit matters, labor, environmental matters, material contracts, inapplicability of anti-takeover statutes and the receipt of a fairness opinion from one of its financial advisors.

ExxonMobil also makes representations and warranties relating to, among other things, its lack of ownership of shares of XTO Energy common stock (other than shares held by employee benefit plans of ExxonMobil), actions triggering applicability of anti-takeover statutes and certain ExxonMobil employee benefit plans.

The representations and warranties in the merger agreement do not survive after the effective time of the merger.

See “The Merger Agreement—Explanatory Note Regarding the Merger Agreement and the Summary of the Merger Agreement: Representations, Warranties and Covenants in the Merger Agreement Are Not Intended to Function or Be Relied on as Public Disclosures” on page [] of this proxy statement/prospectus.

Definition of “Material Adverse Effect”

Many of the representations and warranties in the merger agreement are qualified by “material adverse effect.” In addition, there are separate standalone conditions to completion of the merger relating to the absence of any event, occurrence, development or state of circumstances or facts from the date of the merger agreement to the effective time of the merger which, individually or in the aggregate, has had a material adverse effect on the other party.

For purposes of the merger agreement, “material adverse effect” means, with respect to ExxonMobil or XTO Energy, as the case may be, a material adverse effect on the financial condition, business assets or results of operations of such party and its subsidiaries, taken as a whole, excluding any effect resulting from, arising out of or relating to:

(a)changes in the financial or securities markets or general economic or political conditions in the United States or elsewhere in the world;

(b)other than with respect to changes to applicable laws related to hydraulic fracturing or similar processes that would reasonably be expected to have the effect of making illegal or commercially impracticable such hydraulic fracturing or similar processes (which changes may be taken into account in determining whether there has been a material adverse effect), changes or conditions generally affecting the oil and gas exploration, development and/or production industry or industries (including changes in oil, gas or other commodity prices);

(c)other than with respect to changes to applicable laws related to hydraulic fracturing or similar processes that would reasonably be expected to have the effect of making illegal or commercially impracticable such hydraulic fracturing or similar processes (which changes may be taken into account in determining whether there has been a material adverse effect), any change in applicable law or the interpretation thereof or generally accepted accounting principles in the United States or the interpretation thereof;

(d)the negotiation, execution, announcement or consummation of the transactions contemplated by the merger agreement, including any adverse change in customer, distributor, supplier or similar relationships resulting therefrom;

(e)acts of war, terrorism, earthquakes, hurricanes, tornados or other natural disasters;

(f)any failure by such party or any of its subsidiaries to meet any internal or published industry analyst projections or forecasts or estimates of revenues or earnings for any period (however, the facts and circumstances that may have given rise or contributed to such failure that are not otherwise excluded from the definition of a material adverse effect may be taken into account in determining whether there has been a material adverse effect);

(g)any change in the price of such party’s stock on the New York Stock Exchange (however, the facts and circumstances that may have given rise or contributed to such change (but in no event changes in the trading price of the other party’s common stock) that are not otherwise excluded from the definition of a material adverse effect may be taken into account in determining whether there has been a material adverse effect); and

(h)compliance with the terms of, or the taking of any action required by, the merger agreement;

except to the extent such effects in the cases of clauses (a), (b), (c) and (e) above materially and disproportionately effect such party and its subsidiaries relative to other participants in the industry or industries in which such party and its subsidiaries operate (in which event the extent of such material and disproportionate effect may be taken into account in determining whether a material adverse effect has occurred).

Conduct of Business Pending the Merger

Each of ExxonMobil and XTO Energy has undertaken a separate covenant that places restrictions on it and its subsidiaries until either the effective time of the merger or the termination of the merger agreement pursuant to its terms.

In general, except as expressly contemplated or permitted by the merger agreement, required by applicable law or with ExxonMobil’s written approval (which will not be unreasonably withheld, conditioned or delayed), XTO Energy and its subsidiaries are required to conduct their business in the ordinary course consistent with past practice and, to the extent consistent therewith, to use their commercially reasonable efforts to preserve intact their present business organizations, to maintain in effect all of their material licenses, permits, consents, franchises, approvals and authorizations, to keep available the services of their directors, officers and key employees, to maintain material leases and personal property and to maintain existing relationships with material customers, lenders, suppliers and others having material business relationships with XTO Energy and its subsidiaries and with governmental authorities with jurisdiction over oil and gas-related matters. Without

limiting the generality of the foregoing, XTO Energy has also agreed to certain restrictions on XTO Energy’s and its subsidiaries’ activities that are subject to exceptions described in the merger agreement, including restrictions on, among other things:

amending its organizational documents;

splitting, combining or reclassifying its capital stock, declaring, setting aside or paying any dividend or repurchasing any shares of XTO Energy capital stock (subject to certain exceptions, including the declaration of regular quarterly cash dividends with customary record and payment dates not in excess of $0.125 per share per quarter);

subject to certain exceptions, including the issuance of XTO Energy shares of its common stock upon the exercise of options or warrants outstanding on the date of the merger agreement, and issuances of shares of an XTO Energy subsidiary’s capital stock to XTO Energy or another subsidiary, issuing or selling any shares of its capital stock;

incurring capital expenditures, except for those previously disclosed to ExxonMobil or not in excess of $300 million in the aggregate;

acquiring assets, securities, properties, interests or businesses, subject to certain exceptions, including acquisitions that do not exceed $150 million in the aggregate;

selling, leasing, transferring or creating a lien on XTO Energy’s assets, securities, properties, interests or businesses, subject to certain exceptions, including sales pursuant to existing contracts or that do not exceed $50 million individually or $300 million in the aggregate;

making or assuming any derivatives, other than in the ordinary course of XTO Energy’s marketing business in accordance with its current policies;

subject to certain exceptions, entering into, amending, modifying or terminating material contracts, or waiving, releasing or assigning material rights thereunder;

entering into new contracts to sell hydrocarbons other than in the ordinary course of business consistent with past practice and withabsence of any event, change, effect, development or occurrence that has had or would reasonably be expected to have, individually or in the aggregate, a term less than six months;material adverse effect on the applicable party;

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absence of undisclosed material liabilities;

 

engaginginsurance;

absence of pending or threatened legal proceedings and investigations;

compliance with laws, regulations, orders and permits;

material contracts;

tax matters;

employees, employee benefit plans and labor matters;

intellectual property and real property matters;

environmental matters;

oil and gas matters;

certain stock ownership matters;

absence of contracts or agreements with affiliates;

absence of any undisclosed broker’s or finder’s fees payable in exploration,connection with the Merger;

receipt of opinions from financial advisors; and

inapplicability of anti-takeover statutes.

The representations and warranties in the Merger Agreement do not survive the completion of the Merger.

See “The Merger Agreement—Explanatory Note” beginning on page 112 of this proxy statement/prospectus for additional information.

DEFINITION OF “MATERIAL ADVERSE EFFECT”

Many of the representations and warranties in the Merger Agreement are qualified by a “material adverse effect” standard with respect to the party making such representations and warranties.

For purposes of the Merger Agreement, “material adverse effect” means, with respect to ExxonMobil or Denbury, any event, circumstance, development, drilling, well completionoccurrence, fact, condition, effect or change that is, or would reasonably be expected to become, individually or in the aggregate, materially adverse to (i) the condition (financial or otherwise), business, assets, or results of operations of that party and its subsidiaries, taken as a whole, or (ii) the ability of that party to complete the transactions contemplated by the Merger Agreement, except, in the case of clause (i), to the extent resulting from, arising out of, or relating to any of the following:

any changes, developments or conditions after the date of the Merger Agreement in the general economic or political conditions in the United States, including in the financial, debt, credit, capital or securities markets, including changes in interest rates;

any changes generally affecting the industries in which that party or any of its subsidiaries operate;

any changes or proposed changes in applicable law or interpretations thereof or regulatory conditions or any changes in the enforcement thereof, including changes in tax law, interpretations and regulations after the date of the Merger Agreement;

any changes or proposed changes in GAAP or other accounting standards or interpretations thereof;

any changes in commodity prices, including the prices of natural gas, crude oil, refined petroleum products, other hydrocarbon products, natural gas liquids, carbon dioxide, methane, nitrous oxide, fluorinated and other “greenhouse” gases, and other commodities;

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any acts of war (whether or not declared), hostilities, military actions or acts of terrorism, or any escalation or worsening of the foregoing;

any weather conditions or acts of God (including storms, earthquakes, tsunamis, tornados, hurricanes, floods or other natural disasters or other comparable events);

pandemic (including the COVID-19 pandemic);

any change, in and of itself, in the market price or trading volume of that party’s securities; provided that the exception in this clause shall not prevent or otherwise affect a determination that any underlying event, circumstance, development, occurrence, fact, condition, effect or change that is the cause of such change has resulted in, or would reasonably be expected to result in, a material adverse effect to the extent not otherwise excluded from the definition of material adverse effect;

the negotiation, execution, announcement or performance of the Merger Agreement or the consummation of the Merger or the other transactions contemplated hereby, including the impact thereof on the relationships, contractual or otherwise, with employees, labor unions, financing sources, customers, suppliers, distributors, regulators, partners or other persons, or any action or claim made or brought by any of the current or former stockholders of that party (or on their behalf or on behalf of that party) against that party or any of its directors, officers or employees arising out of the Merger Agreement or the Merger or the other transactions contemplated hereby (it being understood that this clause will not apply to a breach of any representation or warranty related to the announcement or consummation of the transactions contemplated by the Merger Agreement);

any failure of any of that party or any of its subsidiaries to meet, with respect to any period or periods, any internal or published projections, forecasts, estimates of earnings or revenues or business plans (but not the underlying facts or basis for such failure to meet projections, forecasts, estimates of earnings or revenues or business plans, which may be taken into account in determining whether there has been or would reasonably be expected to be a material adverse effect to the extent not otherwise excluded from the definition of material adverse effect);

any action taken by that party or any of its subsidiaries that is expressly required by the Merger Agreement;

a Specified Pipeline Event (see “The Merger Agreement—Termination of Merger Agreement’” beginning on page 133 of this proxy statement/prospectus for the definition of Specified Pipeline Event); or

any action (including divestitures, hold separate arrangements, consent decrees, the termination, assignment, novation or modification of contracts or other business relationships, the acceptance of restrictions on business operations, the entry into other commitments and limitations) with respect to that party and its affiliates that is required by any governmental authority to provide its approval, consent, registration, permit, authorization, clearance, or other confirmation under applicable antitrust laws for the consummation of the transactions contemplated by the Merger Agreement, and litigation with respect to the foregoing (such actions, “Antitrust Actions”),

except, in the case of the first eight bullets in the immediately preceding list, to the extent that any such event, circumstance, development, activities,change, occurrence or effect has a disproportionate adverse effect on that party and its subsidiaries, taken as a whole, relative to the adverse effect such event, circumstance, development, change, occurrence, or effect has on other companies operating in the industries in which that party and its subsidiaries operate.

CONDUCT OF BUSINESS PENDING THE MERGER

In general, except (i) as required by applicable law, (ii) as otherwise required or expressly permitted by the Merger Agreement or (iii) as consented to by ExxonMobil in writing (such consent not to be unreasonably

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withheld, conditioned or delayed), and subject to certain exceptions and qualifications, from the date of the Merger Agreement until the effective time of the Merger, Denbury and each of its subsidiaries are required to use commercially reasonable efforts to (i) conduct their business in the ordinary course of business, (ii) preserve intact its present business organization, (iii) comply with applicable laws and its contracts and maintain in effect all necessary permits, (iv) keep available the services of its directors, officers and key employees on commercially reasonable terms and (v) preserve satisfactory business relationships with its customers, lenders, suppliers and others having material business relationships with it.

Without limiting the generality of the foregoing, except (i) as required by applicable law, (ii) as otherwise required or expressly permitted by the Merger Agreement or (iii) as consented to by ExxonMobil (such consent not to be unreasonably withheld, conditioned or delayed), and subject to certain exceptions and qualifications, from the date of the Merger Agreement until the effective time of the Merger, Denbury and each of its subsidiaries is not permitted to, among other things:

amend its certificate of incorporation, bylaws or other similar organizational documents (whether by merger, consolidation or otherwise);

enter into any new line of business outside of its and its subsidiaries’ existing businesses as of the date of the Merger Agreement;

(i) adjust, split, combine, subdivide or reclassify any shares of its capital stock (other than such transactions by a wholly owned subsidiary of Denbury), (ii) declare, authorize, establish a record date for, set aside or pay any dividend or other distribution (whether in cash, stock or property or any combination thereof) in respect of its capital stock (including any shares of Denbury), except for dividends by any of its wholly-owned subsidiaries or (iii) redeem, repurchase or otherwise acquire or offer to redeem, repurchase, or otherwise acquire any shares of its capital stock (including any shares of Denbury common stock), Denbury Securities or Denbury Subsidiary Securities, in each case as defined in the Merger Agreement, other than (A) the withholding of equity securities to satisfy tax obligations with respect to awards granted pursuant to any Denbury equity plan existing as of the date of the Merger Agreement or (B) the acquisition by Denbury of awards granted pursuant to any Denbury equity plan prior to the date of the Merger Agreement or otherwise in accordance with the Merger in connection with the forfeiture of such awards;

(i) issue, deliver, sell, dispose, encumber, grant, confer, award or authorize the issuance, delivery, sale, disposal, encumbrance, grant, conferral or award of, any Denbury Securities or Denbury Subsidiary Securities, other than the issuance (A) of any shares of Denbury common stock upon settlement of Denbury RSUs, Denbury DSUs or Denbury TSR performance awards that are outstanding on the date of the Merger Agreement in accordance with the terms of those equity-based awards on the date of the Merger Agreement, (B) of any shares of Denbury common stock upon the exercise of Denbury warrants that are outstanding on the date of the Merger Agreement in accordance with the terms of such warrants on the date of the Merger Agreement, (C) of any Denbury Subsidiary Securities to Denbury or any other wholly owned subsidiary of Denbury, (D) of shares of Denbury common stock under the ESPP in accordance with the Merger Agreement and (E) of any equity or equity-based awards to the extent permitted by the Merger Agreement or (ii) amend or otherwise change any term of any Denbury Security or any Denbury Subsidiary Security (in each case, whether by merger, consolidation or otherwise);

incur any capital expenditures or any obligations or liabilities in respect thereof, except as permitted by the Merger Agreement;

acquire (by merger, consolidation, acquisition of stock or assets or otherwise), directly or indirectly, any assets, securities, properties, interests or businesses, other than (i) pursuant to an agreement of Denbury or any of its subsidiaries in effect on the date of the Merger Agreement that was made available to ExxonMobil, (ii) acquisitions for which the consideration is less than $35,000,000 individually or $70,000,000 in the aggregate or (iii) acquisitions and licenses in the ordinary course of business;

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adopt a plan of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization, other than such transactions among wholly owned subsidiaries of Denbury;

sell, lease, license or otherwise transfer, or dispose of, mortgage, sell and lease back or otherwise, or create or incur any lien on, any of Denbury’s or its subsidiaries’ assets, securities, properties, interests or businesses or other interests therein whether tangible or intangible (including securitizations) (other than intellectual property), other than (i) sales of inventory and equipment, or sales of hydrocarbons, in each case in the ordinary course of business, or sales of or disposals of obsolete or worthless assets at the end of their scheduled retirement, (ii) pursuant to contracts in effect on the date of the Merger Agreement that were made available to ExxonMobil, (iii) certain liens permitted by the terms of the Merger Agreement, (iv) transfers among Denbury and its wholly owned subsidiaries, or among the wholly owned subsidiaries of Denbury and (v) sales, leases or dispositions for which the consideration is less than $35,000,000 individually or $70,000,000 in the aggregate;

sell, assign, license, sublicense, transfer, convey, abandon, or incur any lien (other than certain liens permitted by the terms of the Merger Agreement) on or otherwise dispose of or fail to maintain, enforce or protect any material intellectual property owned, used or held for use by Denbury or any of its subsidiaries (except for non-exclusive licenses or sublicenses of intellectual property granted by Denbury or any of its subsidiaries in the ordinary course of business);

make any loans, advances or capital contributions to, or investments in, any other person, other than in the ordinary course of business consistent with past practice;business;

 

creatingcreate, incur, assume, refinance or incurringotherwise become liable with respect to any production burden with a cost-free interestindebtedness for borrowed money or guarantees thereof, other than (i) as required by its terms, (ii) additional borrowings under the that certain Credit Agreement, dated as of September 18, 2020, by and among Denbury, as borrower, JPMorgan Chase Bank, N.A., as administrative agent, and the other parties and lenders party thereto from time to time, as amended, supplemented, or otherwise modified from time to time, including by the First Amendment thereto, dated as of November 3, 2021, the Second Amendment thereto, dated as of May 4, 2022, and the Third Amendment thereto, dated as of January 20, 2023, as in any given year in excesseffect as of 30%;the date of the Merger Agreement, (iii) additional indebtedness for borrowed money to fund the capital expenditures contemplated by the Merger Agreement if such indebtedness may be repaid at closing without penalty, or (iv) indebtedness for borrowed money among Denbury and its subsidiaries or among subsidiaries of Denbury, or guarantees thereof;

 

subject to certain exceptions, enteringenter into, amend or modify in any commitmentmaterial respect or agreement to licenseterminate any material contract or purchase seismic data;

making loans, advances, capital contributionsany contract that would constitute a material contract if it were in effect on the date of the Merger Agreement or investments, other thanotherwise waive, release or assign any material rights, claims or benefits of Denbury or any of its subsidiaries, except in the ordinary course of business consistent with past practice and certain other limited exceptions;subject to the covenant with respect to the agreements relating to Denbury’s CCUS business;

 

incurring indebtedness other(i) with respect to any current or former Service Provider (as defined in Merger Agreement) of Denbury, (A) grant or increase any compensation, bonus, severance, retention, change in control, termination pay, welfare or benefits, except for (x) increases in base compensation or wages (and corresponding increases in target annual bonuses) of not more than 6% per Denbury employee with base compensation of less than $500,000 and (y) (i) payment of annual bonuses to the extent earned for the fiscal year ending December 31, 2023 pursuant to the applicable Denbury benefit plan and (ii) grants of annual bonuses in respect of any fiscal year that commences after the date of the Merger Agreement and prior to the effective time of the Merger with target amounts that are consistent with the preceding clause (x) and with performance goals that are consistent with the budget for the applicable fiscal year, in the case of each of clauses (x) and (y), in the ordinary course of business consistent with past practice, on terms that allow for prepayment at(B) grant any time without penaltyequity awards or under XTO Energy’s existing commercial paper programsdiscretionarily accelerate the vesting or revolving credit facilities;

subject to certain exceptions, entering into agreements or arrangements that would reasonably be expected to, after the effective time, materially restrict inpayment of any material respect XTO Energy, its subsidiaries, the surviving corporation and ExxonMobil from engaging or competing inequity awards held by any material line of business, in any geographical location or with any person;

other than as required pursuant to the terms of certain XTO Energy compensation or benefit plans and subject to certain other limited exceptions, (i) entering into or amending agreements providing for compensation or benefits to current or former employees or directors, (ii) adopting or amending compensation or benefit plans for current or former employees or directors, (iii) granting new awards or benefits, other than in connection with promotions or job changes in Denbury Service Provider, except as otherwise described above underthe ordinary courseheading “Treatment of businessDenbury RSUs and Denbury Restricted

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consistent with past practice, (iv) increasingShares Granted on or after March 7, 2024”, (C) take any action to accelerate the vesting or payment of any compensation or benefits under any Denbury employee plan, (D) enter into or amend any employment, severance, retention, change in control, deferred compensation or similar agreement or arrangement other than salary and target bonus increases in connection with promotionsimmaterial contracts entered into or amended in the ordinary course of business consistent with past practice that are immaterial to Denbury in both cost and (v) hiringsignificance, (E) establish, terminate, adopt, enter into or amend any Denbury employee plan, (F) establish, adopt or enter into any collective bargaining agreement or recognize new unions or similar employee representative, (G) hire any employees with an annual ratebase compensation of pay over $200,000;$200,000 or more (unless to replace a non-officer employee whose employment has ended) or (H) terminate the employment of any Denbury employee with base compensation of $200,000 or more other than for cause;

 

subject to certain limited exceptions, changing XTO Energy’schange in any respect Denbury’s methods of accounting;accounting, except as required by changes in GAAP or in Regulation S-X of the 1934 Act, as agreed to by its independent public accountants;

 

settling,settle, release, waive, discharge or offeringcompromise, or proposingoffer or propose to settle, release, waive, discharge or compromise, (i) any litigation, arbitration, mediationaction or other proceeding involving XTO Energythreatened action (excluding any action or its subsidiaries or any stockholder litigation or dispute against XTO Energythreatened action relating to taxes) of Denbury or any of its officerssubsidiaries in excess of $5,000,000 individually or directors,$15,000,000 in either case, where the amount paid in settlement exceeds $5 millionaggregate, or that imposes any material restrictions or limitations upon the assets, operations or business of Denbury or any of its subsidiaries or equitable or injunctive remedies or the admission of any criminal wrongdoing or (ii) any litigationaction or disputethreatened action (excluding any action or threatened action relating to taxes) that relates to the transactions contemplated inby the merger agreement, where the amount paid in settlement exceeds $2 million;Merger Agreement;

 

knowingly and intentionally taking any action that would reasonably be expected to(i) make, change or revoke any material representation or warrantyelection with respect to taxes, other than in the ordinary course of XTO Energy inaccurate inbusiness, (ii) file any material respect at, or immediately prior to, the effective time;

entering into any material new line of business;

making or changing anyamended material tax election, changing any annual tax accounting period, adoptingreturn, (iii) settle or changing any method of tax accounting, filing any material amended tax return or claims for material tax refund, entering into any material closing agreement, surrenderingcompromise any material tax claim, audit or assessment, (iv) prepare and file any material tax return in a manner materially inconsistent with past practice, (v) adopt or change any material tax accounting method, (vi) change any tax accounting period, (vii) enter into any closing agreement with respect to any material tax or surrender any right to claim a material tax refund, offset or other reduction in tax, liability, or consenting(viii) consent to any extension or waiver of the limitations period applicable to any material tax claim or assessment;assessment (other than any such extensions or waivers automatically granted);

fail to use reasonable best efforts to maintain in full force and effect existing material insurance policies (or substantially similar replacements thereto); provided that in the event of a termination, cancellation or lapse of any material insurance policy, Denbury shall use commercially reasonable efforts to promptly obtain replacement policies providing substantially comparable insurance coverage with respect to the material assets, operations and activities of Denbury and its subsidiaries as currently in effect as of the date of the Merger Agreement;

enter into, amend or modify any contract that materially commits, restricts or encumbers the assets, capacities or volumes of (i) Denbury’s 24-inch diameter carbon dioxide pipeline and associated laterals and facility piping owned by certain of Denbury’s subsidiaries known as the “Green Pipeline,” consisting of approximately 320 miles of pipeline mileage and servicing the Gulf Coast corridor from near Donaldsonville, Louisiana to the Hastings Field in Texas or (ii) Denbury’s 20-inch diameter carbon dioxide pipeline and associated laterals and facility piping owned by certain of Denbury’s subsidiaries known as the “NEJD Pipeline,” consisting of approximately 183 miles of pipeline mileage and extending from the Jackson Dome in Mississippi to the Green Pipeline connection near Donaldsonville, Louisiana, in each case of (i) and (ii) following the effective time of the Merger, that cannot be cancelled at any time by Denbury or its applicable subsidiary without penalty or further payment on no more than ninety (90) days’ notice; or

 

authorizingagree, resolve, or entering into any agreementcommit to do any of the foregoing.

In general, exceptExcept (i) as expressly contemplated or permitted by the merger agreement, required by applicable law, (ii) as otherwise required or with XTO Energy’s written approval (which willexpressly permitted by the Merger Agreement or (iii) as consented to by Denbury in writing (such consent not to be unreasonably withheld, conditioned or delayed), and subject to certain exceptions and qualifications, from the date of the Merger

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Agreement until the effective time of the Merger, ExxonMobil and each of its subsidiaries are requiredis not permitted to, conduct their business in the ordinary course consistent with past practice and to use their commercially reasonable efforts to preserve intact their business organizations and relationships with material third parties. Without limiting the generality of the foregoing, ExxonMobil has also agreed to certain restrictions on ExxonMobil’s and its subsidiaries’ activities that are subject to exceptions described in the merger agreement, including restrictions on, among other things:

 

amending ExxonMobil’s articlesadopt or propose any change in the certificate of incorporation or bylawsof ExxonMobil in aany manner that would have a material andbe materially adverse impact on the value of ExxonMobil common stock;to Denbury or Denbury’s stockholders;

 

paying extraordinary dividends in respectadopt a plan or agreement of ExxonMobil capital stock,complete or redeemingpartial liquidation or repurchasing ExxonMobil capital stock, in a manner inconsistent with past practice;dissolution of ExxonMobil;

 

acquiring (or agreeingdeclare, set aside or pay any dividend or other distribution payable in cash, stock or property with respect to acquire) assets utilized in productionExxonMobil’s capital stock (excluding, for the avoidance of doubt, stock buybacks) other than regular quarterly cash dividends payable by ExxonMobil including increases that are materially consistent with past practice; or transportation of natural gas or more than 50% of the voting interests of any entity that is a going concern if, individually or in the aggregate, such acquisition or acquisitions would reasonably be expected to prevent, materially impede, interfere with or delay the consummation of the merger and the other transactions contemplated by the merger agreement;

 

knowingly and intentionally taking any action that would reasonably be expected to make any material representationagree or warranty of ExxonMobil inaccurate in any material respect at, or immediately prior to, the effective time; and

authorizing or entering into any agreementcommit to do any of the foregoing.

ObligationOBLIGATIONS TO CALL STOCKHOLDERS’ MEETING

Denbury will establish a record date (and commence a broker search pursuant to Section 14a-13 of the XTO Energy Board1934 Act in connection therewith) for, and as soon as reasonably practicable following the date this registration statement is declared effective by the SEC, duly call, give notice of, Directorsconvene and hold (no later than the 50th day following the first mailing of the proxy statement/prospectus), a meeting of its stockholders entitled to Recommendvote on the Merger, at which Denbury will seek the vote of Denbury stockholders required to approve and adopt the Merger Agreement. Subject to the rights of the Denbury board of directors to make an Adverse Recommendation Change, as discussed under “The Merger Agreement—No Solicitation” beginning on page 125 of this proxy statement/ prospectus, Denbury has agreed to effect the unanimous recommendation of its board of directors in (i) determining that the Merger Agreement and Call a Stockholders’ Meeting

XTO Energy’s boardtransactions contemplated thereby, including the Merger, are fair to and in the best interest of directors has agreed to call a meeting ofDenbury and its stockholders and (ii) approving, adopting and declaring advisable the Merger Agreement and the transactions contemplated thereby, including the Merger, and resolving to recommend approval and adoption of the Merger Agreement by its stockholders.

Once the stockholder meeting has been scheduled by Denbury, Denbury will not adjourn, postpone, reschedule or recess the stockholder meeting without the prior written consent of ExxonMobil (such consent not to be unreasonably withheld, conditioned or delayed). However, Denbury may, notwithstanding the foregoing, without the prior written consent of ExxonMobil, postpone or adjourn the stockholder meeting (i) if, after consultation with ExxonMobil, Denbury believes in good faith that such adjournment or postponement is reasonably necessary to solicit additional proxies for the purpose of obtaining the requisite vote of XTO EnergyDenbury stockholders necessary to adopt the merger agreement. Merger Agreement and approve the Merger, (ii) if there are not holders of a sufficient number of Denbury shares present or represented by proxy at the stockholder meeting to constitute a quorum and (iii) to allow reasonable additional time for the filing or mailing of any supplemental or amended disclosure that Denbury has determined in good faith, after consultation with outside legal counsel, is reasonably likely to be required under applicable law and for such supplemental or amended disclosure to be disseminated and reviewed by the stockholders of Denbury prior to the stockholder meeting; provided, however, that the stockholder meeting shall not be postponed or adjourned as a result of clause (i) or clause (ii) above for a period of more than ten business days in the aggregate without the prior written consent of ExxonMobil.

Unless the Merger Agreement is terminated, Denbury’s obligation to call the stockholder meeting shall not be affected by the commencement, public proposal, public disclosure or communication to Denbury or any other person of any other Acquisition Proposal (as defined under “The Merger Agreement—No Solicitation” beginning on page 125 of this proxy statement/prospectus) from a third party. Further, unless the Merger Agreement is terminated, Denbury’s obligation to hold the stockholder meeting will not be affected by the making of any adverse recommendation change by the Denbury board of directors; provided, however, that in such event Denbury will have no obligation to solicit proxies to obtain the requisite shareholder vote to adopt the Merger Agreement and approve the Merger. Denbury will provide updates to ExxonMobil with respect to the proxy solicitation for the shareholder meeting (including interim results) as reasonably requested by ExxonMobil.

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OBLIGATIONS TO RECOMMEND THE APPROVAL AND ADOPTION OF THE MERGER AGREEMENT

As discussed under “Proposal I: Approval and Adoption of the Merger Agreement” and “The Merger—XTO EnergyRecommendation of the Denbury Board of Directors and Reasons for the Merger; Recommendation of the XTO Energy Board of Directors”Merger” beginning on page []pages 147 and 73, respectively, of this proxy statement/prospectus, XTO Energy’sthe Denbury board of directors has

recommendedunanimously recommends that XTO EnergyDenbury stockholders vote “FOR” the approval and adoption of the merger agreement. XTO Energy’sMerger Agreement.

The Denbury board of directors, however, canmay (i) qualify, withdraw modify or qualify its recommendationmodify in a manner adverse to ExxonMobil or Merger Sub, or propose publicly to qualify, withdraw or modify in a manner adverse to ExxonMobil or Merger Sub its recommendation that Denbury stockholders approve and adopt the Merger Agreement, (ii) recommend, adopt or approve an Acquisition ProposalAdverse Recommendation Change (as defined below) under certain“The Merger Agreement—No Solicitation” beginning on page 125 of this proxy statement/prospectus) for Denbury or (iii) terminate the Merger Agreement in order to cause Denbury to enter into an alternative acquisition agreement with respect to the Adverse Recommendation Change, in each case, under specified circumstances as discussed under “—“The Merger Agreement—No Solicitation by XTO Energy”Solicitation” beginning on page []125 of this proxy statement/prospectus. If XTO Energy’s board of directors so withdraws, modifies or qualifies its recommendation, the merger agreement must nonetheless be submitted to XTO Energy’s stockholders for adoption.

No Solicitation by XTO EnergyNO SOLICITATION

Subject to the exceptions described below, XTO Energyfrom the date of the Merger Agreement until the effective time of the Merger, Denbury has agreed that neither XTO Energy nor any ofnot to, and cause its subsidiaries will, nor will XTO Energy or any ofand its subsidiaries authorize or permit any ofand their directors and officers not to, and to use reasonable best efforts to cause its or their officers, directors, employees, investment bankers, attorneys, accountants, consultants or other agents or advisorsand its subsidiaries’ representatives not to, directly or indirectly, among other things: (i) solicit, initiate or otherwise knowingly facilitate or knowingly encourage the submission by a third party of any Acquisition Proposal (as defined below), (ii) enter into, engage in or participate in any discussions or negotiations with, furnish any nonpublic information relating to XTO EnergyDenbury or any of its subsidiaries or afford access to the business, properties, assets, books, or records, of XTO Energywork papers and other documents related to Denbury or any of its subsidiaries to, otherwise knowingly cooperate in any way with, or knowingly assist, participate in, facilitate or encourage any effort by any third party, that is seekingin each case, in connection with or in response to make, or has made, an Acquisition Proposal, (iii) failor any inquiry that would reasonably be expected to make, withdraw or modify in a manner adverse to ExxonMobil, its recommendation to XTO Energy stockholders to vote in favor of adoption of the merger agreement or recommendlead an Acquisition Proposal, which is referredor (iii) enter into any oral or written or binding or non-binding agreement in principle, letter of intent, indication of interest, term sheet, merger agreement, acquisition agreement, option agreement or other similar instrument contemplating an Acquisition Proposal; provided that notwithstanding anything to the contrary in this proxy statement/prospectus asthe Merger Agreement, Denbury or any of its representatives may, (A) in response to an adverse recommendation change, (iv) grantunsolicited inquiry or proposal, seek to clarify the terms and conditions of such inquiry or proposal and (B) in response to an inquiry or proposal from a third party, inform a third party or its representative of the restrictions imposed by the Merger Agreement. Denbury has agreed not to release or permit the release of any person from, or to waive or permit the waiver or release underof, any standstill or similar agreement with respect to any class of equity securities of XTO EnergyDenbury or any of its subsidiaries, (v) approve any transaction under,and will enforce or any third party becoming an “interested stockholder” under, Section 203 of the Delaware General Corporation Law or (vi) enter into anycause to be enforced each such agreement in principle, letteraccordance with its terms at the request of intent, term sheet, mergerExxonMobil; provided, however, that Denbury may waive or fail to enforce any provision of such standstill or similar agreement acquisition agreement, option agreement or other similar instrument relating to an Acquisition Proposal (other than a confidentiality agreement toof any person if the extent permitted as described below). However, so long as XTO Energy and its representatives have complied with the foregoing, XTO Energy and its representatives may contact in writing any third party who has made an unsolicited Acquisition Proposal after the date of the merger agreement solely to request the clarification of the terms and conditions of the proposal so as to determine whether the Acquisition Proposal is, or could reasonably be expected to lead to, a Superior Proposal (as defined below).

However, at any time prior to the adoption of the merger agreement by XTO Energy stockholders:

XTO Energy, directly or indirectly through advisors, agents or other intermediaries, may (i) engage or participate in negotiations or discussions with any third party that has made an unsolicited Superior Proposal or an unsolicited Acquisition Proposal that XTO Energy’sDenbury board of directors determines in good faith, after consultation with its outside financial and legal advisors, couldcounsel, that the failure to take such action would be reasonably be expected to lead to a Superior Proposal by the third party making such Acquisition Proposal, (ii) furnish to such third party and its representatives nonpublic information relating to XTO Energy or any of its subsidiaries and access to the business, properties, assets, books and records of XTO Energy and its subsidiaries pursuant to a customary confidentiality agreement (a copy of which is requiredlikely to be provided for informational purposes onlyinconsistent with its fiduciary duties to ExxonMobil) with such third party with terms no less favorable to XTO Energy than those contained in the confidentiality agreement between XTO Energy and ExxonMobil (except that such confidentiality agreement need not contain a “standstill” or similar provision that prohibits such third party from making any Acquisition Proposals, acquiring XTO Energy or taking any other action), provided that all such information (to the extent not previously provided or made available to ExxonMobil) is provided or made available to ExxonMobil prior to or substantially concurrently with the time it is provided to such third party, and (iii) take any action required byDenbury’s stockholders under applicable law and any actionlaw. The Merger Agreement provides that any courtbreach of competent jurisdiction orders XTO Energythe foregoing obligations by Denbury’s subsidiaries or Denbury’s or its subsidiaries’ representatives shall be deemed to take; andbe a breach of such obligations by Denbury.

In addition, XTO Energy’sThe Denbury board of directors, may make anincluding any committee thereof, has agreed it will not (i) qualify, withdraw or modify in a manner adverse recommendation change (i) following receipt of anto ExxonMobil or Merger Sub, or propose publicly to qualify, withdraw or modify in a manner adverse to ExxonMobil or Merger Sub, the Denbury Board Recommendation (as defined in the Merger Agreement), (ii) adopt, endorse, approve or recommend, or propose publicly to adopt, endorse, approve or recommend, any Acquisition Proposal, made afteror resolve to take any such action, (iii) publicly make any recommendation in connection with a tender offer or exchange offer by a third party other than a recommendation against such offer or a temporary “stop, look and listen” communication by the Denbury board

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of directors of the type contemplated by Rule 14d-9(f) under the Exchange Act, (iv) other than with respect to a tender or exchange offer described in clause (iii), following the date any Acquisition Proposal or any material modification thereto is first publicly announced, fail to issue a press release reaffirming the Denbury Board Recommendation within ten business days after a request by ExxonMobil to do so or (v) fail to include the Denbury Board Recommendation in the proxy statement/prospectus when disseminated to ExxonMobil’s stockholders (any of the merger agreement that XTO

foregoing in these clauses (i) through (v), an “Adverse Recommendation Change”).

However, notwithstanding the foregoing, at any time prior to the requisite shareholder vote to adopt the Merger Agreement and approve the Merger:

 

Energy’sDenbury, directly or indirectly through its representatives may (A) engage in the activities prohibited by clauses (i) through (iii) as described under the first paragraph above in “The Merger Agreement—No Solicitation” beginning on page 125 of this proxy statement/prospectus, with any third party and its representatives that has made after the date of the Merger Agreement a bona fide, written Acquisition Proposal that did not result from a breach of the applicable section of the Merger Agreement that the Denbury board of directors determines in good faith, after consultation with its outside legal counsel and financial advisors, is, or is reasonably likely to lead to, a Superior Proposal (as defined below), and (B) furnish to such third party or its representatives non-public information relating to Denbury or any of its subsidiaries and afford access to the business, properties, assets, books or records of Denbury or any of its subsidiaries pursuant to a confidentiality agreement (a copy of which shall be provided for informational purposes only to ExxonMobil) with such third party with terms no less favorable to Denbury than those contained in the Confidentiality Agreement dated as of May 10, 2021 between Denbury and ExxonMobil (the “Confidentiality Agreement”); provided that all such information (to the extent that such information has not been previously provided or made available to ExxonMobil) is provided or made available to ExxonMobil, as the case may be, prior to or substantially concurrently with the time it is provided or made available to such third party or its representatives; and

the Denbury board of directors may (A) following receipt of a bona fide, written Acquisition Proposal that did not result from a breach of the Merger Agreement that the Denbury board of directors determines in good faith, after consultation with its outside legal counsel and financial advisors, constitutes a Superior Proposal, make an Adverse Recommendation Change or (ii) solelyterminate the Merger Agreement in order to enter into a definitive agreement for such Superior Proposal, or (B) in response to events, changes or developments in circumstances that are material to Denbury and its subsidiaries, taken as a whole, that were not known to the Denbury board of directors or if known the consequences of which were not reasonably foreseeable, in each case as of or prior to the date of the Merger Agreement, and that become known to the Denbury board of directors prior to the receipt of the requisite shareholder vote to adopt the Merger Agreement and approve the Merger (an “Intervening Event”), make an Adverse Recommendation Change; provided that in no event shall any of the following constitute or contribute to an Intervening Event (as defined below).Event: (1) any action taken by the parties pursuant to the affirmative covenants set forth in the applicable section of the Merger Agreement, or the consequences of any such action, (2) any event, circumstance, development, occurrence, fact, condition, effect or change relating to ExxonMobil or its subsidiaries, (3) the fact that Denbury exceeds any internal or published projections, estimates or expectations of Denbury’s revenue, earnings or other financial performance or results of operations for any period; provided that any underlying event, circumstance, development, occurrence, fact, condition, effect or change that is the cause thereof may be taken into account, (4) changes in the price of shares of Denbury common stock or ExxonMobil common stock or (5) the receipt, existence or terms of any Acquisition Proposal or any inquiry, offer, request or proposal that would reasonably be expected to lead to an Acquisition Proposal.

XTO Energy may only take the actions described in eachEach of the two preceding bulletsexceptions above will apply only if XTO Energy’sthe Denbury board of directors determines in good faith, by a majority vote, after consultation with its outside legal advisors,counsel, that the failure to take such action would reasonably likely to be inconsistent with its fiduciary duties under Delaware law. XTO Energy’sIn addition, nothing contained in the Merger Agreement shall prevent the Denbury board of directors cannotfrom complying with Rule 14e-2(a) or Rule 14d-9 under

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the 1934 Act with regard to an Acquisition Proposal so long as any action taken or statement made to so comply is consistent with the Merger Agreement.

The Denbury board of directors will not take any of the actions describedreferred to in the two preceding bulletsfirst exception above unless XTO EnergyDenbury has provideddelivered to ExxonMobil witha prior written notice advising ExxonMobil that it intends to take such action,action. In addition, Denbury will notify ExxonMobil promptly (but in no event later than 24 hours after a director or senior executive officer of Denbury becomes aware of such Acquisition Proposal or request) after receipt by Denbury (or any of its representatives) of any Acquisition Proposal or any request for information relating to Denbury or any of its subsidiaries with respect to any Acquisition Proposal or for access to the business, properties, assets, books, records, work papers or other documents relating to Denbury or any of its subsidiaries by any third party that has indicated it may be considering making, or has made, an Acquisition Proposal. Such notice shall identify the third party making, and after takingthe terms and conditions of, any such action, XTO Energy continues to adviseAcquisition Proposal, indication or request. Denbury shall keep ExxonMobil reasonably informed, on a reasonably current basis, of the status and termsdetails of any discussionssuch Acquisition Proposal, indication or request and negotiationsshall promptly (but in no event later than 24 hours after receipt) provide to ExxonMobil copies of all correspondence and written materials sent or provided to Denbury or any of its subsidiaries that describes any terms or conditions of any Acquisition Proposal (as well as written summaries of any oral communications addressing such matters). Any material amendment to any Acquisition Proposal will be deemed to be a new Acquisition Proposal for purposes of Denbury’s compliance with any third party if such action relates to an Acquisition Proposal.the applicable section of the Merger Agreement.

In addition, XTO Energy’sFurther, the Denbury board of directors mayshall not make an adverse recommendation changetake any of the actions referred to in response to an Acquisition Proposal as describedthe second exception above, unless (i) XTO EnergyDenbury promptly notifies ExxonMobil, in writing at least threefour business days before taking that action, of its intention to do so, specifying in reasonable detail the reasons therefor (which notice shall not constitute an Adverse Recommendation Change), attaching (A) in the case of a Superior Proposal, the most current version of the proposed agreement under which such AcquisitionSuperior Proposal is proposed to be consummated and the identity ofidentifying the third party making the Acquisition Proposal, or (B) in the case of an Intervening Event, a reasonably detailed description of such Intervening Event, (ii) Denbury has negotiated, and (ii)has caused its representatives to negotiate in good faith with ExxonMobil does not make, within three business days afterduring such notice period any revisions to the terms of the Merger Agreement that ExxonMobil proposes and (iii) following the end of such notice period, the Denbury board of directors shall have determined, in consultation with outside legal counsel and its receiptindependent financial advisor, and giving due consideration to such revisions proposed by ExxonMobil, that (A) in the case of that written notification,a Superior Proposal, such Superior Proposal would nevertheless continue to constitute a Superior Proposal (assuming such revisions proposed by ExxonMobil were to be given effect) and (B) in the case of an offer that XTO Energy’sAdverse Recommendation Change to be made pursuant to an Intervening Event, such Intervening Event would nevertheless necessitate the need for such Adverse Recommendation Change, and, in either case, the Denbury board of directors determines in good faith, after consultation with outside legal counsel, that the failure to take such action would be reasonably likely to be inconsistent with its outside financialfiduciary duties under Delaware law.

Denbury will, and legal advisors, is at least as favorablewill cause its subsidiaries and its and their directors and officers to, XTO Energy’s stockholders as suchand shall use reasonable best efforts to cause its and their representatives to, cease immediately and cause to be terminated any and all existing activities, discussions or negotiations, if any, with any third party and its representatives conducted prior to the date of the Merger Agreement with respect to any Acquisition Proposal. Any amendmentDenbury will promptly request that each third party, if any, that has executed a confidentiality agreement within the 12-month period prior to the financial termsdate of the Merger Agreement in connection with its consideration of any Acquisition Proposal return or destroy all confidential information heretofore furnished to such person by or on behalf of Denbury or any of its subsidiaries (and all analyses and other materialmaterials prepared by or on behalf of such person that contains, reflects or analyzes that information), in accordance with the terms of such confidentiality agreements. Denbury shall use its reasonable best efforts to secure all certifications of such return or destruction as promptly as practicable.

“Superior Proposal” means any bona fide, written Acquisition Proposal requires a new written notification from XTO Energy and commences a new three-business-day period undernot solicited in breach of the preceding sentence. XTO Energy’s boardMerger Agreement (but substituting “50%” for all references to “20%” in the definition of directors may not make an adverse recommendation change in response to an Intervening Event as described above, unless (i) XTO Energy has providedsuch term) by any person or

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group (other than ExxonMobil with written information describing the Intervening Event in reasonable detail promptly after becoming aware of it, or becoming aware of or understanding the magnitude or material consequences of it, as applicable, and keeps ExxonMobil reasonably informed of material developments with respect to such Intervening Event, (ii) XTO Energy has provided ExxonMobil at least three business days prior written notice advising ExxonMobilany of its intention to make an adverse recommendation change with respect to such Intervening Event, attaching a reasonably detailed explanation ofsubsidiaries), (i) on terms that the facts underlying the determination by XTO Energy’s board of directors that an Intervening Event has occurred and its need to make an adverse recommendation change in light of the Intervening Event and (iii) ExxonMobil does not make, within three business days after its receipt of that written notification, an offer XTO Energy’sDenbury board of directors determines in good faith after consultation with its outside financial and legal advisors, would obviate the need for an adverse recommendation change in light of the Intervening Event. During any three-business-day period prior to its effecting an adverse recommendation change described above, XTO Energycounsel and its representatives must negotiate in good faith with ExxonMobilfinancial advisor, are more favorable to Denbury’s stockholders than the Merger, taking into account the terms and its representatives regardingconditions (including all financial, regulatory, financing, conditionality, legal and other terms and conditions) of such proposal and the Merger Agreement (taking into account any revisions to the terms of the transactionsMerger Agreement proposed by ExxonMobil in response to such Acquisition Proposal as contemplated by the merger agreementMerger Agreement) and (ii) that the Denbury board of directors determines is reasonably likely to be completed on the terms proposed, by ExxonMobil.taking into account all financial, regulatory, financing, timing, conditionality, legal and other aspects of such proposal.

Acquisition ProposalProposal” means, other than the transactions contemplated by the merger agreement,Merger Agreement, any offer or proposal, or inquiryincluding any amendments, adjustments, changes, revisions and supplements thereto, from any third party relating to, in a single transaction or any third-party indicationa series of interest in,related transactions, (i) any acquisition or purchase, directdirectly or indirect,indirectly, of assets constituting 20% or more than 30% of the consolidated assets of XTO Energy or any ofDenbury and its subsidiaries or more than 30%securities constituting 20% or more of any class of equity or voting securities of XTO EnergyDenbury or any of its subsidiaries whosewith respect to which such subsidiaries’ assets, individually or in the aggregate, constitute, directly or indirectly, 20% or more than 30% of the consolidated assets of XTO Energy,Denbury, (ii) any tender offer (including a self-tender offer) or exchange offer that, if consummated, would result in suchany third party beneficially owning 20% or more than 30% of any class of equity or voting securities of XTO EnergyDenbury or (iii) a merger, consolidation, amalgamation, share exchange, business combination, reorganization, recapitalization, liquidation, dissolution or other similar transaction involving Denbury or any of its subsidiaries whose assets, individually or in the aggregate, constitute 20% or more than 30% of the consolidated assets of XTO Energy or (iii) a merger, consolidation, share exchange, business combination, sale of substantially all the assets, reorganization, recapitalization, liquidation, dissolution or other similar transaction involving XTO Energy or any of its subsidiaries whose assets, individually or in the aggregate, constitute more than 30% of the consolidated assets of XTO Energy.

Intervening Event” means any material event, development, circumstance, occurrence or change in circumstances or facts (including any change in probability or magnitude of circumstances) not related to an Acquisition Proposal that was not known to XTO Energy’s board of directors on the date of the merger agreement (or if known, the magnitude or material consequences of which were not known to or understood by XTO Energy’s board of directors as of that date).

Superior Proposal” means a bona fide, unsolicited written Acquisition Proposal for at least a majority of the outstanding shares of XTO Energy common stock or all or substantially all of the consolidated assets of XTO EnergyDenbury and its subsidiaries which XTO Energy’s board of directors determines in good faith by a majority vote, after consultation with a financial advisor of nationally recognized reputationsubsidiaries.

REASONABLE BEST EFFORTS COVENANT

Denbury and outside legal counsel, and taking into account all the terms and conditions of the Acquisition Proposal, including the expected timing and likelihood of consummation, any break-up fees, expense reimbursement provisions and conditions to consummation, are more favorable and would reasonably be expected to provide greater value to XTO Energy’s stockholders (other than ExxonMobil and any of its affiliates) than as provided under the merger agreement (taking into account any binding proposal by ExxonMobil to amend the terms of the merger agreement pursuant to the merger agreement), which XTO Energy’s board of directors determines is reasonably likely to be consummated and for which financing, if a cash transaction (whether in whole or in part), is then fully committed or reasonably determined to be available by XTO Energy’s board of directors.

XTO Energy has agreed to terminate any discussions or negotiations with any third parties conducted prior to the date that it entered into the merger agreement with respect to any Acquisition Proposal.

ExxonMobil’s Covenant to Vote

ExxonMobil has agreed to vote all shares of XTO Energy common stock beneficially owned by it or any of its subsidiaries in favor of adoption of the merger agreement at the special meeting.

Reasonable Best Efforts Covenant

ExxonMobil and XTO Energy have agreed to use their respective reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable laws and regulationslaw to completeconsummate the transactions contemplated by the merger agreement,Merger Agreement, including using such reasonable best efforts in connection with (i) preparing and filing as promptly as practicable with any governmental authority or other third party all documentation to effect all necessary governmental or third-party filings, notices, petitions, statements, registrations, submissions of information, applications and other documents and (ii) obtaining and maintaining all required approvals, consents, registrations, permits, authorizations and authorizationsother confirmations required to be obtained from any governmental authority or other third party that are necessary, proper or advisable to consummate the merger. However,transactions contemplated by the Merger Agreement.

In furtherance and not in limitation of the foregoing, ExxonMobil isand Denbury have agreed to make or cause to be made an appropriate filing of a notification and report form pursuant to the HSR Act with respect to the transactions contemplated by the Merger Agreement as promptly as practicable and in any event within twenty business days after the date of the Merger Agreement. ExxonMobil and Denbury have agreed to respond as promptly as practicable to any inquiries received from any governmental authority for additional information and documentary material that may be requested pursuant to the HSR Act and use their reasonable best efforts to take all other actions necessary to cause the expiration or termination of the applicable waiting periods under the HSR Act as soon as practicable. ExxonMobil, Merger Sub and Denbury have agreed to (i) notify the other parties of any substantive communication to that party from any governmental authority, and, subject to applicable law, permit the other parties to review and discuss in advance, and consider in good faith the views of the other party in connection with, any proposed written communication to any governmental authority, (ii) promptly furnish the other parties with copies of all correspondence, filings and written communications between it and its representatives, on the one hand, and such governmental authority, on the other hand, with respect to the Merger Agreement and the transactions contemplated thereby, (iii) not required (and without ExxonMobil’s prior written consent, XTO Energy is not permitted) (i) to enter intoparticipate in any settlement, undertaking, consent decree, stipulationsubstantive meeting or agreementdiscussion with any governmental authority in respect of any filings, investigation or inquiry concerning any competition or antitrust matters in connection with the Merger Agreement or the transactions contemplated thereby unless it consults with the other parties in advance and, to the extent permitted by such governmental authority, gives the other parties the opportunity to attend and participate thereat and (iv) furnish the other parties

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with copies of all correspondence, filings, and communications (and memoranda setting forth the substance thereof) between them and their affiliates and their respective representatives on the one hand, and any governmental authority or members or their respective staffs on the other hand, with respect to any competition or antitrust matters in connection with the Merger Agreement.

ExxonMobil and Denbury have agreed to use their reasonable best efforts to resist, defend against, lift or rescind the entry of any injunction or restraining order or other order of any governmental authority prohibiting the parties from consummating the transactions contemplated by the merger agreementMerger Agreement in accordance with the terms thereof; provided that nothing in the Merger Agreement will require ExxonMobil or (i)any of its subsidiaries to divest(and neither Denbury nor any of its subsidiaries will, or otherwise hold separate (including by establishing a trustwill offer or otherwise), or take any other action (or otherwise agree to, do any of the foregoing)following without ExxonMobil’s prior written consent): (i) sell, divest or discontinue any portion of the assets, liabilities, activities, businesses or operations of ExxonMobil or its subsidiaries existing prior to the effective time of the Merger, (ii) accept any other remedy with respect to ExxonMobil’s or any of their respectiveits subsidiaries’ assets, liabilities, activities, businesses or operations, (iii) accept any other remedy with respect to Denbury’s or any of its subsidiaries’ assets, liabilities, activities, businesses or operations (collectively, “Company Activities”) that would, in case of any such other remedy for purposes of this clause (iii), represent a material restriction, limit or restraint on the ability of ExxonMobil or its subsidiaries to conduct or engage in Company Activities after the effective time of the Merger (it being understood and agreed that any remedy with respect to the Company Activities relating to Denbury’s CCUS business will represent a material restriction, limit or restraint on the ability of ExxonMobil or its subsidiaries to conduct or engage in Company Activities after the effective time of the Merger) or (iv) otherwise take or commit to take any actions with respect to Company Activities that would reasonably be expected to, either individually or in the aggregate, have a material adverse effect on Denbury and its subsidiaries (any of the actions described in the preceding clauses (i)-(iv), a “Burdensome Condition”). Notwithstanding the foregoing, at the written request of ExxonMobil, Denbury will, and will cause its subsidiaries to, agree to take any action that would constitute a Burdensome Condition so long as, in the case of actions described in clauses (i)-(ii) of the definition of Burdensome Condition, such action is conditioned upon the occurrence of the effective time of the Merger.

ExxonMobil will, in consultation with Denbury and in consideration of Denbury’s views in good faith, be entitled to direct the defense of the Merger Agreement and the transactions contemplated thereby before any governmental authority and to take the lead in the scheduling of, and strategic planning for, any meetings with, and the conducting of negotiations with, governmental authorities regarding (i) the expiration or termination of any applicable waiting period relating to the Merger under the HSR Act or (ii) obtaining any consent, approval, waiver, clearance, authorization or permission from a governmental authority; provided, however, that it shall afford Denbury a reasonable opportunity to participate therein.

PROXY STATEMENT/PROSPECTUS AND REGISTRATION STATEMENT COVENANT

ExxonMobil and Denbury agreed to prepare and cause to be filed with the SEC the registration statement (in which this proxy statement/prospectus will be included) and this proxy statement/prospectus and shall use commercially reasonable efforts to cause such filing to be made no later than 45 days after the date of the Merger Agreement. Denbury, ExxonMobil and Merger Sub agreed to cooperate with each other in the preparation of the registration statement and the proxy statement/prospectus and furnish all information concerning itself and its affiliates that is required in connection with the preparation of the registration statement or proxy statement/prospectus. No filing of, or amendment or supplement to, the registration statement or proxy statement/prospectus or response to SEC comments will be made by ExxonMobil or Denbury without providing the other party a reasonable opportunity to review and comment thereon and such party shall give reasonable consideration to any comments made by the other party and its representatives; provided, that with respect to documents filed by ExxonMobil which are incorporated by reference in the registration statement or this proxy statement/prospectus, this Denbury right to review shall apply only with respect to information (if any) relating to Denbury’s business, financial condition or results of operations. Each of ExxonMobil and Denbury shall use its commercially reasonable efforts to (i) cause the registration statement and the proxy statement/prospectus at the

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date that it (and any amendment or supplement thereto) is first published, sent, or given to the stockholders of Denbury and at the time of the meeting of Denbury stockholders adopting the Merger Agreement and approving the Merger, to (A) comply as to form in all material respects with the requirements of the 1933 Act and 1934 Act, respectively, and the rules and regulations promulgated thereunder and (B) not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading and (ii) have the registration statement declared effective under the 1933 Act as promptly as practicable after its filing and keep the registration statement effective for so long as necessary to consummate the Merger.

Each party will notify the other party promptly of the receipt of any comments or other communications, whether written or oral, that such party or its representatives may receive from time to time from the SEC or the staff of the SEC and of any request by the SEC or the staff of the SEC for amendments or supplements to the registration statement or this proxy statement/prospectus or for additional information and each party will supply the other with copies of all correspondence between it or any of its representatives, on the one hand, and the SEC or the staff of the SEC, on the other hand, with respect to this proxy statement/prospectus or the transactions contemplated by the Merger Agreement. ExxonMobil will take the lead in any meetings or conferences with the SEC. If at any time prior to the meeting of Denbury stockholders adopting the Merger Agreement and approving the Merger (or any adjournment or postponement thereof) any information relating to ExxonMobil or Denbury, or any of their respective affiliates’ businesses, assetsaffiliates, directors or properties, exceptofficers, is discovered by ExxonMobil or Denbury that should be set forth in an amendment or supplement to the registration statement or this proxy statement/prospectus, so that the registration statement or this proxy statement/prospectus, respectively, would not include any misstatement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the party that discovers such information will promptly notify the other party hereto and an appropriate amendment or supplement describing such information will be promptly filed with the SEC and, to the extent such action or actions (ofrequired by applicable law, disseminated to the types described in clauses (i) and (ii) above) would not reasonably be expected to, individually or in the aggregate, restrict, in any material respect, or otherwise negatively and materially impact the natural gas (including natural gas liquids) exploration, production and sales businessesstockholders of XTO Energy and its subsidiaries, taken as a whole, or the natural gas (including natural gas liquids) exploration, production and sales businesses of ExxonMobil and its subsidiaries, taken as a whole.Denbury.

Proxy Statement and Registration Statement Covenant

XTO Energy and ExxonMobil have agreed to prepare and file a proxy statement and a registration statement with the SEC in connection with the merger. XTO Energy and ExxonMobilDenbury will use their reasonable best efforts to cause the registration statement to become effective under the Securities Act of 1933, as amended, which is referred to in this proxy statement/prospectus as the Securities Act, as soon after such filing as practicable, and to keep the

registration statement effective as long as is necessary to consummate the merger. XTO Energy will use its reasonable best efforts to cause the proxy statementstatement/prospectus to be mailed to itsthe stockholders of Denbury as promptly as practicable after the registration statement is declared effective and, except toby the extent that the XTO Energy board of directors makes an adverse recommendation change as described under “—No Solicitation by XTO Energy” beginning on page [] of this proxy statement/prospectus, such proxy statement will contain the recommendation of XTO Energy’s board of directors that XTO Energy stockholders vote in favor of adoption of the merger agreement.SEC.

Indemnification and InsuranceINDEMNIFICATION AND INSURANCE

The merger agreementMerger Agreement provides that, for a period of six years following the effective timeafter completion of the merger, XTO Energy (asMerger, the surviving corporation in the merger)Surviving Corporation will (and ExxonMobil will cause XTO Energy to) indemnify and hold harmless and provide advancement of expenses to, eachthe present and former officerdirectors, officers, employees, fiduciaries and directoragents of XTO EnergyDenbury and its subsidiaries, and any individuals serving in such capacity at or with respect to other persons at Denbury’s or its subsidiaries’ request (each, an “Indemnified Person”) from and against any losses, damages, liabilities, costs, expenses (including attorneys’ fees), judgments, fines, penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect thereof) in respect of (i) acts or omissions occurringthe Indemnified Persons’ having served in such capacity at or prior to the effective time, (ii) the fact that such person was a director or officer (or is or was serving at the request of XTO Energy or any of its subsidiaries as a director or officer of another entity prior to the effective timecompletion of the merger) and (iii) the merger agreement and the transactions contemplated thereby,Merger, in each case, to the fullest extent permitted by the Delaware law or any other applicable lawGeneral Corporation Law or provided under XTO Energy’s or its subsidiaries’ organizational documents. ExxonMobil has agreed to guarantee XTO Energy’s payment and performance obligations with respect to the foregoing.

ExxonMobil has agreed that, for a period of six years after the effective time of the merger, it will cause to be maintained in effect provisions in the surviving corporation’sDenbury’s certificate of incorporation and bylaws in effect on the date of the Merger Agreement; provided that such indemnification will be subject to any limitation imposed from time to time under applicable law. If any Indemnified Person is made party to any claim, action, suit, proceeding or investigation arising out of or relating to matters that would be indemnifiable pursuant to the immediately preceding sentence, the Surviving Corporation shall advance fees, costs and expenses (including attorneys’ fees and disbursements) as incurred by such Indemnified Person in connection with and prior to the final disposition of such claim, action, suit, proceeding or investigation in each case to the extent Denbury is required to do so and on the same terms as provided in Denbury’s bylaws in effect on the date of the Merger Agreement; provided that any Indemnified Person wishing to claim indemnification or advancement of expenses, upon learning of any such proceeding, will notify the Surviving Corporation (but the failure so to notify will not relieve a party from any obligations that it may have, except to the extent such failure materially prejudices such party’s position with respect to such claims).

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ExxonMobil has agreed to cause the Surviving Corporation to continue to maintain in effect for six years after completion of the Merger provisions in the Surviving Corporation’s certificate of incorporation and bylaws (or in such documents of any successor to the business of the Surviving Corporation) regarding elimination of liability of directors, indemnification of officers, directors, officersemployees, fiduciaries and employeesagents and advancement of fees, costs and expenses with respect to matters existing or occurring at or prior to the effective time that are no less advantageous to the intended beneficiaries than the corresponding provisions in existence on the date of the merger agreement in XTO Energy’s restated certificateMerger Agreement.

Prior to the completion of incorporation and amended and restated bylaws.

the Merger, Denbury will or, if Denbury is unable to, ExxonMobil has also agreed to procure, for each person currently covered by XTO Energy’s officers’ and directors’ liability insurance policy,will cause the provisionSurviving Corporation as of officers’ and directors’ liability insurance with respect to matters existing or occurring prior to the effective time of the merger (includingMerger to, obtain and fully pay the premium for the non-cancellable extension of the directors’ and officers’ liability coverage of Denbury’s existing directors’ and officers’ insurance policies and Denbury’s existing fiduciary liability insurance policies (collectively, “D&O Insurance”), which D&O Insurance shall (i) be for a claims reporting or discovery period of at least six years from and after the completion of the Merger with respect to actsany claim related to any period of time at or omissions occurring in connection withprior to the merger agreement and the transactions contemplated by the merger agreement) on terms with respect to coverage and in amounts no less favorable than those of XTO Energy’s policy in effect on the datecompletion of the merger agreementMerger, (ii) be from an insurance carrier with the same or better credit rating as XTO Energy’sDenbury’s current insurance carrier. Such insurancecarrier with respect to D&O Insurance and (iii) have terms, conditions, retentions and limits of liability that are no less favorable than the coverage provided under Denbury’s existing policies with respect to any actual or alleged error, misstatement, misleading statement, act, omission, neglect, breach of duty or any matter claimed against an Indemnified Person by reason of him or her having served in such capacity that existed or occurred at or prior to completion of the Merger; provided that Denbury will give ExxonMobil a reasonable opportunity to participate in the selection of such tail policy will be underwrittenand Denbury shall give reasonable and good faith consideration to any comments made by Ancon Insurance Company, Inc., a wholly owned subsidiaryExxonMobil with respect thereto; provided further that the cost of ExxonMobil, which is referred to in this proxy statement/prospectus as Ancon, so long as at the time of underwritingany such tail policy Ancon has the same or better rating as XTO Energy’s current insurance carrier. However, ExxonMobil isshall not required to expend annually in excess ofexceed 300% of the aggregate annual premiumspremium paid by XTO Energy and its subsidiaries on the dateDenbury in respect of the merger agreement for such coverage;D&O Insurance; and toprovided, further, that if the extent that the annualaggregate premiums of such coveragetail policy exceed thatsuch amount, Denbury will, or ExxonMobil is requiredwill cause the Surviving Corporation to, obtain coverage that is then available for 300% of such annual premium.

In lieu of ExxonMobil providing the insurance coverage described in the preceding paragraph, prior to the effective time of the merger, XTO Energy mayas applicable, obtain a fully prepaid “tail” insurance policy with a claims period of six years after the effective time of the merger from Ancon (or if Ancon does not have, at the time of underwriting such policy, the same or better rating as XTO Energy’s current insurance carrier, any other insurance carriergreatest coverage available, with the same or better rating as XTO Energy’s current insurance carrier) in respect ofto matters existing or occurring prior to the effective timecompletion of the merger (including with respect to acts or omissions occurring in connection with the merger agreement and the transactions contemplated by the merger agreement) coveringMerger, for a cost not exceeding such amount.

EMPLOYEE MATTERS

The Merger Agreement provides that each person currently covered by XTO Energy’s officers’ and directors’ liability insurance policy, on terms with respect to coverage and in amounts no less favorable than thoseemployee of such policy in effect on the date of the merger agreement. However, if the aggregate annual premiums for such “tail” policy exceeds 300% of the annual premiums paid by XTO EnergyDenbury and its subsidiaries on the date of the merger agreement for such coverage, then XTO Energy may only procure the maximum amount of coverage that is then available for 300% of such annual premium.

Employee Matters

Compensation. For one year following the effective time of the merger, ExxonMobil will provide to employees of XTO Energy or any of its subsidiaries as of the effective time of the merger who continue employment with XTO Energy (as the surviving corporation in the merger) or any of its affiliates, who are referred to in this proxy statement/prospectus as continuing employees:

base salaries that are not less than the salaries provided to such employees by XTO Energy and its subsidiaries, as in effect on December 1, 2009;

except with respect to certain more senior level continuing employees, annual or semi-annual, as applicable, cash bonuses that are not less than the annual or semi-annual, as applicable, cash bonuses provided to such employees by XTO Energy and its subsidiaries on December 1, 2009; and

benefits (other than equity-based compensation and certain other excepted benefits) that (i) to the extent provided under any employee benefit plan maintained by XTO Energy, are substantially comparable in the aggregate to the benefits provided by XTO Energy and its subsidiaries under that plan immediately prior to the effective time of the merger and (ii)Merger who continues to the extent provided under any employee benefit plan maintainedbe employed by ExxonMobil or any of its affiliates (including Denbury and its subsidiaries) during the period from the completion of the Merger through the first anniversary thereof or shorter period of employment (such employees collectively, the “Continuing Employees”) will be provided with (i) a base salary or base wages and target annual cash incentive compensation opportunities that are substantially comparableno less favorable in the aggregate to the benefitsthan those provided to similarly-situated ExxonMobil employees under that plan. ExxonMobil is not required to ensure that the aggregate level of benefits for continuing employees across all benefit plans maintained by XTO Energy or ExxonMobil after the effective time of the merger be substantially comparable to the benefits providedDenbury and its subsidiaries immediately prior to the effective time of the merger under benefit plans maintainedMerger and (ii) employee benefits (subject to certain exceptions) that are no less favorable in the aggregate than those provided by XTO Energy.

Employee Benefit Plans.With respect to each employee benefit plan maintained by ExxonMobil or any ofDenbury and its subsidiaries in which a continuing employee will become a participant, the continuing employee will receive full credit for service with XTO Energy or any of its subsidiaries for purposes of eligibilityimmediately prior to participate and vesting, to the same extent that such service was recognized as of the effective time of the merger underMerger. However, each Continuing Employee covered by a comparable plancollective bargaining agreement will solely be provided with compensation and benefits pursuant to the terms of XTO Energy and its subsidiaries in whichsuch collective bargaining agreement.

Upon the continuing employee participated (but not for purposes of benefit accrual under any defined benefit pension plans, special or early retirement programs, window separation programs or similar plans which may be in effect from time to time).

With respect to any welfare plan maintained by ExxonMobil or any of its subsidiaries in which any continuing employee is eligible to participate after the effective timecompletion of the merger,Merger, ExxonMobil will, or will cause its subsidiariesaffiliates to, waive all pre-existing condition limitations, exclusions, actively-at-work requirements and waiting periods applicableuse commercially reasonable efforts to such employees, except torecognize the extent such pre-existing condition limitations, exclusions, actively-at-work requirements and waiting periods would not have been satisfied or waived under the comparable planservice of XTO Energyeach Continuing Employee with Denbury and its subsidiaries (other than for benefit accrual purposes, except for paid time off and severance) under any benefit plan or arrangement of ExxonMobil, the Surviving Corporation, or any of their respective affiliates providing benefits to such Continuing Employee after the completion of the Merger to the same extent such service credit was granted to such Continuing Employee under any analogous benefit plan or arrangement of Denbury or any of its subsidiaries.

Prior to the closing date of the Merger (and so long as not otherwise directed in whichwriting by ExxonMobil at least five business days prior to the continuing employee participated. If a continuing employee commencesclosing date of the Merger), Denbury will terminate or cause the termination of its 401(k) plan maintained for current and former employees of Denbury and its subsidiaries and its deferred compensation plan for non-employee directors. In connection with Denbury’s termination of its 401(k) plan,

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ExxonMobil will permit Continuing Employees to make rollover contributions in an ExxonMobil tax-qualified defined contribution plan. Immediately following the closing date of the Merger, Continuing Employees will be eligible to commence participation in any health benefitExxonMobil’s tax-qualified defined contribution plan if Denbury’s 401(k) plan is terminated as described above.

TAX MATTERS

The Merger Agreement provides that each of ExxonMobil and Denbury will use its reasonable best efforts (i) to cause the Merger to qualify as a “reorganization” within the meaning of Section 368(a) of the Code, and (ii) not to, and not permit or cause any of its respective subsidiaries or affiliates to, take or cause to be taken any action reasonably likely to cause the Merger to fail to qualify as a “reorganization” within the meaning of Section 368(a) of the Code. The Merger Agreement also provides that (x) it is not a condition to either party’s obligation to complete the Merger that the Merger qualify as a “reorganization” within the meaning of Section 368(a) of the Code and (y) if the Merger fails to qualify as a “reorganization” within the meaning of Section 368(a) of the Code, neither party, nor their respective subsidiaries, will have any liability or obligation to holders of Denbury common stock as a result of such failure.

OTHER AGREEMENTS

The Merger Agreement contains certain other covenants and agreements, including covenants and agreements requiring, among other things, and subject to certain exceptions and qualifications described in the Merger Agreement:

ExxonMobil and Denbury to cooperate with the other and use reasonable best efforts in taking, or causing to be taken, all actions reasonably necessary, proper or advisable to delist Denbury’s common stock from the NYSE and terminate its registration under the Exchange Act; provided that such delisting and termination will not be effective until the completion of the Merger;

each of ExxonMobil and Denbury to promptly notify, and keep the other informed, of (i) any notice or other communication from any person alleging that the consent of such person is or may be required in connection with the transactions contemplated by the Merger Agreement, (ii) any notice or other communication from any governmental authority in connection with the transactions contemplated by the Merger Agreement, (iii) any actions commenced or, to its knowledge (or, in the case of Denbury or its subsidiaries, to the knowledge of Denbury), threatened against, relating to or involving or otherwise affecting Denbury or any of its subsidiaries after the commencement of a calendar year, to the extent commercially practicable,or ExxonMobil will cause such plan to recognize the dollar amount of all co-payments, deductibles and similar expenses incurred by such continuing employee during such calendar year for purposes of satisfying such calendar year’s deductible and co-payment limitations under the relevant welfare benefit plans in which such continuing employee commences participation.

ExxonMobil has agreed to, and to cause the surviving corporation in the merger to, (i) enter into and perform under the consulting agreements with XTO Energy’s named executive officers described under “Interests of Certain Persons in the Merger—XTO Energy Named Executive Officers—Consulting Agreements and Amendments to Share Grant Agreements” beginning on page [] of this proxy statement/prospectus and (ii) continue, in accordance with their respective terms, the Fourth Amended and Restated XTO Energy Inc. Management Group Employee Severance Protection Plan (which will become effective on the day prior to completion of the merger, as described under “Interests of Certain Persons in the Merger—Other Executive

Officers of XTO Energy—Management Severance Plan” beginning on page [] of this proxy statement/prospectus) and the Fourth Amended and Restated XTO Energy, Inc. Employee Severance Protection Plan (which will become effective on the day prior to completion of the merger).

Under the terms of the merger agreement, none of the matters described under this heading “—Employee Matters” section will (i) be treated as an amendment of, or undertaking to amend, any benefit plan, (ii) prohibit ExxonMobil or any of its subsidiaries, from amending any employee benefit plan or (iii) confer any rights or benefitsas the case may be, that, if pending on any person other than the parties to the merger agreement.

Continuation of XTO Energy’s Existence

For a period of two years following the effective time of the merger, ExxonMobil has agreed to (i) maintain (or cause to be maintained) the surviving corporation in the merger as a wholly owned subsidiary of ExxonMobil with the name “XTO Energy Inc.” (and ExxonMobil must continue the commercial use of that name) and (ii) maintain and continue (or cause to be maintained and continued) the operations of XTO Energy’s current facilities in Fort Worth, Texas. Furthermore, so long as XTO Energy employees who as of the effective time of the merger work from or are based at such Fort Worth, Texas locations remain employed by ExxonMobil or any of its subsidiaries, ExxonMobil has agreed to retain such employees at their current location for a one-year period following the effective time of the merger.

Terminationdate of the Merger Agreement, would have been required to have been disclosed or that relate to the consummation of the transactions contemplated by the Merger Agreement, (iv) knowledge of any inaccuracy of any representation or warranty made by that party contained in the Merger Agreement, or any other fact, event or circumstance, that would reasonably be expected to cause any condition to the Merger to not be satisfied and (v) knowledge of any failure of that party to comply with or satisfy any covenant, condition or agreement that would reasonably be expected to cause any condition to the Merger to not be satisfied;

subject to certain exceptions, ExxonMobil and Denbury to consult with each other before issuing any press release, making any public statement, scheduling a press conference or taking certain other actions, in each case with respect to the Merger Agreement or the transactions contemplated by the Merger Agreement;

prior to the completion of the Merger, ExxonMobil and Denbury to take all such steps as may be required to cause any dispositions of (or other transactions in) Denbury common stock (including derivative securities with respect to such Denbury common stock) resulting from the transactions contemplated by the Merger Agreement or acquisitions of ExxonMobil common stock (including derivative securities with respect to ExxonMobil common stock) resulting from the transactions contemplated by the Merger Agreement, in each case, by each officer or director who is subject to the

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reporting requirements under Section 16(a) of the Exchange Act with respect to Denbury to be exempt under Rule 16b-3 under the Exchange Act; and

if any “control share acquisition,” “fair price,” “moratorium” or other antitakeover or similar statute or regulation becomes applicable to the transactions contemplated by the Merger Agreement, each of Denbury, ExxonMobil and Merger Sub and the respective members of their boards of directors shall, to the extent permitted by applicable law, use reasonable best efforts to grant such approvals and to take such actions as are reasonably necessary so that the transactions contemplated by the Merger Agreement may be consummated as promptly as practicable on the terms contemplated therein and otherwise to take all such other actions as are reasonably necessary to eliminate or minimize the effects of any such statute or regulation on the transactions contemplated thereby.

TERMINATION OF THE MERGER AGREEMENT

The merger agreementMerger Agreement may be terminated at any time before the effective timecompletion of the merger, whether before or after XTO Energy stockholders have adopted the merger agreement,Merger in any of the following ways:

 

by mutual written consentagreement of ExxonMobil and XTO Energy;Denbury;

 

by either ExxonMobilDenbury or XTO EnergyExxonMobil, if:

 

the mergerMerger has not been consummatedcompleted on or before September 15, 2010, provided thatthe initial end date (July 13, 2024) or, if certainall conditions to the merger related to regulatory matters have not been satisfied and all other conditions to closingcompletion of the Merger have been satisfied on the initial end date other than certain conditions relating to regulatory approvals and either ExxonMobil or (toDenbury elects to extend the extent permitted by applicable law) waived, theninitial end date to an extended end date (January 13, 2025); however, the date will be automatically extended to December 31, 2010, which date (as it may be extended) is referred to in this proxy statement/prospectus as the end date. The right to terminate the merger agreement under this provision isMerger Agreement at the initial end date or the extended end date, as applicable, or to extend the initial end date will not be available to any party to the Merger Agreement whose breach of any provision of the merger agreementMerger Agreement results in the failure of the mergerMerger to occur on or before the end date;be completed by such time;

 

any governmental authority of competent jurisdiction issues an injunction, order or decree or enacts an applicable law order, injunction, judgment, decree, rulingthat (A) prohibits or other similar requirement is in effect that makes completionillegal consummation of the merger illegalMerger or otherwise prohibited, or(B) permanently enjoins XTO EnergyExxonMobil or ExxonMobilMerger Sub from consummating the mergerMerger, and any such injunction, order, decree or applicable law including an injunction,referenced has become final and non-appealable. A party seeking to terminate the merger agreement under this provision must have fulfilled its obligations described under “—Reasonable Best Efforts Covenant” beginning on page [] of this proxy statement/prospectus;nonappealable; or

 

XTO EnergyDenbury stockholders fail to approve and adopt the merger agreementMerger Agreement upon a vote taken on a proposal to approve and adopt the Merger Agreement at the XTO Energya Denbury stockholders’ meeting called for that purpose (or at any adjournment or postponement thereof); or

there has been a breach by the other party of any representation or warranty or failure to perform any covenant or agreement that would result in the failure of the other party to satisfy the applicable condition to the closing related to accuracy of representations and warranties or performance of covenants, and such condition is incapable of being satisfied by the end date;purpose; or

 

by ExxonMobil if (i) XTO Energy’s boardif:

before the requisite Denbury stockholder vote on a proposal to approve and adopt the Merger Agreement has been obtained, an Adverse Recommendation Change has occurred;

before the Merger has been completed, a breach of any representation or warranty or failure to perform any covenant or agreement on the part of Denbury set forth in the Merger Agreement has occurred that would cause the conditions to closing not to be satisfied and such breach or failure is incapable of being cured by the end date or, if curable by the end date, is not cured by Denbury within 30 days after receipt by Denbury of written notice of such breach or failure; provided that, at the time of the delivery of such notice or thereafter, ExxonMobil or Merger Sub is not in material breach of its or their obligations under the Merger Agreement so as to cause any of the closing conditions not to be capable of being satisfied; or

a Specified Pipeline Event (as defined below) has occurred and ExxonMobil exercises such termination right within twenty business days of directors makes an adverse recommendation change, (ii) XTO Energy’s boardbecoming aware of directors failsthe occurrence of a Specified Pipeline Event; or

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by Denbury:

prior to reaffirm its recommendation to XTO Energy stockholders in favor ofthe Denbury stockholders’ approval and adoption of the mergerMerger Agreement, in order to enter into an alternative acquisition agreement within 10 business days after receipt of any written requestwith respect to do so from ExxonMobil or (iii) prior to the adoption of the merger agreement by XTO Energy’s stockholders, an intentional and material breach (a) by XTO Energy of its obligations

described under “—No Solicitation by XTO Energy” beginning on page [] of this proxy statement/prospectus has occurred that is sanctioned or permitted by XTO Energy or (b) by XTO Energy of its obligations to call and hold a special meeting of its stockholders for purposes of adopting the merger agreement has occurred.

Excepta Superior Proposal, as described below under “—Termination Fee Payable by XTO Energy,”“The Merger Agreement—No Solicitation” beginning on page []125 of this proxy statement/prospectus, ifprovided that concurrently with such termination, Denbury pays, or causes to be paid, to ExxonMobil, in immediately available funds the mergerCompany Termination Fee, as defined below; or

prior to the completion of the Merger, if a breach of any representation or warranty or failure to perform any covenant or agreement on the part of ExxonMobil set forth in this Agreement shall have occurred that would cause the closing conditions not to be satisfied and such breach or failure is incapable of being cured by the end date or, if curable by the end date, is not cured by ExxonMobil or Merger Sub within 30 days after receipt by ExxonMobil of written notice of such breach or failure; provided that, at the time of the delivery of such notice or thereafter, Denbury is not be in material breach of its obligations under the Merger Agreement so as to cause any of the closing conditions not to be capable of being satisfied.

If the Merger Agreement is validly terminated, the merger agreementMerger Agreement will become void and of no effect without any liability on the part of any party unless the termination resulted from the intentional and willful material failure of any party to perform a covenant in the merger agreement. NoneMerger Agreement (or any stockholder, director, officer, employee, agent, consultant or representative of the partiesany party to the merger agreementMerger Agreement) to the other parties, except that certain specified provisions will survive termination. However, neither ExxonMobil nor Denbury will be relieved or released from any liabilities or damages arising out of intentional and willful breach of any provision of the merger agreement, and the parties acknowledge that such liabilities or damages may include, to the extent proven, the benefit of the bargain lost(i) fraud by a party’s shareholders, which will be deemed to be damages of such party inor (ii) the intentional breach by such event.

Termination Fee Payable by XTO Energy

XTO Energy has agreed to pay ExxonMobil a termination fee of $900 million if:

the merger agreement is terminated by ExxonMobil because (i) XTO Energy’s board of directors makes an adverse recommendation change, (ii) XTO Energy’s board of directors fails to reaffirm its recommendation to XTO Energy stockholders in favor of adoption of the merger agreement within 10 business days after receipt of any written request to do so from ExxonMobil or (iii) prior to the adoption of the merger agreement by XTO Energy’s stockholders, an intentional and material breach (a) by XTO Energyparty of its obligations described above under “—No Solicitation by XTO Energy” beginning on page [] of this proxy statement/prospectus has occurred that is sanctionedcovenants or permitted by XTO Energy or (b) by XTO Energy of its obligations to call and hold a special meeting of its stockholders for purposes of adoptingagreements set forth in the merger agreement has occurred; orMerger Agreement.

(i) ifIf the merger agreementMerger Agreement is terminated by ExxonMobil or XTO EnergyDenbury due to an Adverse Recommendation Change or a Superior Proposal, Denbury agrees to pay to ExxonMobil $144,000,000 in immediately available funds (the “Company Termination Fee”), in the case of termination by ExxonMobil, within three business days after such termination and, in the case of termination by Denbury, contemporaneously with and as a condition to such termination.

If (A) the Merger Agreement is terminated by ExxonMobil or Denbury because either (a) the mergerrequisite Denbury shareholder vote to approve the Merger has not been completed by the end date and the XTO Energy stockholders’ meeting for purposes of adopting the merger agreement has not been held onobtained or because prior to completion of the fifth business dayMerger there has been a breach of a representation or warranty or failure to perform any covenant on the part of Denbury that has caused the closing conditions not to be satisfied, (B) after the date of the Merger Agreement and prior to thesuch termination, date (unless the meeting has not been held due to a material breach by ExxonMobil of its obligations under the merger agreement relating to the registration statement on Form S-4 of which this proxy statement/prospectus is a part) or (b) XTO Energy stockholders fail to adopt the merger agreement at the XTO Energy stockholders’ meeting called for such purpose, (ii) an Acquisition Proposal has been publicly announced after the date of the merger agreement and prioror otherwise been communicated to the date of such terminationDenbury stockholders and such Acquisition Proposal has not been publicly and unconditionally withdrawn on or prior to (x) the fifth business day prior to such termination in the case of clause (i)(a) above and (y) the fifth business day prior to XTO Energy’s stockholders’ meeting in the case of clause (i)(b) above, and (iii)(C) within 12 months following the date of such termination, XTO Energy completes, entersDenbury or any of its subsidiaries shall have entered into a definitive agreement relatingwith respect to or recommendsrecommended to XTO Energyits stockholders an Acquisition Proposal (provided that for purposesor an Acquisition Proposal shall have been consummated, then Denbury will pay to ExxonMobil in immediately available funds, prior to or concurrently with the occurrence of the foregoingapplicable event described in clause (iii)(C), each reference to “30%”the Company Termination Fee.

Specified Pipeline Event

“Specified Pipeline Event” means any event, circumstance, development, occurrence, fact, condition, effect or change that, individually or in the definitionaggregate, has resulted in, or would reasonably be expected to result in, a material detriment in the ability of Acquisition Proposal is deemedDenbury or its subsidiaries (or after the completion of the Merger, ExxonMobil and its subsidiaries) to realize the benefits or have the use of the Green Pipeline or the NEJD Pipeline, excluding any event, change, circumstance, effect, occurrence, condition, state of facts or development to the extent arising or resulting from:

changes, developments or conditions after the date hereof in the general economic conditions in the United States, including in the financial, debt, credit, capital or securities markets, including changes in interest rates;

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changes in GAAP or other accounting standards or interpretations thereof;

changes in commodity prices, including the prices of natural gas, crude oil, refined petroleum products, other hydrocarbon products, natural gas liquids, carbon dioxide, methane, nitrous oxide, fluorinated and other “greenhouse” gases, and other commodities;

the negotiation, execution, announcement or performance of the Merger Agreement or the consummation of the Merger or the other transactions contemplated thereby, including the impact thereof on the relationships, contractual or otherwise, with employees, labor unions, financing sources, customers, suppliers, distributors, partners or other Persons (but, subject to any Antitrust Actions, excluding governmental authorities), or any action or claim made or brought by any of the current or former stockholders of Denbury (or on their behalf or on behalf of Denbury) against Denbury or any of its directors, officers or employees arising out of the Merger Agreement or the Merger or the other transactions contemplated thereby (it being understood that this bullet will not apply to a breach of any representation or warranty related to the announcement or consummation of the transactions contemplated by the Merger Agreement);

any Antitrust Actions; or

any failure of any of Denbury or any of its subsidiaries to meet, with respect to any period or periods, any internal or published projections, forecasts, estimates of earnings or revenues or business plans relating to either of the Green Pipeline or the NEJD Pipeline (but not the underlying facts or basis for such failure to meet projections, forecasts, estimates of earnings or revenues or business plans, which may be taken into account in determining whether there has been a referenceSpecified Pipeline Event to “50%”)the extent not otherwise falling within any of the other exceptions set forth in the first five bullets above).

InIf the Merger Agreement is terminated by ExxonMobil because a Specified Pipeline event ofhas occurred, ExxonMobil agrees to pay Denbury contemporaneously with and as a condition to such termination, a termination fee of $144,000,000 (the “Parent Pipeline Termination Fee”), in immediately available funds.

EXCLUSIVE REMEDY

Except in the case of fraud or willful breach by any party of its covenants or agreements in the Merger Agreement, in circumstances where a termination fee is payable or is paid by Denbury or by ExxonMobil, as discussed under “The Merger Agreement—Termination of the merger agreement underMerger Agreement” beginning on page 133 of this proxy statement/prospectus, such payment will be the circumstances giving rise to the payment of the termination fee, ExxonMobil’sreceiving party’s sole and exclusive remedy for damages against XTO Energy isthe paying party and its respective subsidiaries and their respective former, current or future partners, stockholders, managers, members, affiliates and representatives, and none of ExxonMobil, Denbury, any of their respective subsidiaries or any of their respective former, current or future partners, stockholders, managers, members, affiliates or representatives, as applicable, will have any further liability or obligation, in each case relating to or arising out of the Merger Agreement or the transactions contemplated by the Merger Agreement. Notwithstanding the foregoing, the payment of thea termination fee by XTO Energy as provided above, and XTO Energyeither party will not be required to pay ExxonMobilrelieve either party from any liability of obligation under the termination fee on more than one occasion.Confidentiality Agreement.

To the extent that thea termination fee is not promptly paid by XTO Energy, XTO EnergyDenbury or ExxonMobil when due, the party failing to pay the termination fee is also required to pay anyto the other party interest on such fee at the annual rate equal to the prime rate, as published in The Wall Street Journal in effect on the date such payment was required to be made, through the date such payment was actually received, or such lesser rate as is the maximum permitted by applicable law.

OTHER EXPENSES

Except as described above, the Merger Agreement provides that each of ExxonMobil and Denbury will pay its own costs and expenses incurred by ExxonMobil or Merger Sub in connection with legal enforcement action taken against XTO Energy for such amount, together with interestthe transactions contemplated by the Merger Agreement.

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SPECIFIC PERFORMANCE; REMEDIES

The parties to the Merger Agreement are entitled to an injunction (even if monetary damages are available) to prevent breaches of the Merger Agreement or to enforce specifically the terms and provisions of the Merger Agreement. This entitlement is in addition to any other remedy to which the parties are entitled at law or in equity.

THIRD PARTY BENEFICIARIES

The Merger Agreement is not intended to and does not confer upon any person other than the parties to the Merger Agreement any rights or remedies, except:

the right of Denbury stockholders and equity award holders to receive the applicable Merger Consideration in respect of their shares of Denbury common stock and Denbury equity awards, as applicable; and

the right of the Indemnified Persons to enforce the obligations described under “The Merger Agreement—Indemnification and Insurance” beginning on the unpaid fee, cost or expense.page 130 of this proxy statement/prospectus.

Amendments; WaiversAMENDMENTS; WAIVERS

Any provision of the merger agreementMerger Agreement may be amended or waived before the effective timecompletion of the mergerMerger if the amendment or waiver is in writing and is signed, in the case of an amendment, by each party to the merger agreementMerger Agreement or, in the case of a waiver, by each party against whom the waiver is to be effective, provided that, aftereffective. After approval and adoption of the merger agreementMerger Agreement by XTO EnergyDenbury stockholders, the parties may not amend or waive any provision of the merger agreementMerger Agreement if such amendment or waiver would require further approval of XTO EnergyDenbury stockholders under Delawareapplicable law unless such approval has first been obtained.

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ExpensesU.S. FEDERAL INCOME TAX CONSEQUENCES OF THE MERGER

The following general discussion sets forth the material U.S. federal income tax consequences of the Merger to U.S. holders (as defined below) of Denbury common stock that exchange their shares of Denbury common stock for ExxonMobil common stock in the Merger. This discussion does not address any tax consequences arising under the laws of any U.S. state or local or Exceptnon-U.S. jurisdiction, or under any U.S. federal laws other than those pertaining to income tax. In addition, it does not address any alternative minimum tax consequences of the Merger or the potential application of the Medicare contribution tax on net investment income. This discussion is based upon the Code, the regulations promulgated under the Code and court and administrative rulings and decisions, all as discussedin effect on the date of this proxy statement/prospectus. These laws may change, possibly retroactively, and any such change could affect the accuracy of the statements and conclusions set forth in this discussion.

This discussion addresses only consequences to those U.S. holders that hold their shares of Denbury common stock as a “capital asset” within the meaning of Section 1221 of the Code. Further, this discussion does not address all aspects of U.S. federal income taxation that may be relevant to U.S. holders in light of their particular circumstances or that may be applicable to U.S. holders that are subject to special treatment under “—Termination Fee Payable by XTO Energy” beginningthe U.S. federal income tax laws, such as:

a financial institution;

a tax-exempt organization;

an S corporation or other pass-through entity (or an investor in an S corporation or other pass-through entity);

an insurance company;

a mutual fund;

a dealer or broker in stocks and securities, or currencies;

a trader in securities that elects mark-to-market treatment;

a holder of Denbury common stock or Denbury equity awards that received Denbury common stock or Denbury equity awards through a tax-qualified retirement plan or otherwise as compensation;

a person that is not a U.S. holder (as defined below);

a person that has a functional currency other than the U.S. dollar;

a holder of Denbury common stock that holds Denbury common stock as part of a hedge, straddle, constructive sale, conversion or other integrated transaction;

a person who actually or constructively owns more than 5% of Denbury common stock;

a person subject to special tax accounting rules (including rules requiring recognition of gross income based on page [a taxpayer’s applicable financial statement); or

a United States expatriate.

For purposes of this discussion, the term “U.S. holder” means a beneficial owner of Denbury common stock that is for U.S. federal income tax purposes (i) an individual who is a citizen or resident of the United States, (ii) a corporation (including any entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States or any state thereof or the District of Columbia, (iii) a trust if (x) a U.S. court is able to exercise primary supervision over the trust’s administration and one or more U.S. persons are authorized to control all substantial decisions of the trust or (y) it has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person, or (iv) an estate that is subject to U.S. federal income tax on its income regardless of its source.

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The U.S. federal income tax consequences to a partner in an entity or arrangement treated as a partnership, for U.S. federal income tax purposes, that holds Denbury common stock generally will depend on the status of the partner and the activities of the partnership. Partners in such a partnership holding Denbury common stock should consult their own tax advisors.

Determining the tax consequences of the Merger may be complex. U.S. holders should consult with their own tax advisors as to the tax consequences of the Merger in light of their particular circumstances, including the applicability and effect of the alternative minimum tax and any U.S. state or local, non-U.S.] or other tax laws and of changes in those laws.

Tax Consequences of the Merger in General

The Merger is intended to qualify as a “reorganization” within the meaning of Section 368(a) of the Code, and ExxonMobil and Denbury intend to report the Merger consistent with such qualification. Each of ExxonMobil and Denbury has agreed in the Merger Agreement to use its reasonable best efforts (i) to cause the Merger to qualify as a “reorganization” within the meaning of Section 368(a) of the Code and (ii) not to, and not permit or cause any of its respective subsidiaries or affiliates to, take or cause to be taken any action reasonably likely to cause the Merger to fail to qualify as a “reorganization” within the meaning of Section 368(a) of the Code. As of the date of this proxy statement/prospectus, Davis Polk and Vinson & Elkins are of the merger agreement providesopinion that eachthe Merger will qualify as a “reorganization” within the meaning of Section 368(a) of the Code and have provided opinions to ExxonMobil and Denbury, respectively, to that effect. These opinions of counsel are based on customary assumptions and representations, covenants and undertakings of ExxonMobil, Denbury and XTO EnergyMerger Sub, all as of the date hereof. If any of the assumptions, representations, covenants or undertakings is incorrect, incomplete, inaccurate, or is violated, the validity of the opinions may be affected and the U.S. federal income tax consequences of the Merger could differ materially from those described in this proxy statement/prospectus. The receipt of an opinion from counsel on the qualification of the Merger as a “reorganization” within the meaning of Section 368(a) of the Code is not a condition to either party’s obligation to complete the Merger. ExxonMobil and Denbury have not sought, and will pay its own costsnot seek, any ruling from the IRS regarding any matters related to the transactions, and, expenses in connectionas a result, there can be no assurance that the IRS will agree with the transactions contemplatedopinions or would not assert, or that a court would not sustain, a position contrary to the treatment of the Merger as a “reorganization” within the meaning of Section 368(a) of the Code.

Tax Consequences if the Merger Qualifies as a “Reorganization” Within the Meaning of Section 368(a) of the Code

The Merger is intended to qualify as a “reorganization” withing the meaning of Section 368(a) of the Code. Assuming that the Merger is so treated, the material U.S. federal income tax consequences of the Merger to U.S. holders of Denbury common stock will be as follows:

A U.S. holder generally will not recognize gain or loss, except with respect to cash received in lieu of a fractional share of ExxonMobil common stock (as discussed below).

The aggregate tax basis in the shares of ExxonMobil common stock that a U.S. holder receives in the Merger (including any fractional share interests deemed received and exchanged, as described below) will equal the U.S. holder’s aggregate adjusted tax basis in the Denbury common stock exchanged in the Merger.

A U.S. holder’s holding period for the shares of ExxonMobil common stock received in the Merger (including a fractional share interest deemed received and exchanged, as described below) will include the holding period for the shares of the Denbury common stock exchanged in the Merger.

If a U.S. holder of Denbury common stock acquired different blocks of Denbury common stock at different times or at different prices, such U.S. holder’s basis and holding period in its shares of ExxonMobil common stock may be determined separately with reference to each block of Denbury common stock. Any such U.S. holder should consult its tax advisor regarding the holding periods of the particular shares of ExxonMobil common stock received in the Merger.

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A U.S. holder who receives cash in lieu of a fractional share of ExxonMobil common stock generally will be treated as having received the fractional share of ExxonMobil common stock pursuant to the Merger and then as having exchanged such fractional share of ExxonMobil common stock for cash. As a result, a U.S. holder generally will recognize gain or loss equal to the difference between the amount of cash received the portion of the U.S. holder’s aggregate adjusted tax basis of its Denbury common stock exchanged in the Merger that is allocable to the fractional share of ExxonMobil common stock. This gain or loss generally will be capital gain or loss, and will be long-term capital gain or loss if, as of the effective date of the Merger, the U.S. holder’s holding period for the fractional shares of ExxonMobil common stock deemed to be received is greater than one year. Long-term capital gains of individuals are generally eligible for reduced rates of taxation. The deductibility of capital losses is subject to limitations.

A U.S. holder may be required to retain records related to such holder’s Denbury common stock and file with its U.S. federal income tax return for the taxable year that includes the Merger a statement setting forth certain facts relating to the Merger.

Tax Consequences if the Merger Does Not Qualify as a “Reorganization” Within the Meaning of Section 368(a) of the Code

If the Merger does not qualify as a “reorganization” within the meaning of Section 368(a) of the Code, the receipt of ExxonMobil common stock (and cash received in lieu of a fractional share of ExxonMobil common stock) in exchange for Denbury common stock in the Merger will be a taxable transaction. In such a case, a U.S. holder generally will recognize gain or loss in an amount equal to the difference, if any, between (i) the sum of the value of the ExxonMobil common stock received in the Merger plus the amount of any cash received in lieu of a fractional share of ExxonMobil common stock and (ii) such holder’s adjusted tax basis in the shares of Denbury common stock exchanged in the Merger. Gain or loss must be calculated separately for each block of shares of Denbury common stock exchanged by such U.S. holder if such blocks were acquired at different times or for different prices. Any gain or loss generally will be capital gain or loss and will be long-term capital gain or loss if the merger agreement.

holding period in a particular block of shares of Denbury common stock exchanged in the Merger is greater than one year as of the date of the Merger. Long-term capital gains of individuals are generally eligible for reduced rates of taxation. The deductibility of capital losses is subject to certain limitations.

Backup Withholding

U.S. holders of Denbury common stock generally will be subject to information reporting and backup withholding (currently at a rate of 24%) on any cash received in lieu of fractional shares of ExxonMobil common stock. A U.S. holder generally will not be subject to backup withholding, however, if the U.S. holder:

furnishes a correct taxpayer identification number, certifies it is not subject to backup withholding on IRS Form W-9 or successor form (or appropriate substitute) included in the letter of transmittal sent to the U.S. holders after the closing of the Merger and otherwise complies with all of the applicable requirements of the backup withholding rules; or

provides proof that the U.S. holder is otherwise exempt from backup withholding.

Any amounts withheld under the backup withholding rules are not an additional tax and generally will be allowed as a refund or credit against a U.S. holder’s U.S. federal income tax liability, if any, provided that such U.S. holder timely furnishes the required information to the IRS.

This discussion of material U.S. federal income tax consequences is not tax advice. Holders of Denbury common stock are urged to consult their own tax advisors with respect to the application of U.S. federal income tax laws to their particular situations as well as any tax consequences arising under the U.S. federal estate or gift tax rules or under the laws of any U.S. state or local, non-U.S. or other taxing jurisdiction or under any applicable tax treaty.

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INTERESTS OF CERTAIN PERSONSDENBURY’S DIRECTORS AND EXECUTIVE OFFICERS IN THE MERGER

In considering the recommendation of the XTO EnergyDenbury board of directors with respectthat holders of Denbury common stock vote to approve and adopt the merger agreement, XTO EnergyMerger Agreement, such stockholders should be aware that certain of Denbury’s non-employee directors and executive officers of XTO Energy and certain members of the XTO Energy board of directors have interests in the mergerMerger that are different from, or in addition to, the intereststhose of XTO EnergyDenbury’s stockholders generally. The XTO Energymembers of the Denbury board of directors waswere aware of these interests and considered them,these interests, among other matters, in evaluating and negotiating the merger agreementMerger Agreement and the merger,Merger, and in recommending to the adoptionholders of Denbury common stock that the Merger Agreement be approved and adopted by them. See “The Merger—Background of the merger agreementMerger” and “The Merger—Recommendation of the Denbury Board of Directors and Reasons for the Merger” beginning on pages 51 and 73, respectively, of this proxy statement/prospectus. Holders of Denbury common stock should take these interests into account in deciding whether to XTO Energy stockholders.vote “FOR” the Merger Agreement Proposal. These interests are described in more detail below, and certain of them are quantified in the narrative and the tables below.

XTO Energy Non-Employee DirectorsCERTAIN ASSUMPTIONS

TreatmentExcept as otherwise specifically noted, for purposes of Stock Optionsquantifying the potential payments and Other Equity-Based Awards. As partbenefits described in this section, the following assumptions were used:

The relevant price per share of their overall compensation for servicesDenbury common stock is $84.25, which is the average closing price per share of Denbury common stock as reported on the NYSE over the first five business days following the first public announcement of the Merger on July 13, 2023;

The effective time is December 31, 2023, which is the assumed date of the closing of the Merger solely for purposes of the disclosure in this section;

For purposes of calculating any cash severance, the assumed termination date is December 31, 2023, which is the assumed date of the closing of the Merger solely for purposes of the disclosure in this section; however, it is our expectation that the employment of each executive officer of Denbury who is deemed a “continuing employee” (as defined in the Merger Agreement) will continue following the effective time of December 31, 2023;

The Post-Emergence RSUs and Post-Emergence PSUs (both as defined below) will have settled prior to the effective time of the Merger; and

The performance metrics applicable to each Denbury TSR Performance Award will have been achieved at the actual level of performance through the completion of the Merger and total shareholder return will have been calculated in accordance with the terms of the award agreements, which, solely for purposes of the disclosure in this section, is determined by using the assumed per share price of $84.25 (which, as noted above, is the average closing price per share of Denbury common stock as reported on the NYSE over the first five business days following the first public announcement of the Merger on July 13, 2023) to calculate Denbury’s total shareholder return over the performance period assuming the last day of such performance period is the effective time of December 31, 2023 and using the five-day average closing price for the same period and the same assumed performance period to calculate the total shareholder return for each member of Denbury’s peer group.

As the amounts provided below are estimates based on multiple assumptions that may or may not actually occur or be accurate as of the date referenced, the actual amounts, if any, that may be paid or become payable may materially differ from the amounts set forth below.

BACKGROUND FOR CERTAIN DENBURY 2020 EQUITY AWARDS

Each outstanding equity-based incentive and compensation award held by Denbury Resources Inc.’s executive officers and directors was cancelled in connection with Denbury’s emergence from bankruptcy for no

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consideration. Prior to the 2020 Incentive Plan (as defined below) becoming effective, Denbury engaged a compensation consultant to assist in creating a new compensation framework for management, with the intent of providing appropriate incentive awards to members of management and to link a significant portion of management’s compensation packages to the interests of Denbury’s shareholders. On the effective date of the 2020 Incentive Plan, a framework for a management incentive plan was adopted, which reserved for officers, other employees, directors and other service providers a pool of shares of Denbury common stock pursuant to the 2020 Omnibus Stock and Incentive Plan (the “2020 Incentive Plan”). Initial awards covering approximately 2.2 million shares of common stock were granted on December 4, 2020 to eligible service providers, including Denbury’s executive officers and directors.

On December 4, 2020, Denbury granted restricted stock units to eligible service providers (the “Post-Emergence Grants”), including Denbury’s executive officers and directors. With respect to Denbury’s executive officers, the Post-Emergence Grants consisted of 50% time-based restricted stock units (“Post-Emergence Grant RSUs”) and 50% performance stock units (“Post-Emergence Grant PSUs”). Each member of the Denbury board of directors XTO Energy’s non-employee directors havealso received annual equity grants, eithera grant of Post-Emergence Grant RSUs. The Post-Emergence Grant RSUs were scheduled to vest ratably over a three-year period on each of December 4, 2021, 2022 and 2023, but are also eligible to vest upon a change in control event. The closing of the formMerger will result in a change in control for purposes of optionsthe 2020 Incentive Plan. If the closing of the Merger occurs prior to purchase XTO Energy common stock or as fully vestedDecember 4, 2023, the remaining one-third portion of the Post-Emergence Grant RSUs will become payable immediately and will be canceled and converted into the right to receive the Merger Consideration in accordance with the Merger Agreement in respect of the total number of shares of XTO Energy common stock subject, in certain instances, to restrictions on sale or transfer, as described below.

The February 2008 and February 2009 equity grants to non-employee directors (which in each year totaled 4,166 shares per non-employee director) were made in the form of fully vested common shares of XTO EnergyDenbury common stock subject to such remaining portion. However, using an estimated closing date of December 31, 2023, all outstanding Post-Emergence Grant RSUs would have already been paid out, irrespective of the Merger, on December 4, 2023 and, therefore, the closing of the Merger will have no impact on the vesting or payment date of the Post-Emergence Grant RSUs.

The Post-Emergence Grant PSUs provided for vesting based on the volume-weighted average price of a two-year restrictionshare of Denbury common stock equaling or exceeding pre-established levels for 60 consecutive trading days during a three-year performance period beginning December 4, 2020 (the “60-day VWAP”), with 100% of the Post-Emergence Grant PSUs becoming eligible to vest once the 60-day VWAP met or exceeded $25.75 during that three-year performance period. On March 3, 2021, the preceding 60-day VWAP was $32.53 and, as a result, all of the Post-Emergence Grant PSUs vested at a 100% level on transferthat date in 2021. The Post-Emergence Grant PSUs, although vested, were designed with a deferred settlement date that is set to occur on the earliest of (i) the last day of the performance period (which is December 4, 2023), (ii) an individual’s death or sale. The restriction(iii) the change in control date. If the closing of the Merger occurs on transferDecember 31, 2023, the vested Post-Emergence Grant PSUs will have already been paid on the regularly scheduled payment date of December 4, 2023 and the Merger will have no impact on the vesting or sale applicablepayment date of the Post-Emergence Grant PSUs. In other words, the vested Post-Emergence Grant PSUs would become payable on December 4, 2023 irrespective of the Merger. If the closing of the Merger occurs prior to December 4, 2023, the previously vested Post-Emergence Grant PSUs will be paid out at the time of the closing of the Merger and will be canceled and converted into the right to receive the Merger Consideration in accordance with the Merger Agreement in respect of the total number of shares of Denbury common stock subject to such Post-Emergence Grant PSUs.

For purposes of the Merger Agreement, the Post-Emergence Grant PSUs are considered to be “Denbury RSUs,” as the awards were no longer subject to performance criteria. All references to “Denbury TSR Performance Awards” below will refer to the total shareholder return performance-based RSUs granted to eligible employees in 2022 and 2023.

TREATMENT AND QUANTIFICATION OF DENBURY EQUITY AWARDS

Treatment of Outstanding Denbury RSUs

Except as otherwise agreed by ExxonMobil and the applicable Denbury equity grants made in February 2008 will lapseaward holder, at or immediately prior to completionthe effective time of the merger and the restriction on transfer or sale applicableMerger, each Denbury restricted stock unit (each, a “Denbury

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RSU”) granted prior to the equity grants made in February 2009 will lapse, pursuant to the pre-existing termsdate of the grants, upon completion of the merger, and thus these shares will be subject to the same treatment upon completion of the merger as outstanding shares of XTO Energy common stock generally. As permitted by the merger agreement, an annual grant of up to 4,166 shares per non-employee director was approved by the Corporate Governance and Nominating Committee and the board of directors and made in February 2010; upon completion of the merger, these shares will also be subject to the same treatment as outstanding shares of XTO Energy common stock generally and the restriction on transfer or sale will lapse.

Prior to 2009, non-employee directors also received an annual grant of stock options that vested over a three- to five-year period, subject to acceleration upon the achievement of specified stock price targets. All stock options granted to non-employee directors were vested and exercisable prior to execution of the merger agreement. Upon completion of the merger, each option to purchase XTO Energy common stock held by the non-employee directorsMerger Agreement that is outstanding immediately prior to completionthe effective time of the mergerMerger, whether vested or unvested, will automatically become fully vested and will be canceled and converted into the right to receive the Merger Consideration in accordance with the Merger Agreement in respect of the total number of shares of Denbury common stock subject to such Denbury RSU.

Treatment of Denbury TSR Performance Awards

Except as otherwise agreed by ExxonMobil and the applicable Denbury equity award holder, at or immediately prior to the effective time of the Merger, each Denbury performance stock unit whose vesting is subject to performance goals related to absolute or relative total shareholder return (each, a “Denbury TSR Performance Award”) that is outstanding immediately prior to the effective time of the Merger, whether vested or unvested, will automatically become fully vested and will be canceled and converted into the right to receive the Merger Consideration in accordance with the Merger Agreement in respect of the total number of shares of Denbury common stock subject to such Denbury TSR Performance Award, with such number determined based on actual performance levels, calculated in accordance with the underlying award agreements.

Treatment of Outstanding Denbury Restricted Shares

Except as otherwise agreed by ExxonMobil and the applicable Denbury equity award holder, at or immediately prior to the effective time of the Merger, each Denbury restricted share (each, a “Denbury Restricted Share”) granted prior to the date of the Merger Agreement that is outstanding immediately prior to the effective time of the Merger will automatically become a fully vested share of Denbury common stock and will be converted into the right to receive the Merger Consideration in accordance with the Merger Agreement.

Treatment of Denbury Director Deferred Stock Unit Awards

At or immediately prior to the effective time of the Merger, each Denbury director deferred stock unit (each, a “Denbury DSU”) that is outstanding immediately prior to the effective time of the Merger, whether vested or unvested, will automatically become fully vested optionand will be canceled and converted into the right to purchase ExxonMobil common stock,receive the Merger Consideration in accordance with the Merger Agreement in respect of the total number of shares andof Denbury common stock subject to such Denbury DSU.

Denbury 2024 Annual Equity Awards

If the exercise price being adjustedMerger has not been completed as of March 7, 2024, Denbury is permitted to reflectmake annual equity award grants for 2024 in the exchange ratio, and will remain outstanding forform of Denbury RSUs or Denbury Restricted Shares to its employees, including executive officers, in the shorterordinary course of business, with the aggregate grant date fair value of the original term or two years following completion2024 annual equity awards not to exceed $30,641,000. In the case of the merger.

XTO Energy Outside Directors Severance Plan. Each XTO Energy non-employee director is a participantChief Executive Officer, the other executive officers and certain other senior management employees, their 2024 annual equity grants: (i) shall not exceed the value of their 2023 annual grants, (ii) shall be subject to three-year cliff vesting and (iii) shall be forfeited in the XTO Energy Inc. Amendedevent of termination of employment for any reason prior to, on or following the Merger (unless the Merger does not occur, in which case single-trigger vesting shall apply in the event of another change in control transaction). In the event the Merger has not been completed by March 7, 2024 and Restated Outside Directors Severance Plan, which is referred to in this proxy statement/prospectus as the director severance plan. The director severance plan provides that,such additional equity awards have been granted by Denbury, upon certain triggering events, including the completion of the merger,Merger, such equity awards will not vest but will instead be converted into restricted shares or restricted stock units of ExxonMobil. For purposes of quantifying the potential payments and benefits in connection with the closing of the Merger as described in this section, the value of equity awards that may be granted on March 7, 2024 were not taken into account, since it is assumed that the closing of the Merger will occur on December 31, 2023.

Quantification of Denbury Equity Awards

See “Interests of Denbury’s Directors and Executive Officers in the Merger—Golden Parachute Compensation” beginning on page 144 of this proxy statement/prospectus for an estimate of the amounts that

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would become payable to each Denbury named executive officer in respect of his or her unvested Denbury RSUs, Denbury TSR Performance Awards and Denbury Restricted Shares. Based on the assumptions described above under “Interests of Denbury’s Directors and Executive Officers in the Merger—Certain Assumptions” beginning on page 140 of this proxy statement/prospectus, the estimated aggregate amounts that would become payable to Denbury’s seven non-employee directors in respect of their unvested Denbury DSUs is $1,117,102. The estimated aggregate amounts that would become payable to Denbury’s seven non-employee directors in respect of their Post-Emergence Grant RSUs, which are anticipated to be vested and settled prior to the effective time of the Merger, is $17,553,497.

Treatment of Denbury Director Deferred Compensation Plan

Denbury maintains the Denbury Resources Inc. Director Deferred Compensation Plan (the “Director Deferred Compensation Plan”) pursuant to which Denbury non-employee directors may elect to defer receipt of the consideration paid for their service as a director, is entitledincluding cash fees and equity grants, to a later date. All amounts deferred pursuant to the Director Deferred Compensation Plan are fully vested at all times. Prior to the effective time of the Merger, Denbury will take all actions that may be necessary or appropriate to terminate the Director Deferred Compensation Plan and all awards under such plan will be accelerated and paid out in full as of immediately prior to the effective time of the Merger (without regard to any deferral elections made thereunder).

SEVERANCE AGREEMENTS

Denbury does not maintain employment agreements with its executive officers. However, the executive officers are eligible for severance benefits under the Severance Protection Plan (the “Severance Plan”) in the event of a change in control with a qualifying termination. The closing of the Merger will result in a change in control for purposes of the Severance Plan. Under the Severance Plan, in the event of a change in control, each executive officer will be eligible to receive the following severance benefits upon a lump-sum cash paymenttermination of employment by Denbury without cause or a resignation by the executive officer for good reason (each as defined in the Severance Plan), in either case, during the period beginning with the six months preceding a change in control and ending on the two year anniversary of the consummation of a change in control:

an amount payable on the first business days that is at least 15 days following the executive officer’s termination of employment (or, in the case of a termination of employment during the six-month period prior to a change in control, the first business day that is at least 15 days following the change in control) equal to three times the sum of such executive officer’s annual base salary and bonus amount, which is calculated as an amount equal to fifty percent (50%) of the annualtotal amount of all cash retainer most recentlybonuses paid to him and the value (as ofexecutive officer over the twenty-four (24) month period preceding the date of the triggering event)change in control; and

continuation of the XTO Energy common stock most recently granted to him. Each non-employee director voluntarily waived his right to receive the cash payment that otherwise would have been made to him upon completion of the merger under the director severance planmedical, dental, vision and accordingly, no cash payments will be made to the non-employee directors upon completion of the merger. Absent such waiver, each non-employee director would have become entitled to receive a lump-sum cash payment of approximately $1,160,000 upon completion of the merger (based on the $180,000 cash retainer receivedhealth benefits and insurance coverage which were being provided by each non-employee director in 2009 and the grant of 4,166 shares in February 2010 and assuming a $50.00 per share XTO Energy stock price at the time of the merger). The aggregate amount of such payments to all non-employee directors would have equaled approximately $6,960,000.

Directors will be entitled to receive quarterly annual retainer payments on each ordinary retainer date that occurs prior to the completion of the merger.

XTO Energy Named Executive Officers

Treatment of Stock Options and Other Equity-Based Awards. Each of Messrs. Simpson, Hutton, Vennerberg, Baldwin and Petrus, who are collectively referred to in this proxy statement/prospectus as the named executive officers, have received, from time to time, grants of options to purchase XTO Energy common stock and performance shares relating to XTO Energy common stock.

All stock options and performance shares held by the named executive officers (other than performance shares granted to Messrs. Hutton, Vennerberg, Baldwin and Petrus in November 2009, as described below) that are outstandingDenbury immediately prior to the completiontermination of the merger, including performance shares granted to Mr. Simpson in January 2010 pursuant to the terms of his existing employment, agreement, will become fully vested (and in the case of stock options, fully exercisable) upon completion of the merger. All stock options will be converted into fully vested options to purchase ExxonMobil common stock, with the number of shares and the exercise price being adjusted to reflect the exchange ratio, and will otherwise remain outstanding in accordance with their existing terms. All performance shares outstanding immediately prior to the completion of the merger (other than performance shares granted to Messrs. Hutton, Vennerberg, Baldwin and Petrus in November 2009) will be converted into fully vested shares of ExxonMobil common stock upon completion of the merger, based upon the exchange ratio.

Each performance share granted to Messrs. Hutton, Vennerberg, Baldwin and Petrus in November 2009 that is outstanding immediately prior to the completion of the merger will be assumed by ExxonMobil upon completion of the merger and converted into a time-based vesting restricted share of ExxonMobil common stock, based upon the exchange ratio. These ExxonMobil shares will vest onthrough the earlier of (i) 18 months following termination of employment, or (ii) the first anniversarydate that the executive becomes eligible for comparable coverage from a subsequent employer, provided that, if required by applicable law, in lieu of completioncontinued benefits, the executive officers shall receive additional cash equal to the premium cost of such continued coverage, and executive officers will receive an additional amount equal to any income tax attributable to the taxability of the merger (subjectcost of such benefits.

The Severance Plan does not provide for excise tax gross-ups. The Severance Plan includes a “net-best” provision, which would reduce the parachute payments to the applicable named executive officer’s continued servicesafe-harbor limit, as a consultant) and a qualifying terminationdefined under Section 280G of the applicable namedCode, if it is more financially advantageous to the executive officer’s service as a consultant (as described under “—XTO Energy Namedofficer on an after-tax basis.

See “Interests of Denbury’s Directors and Executive Officers—Consulting Agreements and Amendments to Share Grant Agreements”Officers in the Merger—Golden Parachute Compensation” beginning on page []144 of this proxy statement/prospectus).prospectus for the estimated amounts that each of Denbury’s named executive officers would receive under the Severance Plan.

The following

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GOLDEN PARACHUTE COMPENSATION

In accordance with Item 402(t) of Regulation S-K under the Securities Act, the table below sets forth forthe compensation that is based on, or otherwise relates to, the Merger that will or may become payable to each named executive officer as of April 14, 2010, (i)Denbury in connection with the aggregate number of performance shares of XTO Energy common stock that will vest upon completionMerger. For additional details regarding the terms of the mergerpayments and (ii)benefits described below, see the aggregate numberdiscussion under “Interests of sharesDenbury’s Directors and Executive Officers in the Merger” beginning on page 140 of XTO Energy common stock subject to outstanding unvested options to purchase shares of XTO Energy common stock that will vest upon completion of the merger (and the weighted average exercise price of those options).

Name

  Number of Unvested
Performance Shares
that Will Vest upon
Completion of the Merger
  Number of Shares
Subject to Outstanding
Unvested Stock Options
that Will Vest upon
Completion of the Merger
  Weighted Average
Exercise Price per
Share ($)

Bob R. Simpson

  215,000  455,269  55.20

Keith A. Hutton

  114,000  788,665  49.08

Vaughn O. Vennerberg, II

  68,500  557,086  49.10

Louis G. Baldwin

  37,000  258,850  50.05

Timothy L. Petrus

  35,500  230,540  50.41

Consulting Agreements and Amendments to Share Grant Agreements. Each named executive officer has entered into a consulting agreement with XTO Energy and ExxonMobil, dated December 13, 2009 (collectively referred to in this proxy statement/prospectus, aswhich is incorporated herein.

The amounts shown in the consulting agreements), which will become effective upon completion oftable below are estimates based on multiple assumptions that may or may not actually occur or be accurate on the merger. Upon completion of the merger, each of the existing employment agreements (collectively referred to in this proxy statement/prospectus as the existing employment agreements) between XTO Energy and Messrs. Simpson, Hutton and Vennerberg will terminate (and the provisions contained in the

existing employment agreements relating to certain triggering events,relevant date, including the completion ofassumptions described below and in the merger, will be superseded byfootnotes to the consulting agreements)table, and Messrs. Baldwin and Petrus will no longer be entitled to any benefits in connection with the merger under the Fourth Amended and Restated XTO Energy Inc. Management Group Employee Severance Protection Plan (which will become effective on the daydo not reflect certain compensation actions that may occur prior to completion of the merger,Merger, including any equity award grants that may be made after the assumed effective time of December 31, 2023. However, any such equity grants would not accelerate upon the completion of the Merger, so they would not affect the table below. Furthermore, the Merger Agreement prohibits us from increasing the base salary or target bonus of our executive officers following the date of the Merger Agreement.

For purposes of calculating the amounts in the table below, the following assumptions were used:

The relevant price per share of Denbury common stock is $84.25, which is the average closing price per share of Denbury common stock as described under “—Other Executive Officersreported on the NYSE over the first five business days following the first public announcement of XTO Energy—Management Severance Plan”the Merger on July 13, 2023;

The effective time is December 31, 2023, which is the assumed date of the closing of the Merger solely for purposes of the disclosure in this section;

For purposes of calculating any cash severance, the assumed termination date is December 31, 2023, which is the assumed date of the closing of the Merger for purposes of the disclosure in this section; however, it is our expectation that the employment of each executive officer of Denbury who is deemed a “continuing employee” (as defined in the Merger Agreement) will continue following the effective time of December 31, 2023;

The Post-Emergence RSU and Post-Emergence PSUs will have settled and have been paid prior to the effective time of the Merger and, therefore, are not included in the table below; and

The performance metrics applicable to each Denbury TSR Performance Award will have been achieved at the actual level of performance through the completion of the Merger and total shareholder return will have been calculated in accordance with the terms of the award agreements, which, solely for purposes of the disclosure in this section, is determined by using the assumed per share price of $84.25 (which, as noted above, is the average closing price per share of Denbury common stock as reported on the NYSE over the first five business days following the first public announcement of the Merger on July 13, 2023) to calculate Denbury’s total shareholder return over the performance period assuming the last day of such performance period is the effective time of December 31, 2023 and using the five-day average closing price for the same period and the same assumed performance period to calculate the total shareholder return for each member of Denbury’s peer group.

Named Executive Officer

  Cash
($)(1)
   Long-Term
Incentive
($)(2)
   Perquisites/
Benefits
($)(3)
   Tax
Reimbursement
($)(4)
   Total ($) 

Christian Kendall

   6,524,796    7,599,603    54,981    35,672    14,215,052 

Mark Allen

   4,853,460    2,938,472    52,354    33,967    7,878,253 

James Matthews

   3,780,150    1,739,293    66,143    42,914    5,628,500 

David Sheppard

   3,084,925    2,200,779    60,777    39,433    5,385,914 

(1)

Cash. Represents the cash severance amount payable to each named executive officer upon a termination of employment by Denbury without cause or by the named executive officer for good reason, in each case,

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pursuant to the Severance Plan. The cash severance payable to each named executive officer is a “double-trigger” payment, which means that the amount will become payable only on a qualifying termination of employment during the period six months preceding and ending on the date that is two years following the effective time of the Merger. For further details regarding the cash severance that may become payable to Denbury’s named executive officers, see “Interests of Denbury’s Directors and Executive Officers in the Merger—Severance Agreements” beginning on page 143 of this proxy statement/prospectus.
(2)

Long-Term Incentive. Represents the value of the unvested Denbury Restricted Shares and Denbury TSR Performance Awards held by each named executive officer. The amounts payable in respect of the outstanding and unvested Denbury Restricted Shares and Denbury TSR Performance Awards are “single-trigger” payments, which means that the amounts will become payable solely as a result of continued employment through the effective time of the Merger, unless otherwise agreed by ExxonMobil and the holder thereof. For further details regarding the treatment of the unvested Denbury TSR Performance Awards and Denbury Restricted Shares, see “Interests of Denbury’s Directors and Executive Officers in the Merger—Treatment and Quantification of Denbury Equity Awards” beginning on page 141 of this proxy statement/prospectus. The Denbury Restricted Shares and Denbury TSR Performance Awards include restrictive covenants prohibiting the executive officer from competing with Denbury and soliciting its customers, suppliers, employees and contractors, in each case, during the one-year period following termination of the executive officer’s employment, and also include perpetual covenants relating to confidentiality and nondisparagement. The estimated amount of each such payment is shown in the following table:

   Denbury Restricted Shares   Denbury TSR Performance
Awards
     

Named Executive Officer

  Shares
(#)
   Value ($)   Shares
(#)
   Value ($)   Total ($) 

Christian Kendall

   37,517    3,160,807    52,686    4,438,796    7,599,603 

Mark Allen

   14,562    1,226,849    20,316    1,711,623    2,938,472 

James Matthews

   8,555    720,759    12,090    1,018,534    1,739,293 

David Sheppard

   10,803    910,153    15,319    1,290,626    2,200,779 

(3)

Perquisites/Benefits. Represents the estimated value of continuation of medical, dental, vision and health benefits and insurance coverage provided to the named executive officers by Denbury for a period of 18 months following termination of employment, determined in accordance with Denbury’s financial reporting assumptions. The continuation benefits provided to the named executive officers are “double-trigger” payments. For further details regarding the reimbursement benefits that may become payable to Denbury’s named executive officers, see “Interests of Denbury’s Directors and Executive Officers in the Merger—Severance Agreements” beginning on page 143 of this proxy statement/prospectus. The estimated value of each such payment is shown in the following table:

Named Executive Officer

  COBRA
Coverage
($)(a)
   Other
Coverage
($)(b)
   Total
($)
 

Christian Kendall

   34,463    20,518    54,981 

Mark Allen

   34,291    18,063    52,354 

James Matthews

   48,222    17,921    66,143 

David Sheppard

   48,045    12,732    60,777 

(a)

Represents continuation coverage for medical, dental and vision benefits to the extent the named executive officer was covered by Denbury under such benefits prior to termination of employment.

(b)

Represents continuation coverage for life, accidental death and dismemberment and short-term, long-term and supplemental disability to the extent the named executive officer was covered by Denbury under such benefits prior to termination of employment.

(4)

Tax Reimbursement Payments. Represents the estimated value of the gross-up payments that may be made to the named executive officers for any additional income tax attributable to the taxability of the

145


reimbursement for the cost of medical, dental, vision and health benefits and insurance coverage provided to the named executive officers by Denbury for a period of 18 months following termination of employment. The tax reimbursement payments are “double-trigger” payments. Denbury does not provide for any excise tax gross-ups.

146


PROPOSAL I—APPROVAL AND ADOPTION OF THE MERGER AGREEMENT

The Denbury board of directors, after due and careful discussion and consideration, unanimously approved and recommended that Denbury stockholders approve and adopt the Merger Agreement, and the execution, delivery and performance of the Merger Agreement and the consummation of the transactions contemplated thereby, including the Merger.

The Denbury board of directors accordingly unanimously recommends that Denbury stockholders vote “FOR” the proposal to approve and adopt the Merger Agreement, as disclosed in this proxy statement/prospectus, particularly the related narrative disclosures in “The Merger” and “The Merger Agreement” beginning on page []pages 50 and 112, respectively, of this proxy statement/prospectus, and referredthe copy of the Merger Agreement attached as Annex A to this proxy statement/prospectus.

The Merger cannot be completed without the affirmative vote, at the Special Meeting (via the Denbury meeting website) or by proxy, of holders of a majority of the outstanding shares of Denbury common stock on the record date and entitled to vote thereon. The failure of any Denbury stockholder to submit a vote (i.e., by not submitting a proxy and not voting at the Special Meeting) and any abstention from voting by a Denbury stockholder will have the same effect as a vote against the Merger Agreement Proposal. Brokers, banks and other nominees do not have discretionary authority to vote on the Merger Agreement Proposal, and will not be able to vote on the Merger Agreement Proposal absent instructions from the beneficial owner of any shares of Denbury common stock held of record by them. As a result, a broker non-vote will have the same effect as a vote “AGAINST” the Merger Agreement Proposal.

IF YOU ARE A DENBURY STOCKHOLDER, THE DENBURY BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT YOU VOTE “FOR” THE MERGER AGREEMENT PROPOSAL.

147


PROPOSAL II—NON-BINDING ADVISORY VOTE ON

TRANSACTION-RELATED COMPENSATION FOR CERTAIN DENBURY EXECUTIVE OFFICERS

Section 14A of the Exchange Act, which was enacted as part of the Dodd-Frank Act, requires that Denbury provide its stockholders with the opportunity to vote to approve, on an advisory (non-binding) basis, certain compensation that may be paid or become payable to Denbury’s named executive officers in connection with the Merger, as disclosed in this proxy statement/prospectus, asincluding the management severance plan).

Pursuant tocompensation table and the existing employment agreements or the management severance plan, as applicable, eachrelated narrative named executive officer would have been entitledcompensation disclosures set forth in “Interests of Denbury’s Directors and Executive Officers in the Merger—Golden Parachute Compensation” beginning on page 144 of this proxy statement/prospectus. This vote is commonly referred to receiveas a lump-sum cash payment upon certain triggering events, including“golden parachute say on pay” vote.

Accordingly, the completionDenbury board of directors unanimously recommends that Denbury stockholders vote “FOR” the adoption of the merger,following resolution, on a non-binding advisory basis, at the Special Meeting:

“RESOLVED, that generally would equal three times (2.5 times for Messrs. Baldwin and Petrus) the sum of (i) his annual base salary, (ii) for theDenbury’s stockholders approve, on an advisory (non-binding) basis, certain compensation that may be paid or become payable to Denbury’s named executive officers other than Mr. Simpson, his annual cash bonus, (iii) for Messrs. Baldwin and Petrus, his annual car allowance and (iv) for Mr. Simpson only, pursuant to an amendment to his existing employment agreement dated September 16, 2009, the value, as of the date of the triggering event, of his annual grant of XTO Energy common stock, which are collectively referred to in this proxy statement/prospectus as the triggering event payments. The amount of the triggering event payment that each named executive officer would have become entitled to receive is approximately as follows: for Mr. Simpson, $33,300,000 (assuming a $50.00 per share XTO Energy stock price at the time of the merger, applied to the shares awarded in his January 2010 stock grant); for Mr. Hutton, $28,200,000; for Mr. Vennerberg, $16,950,000; for Mr. Baldwin, $6,360,000; and for Mr. Petrus, $5,990,000. Each named executive officer, other than Mr. Simpson, was also entitled to receive a gross-up payment for any excise taxes imposed under Section 280G of the Internal Revenue Code (which are referred to in this proxy statement/prospectus as 280G excise taxes).

As indicated above, Mr. Simpson’s existing November 2008 employment agreement was amended on September 16, 2009. Prior to this amendment, Mr. Simpson’s triggering event payment was based on his salary and the amount of the highest regular cash bonus paid to him in the preceding 12 months, and not on the value of his most recent annual stock award. However, under the pre-existing terms of his employment agreement, Mr. Simpson’s last regular cash bonus was paid on December 1, 2008, after which time Mr. Simpson’s annual incentive compensation became payable in the form of an annual stock award in lieu of a cash bonus. This had the effect that, after December 1, 2009, Mr. Simpson would no longer be entitled to the portion of his triggering event payment that was based on his annual incentive compensation. The September 16, 2009 amendment corrects the drafting of the employment agreement to reflect the intention of the Compensation Committee that Mr. Simpson’s triggering event payment include a multiple of Mr. Simpson’s most recent annual incentive compensation award (regardless of whether such award was paid in the form of cash or stock). The September 16, 2009 amendment, the full text of which was filed by XTO Energy with the SEC as an exhibit to its quarterly report on Form 10-Q for the quarterly period ended September 30, 2009, applies to any triggering event, not just the proposed merger with ExxonMobil.

As described below, in connection with entering into the consulting agreements, each named executive officer agreed to waive his right to receive his triggering event payment upon completion of the merger, including any tax gross-up payments. In lieu of the triggering event payments, each named executive officer will be entitled to receive the payments provided under the consulting agreements, which (i) subject all (or for Mr. Simpson, a portion) of the payments to the continued performance of consulting services and continued compliance with certain restrictive covenants (relating to confidentiality, non-competition and non-solicitation); (ii) do not provide for any tax gross-up payment; and (iii) subject certain merger-related payments to a contractual limitation equal to 90% of the maximum amount that could be provided to the named executive officer without the imposition of 280G excise taxes, which limitation is referred to in this proxy statement/prospectus as the 90% limit.

The termination of the existing employment arrangements and effectiveness of the consulting agreements is contingent on the completion of the merger. Under the consulting agreements, the named executive officers will retire as employees of XTO Energy upon completion of the merger and continue to serve XTO Energy thereafter

as consultants on a full-time basis. The initial term of the consulting agreements will end, unless earlier terminated, on the first anniversary of completion of the merger. The consulting agreements are each renewable for an additional one-year period (which is referred to in this proxy statement/prospectus as the extended term) upon the mutual agreement of the named executive officer and ExxonMobil, in consultation with XTO Energy.

Pursuant to the consulting agreements, each named executive officer will be paid an annual consulting fee (which is referred to in this proxy statement/prospectus as the consulting fee), equal to one-half of his current base salary. Each named executive officer will also be entitled to receive an annual cash amount (which is referred to in this proxy statement/prospectus as the completion bonus) equal to one-half of his current base salary, generally subject to his continued performance of consulting services to the payment date (for reference, the named executive officers’ current base salaries are: for Mr. Simpson, $3,600,000; for Mr. Hutton, $1,400,000; for Mr. Vennerberg, $900,000; for Mr. Baldwin, $500,000; and for Mr. Petrus, $475,000). Also under the consulting agreements, ExxonMobil has agreed to provide each named executive officer with a one-time grant of restricted ExxonMobil common stock or stock units (which is referred to in this proxy statement/prospectus as restricted equity) having a grant-date fair market value equal to 100% of the named executive officer’s current base salary. One-half of each named executive officer’s restricted equity will vest on the first anniversary of completion of the merger, subject to the named executive officer’s performance of consulting services through the initial one-year term and compliance with the applicable confidentiality, non-competition and non-solicitation covenants through the vesting date. The remaining one-half will vest on either the second anniversary of completion of the merger or, if the parties agree to the extended term, on the third anniversary of completion of the merger, subject to the named executive officer’s continued compliance with the applicable confidentiality, non-competition and non-solicitation covenants through the vesting date and, if applicable, performance of consulting services through the extended term.

In lieu of the triggering event payments Mr. Simpson otherwise would have received in connection with the merger under his existing employment agreement, Mr. Simpson will be entitled to receive,Merger, as disclosed pursuant to his consulting agreement, (i) a lump-sum cash payment within five days after completionItem 402(t) of Regulation S-K in “Interests of Denbury’s Directors and Executive Officers in the merger equal to $10,800,000Merger—Golden Parachute Compensation” beginning on page 144 of this proxy statement/prospectus (which equals three times his current base salary)disclosure includes the compensation table and (ii) subject to the 90% limit, a retention payment of $24,750,000, payable in equal installments at six and twelve months after completion of the merger, generally subject to Mr. Simpson’s continued performance of consulting services and continued compliance with the applicable confidentiality, non-competition and non-solicitation covenants to the payment date.

In lieu of the triggering event payments they otherwise would have received in connection with the merger under an existing employment agreement or the terms of the management severance plan, Messrs. Hutton, Vennerberg and Baldwin will each be entitled to receive a retention payment, payable in equal installments at six and twelve months after completion of the merger, generally subject to the named executive officer’s continued performance of consulting services and continued compliance with the applicable confidentiality, non-competition and non-solicitation covenants to the payment date. Subject to the 90% limit, the retention payments will equal the following amounts: for Mr. Hutton, $10,913,662; for Mr. Vennerberg, $6,172,817; and for Mr. Baldwin, $2,591,527. The foregoing dollar amounts reflect the estimated maximum amount that may be received by eachrelated narrative named executive officer without exceedingcompensation disclosures required pursuant to Item 402(t) of Regulation S-K).”

Denbury stockholders should note that the 90% limit. Given that a retention payment to Mr. Petrus in any amount would exceed his 90% limit, heAdvisory Compensation Proposal is merely an advisory vote, which will not receive a retention payment.

Under pre-existing Amendedbe binding on Denbury, ExxonMobil or their respective boards of directors. Further, the underlying plans and Restated Agreements for Grant with XTO Energy, whicharrangements are referredcontractual in nature and not, by their terms, subject to in this proxy statement/prospectus asstockholder approval. Accordingly, regardless of the grant agreements, eachoutcome of the advisory vote, if the Merger is consummated, the eligibility of the Denbury named executive officers wasfor such payments and benefits will not be affected by the outcome of the advisory vote.

The affirmative vote of the majority of the voting power present at the Special Meeting or represented by proxy and entitled to certain additional lump-sum cash payments uponvote on the occurrence of certain triggering events, includingAdvisory Compensation Proposal at the completion ofSpecial Meeting at which a quorum is present is required to approve the merger, valued by reference to a specifiedAdvisory Compensation Proposal. The required vote on the Advisory Compensation Proposal is based on the number of shares of XTO Energy common stock. Assuming a $50.00 per share XTO Energy stock price at the time of the merger, the estimated amount of such lump-sum cash payments would be as follows: for Mr. Simpson, $41,667,000; for Mr. Hutton, $34,375,000; for Mr. Vennerberg, $29,167,000; for Mr. Baldwin, $8,333,000; and for Mr. Petrus, $7,813,000. On December 13, 2009, the grant agreements were amended to provide that, immediately prior to completion of the merger, these lump-sum cash payments will instead be made in the form of fully vested shares of XTO Energy’s

common stock, which are referred to in this proxy statement/prospectus as grant agreement shares. Subject to the 90% limit,present—not the number of grant agreement shares to be issuedoutstanding shares. Abstentions from voting by a Denbury stockholder attending the Special Meeting or voting by proxy will be as follows: for Mr. Simpson, 833,333; for Mr. Hutton, 687,500; for Mr. Vennerberg, 583,333; for Mr. Baldwin, 166,667; and for Mr. Petrus, 156,250. The grant agreement shares will be subject tohave the same treatment upon completioneffect as a vote against the Advisory Compensation Proposal. A failure to attend the Special Meeting via the Denbury meeting website or by proxy will have no effect on the outcome of the merger as outstandingvote on the Advisory Compensation Proposal. Brokers, banks and other nominees do not have discretionary authority to vote on the Advisory Compensation Proposal and will not be able to vote on Advisory Compensation Proposal absent instructions from the beneficial owner of any shares of XTO EnergyDenbury common stock generally.

held of record by them. As a result, broker Each named executive officer has agreed pursuant tonon-votes will have no effect on the termsoutcome of the consulting agreements andvote on the grant agreement amendments that, instead of being entitled to a gross-up payment for any 280G excise taxes that might apply to the named executive officer, the aggregate value of the grant agreement shares and the retention payment (if any) will be subject to reduction, if necessary, so that this aggregate value, when added to the value of other equity awards granted to the named executive officer that are vesting in connection with the merger (as described under “—XTO Energy Named Executive Officers—Treatment of Stock Options and Other Equity-Based Awards” beginning on page [] of this proxy statement/prospectus) and, for Mr. Simpson, when added to his $10.8 million lump-sum payment, does not exceed the 90% limit for the named executive officer. Mr. Simpson agreed to the 90% limit even though he was not previously entitled to a gross-up payment for any 280G excise taxes.

Upon termination of a named executive officer’s services as a consultant either by XTO Energy without “cause” or by the named executive officer with “good reason” (each as defined in the consulting agreements) or upon a named executive officer’s death or disability, the named executive officer will be entitled to receive (i) a lump-sum cash payment equal to the sum of the unpaid portion of the consulting fee for the current term, (ii) the completion bonus for the current term, (iii) subject to the 90% limit, the unpaid portion of the retention payment, and (iv) in the case of Messrs. Hutton, Vennerberg, Baldwin and Petrus, accelerated vesting of the performance shares granted in November 2009 (as described under “—XTO Energy Named Executive Officers—Treatment of Stock Options and Other Equity-Based Awards” beginning on page [] of this proxy statement/prospectus).

2009 Annual Incentive Payments.Each of Messrs. Hutton, Vennerberg, Baldwin and Petrus is eligible to receive a cash bonus payment for 2009 pursuant to the terms of the XTO Energy Inc. 2009 Executive IncentiveAdvisory Compensation Plan. Mr. Simpson is not eligible to receive a bonus payment for 2009. In March 2009, the compensation committee of the XTO Energy board of directors determined that these bonuses would be paid in March 2010. On December 21, 2009, as permitted by the merger agreement, the Compensation Committee authorized and directed the payment of these bonuses in December 2009. The Compensation Committee took into consideration the fact that payment of the bonuses in 2009 would increase the amount of each individual’s aggregate five-year compensation for purposes of determining 280G excise taxes, thereby increasing the amount of the 90% limit.

The amount of each bonus was as follows: for Mr. Hutton, $8,000,000; for Mr. Vennerberg, $4,750,000; for Mr. Baldwin, $2,000,000; and for Mr. Petrus, $1,875,000.

The following table sets forth a comparison of (1) the estimated triggering event payments that would have been made to each named executive officer pursuant to the existing employment agreements, the grant agreements or the management severance plan, as the case may be, together with an estimate of continuing salary, bonus and equity-based compensation that would have been paid or awarded to the named executive officer during the one-year period following the merger had such compensation not been revised by his consulting agreement, and (2) the estimated payments to be made to such named executive officer pursuant to his consulting agreement. Treatment of outstanding XTO Energy equity awards (described under “—XTO Energy Named Executive Officers—Treatment of Stock Options and Other Equity-Based Awards” beginning on page [] of this proxy statement/prospectus) is excluded from this table. Amounts payable under the consulting agreements have been estimated without any further reduction that may result from application of the 90% limit. As indicated in the table below, the aggregate reduction in value to be provided to the named executive officers is estimated to be approximately $114,350,000.

  Existing Employment Agreement, Grant Agreement or
Management Severance Plan ($ in millions)
  Consulting Agreement ($ in millions)
  Bob. R
Simpson
 Keith A.
Hutton
 Vaughn O.
Vennerberg, II
 Louis G.
Baldwin
 Timothy L.
Petrus
  Bob. R
Simpson
 Keith A.
Hutton
 Vaughn O.
Vennerberg, II
 Louis G.
Baldwin
 Timothy L.
Petrus

Amounts triggered by the merger:

           

Cash payment on triggering event

 $33.30 $28.20 $16.95 $6.36 $5.99    $10.80 $0 $0 $0 $0

Value of award under grant agreement(1)

 $41.67 $34.38 $29.17 $8.33 $7.81   $41.67 $34.38 $29.17 $8.33 $7.81

280G excise tax gross-up

  No  Yes  Yes  Yes  Yes    No  No  No  No  No

Estimated gross-up payment for 280G excise taxes(2)

  N/A $24.01 $16.59 $5.84 $6.23    N/A  N/A  N/A  N/A  N/A
                               
 

Subtotal

 $74.97 $86.59 $62.71 $20.53 $20.03   $52.47 $34.38 $29.17 $8.33 $7.81
                               
 

Amounts payable subject to continued service for one year following the merger:

           

Salary(3)/consulting fee

 $3.60 $1.40 $0.90 $0.50 $0.48   $1.80 $0.70 $0.45 $0.25 $0.24

Target bonus(3)/completion bonus

 $7.50 $8.00 $4.75 $2.00 $1.88   $1.80 $0.70 $0.45 $0.25 $0.24

Retention payment

  N/A  N/A  N/A  N/A  N/A   $24.75 $10.91 $6.17 $2.59 $0

Grant date value of XTO Energy(3)/ExxonMobil equity grant

  N/A $3.90 $2.35 $1.10 $1.50   $3.60 $1.40 $0.90 $0.50 $0.48
                               
 

Subtotal

 $11.10 $13.30 $8.00 $3.60 $3.86   $31.95 $13.71 $7.97 $3.59 $0.96
                               
 

Total

 $86.07 $99.89 $70.71 $24.13 $23.89   $84.42 $48.09 $37.14 $11.92 $8.77
                               

Total for all named executive officers

   $304.69      $190.34  
               

Reduction in value

      $114.35    
           

(1)As discussed above, each executive officer will receive fully vested shares of XTO Energy common stock instead of a lump-sum cash payment equal to the value of such shares. The value of the grant agreement award assumes a $50.00 per share XTO Energy stock price at the time of the merger.

(2)

The calculations are based on each executive officer’s taxable wages for the years 2005 through 2009 and the following assumptions: a $50.00 XTO Energy per share stock price, completion of the merger in the second quarter of 2010 and an

individual effective tax rate of 55%, consisting of a 35% income tax rate and a 20% excise tax rate. For purposes of calculating the estimated gross-up payment for 280G excise taxes, the following payments were treated as contingent on a triggering event: the cash payment on a triggering event, as set forth in the table; the cash amount payable pursuant to the grant agreement, as set forth in the table; and the intrinsic value of the acceleration of those existing XTO Energy equity awards that are vesting in connection with the merger.

(3)Salary based on current annual salary; bonus based on actual 2009 bonus level except that, for Mr. Simpson, whose bonus is based on an assumed value (at $50.00 per share XTO Energy stock price) of 150,000 XTO Energy shares which would be granted in January 2011; value of XTO Energy equity grant based on number of performance shares granted to the executive in November 2009 (assuming a $50.00 per share XTO Energy stock price at the date of grant).

Other Executive Officers of XTO Energy

Treatment of Stock Options and Other Equity-Based Awards. Each executive officer of XTO Energy, other than the named executive officers, who are collectively referred to in this proxy statement/prospectus as the other executive officers, has received, from time to time, grants of options to purchase XTO Energy common stock and restricted shares and performance shares relating to XTO Energy common stock. There are two other executive officers.

Each stock option, restricted share and performance share held by the other executive officers that is outstanding immediately prior to the completion of the merger will be converted upon completion of the merger into an option to purchase, or performance share or restricted share relating to, ExxonMobil common stock, such conversion to be based upon the exchange ratio. The number of shares, option exercise price and any price targets applicable withProposal. With respect to the vestingAdvisory Compensation Proposal, the vote is advisory only and therefore not binding on Denbury or ExxonMobil, and, if the proposed Merger is approved by Denbury stockholders and consummated, the compensation that is the subject of stock options or performance sharesthe Advisory Compensation Proposal will be adjusted upon completion of the merger based upon the exchange ratio. Each option, performance share and restricted share (other than performance shares granted to the other executive officers in November 2009, as described below) will otherwise remain outstanding in accordance with its existing terms, including with respect to vesting and date of expiration. Each performance share granted to the other executive officers in November 2009 will be converted into a time-based vesting restricted share of ExxonMobil common stock and will vest on the earlier of the first anniversary of completion of the merger and a qualifying termination of the applicable other executive officer’s employment (as described under “—Other Executive Officers of XTO Energy—Management Severance Plan” beginning on page [] of this proxy statement/prospectus).

Management Severance Plan. Each of the other executive officers participates in the management severance plan. On December 13, 2009, the management severance plan was amended and restated, to become effective on the day prior to completion of the merger, to provide that lump-sum cash payments that otherwise would have been made within 45, 90 or 180 days after the occurrence of certain triggering events, including the completion of the merger, will instead become payable in equal installments at six and twelve months after completion of the merger, generally subject to continued employment to the payment date. The amount of these lump-sum payments will be equal to two-and-one-half times the sum of the other executive officer’s annual base salary, annual cash bonus and annual car allowance.

The management severance plan was also amended to remove the gross-up payment in respect of any 280G excise taxes, and instead to provide that any applicable amounts payable to participants in the management severance plan will be reduced, if necessary, so that the aggregate payments to the participant in connection with the merger will not exceed the maximum amount that could be provided to the participant without the imposition of 280G excise taxes.

The management severance plan was also amended to provide that the lump-sum payment described above will be accelerated, and all XTO Energy equity awards converted into ExxonMobil awards will become vested,even if the other executive officer’s employmentAdvisory Compensation Proposal is terminated either by XTO Energy without “cause,” by the other executive officer for “good reason” (each as defined in the management severance plan) or upon the other executive officer’s death or disability.not approved.

The maximum aggregate amount of the cash payments which may become payable to the other executive officers pursuant to the management severance plan is equal to approximately $3,000,000.

IF YOU ARE A DENBURY STOCKHOLDER, THE DENBURY BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT YOU VOTE “FOR” THE ADVISORY COMPENSATION PROPOSAL.

Indemnification and Insurance

The indemnification and insurance requirements set forth in the merger agreement relating to the named executive officers and other executive officers are described under “The Merger Agreement—Indemnification and Insurance” beginning on page [] of this proxy statement/prospectus.148

In addition, each of the consulting agreements provides that XTO Energy and ExxonMobil will indemnify each of the named executive officers to the maximum extent permitted by law in connection with any action or proceeding in which the named executive officer is named as, or threatened to be made, a party because the named executive officer is or was a consultant to XTO Energy, to the same extent that XTO Energy directors and officers are indemnified by XTO Energy under its bylaws from time to time.


Pursuant to indemnification agreements dated November 15, 2005, XTO Energy is obligated to indemnify, subject to certain exceptions, each of its directors, named executive officers and certain other officers to the fullest extent permitted by law against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement incurred in connection with any claim or action to which such person is a party by reason of his or her service to or activities on behalf of XTO Energy. The indemnification agreements also require XTO Energy to advance, subject to certain exceptions, expenses to each such director and officer incurred in connection with a covered claim or action. The rights under the indemnification agreements are in addition to any other rights that such directors and officers may have under XTO Energy’s certificate of incorporation, bylaws or applicable law. The indemnification agreements were amended in November 2007 to clarify that XTO Energy will only reimburse expenses incurred in connection with a covered claim or action if such director or officer is successful in defending against such claim or action, including by dismissal.

The rights of indemnification under the consulting and indemnification agreements are in addition to the rights of indemnification provided to the named executive officers under the merger agreement.

Relationship with Jefferies

Jack Randall, one of XTO Energy’s directors, was a co-founder and director of Randall & Dewey Partners, L.P., which was acquired by Jefferies Group, Inc. in 2005 and now operates as Jefferies & Company, Inc. Jefferies served as one of XTO Energy’s financial advisors in connection with the merger and provided financial advisory services to XTO Energy regarding the proposed merger, including using its expertise and extensive network of contacts in the oil and gas industry to consider the potential interest of third parties in a strategic transaction with XTO Energy and participating in initial contacts with principals of such parties, including with ExxonMobil; providing advice, assistance and analysis of publicly available information in connection with the preliminary contacts and exploratory discussions with ExxonMobil; supporting XTO Energy and its board of directors with respect to the negotiations with ExxonMobil; and providing advice regarding market and industry conditions, in each case as described further under “The Merger—Background of the Merger” beginning on page [] of this proxy statement/prospectus. If the merger is completed, XTO Energy has agreed to pay Jefferies a transaction fee of $24 million. In addition, XTO Energy agreed to reimburse Jefferies for all reasonable and documented out-of-pocket expenses, including legal fees, incurred in connection with the services it provides to XTO Energy in connection with the merger and has agreed to indemnify Jefferies against certain liabilities. Mr. Randall participated in the deliberations of the XTO Energy board of directors regarding the merger, but abstained from voting on the merger to avoid any perception of a potential conflict of interest arising out of his employment with Jefferies. See “The Merger—Background of the Merger” beginning on page [] of this proxy statement/prospectus. The engagement of Jefferies as financial advisor in connection with the merger was unanimously approved by the disinterested members of the board of directors, with Mr. Randall recusing himself from the consideration of the matter and the vote.

In the past two years, Jefferies has not received any compensation from ExxonMobil with respect to financial advisory or financing related activities.

DESCRIPTION OF EXXONMOBIL CAPITAL STOCK

The following description of the terms of ExxonMobil’s capital stock is a summary only and is qualified by reference to the relevant provisions of New Jersey law and the ExxonMobil restated certificate of incorporation and by-laws. Copies of the ExxonMobil restated certificate of incorporation and by-laws are incorporated by reference and will be sent to holders of shares of XTO Energy common stock free of charge upon written or telephonic request. See “Where You Can Find More Information” beginning on page [] of this proxy statement/prospectus.

Authorized Capital Stock

Under the ExxonMobil restated certificate of incorporation, ExxonMobil’s authorized capital stock consists of nine billion (9,000,000,000) shares of common stock, without par value, and two hundred million (200,000,000) shares of preferred stock, without par value.

Description of Common Stock

Common Stock Outstanding. As of April 14, 2010, there were 4,694,578,411 shares of ExxonMobil common stock issued and outstanding. The outstanding shares of ExxonMobil common stock are, and the shares of ExxonMobil common stock issued pursuant to the merger will be, duly authorized, validly issued, fully paid and nonassessable.

Voting Rights. Each holder of ExxonMobil common stock is entitled to one vote for each share of ExxonMobil common stock held of record on the applicable record date on all matters submitted to a vote of shareholders.

Dividend Rights. Holders of ExxonMobil common stock are entitled to receive such dividends as may be declared from time to time by ExxonMobil’s board of directors out of funds legally available therefor, subject to any preferential dividend rights granted to the holders of any outstanding ExxonMobil preferred stock.

Rights upon Liquidation. Holders of ExxonMobil common stock are entitled to share pro rata, upon any liquidation, dissolution or winding up of ExxonMobil, in all remaining assets available for distribution to shareholders after payment of or provision for ExxonMobil’s liabilities and the liquidation preference of any outstanding ExxonMobil preferred stock.

Preemptive Rights. Holders of ExxonMobil common stock have no preemptive rights to purchase, subscribe for or otherwise acquire any unissued or treasury shares or other securities.

Description of Preferred Stock

Preferred Stock Outstanding. As of the date of this proxy statement/prospectus,filing, no shares of ExxonMobil preferred stock were issued and outstanding.

Blank Check Preferred Stock. Under the ExxonMobil restated certificate of incorporation, the ExxonMobil board of directors has the authority, without shareholder approval, to create one or more classes or series within a class of preferred stock, to issue shares of preferred stock in such class or series up to the maximum number of shares of the relevant class or series of preferred stock authorized, and to determine the preferences, rights, privileges and restrictions of any such class or series, including the dividend rights, voting rights, the rights and terms of redemption, the rights and terms of conversion, liquidation preferences, the number of shares constituting any such class or series and the designation of such class or series. Acting under this authority, the ExxonMobil board of directors could create and issue a class or series of preferred stock with rights, privileges or restrictions, and adopt a shareholder rights plan, having the effect of discriminating against an existing or

prospective holder of securities as a result of such shareholder beneficially owning or commencing a tender offer for a substantial amount of ExxonMobil common stock. One of the effects of authorized but unissued and unreserved shares of capital stock may be to render more difficult or discourage an attempt by a potential acquirer to obtain control of ExxonMobil by means of a merger, tender offer, proxy contest or otherwise, and thereby protect the continuity of ExxonMobil’s management. The issuance of such shares of capital stock may have the effect of delaying, deferring or preventing a change in control of ExxonMobil without any further action by the shareholders of ExxonMobil. ExxonMobil has no present intention to adopt a shareholder rights plan, but could do so without shareholder approval at any future time. See “Comparison of Shareholder Rights—Certain Similarities in Shareholder Rights—Stockholder or Shareholder Rights Plan” beginning on page [] of this proxy statement/prospectus for a description of ExxonMobil’s Policy Statement on Poison Pills.

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ExxonMobil has designated 16,500,000 shares of ExxonMobil preferred stock as Class A Preferred Stock, none of which are outstanding, and 165,800 shares of ExxonMobil preferred stock as Class B Preferred Stock, none of which are outstanding.

Transfer Agent and Registrar

Computershare Trust Company, N.A. is the transfer agent and registrar for ExxonMobil common stock.

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Stock Exchange ListingCOMPARISON OF STOCKHOLDER RIGHTS

It is a condition toIf the merger thattransactions contemplated by the Merger Agreement are completed, Denbury stockholders will receive shares of ExxonMobil common stock issuable in connection with the merger be approved for listing onMerger and become stockholders of ExxonMobil. The following is a summary of certain differences between (i) the New York Stock Exchange, subjectcurrent rights of Denbury stockholders under Delaware law, the Denbury certificate of incorporation (referred to official notice of issuance. Ifin this section as the merger is completed, XTO Energy common stock will cease to be listed on any stock exchange“Denbury charter”) and will be deregistered under the Exchange Act.

COMPARISON OF SHAREHOLDER RIGHTS

TheDenbury bylaws and (ii) the current rights of ExxonMobil shareholders are currently governed byunder New Jersey law, and ExxonMobil’s restated certificate of incorporation and by-laws. The rights of XTO Energy stockholders are currently governed by Delaware law and XTO Energy’s restated certificate of incorporation and amended and restated bylaws. Following completion of the merger, the rights of XTO Energy stockholders who become shareholders of ExxonMobil in the merger will be governed by New Jersey law and the ExxonMobil restated certificate of incorporation and the ExxonMobil by-laws.

The following discussion summarizes the material differences between the current rights of XTO Energy stockholders and the current rights of ExxonMobil shareholders. These differences arise in part from the differences between New Jersey law and Delaware law. Additional differences arise from the governing instruments of the two companies.

Although it is impracticable to compare all of the aspects in which New Jersey law and Delaware law and ExxonMobil’s and XTO Energy’sDenbury’s governing instruments differ with respect to shareholder rights, the following discussion summarizes certain material differences between them. ThisThe following summary is not intendeda complete statement of the rights of stockholders of the two companies or a complete description of the specific provisions referred to be complete, and itbelow. This summary is qualified in its entirety by reference to the DGCL, New Jersey law Delaware law,and Denbury’s and ExxonMobil’s restated certificategoverning documents (which we urge you to read carefully and in their entirety). Copies of incorporation and by-laws and XTO Energy’s restated certificatethe respective companies’ governing documents have been filed with the SEC. To find out where copies of incorporation and amended and restated bylaws.these documents can be obtained, see “Where You Can Find More Information” beginning on page 178 of this proxy statement/prospectus. In addition, the identification of some of the differences in the rights of theseExxonMobil and Denbury stockholders as material is not intended to indicate that other differences that are equally important do not exist. ExxonMobil and XTO EnergyDenbury urge you to carefully read this entire proxy statement/prospectus, the relevant provisions of the DGCL and New Jersey law and Delaware law and the other documents to which ExxonMobil and XTO EnergyDenbury refer in this proxy statement/prospectus for a more complete understanding of the differences between the rights of ana ExxonMobil shareholder and the rights of an XTO Energya Denbury stockholder.

Between the date of the Merger Agreement and the effective time of the Merger, Denbury has agreed not to amend its governing documents and ExxonMobil has agreed not to amend its certificate of incorporation in a manner that would be materially adverse to Denbury or Denbury stockholders.

Denbury is incorporated under the laws of the State of Delaware and XTO Energy have filedExxonMobil is incorporated under the laws of the State of New Jersey. Accordingly, the rights of ExxonMobil shareholders are governed by applicable New Jersey law and Denbury stockholders are governed by the DGCL and other applicable Delaware law. As a result of the Merger, Denbury stockholders will receive shares of ExxonMobil common stock and will become ExxonMobil shareholders. Thus, following the Merger, the rights of Denbury stockholders who become ExxonMobil shareholders in connection with the SEC their respective governing documents referenced in this comparison of shareholder rightsMerger will be governed by applicable New Jersey law and will send copiesalso then be governed by the ExxonMobil restated certificate of these documents to you, without charge, upon your written or telephonic request. See “Where You Can Find More Information” beginning on page [incorporation and the ExxonMobil ] of this proxy statement/prospectus.by-laws.

Material Differences in Shareholder RightsCERTAIN KEY FEATURES OF STOCKHOLDER RIGHTS

 

   

XTO Energy StockholderExxonMobil Shareholder Rights

  

ExxonMobil ShareholderDenbury Stockholder Rights

Authorized Capital Stock  The authorized capital stock of XTO Energy consists of (i) 1,000,000,000 shares of common stock, $0.01 par value, and (ii) 25,000,000 shares of preferred stock, $0.01 par value.

ExxonMobil’s authorized capital stock consists of (i) 9,000,000,000 shares of common stock, without par value, and (ii) 200,000,000 shares of preferred stock, without par value.

Under XTO Energy’s restated certificate of incorporation, XTO Energy’s board of directors has the authority to issue one or more classes or series within a class of common stock or preferred stock with voting powers and other terms as the board of directors may determine.

Under ExxonMobil’s restated certificate of incorporation, ExxonMobil’s board of directors hasis authorized at any time or from time to time (i) to divide the authorityshares of preferred stock into classes and into series within any class or classes of

Denbury’s authorized capital stock consists of (i) 250,000,000 shares of common stock, par value $0.001 per share, and (ii) 50,000,000 shares of preferred stock, par value $0.001 per share.

The Denbury charter authorizes Denbury’s board of directors, acting by resolution, to divide into and issue from time to time one or more classes or series within a class of preferred stock. The rights and preferences of the preferred stock with voting powers and other terms as the board of directors may determine.

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Denbury Stockholder Rights

  

preferred stock; (ii) to determine for any such class or series its designation, relative rights, preferences and limitations; (iii) to determine the number of shares in any such class or series (including a determination that such class or series shall consist of a single share); (iv) to increase the number of shares of any such class or series previously determined by it and to decrease such previously determined number of shares to a number not less than that of the shares of such class or series then outstanding; (v) to change the designation or number of shares, or the relative rights, preferences and limitations of the shares, of any theretofore established class or series no shares of which have been issued; and (vi) to cause to be executed and filed without further approval of the shareholders such amendment or amendments to the ExxonMobil restated certificate of incorporation as may be required in order to accomplish any of the foregoing.

As of April 14, 2010,August 7, 2023, there were (i) 584,284,999 shares of XTO Energy common stock and (ii) no shares of XTO Energy preferred stock outstanding.

As of April 14, 2010, there were
(i) 4,694,578,4113,986,501,076 shares of ExxonMobil common stock and (ii) no shares of ExxonMobil preferred stock outstanding.
Size of Board of Directors

  XTO Energy’s

each series shall be such as shall be stated in any such resolution or resolutions. Denbury’s board of directors currently has nine members.is also authorized to fix and determine, with respect to such preferred stock, (i) the powers, designations, preferences and relative, participating, optional or other rights, including, without limitation, voting powers, (ii) the full or limited, preferential rights to receive dividends or assets upon liquidation, (iii) the rights of conversion or exchange into common stock, preferred stock of any series or other securities and (iv) any right to exchange or convert shares into common stock, preferred stock of any series or other securities, or redemption provision or sinking fund provisions, as between series and as between the preferred stock or any series thereof and the common stock.

The number of shares comprising such series of preferred stock may be increased or decreased (but not below the number of shares then outstanding) from time to time by like action of Denbury’s board of directors.

As of July 31, 2023, there were (i) 50,277,186 shares of Denbury common stock and (ii) no shares of Denbury preferred stock outstanding.

Voting Rights  ExxonMobil’s boardEach holder of ExxonMobil common stock is entitled to one vote per share of ExxonMobil common stock, held of record by such holder on all matters on which holders of common stock are entitled to vote.Each holder of Denbury common stock is entitled to one vote per share of Denbury common stock.
Cumulative VotingUnder New Jersey law, shareholders of a New Jersey corporation do not have the right to cumulate their votes in the election of directors currently has ten members.unless that right is granted in the certificate of incorporation of the corporation. The ExxonMobil restated certificate of incorporation does not permit cumulative voting.Denbury’s charter does not permit cumulative voting with respect to the election of directors.

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XTO Energy StockholderExxonMobil Shareholder Rights

  

Denbury Stockholder Rights

QuorumThe ExxonMobil by-laws provide that the presence in person or by proxy at a meeting of the holders of shares entitled to cast a majority of votes at the meeting is a quorum.Denbury’s bylaws provide that the holders of not less than one-third of shares issued and outstanding and entitled to vote on the matter presented thereon, present in person or represented by proxy, shall constitute a quorum at all meetings of the stockholders for the transaction of business, except as otherwise provided by Denbury’s charter or applicable law.
Stockholder Rights Plans

ExxonMobil does not have a shareholder rights plan. While ExxonMobil has no present intention to adopt a shareholder rights plan, the ExxonMobil board of directors, pursuant to its authority to issue preferred stock, could do so without shareholder approval at any future time. See “Description of ExxonMobil Capital Stock—Description of Preferred Stock—Blank Check Preferred Stock” beginning on page 149 of this proxy statement/prospectus. ExxonMobil’s board of directors has adopted a Policy Statement on Poison Pills, available on ExxonMobil’s Internet website,

http://www.exxonmobil.com, under the “Corporate Governance” tab within the dropdown menu available under the “Investors” tab, and then within the section labeled “Guidelines and additional policies.” Under this policy, ExxonMobil undertakes that, if it ever were to adopt a shareholder rights plan, the board of directors would seek prior shareholder approval unless, due to timing or other reasons, a committee of independent directors determines that it would be in the best interest of shareholders to adopt a plan before obtaining shareholder approval. In that event, the plan must either be ratified by shareholders or must expire within one year.

While the DGCL does not include a statutory provision expressly validating stockholder rights plans, such plans have generally been upheld by court decisions applying the DGCL.

Denbury does not have a shareholder rights plan in place and has no present intention to adopt a shareholder rights plan.

Rights of Preferred StockThe ExxonMobil restated certificate of incorporation provides that the ExxonMobil board of directors isThe Denbury charter authorizes Denbury’s board of directors, acting by resolution, to divide into and issue

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Denbury Stockholder Rights

  XTO Energy’s

authorized to determine the designation, relative rights, preferences and limitations of each series or class of ExxonMobil preferred stock.

As of the date of this proxy statement/ prospectus, no shares of ExxonMobil preferred stock were outstanding.

from time to time one or more series of preferred stock. The rights and preferences of the preferred stock of each series shall be such as shall be stated in any such resolution or resolutions. Denbury’s board of directors is also authorized to fix and determine, with respect to such preferred stock, (i) the powers, designations, preferences and relative, participating, optional or other rights, including, without limitation, voting powers, (ii) the full or limited, preferential rights to receive dividends or assets upon liquidation, (iii) the rights of conversion or exchange into common stock, preferred stock of any series or other securities and (iv) any right to exchange or convert shares into common stock, preferred stock of any series or other securities, or redemption provision or sinking fund provisions, as between series and as between the preferred stock or any series thereof and the common stock.
Preemptive Rights

Under New Jersey law, shareholders of corporations organized prior to January 1, 1969 have preemptive rights unless the certificate of incorporation provides otherwise.

ExxonMobil’s restated certificate of incorporation and amended and restated bylaws provideprovides that shareholders do not have preemptive rights.

Under Delaware law, stockholders of a corporation do not have preemptive rights to subscribe for or purchase any additional issue of stock or to any security convertible into such stock, unless such right is expressly included in the XTO Energy board of directors must consist of not less than three nor more than 21 members, as maycharter.

The Denbury charter provides that no stockholder shall be fixed from time to time by a resolution adopted by the majority of the entire board of directors or by the affirmative vote of holders of 80% or more of the voting power of the then outstanding shares of XTO Energy capital stock entitled to vote in the electionpreemptive rights.

Number of directors, voting together as a single class.Directors  

Under the ExxonMobil restated certificate of incorporation and by-laws, the board of directors must consist of not less than 10 nor more than 19 members, as may be fixed from time to time by resolution of the ExxonMobil board of directors.

ExxonMobil’s board of directors currently has twelve members.

The Denbury bylaws provide that the number of directors constituting the full board shall be not less than three nor more than 15 directors. The number of directors constituting the full board of directors shall be as specified by resolution of the Denbury board of directors from time to time.

Denbury’s board of directors currently consists of eight members.

Election of Directors  

XTO Energy’s board of directors has discretion to elect one or more advisory directors to serve for a term established by the XTO Energy board of directors. Advisory directors attend meetings of the XTO Energy board of directors and meetings of committees to which they are assigned, but are not entitled to vote. Advisory directors are not considered members of the XTO Energy board of directors for notice, quorum, voting or other purposes, and the XTO Energy board of directors can excuse any advisory director from all or any portion of any meeting. There are currently three employees of XTO Energy serving as advisory directors.

Classification of Board of DirectorsPrior to XTO Energy’s 2009 annual meeting of stockholders on May 19, 2009, XTO Energy’s board of directors was divided into three classes, in as equal number as possible, with staggered three-year terms. At XTO Energy’s 2009 annual meeting of stockholders, XTO Energy’s stockholders approved and adopted an amendment to XTO Energy’s bylaws to eliminate the classified structure effective in 2011 and provide for the annual election of all directors at that time. XTO Energy’s amended and restated bylaws provide that XTO Energy’s board of directors will be declassified in stages over a two-year period. XTO Energy’s board of directors will cease to be classified, and all directors will be elected annually, commencing with the election of directors at the annual meeting of stockholders to be held in 2011. The XTOExxonMobil does not have a classified board of directors. Each ExxonMobil director is elected at each annual meeting of stockholders and holds office until the next annual meeting and until his or her successor has been elected and qualified.

XTO Energy Stockholder Rights

ExxonMobil Shareholder Rights

Energy board of directors is currently divided into two classes, with three directors assigned to a class having a term that expires at the 2010 annual meeting of XTO Energy stockholders, and six directors assigned to a class having a term that expires at the 2011 annual meeting.

Election of DirectorsThe XTO Energy amended and restated bylaws provide that, in an uncontested election, each director will be elected by the vote of the majority of votes cast with respect to that director’s election, and that, in a contested election (i.e., an election in which the number of nominees exceeds the number of directors to be elected), each director will be elected by a plurality of votes cast. For purposes of the election of directors, a majority of the votes cast means the number of votes for that nominee exceeds the number of votes cast against that nominee (with abstentions and broker non-votes not counted as a vote cast either for or against that director’s election). XTO Energy’s Corporate Governance Guidelines (which can be found under the tab “Corporate Governance” of XTO Energy’s Internet web site,http://www.xtoenergy.com) provide an advance resignation requirement for incumbent directors being nominated for re-election to the XTO Energy board of directors. This requirement provides that an incumbent director may become a nominee for further service on the XTO Energy board of directors only if the incumbent director submits an irrevocable resignation that is contingent upon (i) his or her not receiving a majority of the votes cast in an uncontested election and (ii) the XTO Energy board of director’s acceptance of such resignation. The corporate governance and nominating committee will recommend to the XTO Energy board of directors whether to accept or reject the resignation or whether other action should be taken. The XTO Energy board of directors will decide whether to accept or reject the resignation, taking into account the corporate governance and nominating committee’s recommendation, and make a public disclosure of its decision,New Jersey law provides that except as otherwise provided in the corporation’s certificate ofPursuant to the Denbury charter, at any meeting of stockholders at which directors are to be elected and at

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ExxonMobil Shareholder Rights

Denbury Stockholder Rights

incorporation or by-laws,bylaws, directors are elected by a plurality of the votes cast at an election. Because the ExxonMobil’s restated certificate of incorporation and by-laws include no additional provisions in this regard, New Jersey law applies without modification. This means that the director nominee with the most votes for a particular seat is elected for that seat. ExxonMobil’s corporate governance guidelines (which can be found on ExxonMobil’s Internet website, http://www.exxonmobil.com, under the “Corporate Governance” tab “investors”within the dropdown menu available under the “Investors” tab, and then underwithin the tab “corporate governance” of ExxonMobil’s Internet web site,http://www.exxonmobil.comsection labeled “Guidelines and additional policies”), state that in any non-contested election of directors, any director nominee who receives a greater number of votes “withheld” from“against” his or her election than votes “for” such election must tender his or her resignation. Within 90 days after certification of the election results, the ExxonMobil board of directors will decide, through a process managed by ExxonMobil’s Board AffairsNominating and Governance Committee and excluding the nominee in question, whether to accept the resignation. Absent a compelling reason for the director to remain on the ExxonMobil board of directors, the ExxonMobil board of directors will accept the resignation. The ExxonMobil board of directors will promptly disclose its decision and, if applicable, the reasons for rejecting the tendered resignation on a Form 8-K filed with the SEC.

which a quorum is present, each director to be elected shall be elected by the vote of the majority of the votes cast with respect to the nominee at such meeting; provided, however, that at any meeting of stockholders at which directors are to be elected and at which a quorum is present, the directors shall be elected by the vote of a plurality of votes cast in the election of directors if Denbury receives a stockholder nomination for election to the board of directors in compliance with the advance notice requirements for stockholder nominees for director election.

A majority of the votes cast means that the number of shares voted “FOR” a nominee’s election must exceed the number of shares voted “AGAINST” together with the number of shares withheld for such nominee’s election, and abstentions shall not be counted as votes cast.

Filling Vacancies on the Board of Directors

Any vacancy occurring on the ExxonMobil board of directors, however caused, may be filled by the affirmative vote of a majority of the remaining directors even though less than a quorum, or by a sole remaining director.

Under New Jersey law, if there are no directors in office, any shareholder or

Any vacancy on the Denbury board of directors resulting from death, resignation, removal or other cause, shall only be filled by the affirmative vote of a majority of the remaining directors then in office, even though less than a quorum of the board of directors, or by a sole remaining director.

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XTO Energy StockholderExxonMobil Shareholder Rights

  

ExxonMobil ShareholderDenbury Stockholder Rights

  

including the rationale behind its decision ifexecutor or administrator of a deceased shareholder may call a special meeting of shareholders for the resignation is rejected, within 90 days following the certificationelection of election results.

directors and, over his own signature, shall give notice of said meeting in accordance with New Jersey law and as described below under “—Notice of Meeting of Stockholders.”

 

Newly created directorships resulting from any increase in the number of directors shall be filled by the board of directors, or if not so filled, by the stockholders at the next annual meeting or at a special meeting called for that purpose.

Removal of DirectorsWhere a corporation does not have a classified board of directors, Delaware law provides that unless the corporation’s certificate of incorporation provides otherwise, any director or the entire board of directors may be removed, with or without cause, by the holders of a majority of the votes then entitled to vote on the election of directors. Under Delaware law, where there is a classified board of directors, any director may be removed only for cause, unless the corporation’s certificate of incorporation provides otherwise. Under the XTO Energy restated certificate of incorporation and amended and restated bylaws, XTO Energy stockholders may remove directors only for cause until the 2011 annual meeting of stockholders. Thereafter, stockholders may remove directors with or without cause by the affirmative vote of a majority of the voting power of the then outstanding shares entitled to vote.  New Jersey law allows shareholders to remove directors for cause or, unless the certificate of incorporation provides otherwise, without cause, in each case by the affirmative vote of the majority of votes cast by the holders of shares entitled to vote. Because the ExxonMobil restated certificate of incorporation includes no additional provisions in this regard, ExxonMobil shareholders may remove directors with or without cause. In addition, the ExxonMobil restated certificate of incorporation allows the removal of a director for cause by a majority of the directors then in office if, in the judgment of such majority, the director’s continuation in office would be harmful to the corporation. The ExxonMobil board of directors may suspend a director pending a final determination that cause for removal exists.The Denbury bylaws provide that any director or the entire board of directors may be removed, with or without cause, by the holders of a majority of the shares then entitled to vote on such matter.
Special Meetings of Directors  

XTO Energy’sThe ExxonMobil by-laws provide that special meetings of the ExxonMobil board of directors may remove an advisory director at any time, with or without cause.

Special Meetings of Stockholders or ShareholdersUnder Delaware law, a special meeting of stockholders may be called byat the direction of the chairman of the board, of directorsthe president or byof any other person authorized to do sovice president who is a member of the board, or, in the corporation’s certificateabsence of incorporation or bylaws.Under New Jersey law, holderssuch officers, at the direction of at least 10%any one of the shares of a corporation entitled to vote may apply to the New Jersey Superior Court to request that a specialdirectors. Any such meeting of shareholdersshall be called for good cause shown. Atheld on such a meeting, the shareholders present in person or by proxydate and having voting powers will constitute a quorum for the transaction of businessat such time and place as may be designated in the ordernotice of the court.
meeting.  XTO Energy’s amended and restatedThe Denbury bylaws provide that special meetings of the board of directors may be called by the chairman of the board, of directors,chief executive officer, or president, and shall be called by the chief executive officer, the president, or secretary on the written request of at least three directors then in office, unless the board of directors or the corporate secretary atconsists of fewer than three directors, in which case special meetings shall be called in like manner and on like notice on the written request of holders of 80% or more of the voting power of theall directors then outstanding shares of XTO Energy capital stock entitled to vote in the election of directors, acting together as a single class.office.
Director Nominations by Stockholders  In addition, ExxonMobil’s by-lawsNew Jersey law requires that the written notice of any annual meetingThe Denbury bylaws provide that special meetingsnominations of shareholders may be called by (i) the board of directors, (ii) the chairman of the board of directors or (iii) the president.persons for election to

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XTO Energy StockholderExxonMobil Shareholder Rights

  

ExxonMobil ShareholderDenbury Stockholder Rights

Notice of Stockholder or Shareholder Proposals and Nominations of Director Candidates by Stockholders or Shareholders  Under Delaware law, the notice of the annual meeting is not required to state

specify the purpose or purposes of the meeting. Therefore, business conducted at an ExxonMobil annual meeting.shareholder meeting is limited to the business specified in the meeting notice.

The ExxonMobil by-laws provide that nominations of persons for election to the board of directors at any annual meeting of shareholders may be made only: (A) pursuant to the corporation’s notice of meeting (or any supplement thereto) (B) by or at the direction of the board of directors, (C) by any shareholder of the corporation who is a shareholder of record at the time of giving of notice provided for in Section 9(a)(ii) of the ExxonMobil by-laws and at the time of the annual meeting, who is entitled to vote at the meeting and who complies with the procedures and information requirements set forth in the ExxonMobil by-laws or (D) in accordance with the Proxy Access by-Law.

the board of directors by the stockholders may be made for consideration and voting at an annual meeting of stockholders only (A) pursuant to the corporation’s notice of meeting (or any supplement thereto), (B) by or at the direction of the board of directors, or (C) by any stockholder (x) who was a stockholder of record at the time the notice provided for in Section 2.12(a)(ii) and Section 2.12(a)(iii) of the Denbury bylaws is delivered to the secretary, on the record date for the determination of stockholders entitled to vote at the meeting and on the meeting date; (y) who is entitled to vote at the meeting upon such election of directors or upon such business, as the case may be; and (z) who complies with the notice procedures set forth in the Section 2.12(a)(ii) and Section 2.12(a)(iii) of the Denbury bylaws.

Stockholder Proposals (Other than Director Nominations)  

New Jersey law requires that the written notice of any annual meeting specify the purpose or purposes of the meeting. Therefore, business conducted at an ExxonMobil annual shareholder meeting is limited to the business specified in the meeting notice.

 

The XTO Energy amended and restated bylaws generally permit stockholders to nominate director candidates if the stockholder intending to make such nomination gives timely notice thereof in writing in proper form. To be timely, the XTO Energy amended and restated bylaws require, subject to certain limited exceptions, that written notice of an intention to nominate a director candidate be received by the XTO Energy board of directors, with a copy to the president and the corporate secretary of XTO Energy, not later than 120 days in advance of the scheduled date for the next annual meeting date. To be in proper form, the XTO Energy amended and restated bylaws require that such notice include, among other things, certain disclosures about (i) the director nominee, including all information that would be required to be disclosed in a proxy filing, any agreements, arrangements and understandings between the nominee and the proposing stockholder relating to the proposed nomination or XTO Energy and (ii) the stockholder making such nomination, including all ownership interests (including derivatives) and rights to vote any security of XTO Energy. Such notice must also contain the written consent of the proposed nominee to be named in the proxy statement as a nominee and to serve as a director if elected.

The ExxonMobil restated certificateby-laws provide that the proposal of incorporation and by-laws do not contain any provisions that govern the submission of director nominations or other proposals by shareholders.

XTO Energy’s amended and restated bylaws allow for business to be(other than matters properly brought beforeunder Rule 14a-8 promulgated under the Exchange Act) at an annual meeting of XTO Energyshareholders may be made only: (A) pursuant to the corporation’s notice of meeting (or any supplement thereto) (B) by or at the direction of the board of directors, or (C) by any shareholder of the corporation who is a shareholder of record at the time of giving of notice provided for in Section 9(a)(ii) of the ExxonMobil by-laws and at the time of the annual

The Denbury bylaws provide that the proposal of business to be considered by the stockholders may be made for consideration and voting at an annual meeting of stockholders only (A) pursuant to the corporation’s notice of meeting (or any supplement thereto), (B) by or at the direction of the board of directors, or (C) by any stockholder (x) who was a stockholder (other than proposals with respectof record at the time the notice provided for in Section 2.12(a)(ii) and Section 2.12(a)(iii) of the Denbury bylaws is delivered to the proposed nominationsecretary, on the record date for the determination of director candidatesstockholders entitled to vote at the meeting and on the meeting date; (y) who is entitled to vote at the meeting upon such election of directors or proposals subject to Rule 14a-8 underupon such business, as the Exchange Act), ifcase may be; and (z) who complies with the stockholder intending to proposenotice procedures set forth in the business gives timely notice thereof in writing in proper form to the corporate secretary ofSection 2.12(a)(ii) and

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ExxonMobil ShareholderDenbury Stockholder Rights

  

XTO Energy. To be timely, a stockholder’s notice must be received bymeeting, who is entitled to vote at the corporate secretarymeeting and who complies with the procedures and information requirements set forth in the ExxonMobil by-laws.

Section 2.12(a)(iii) of the company, subject to certain limited exceptions, not less than 90 days, or more than 120 days, before the anniversary date of the immediately preceding annual meeting of stockholders. To be in proper form, the XTO Energy amended and restated bylaws require that such notice include, among other things, certain disclosures about (i) the proposal, including all information that would be required to be disclosed in a proxy filing, any agreements, arrangements and understandings between the proposing stockholder and any other persons relating to the proposal or XTO Energy and (ii) the stockholder making such proposal, including all ownership interests (including derivatives), rights to vote any security of XTO Energy and any material interest of the stockholder in such business, as well as the text of any resolutions proposed for consideration.Denbury bylaws.

 

Stockholder or Shareholder Action Without a MeetingDelaware law provides that, except as otherwise stated in the certificate of incorporation, stockholders may act by written consent without a meeting. However, the XTO Energy restated certificate of incorporation provides that XTO Energy stockholders may only take action without a meeting by unanimous written consent.Written Consent  New Jersey law provides that, except as otherwise stated in the certificate of incorporation, shareholders who would have been entitled to cast the minimum number of votes that would be necessary to authorize a permitted or required action at a meeting at which all shareholders entitled to vote were present and voting may act by written consent without a meeting, except in regard to the annual election of directors, which may be by written consent only if unanimous. The ExxonMobil restated certificate of incorporation does not provide otherwise. New Jersey law also provides that such shareholder action may not take effect unless the corporation gives all non-consenting shareholders advance notice of the action consented to, the proposed effective date of the action, and any conditions precedent to such action. Also, under New Jersey law, if the action gives rise to dissenters’ rights, the board of directors must fix a date for the tabulation of consents.

The Denbury bylaws permit any action required or permitted to be taken at any meeting of the stockholders to be taken without a meeting, without prior notice and without a vote, if a consent or consents in writing, setting forth the action so taken, shall be signed by the holders of outstanding shares having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted.
Certificate of Incorporation Amendments  

XTO Energy Stockholder Rights

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Amendments to Certificate of Incorporation

Delaware law generally provides that amendments to the certificate of incorporation must be approved by the board of directors and then adopted by the vote of a majority of the outstanding voting power entitled to vote thereon, unless the certificate of incorporation requires a greater vote. Under XTO Energy’s restated certificate of incorporation, amendments to XTO Energy’s certificate of incorporation generally may be made in accordance with the default positions of Delaware law. However, the XTO Energy restated certificate of incorporation requires the vote of 80% of the voting power of the shares entitled to vote in the election of directors in order to amend certain provisions of the XTO Energy restated certificate of incorporation, including provisions relating to (i) the number, election or term of directors (other than any increase in the maximum number of directors to more than 21, which may be amended by the vote of the holders of a majority or more of the XTO Energy shares entitled to vote thereon), (ii) stockholder nomination of director candidates, (iii) filling newly created directorships resulting from an increase in the authorized number of directors and any vacancies on the board of directors and (iv) stockholder action by written consent in lieu of a meeting.

New Jersey law provides that a corporation may amend its certificate of incorporation, from time to time, in any and as many respects as may be desired so long as the amendment contains only such provisions as might lawfully be contained in an original certificate of incorporation filed at the time of making such amendment.

In accordance with New Jersey law and the ExxonMobil restated certificate of incorporation, provides that upon the approval of a proposed amendment to the certificate of incorporation by a majority of the board of directors, shareholders may adopt such amendment by the affirmative vote of

Under the DGCL, an amendment to a corporation’s charter generally requires the approval of the corporation’s board of directors and the holders of a majority of the outstanding stock entitled to vote thereon unless the charter requires a higher vote. In addition, if the proposed amendment would increase or decrease the aggregate number of authorized shares of a class of stock, increase or decrease the par value of the shares of such class or change the powers, preferences or special rights of the shares so as to affect them adversely, the holders of a majority of the outstanding shares of such class

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a majority of the votes cast by holders of shares entitled to vote.
Amendments to By-laws  Under Delaware law, stockholders of a corporation

shall be entitled to vote and, if so providedas a class upon the proposed amendment.

The Denbury charter explicitly states that any amendments thereto must be made in the certificate of incorporation, the directors of the corporation, each have the power, separately, to adopt, amend and repeal the bylaws of a corporation. XTO Energy’s restated certificate of incorporation provides that the board of directors is expressly authorized to make, alter or repeal XTO Energy’s amended and restated bylaws. XTO Energy’s amended and restated bylaws may also be adopted, amended and repealedmanner prescribed by the stockholders. However, under XTO Energy’s certificate of incorporation, the affirmative vote of the holders of 80% or more of the voting power of all of the XTO Energy shares entitled to vote generally in the election of directors,DGCL.

Bylaw Amendments  

Under New Jersey law, the initial by-lawsbylaws of a corporation are adopted by the board of directors at its organization meeting. Thereafter, the board of directors has the power to make, alter and repeal by-lawsbylaws unless such power is reserved to the shareholders in the certificate of incorporation, but by-lawsbylaws made by the board of directors may be altered or repealed, and new by-lawsbylaws made, by the shareholders. The shareholders may prescribe in the by-lawsbylaws that any by-law made by them may not be altered or repealed by the board of directors. Whenever any amendment to the by-laws, other than as regards the election of directors,bylaws is to be takenadopted by vote of the shareholders, it must be authorized by a majority of the votes cast at

XTO Energy Stockholder Rights

ExxonMobil Shareholder Rights

voting together as a single class, is required

for stockholders to amend any bylaw provision in a manner that would be inconsistent with the provisions of XTO Energy’s restated certificate of incorporation relating to (i) the number, election or term of directors, (ii) stockholder nomination of director candidates, (iii) filling newly created directorships resulting from an increase in the authorized number of directors and any vacancies on the board of directors or (iv) stockholder action by written consent in lieu of a meeting.

a meeting of shareholders by the holders of shares entitled to vote thereon, unless a greater plurality is required by the certificate of incorporation or New Jersey law.

ExxonMobil’s by-laws give the board of directors the power to make, alter and repeal the by-laws, but by-laws made by the board may be altered or repealed, and new by-laws made, by the shareholders. ExxonMobil’s restated certificate of incorporation does not contain any provision requiring a greater vote of shareholders to amend any of its by-law provisions. provisions than is set forth under New Jersey law.

Anti-Takeover Provisions  Delaware law provides that, if a person acquires 15%

Under the DGCL, bylaws may be adopted, amended or more ofrepealed by the stock of a Delaware corporation without the approval of the board of directors of that corporation, thereby becoming an “interested stockholder”, that person may not engage in certain transactions, including mergers, with the corporation for a period of three years unless one of the following exceptions applies: (i) the board of directors approved the acquisition of stock or the transaction priorstockholders entitled to the time that the person became an interested stockholder; (ii) the person became an interested stockholdervote, and 85% owner of the voting stock of the corporation in the transaction, excluding voting stock owned by directors who are also officers and certain employee stock plans; or (iii) the transaction is approved by the board of directors andif the corporation’s certificate of incorporation confers the power to adopt, amend or repeal the corporation’s bylaws upon the directors.

The Denbury bylaws may be altered, amended or repealed, or new bylaws may be adopted, by the affirmative vote of two-thirdsa majority of the outstandingdirectors then in office, voting stock which is not owned by the interested stockholder.

New Jersey law restricts the abilityin favor thereof, at any meeting of certain persons to acquire control of a New Jersey corporation. In general, a corporation organized under the laws of New Jersey with its principal executive offices or significant business operations located in New Jersey (a “resident domestic corporation”) may not engage in a “business combination” with an “interested shareholder” for a period of five years following the interested shareholder’s becoming such unless the business combination is approved by the board of directors priordirector.

In addition, the stockholders shall have the power to the stock acquisition date. Covered business combinations include certain mergers, dispositions of assetsadopt, amend, or shares and recapitalizations. An interested shareholder is generally a shareholder owning at least 10%repeal any provisions of the voting power of a corporation’s outstanding shares. In addition, after the prohibition during the first five years, a resident domestic corporation may not engage in a business combination with the interested shareholder other than (i) a business combination approvedbylaws by thean affirmative vote of the holders of two-thirdsa majority of theshares having voting stock not beneficially ownedpower present in person or represented by such interested shareholderproxy at a meeting for such purposeof stockholders.

Special Meetings of StockholdersSpecial meetings of the shareholders may be called by the board of directors, the chairman of the board, the president, or by the secretary of the corporation pursuant to Article I, Section 3(b) of the ExxonMobilSpecial meetings of stockholders shall be called only (i) by the board of directors pursuant to a resolution approved by a majority of the directors then in office, or (ii) a business combination in whichby the interested shareholder pays a formula price designed to ensure that all other shareholders receivesecretary of the corporation, following his receipt at least the highest price per share paid by such interested shareholder from the date the entity became an interested shareholder.principal executive

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by-laws, and may not be called by any other person.

A Delawarespecial meeting of shareholders shall be called by the secretary of ExxonMobil at the written request or requests (“Special Meeting Request”) of holders of record of at least 15% of the voting power of the outstanding capital stock of the corporation, may elect notentitled to vote on the matter or matters to be governedbrought before the proposed special meeting.

Except as may otherwise be permitted by this provisionthe New Jersey Business Corporation Act, a Special Meeting Request must be delivered by hand or by registered U.S. mail, postage prepaid, return receipt requested, or courier service, postage prepaid, to the attention of Delaware law. XTO Energy hasthe secretary of ExxonMobil at its principal executive offices. A Special Meeting Request to the secretary shall be signed and dated by each shareholder of record and each beneficial owner, if any, on whose behalf the Special Meeting Request is being made (or a duly authorized agent of such shareholder or owner) requesting the special meeting.

A special meeting requested by shareholders in accordance with the ExxonMobil by-laws will be held on such date and at such time as may be fixed by the board of directors in accordance with the by-laws; provided, however, that the date of any such special meeting shall not elected outbe more than 120 days after a Special Meeting Request that satisfies the requirements of this provision.Section 3 of Article I of the ExxonMobil by-laws is received by the secretary.

  A resident domestic corporation may not opt outoffices of one or more special meeting demand(s) by or on behalf of holders of record of at least 25% of the foregoing provisions.aggregate voting power of the then issued and outstanding shares.
Notice of Meetings of Stockholders  

Other than for the super-majority voting requirements relating to amendments to certain provisionsExxonMobil’s by-laws provide that, except as otherwise provided by statute, written notice of XTO Energy’s restated certificateevery meeting of incorporation described above, there is no super-majority voting, fair price or similar provision in the XTO Energy restated certificate of incorporation.

shareholders must be given
  There is no super-majority voting, fair priceThe Denbury bylaws provide that notice of any annual or similar provision inspecial meeting of stockholders, stating the ExxonMobil restated certificate of incorporation.
Appraisal RightsUnder Delaware law, a stockholder of a Delaware corporation is generally entitled to demand appraisalplace (if any), date, and time of the fair value of his or her shares inmeeting, as well as the event the corporation is a party to a merger or consolidation, subject to specified exceptions.Under New Jersey law, appraisal rights are available in connection with (i) a merger or consolidation to which the corporation is a party, (ii) any sale, lease or exchange or other disposition of all or substantially all of a corporation’s assets other than in the usual and regular course of business or (iii) an acquisition of some or all of the outstanding shares or assets of a legal entity, either directly or through a subsidiary, in exchangerecord date for the corporation’s shares (a “share exchange”) if, as a result of the share exchange, the number of voting or participating shares issued in connection with the share exchange, when combined with shares already outstanding, would exceed by more than 40 percent the number of those shares outstanding immediately before the share exchange, unless an exception applies. A New Jersey corporation may provide in its certificate of incorporation that shareholders will have appraisal rights even in cases where the exceptions to the availability of appraisal rights discussed below exist. ExxonMobil’s restated certificate of incorporation does not so provide.

Delaware law does not confer appraisal rights to stockholders if the corporation’s shares are:

•   listed on a national securities exchange;

•   held of record by more than 2,000 holders; or

•   shares of the corporation surviving or resulting from the merger or consolidation if the merger did not

New Jersey law does not confer appraisal rights to stockholders in connection with:

•   A merger or consolidation in which the corporation is a party if the merger does not require shareholder approval. Under New Jersey law shareholder approval for a merger or consolidation is required if the merger amends the certificate of incorporation, affects the outstanding shares of the surviving

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require the vote of the stockholders of the surviving or resulting corporation for the approval of the merger under Delaware law.

Even if these exceptions to appraisal rights apply, the holders of such shares will have appraisal rights if they are required to accept in the merger any consideration in exchange for such shares other than:

•   shares of stock of the corporation surviving or resulting from the merger or consolidation;

•   shares of stock of any other corporation that will be either listed on a national securities exchange or held of record by more than 2,000 holders;

•   cash in lieu of fractional shares; or

•   any combination of the foregoing.

The certificate of incorporation of a Delaware corporation may provide appraisal rights for stockholders upon an amendment to a corporation’s certificate of incorporation, any merger in which the corporation is a constituent or a sale of all or substantially all of the assets of the corporation.

The XTO Energy stockholders are not entitled to appraisal rights under Delaware law or under XTO Energy’s restated certificate of incorporation in connection with the merger.

corporation or, if the number of voting or participating shares issued in connection with the merger or consolidation, when combined with shares already outstanding, would exceed by more than 40 percent the number of those shares outstanding immediately before the merger.

•   The merger of the corporation into a wholly owned subsidiary if certain conditions are met.

•   (i) A merger or consolidation in which the corporation is a party or (ii) a share exchange if (i) the shares held by the corporation’s shareholders are listed on a national securities exchange or are held of record by at least 1,000 holders or (ii) in the case of a merger or consolidation, the corporation’s shareholders will receive (a) cash, (b) shares, obligations or other securities that will either be listed on a national securities exchange or held of record by not less than 1,000 holders or (c) a combination thereof.

•   A sale, lease, exchange or other disposition of all or substantially all of a corporation’s assets if the shares held by the corporation’s shareholders are listed on a national securities exchange or are held of record by at least 1,000 holders.

•   A dissolution transaction in which substantially all of a corporation’s net assets are to be distributed to its shareholders within one year after10 nor more than 60 days before the date of the transaction, so long asmeeting.

New Jersey law requires that the transactionwritten notice of any shareholder meeting specify the purpose or purposes of the meeting. Under the ExxonMobil by-laws, business conducted at shareholder meetings is wholly for cash, shares, obligations or other securitieslimited to the business specified in the meeting notice.

determining stockholders entitled to vote at the meeting, and the means of remote communication (if any) by which willstockholders and proxyholders may be listed on a national securities exchange or held of record bydeemed to be present in person and vote at such meeting, shall be given to each stockholder entitled to notice, not less than 1,000 holders10 nor more than 60 days before the date of the meeting.

Notice of special meetings of stockholders shall also include the purpose or a combination thereof.

purposes for which the meeting is called. Business transacted at any special meeting of stockholders shall be limited to the purpose or purposes stated in the notice.

Directors’ and Officers’
Limitation of Personal Liability and IndemnificationThe XTO Energy restated certificate of incorporation limits the liability of XTO Energy directors, except for liability (i) for a breach of the director’s duty of loyalty to XTO Energy or its stockholders, (ii) for actsDirectors  The ExxonMobil restated certificate of incorporation limits the personal liability of the directors and officers of ExxonMobil to the fullest extent permitted by law. New Jersey law permits a domestic corporation to

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or omissions not in good faith or which involved intentional misconduct or a knowing violation of law, (iii) under Section 174 of the Delaware General Corporate Law (which creates liability for unlawful payment of dividends and unlawful stock purchases or redemptions) or (iv) for any transaction from which the director derived an improper personal benefit.eliminate the liability of directors or officers to the corporation or its shareholders for the breach of any duty owed to the corporation or its shareholders, except for any breach of duty based upon an act or omission (i) in breach of such person’s duty of loyalty to the corporation or its shareholders, (ii) not in good faith or involving a knowing violation of law or (iii) resulting in receipt by the person of an improper personal benefit. In this context, an act or omission in breach of a director or officer’s duty of loyalty is defined as an act or omission which the director or officer knows or believes to be contrary to the best interests of the corporation or its shareholders in connection with a matter in which the director or officer has a material conflict of interest.
  

The XTO EnergyDenbury charter provides that no director shall be personally liable to the corporation or to its stockholders for monetary damages for breach of fiduciary duty as a director, provided that the Denbury charter does not eliminate or limit the liability of a director: (i) for any breach of the director’s duty of loyalty to the corporation or its stockholders, (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (iii) under Section 174 of the DGCL, as amended and restated bylaws providefrom time to time, or (iv) for (i)any transaction from which the indemnificationdirector derived an improper personal benefit.

The Denbury charter also states that if the DGCL is amended to authorize corporate action further eliminating or limiting the personal liability of its currentdirectors, then the liability of a director shall be eliminated or former directors, advisory directors and officers (or any other person who is or was serving at the request of XTO Energy in the capacity of director, advisory director, officer, employee or agent for another entity)limited to the fullest extent permitted by law,the DGCL, as so amended.

Indemnification of Directors and (ii) the advancement of expenses (including attorneys’ fees) to the fullest extent not prohibited by law upon receipt, to the extent required by law, of an undertaking to repay such amounts if it is ultimately determined that the indemnified person is not entitled to indemnification.Officers  The ExxonMobil by-laws provide for (i) the indemnification of its current or former directors and officers to the fullest extent permitted by law, andUnder the DGCL, the standards of conduct for directors have developed through Delaware court case law. Generally, directors of Delaware

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(ii) the advancement of expenses (including attorneys’ fees) upon receipt of an undertaking to repay such amounts if it is ultimately determined that the director or officer or former director or officer is not entitled to indemnification.

Delaware law provides that, subject to certain limitations in the case of derivative suits brought by a corporation’s stockholders in its name, a corporation may indemnify any person who is made a party to any third-party action, suit or proceeding (other than an action by or in the right of the corporation) on account of being a current or former director, officer, employee or agent of the corporation (or is or was serving at the request of the corporation in such capacity for another corporation, partnership, joint venture, trust or other enterprise) against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him or her in connection with the action,indemnification

New Jersey law provides that a domestic corporation may indemnify a corporate agent (generally defined as any person who is or was a director, officer, employee or agent of the corporation or of any constituent corporation absorbed by the corporation in a consolidation or merger and any person who is or was a director, officer, trustee, employee or agent of any other enterprise, serving as such at the request of the corporation, or any such constituent corporation, or the legal representative of any such director, officer, trustee, employee or agent) against such person’s expenses and liabilities in connection with any proceeding involving the corporate agent by reason of being or having been such a corporate agent (other than a proceeding by or in the right of

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suit or proceeding if the person (i) acted in good faith and in a manner reasonably believed to be in the best interests of the corporation (or in some circumstances, at least not opposed to its best interests), and (ii) in a criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful.the corporation) if the corporate agent (i) acted in good faith and in a manner hethe agent reasonably believed to be in or not opposed to the best interests of the corporation; and (ii) with respect to any criminal proceeding, such corporate agent had no reasonable cause to believe histhe conduct at issue was unlawful.
Delaware law also permits a corporation to indemnify any person who is made a party to any third-party action, suit or proceeding on account of being a current or former director, officer, employee or agent of the corporation (or is or was serving at the request of the corporation in such capacity for another corporation, partnership, joint venture, trust or other enterprise) against expenses (including attorneys’ fees) actually and reasonably incurred by such persons in connection with the defense or settlement of a derivative action or suit, except that no indemnification may be made in respect of any claim, issue or matter as to which the person is adjudged to be liable to the corporation unless the Delaware Court of Chancery or the court in which the action or suit was brought determines upon application that the person is fairly and reasonably entitled to indemnity for the expenses which the court deems to be proper.

New Jersey law also permits indemnification of a corporate agent against expenses incurred in connection with a derivative action or suit which involves the corporate agent, if the corporate agent acted in good faith and in a manner the corporate agent reasonably believed to be in or not opposed to the best interests of the corporation. However, in such proceeding, no indemnification shall be provided in respect of any claim, issue or matter as to which the

corporations are subject to a duty of loyalty and a duty of care. The duty of loyalty requires directors to refrain from self-dealing and to act in good faith and in a manner that directors reasonably believe to be in the best interests of the corporation and its stockholders, and the duty of care requires directors in managing the corporation’s affairs to use that level of care which ordinarily careful and prudent persons would use in similar circumstances. When directors act consistently with their duties of loyalty and care, their decisions generally are presumed to be valid under the business judgment rule.

The Denbury charter provides for the indemnification of each person who at any time is or was a director or officer of the corporation, and is threatened to be or is made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative, arbitrative or investigative, whether the basis of such proceeding is an alleged action in such person’s official capacity or in another capacity while holding such office, to the fullest extent authorized by the DGCL.

The Denbury charter also authorizes the advancement of any expenses actually and reasonably incurred or suffered by such person (including, without limitation, court costs and attorneys’ fees, judgments, fines, excise taxes or penalties, and amounts paid or to be paid in settlement thereof).

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corporate agent is adjudged to be liable to the corporation, unless and only to the extent that the Superior Court of the State of New Jersey (or the court in which the proceeding was brought) determines upon application that, despite the adjudication of liability, but in view of all circumstances of the case, the corporate agent is fairly and reasonably entitled to indemnity for such expenses as the court deems proper.

To the extent that a current or former director or officer is successful on the merits or otherwise in the defense of such an action, suit or proceeding, the corporation is required by Delaware law to indemnify such person for expenses actually and reasonably incurred thereby.

New Jersey law requires a corporation to indemnify a corporate agent for such corporate agent’s expenses to the extent that such corporate agent has been successful on the merits or otherwise in any proceeding referred to above, or in defense of any claim, issue or matter therein. Except as required by the previous sentence, no indemnification may be made or expenses advanced, and none may be ordered by a court, if such indemnification or advancement would be inconsistent with (i) a provision of the corporation’s certificate of incorporation, (ii) its by-laws,bylaws, (iii) a resolution of the board of directors or of the corporation’s shareholders, (iv) an agreement to which the corporation is a party or (v) other proper corporate action in effect at the time of the

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accrual of the alleged cause of action asserted in the proceeding, which prohibits, limits or otherwise conditions the exercise of indemnification powers by the corporation or the rights of indemnification to which a corporate agent may be entitled.
The indemnification and advancement of expenses provided by Delaware law do not exclude any other rights to which those seeking indemnification or advancement of expenses may be entitled under any bylaw, agreement, vote of stockholders or disinterested directors or otherwise.

The indemnification and advancement of expenses permitted by New Jersey law do not exclude any other rights to which the corporate agent may be entitled under a provision of the corporation’s certificate of incorporation, its bylaws, an agreement, vote of shareholders, or otherwise; provided that no indemnification is permitted if a

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judgment or other final adjudication adverse to the corporate agent establishes that the corporate agent’s acts or omissions (i) were in breach of his duty of loyalty to the corporation or its shareholders, (ii) were not in good faith or involvinginvolved a knowing violation of law or (iii) resulted in receipt by the corporate agent of an improper personal benefit.

Expenses (including attorneys’ fees) incurred by such persons in defending any action, suit or proceeding may be paid in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of that person to repay the amount if it is ultimately determined that person is not entitled to be so indemnified.

Expenses incurred by a corporate agent in anyconnection with a proceeding may be paid by the corporation in advance of the final disposition of such proceeding as authorized by the board of directors upon receipt of an undertaking by or on behalf of the corporate agent to repay such amount if it is ultimately determined that the corporate agent is not entitled to be so indemnified.

Certain Similarities in Shareholder Rights

XTO Energy Stockholder Rights

  

ExxonMobil Shareholder Rights

Voting Rights

Each holder of XTO Energy common stock is entitled to one vote per share of XTO Energy common stock.

Each holder of ExxonMobil common stock is entitled to one vote per share of ExxonMobil common stock.
Cumulative Voting

Under Delaware law, stockholders of a Delaware corporation do not have the right to cumulate their votes in the election of directors unless that right is granted in the certificate of incorporation of the corporation. The XTO Energy restated certificate of incorporation does not permit cumulative voting.

Under New Jersey law, shareholders of a New Jersey corporation do not have the right to cumulate their votes in the election of directors unless that right is granted in the certificate of incorporation of the corporation. The ExxonMobil restated certificate of incorporation does not permit cumulative voting.
QuorumThe XTO Energy amended and restated bylaws provide that the presence in person orThe ExxonMobil by-laws provide that the presence in person or by proxy at a meeting

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by proxy at a meeting of the holders of a majority in voting power of the XTO Energy capital stock entitled to vote at the meeting is a quorum.

of the holders of shares entitled to cast a majority of votes at the meeting is a quorum.
Filling of Vacancies on the Board of DirectorsXTO Energy’s amended and restated bylaws provide that newly created directorships resulting from any increase in the authorized number of directors and any vacancies occurring on the XTO Energy board of directors, however caused, may be filled by the affirmative vote of a majority of the remaining directors even though less than a quorum, or by a sole remaining director.Any vacancy occurring on the ExxonMobil board of directors, however caused, may be filled by the affirmative vote of a majority of the remaining directors even though less than a quorum, or by a sole remaining director.
Dividends  

Under Delaware Law, if there are no directors in office, then any officer or any stockholder or executor, administrator, trustee or guardian of a stockholder, or other fiduciary entrusted with like responsibility for the person or estate of a stockholder, may call a special meeting of stockholders in accordance with XTO Energy’s certificate of incorporation or bylaws or may apply to the Court of Chancery for a decree summarily ordering an election.

Under New Jersey Law, if there are no directors in office, any shareholder or the executor or administrator of a deceased shareholder may call a special meeting of shareholders for the election of directors and, over his own signature, shall give notice of said meeting in accordance with New Jersey law and as described below under “—Notice of Special Meetings.”

Notice of Special MeetingsXTO Energy’s amended and restated bylaws provide that, except as otherwise provided by law, written notice of every meeting of stockholders must be given not less than 10 nor more than 60 days before the date of the meeting.ExxonMobil’s by-laws provide that, except as otherwise provided by statute, written notice of every meeting of shareholders must be given not less than 10 nor more than 60 days before the date of the meeting.

Under Delaware law, the written notice of the special meeting must set forth the purpose or purposes for which the meeting is called. Under XTO Energy’s amended and restated bylaws, the business to be transacted at an XTO Energy special meeting of stockholders is limited to the purposes stated in the notice of meeting.

New Jersey law requires that the written notice of any shareholder meeting specify the purpose or purposes of the meeting. Under the ExxonMobil by-laws, business conducted at shareholder meetings is limited to the business specified in the meeting notice.
Preemptive RightsUnder Delaware law, stockholders of a corporation do not have preemptive rights to subscribe to an additional issue of stock or to any security convertible into such stock, unless such right is expressly included in the certificate of incorporation. Because the XTO Energy restated certificate of incorporation does not include any provision in this regard, holders of XTO Energy shares do not have preemptive rights.Under New Jersey law, shareholders of corporations organized prior to January 1, 1969 have preemptive rights unless the certificate of incorporation provides otherwise. ExxonMobil’s restated certificate of incorporation provides that shareholders do not have preemptive rights.

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Dividends

Delaware law generally provides that, subject to certain restrictions, the directors of every corporation may declare and pay dividends upon the shares of its capital stock either out of its surplus or, in case there shall be no such surplus, out of its net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year.

New Jersey law generally provides that a corporation may, from time to time, by resolution of its board of directors, pay dividends on its shares unless, after giving effect to such dividend (i) the corporation would not be able to pay its debts as they become due in the usual course of business or (ii) the corporation’s total assets would be less than its total liabilities.
Repurchase

The ExxonMobil restated certificate of Sharesincorporation provides that the board of directors is authorized to determine whether the holders of any class or series of preferred stock are entitled to cumulative, non-cumulative or partially cumulative dividends or to no dividends and, with respect to shares entitled to dividends, the dividend rate or rates (which may be fixed or variable) and any other terms and conditions relating to such dividends.

  

Delaware lawSection 170 of the DGCL provides that the directors of a corporation may generally redeem or repurchasedeclare and pay dividends upon the shares of its capital stock unlesseither out of its surplus or, if there is no such surplus, out of its net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. If the capital of the corporation is impairedwill have been diminished by depreciation in the value of its property, or such redemptionby losses, or repurchase would impairotherwise, to an amount less than the aggregate amount of the capital represented by the issued and outstanding stock of all classes having a preference upon the distribution of assets, the directors of such corporation will not declare and pay out of such net profits any dividends upon any shares of any classes of its capital stock until the deficiency in the amount of capital represented by the issued and outstanding stock of all classes having a preference upon the distribution of assets will have been repaired.

The Denbury bylaws provide that any, dividends may be declared by the

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Denbury Stockholder Rights

board of directors at any regular or special meeting, pursuant to the DGCL. Dividends may be paid in cash, in property, or in shares, in each case only out of funds available for the payment of dividends as provided by law. Any dividends declared upon shall be payable on such date or dates as the board of directors shall determine.

Before payment of any dividend, the Denbury board of directors may set aside out of any funds available for dividends such sum or sums as the board of directors from time to time, in its absolute discretion, thinks proper as a reserve or reserves to meet contingencies, or for equalizing dividends, or for repairing or maintaining any property of the corporation, or for such other purpose as the board of directors shall think conducive to the interest of the corporation.

Shareholders’ Rights of Dissent and Appraisal  

Under New Jersey law, provides thatdissenters’ rights are available in connection with (A) a merger or consolidation to which the corporation may generally acquire its own shares subject to restrictions in its own certificate of incorporation. ExxonMobil’s restated certificate of incorporation does not imposeis a party or (B) any restrictions on the repurchase of shares.

Stockholdersale, lease or Shareholder Vote on Fundamental Issues or Extraordinary Corporate TransactionsUnder Delaware law, a saleexchange or other disposition of all or substantially all of a corporation’s assets other than in the usual or regular course of business. A New Jersey corporation may provide in its certificate of incorporation that shareholders will have dissenters’ rights even in cases where the exceptions to the availability of such rights discussed below exist. ExxonMobil’s restated certificate of incorporation does not provide for such additional rights.

New Jersey law does not confer appraisal rights to shareholders in connection with:

•  (i) a merger or consolidation in which the corporation is a party if the merger does not require shareholder approval (under New Jersey law

Under the DGCL, stockholders of a Delaware corporation who have neither voted in favor of nor have consented in writing to certain mergers or consolidations to which the corporation is a party and who have otherwise met the requirements set forth in Section 262 of the DGCL are entitled to demand appraisal of the fair value of their shares pursuant to, and in compliance with procedures set forth in, Section 262 of the DGCL. However, Delaware law does not provide for appraisal rights if the shares of the corporation are listed on a national securities exchange or held of record by more than 2,000 holders or the corporation will be the surviving corporation of the merger and approval of the merger does not require the vote of the stockholders of the surviving corporation under Section 251(f) of the DGCL. Notwithstanding the foregoing, stockholders of Delaware corporations are entitled to appraisal rights in the

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ExxonMobil Shareholder Rights

Denbury Stockholder Rights

shareholder approval for a merger or consolidation is required if the plan of merger amends the certificate of incorporation, the merger affects the outstanding shares of the surviving corporation or, if the number of voting or participating shares issued in connection with the merger or consolidation, when combined with shares already outstanding, would exceed by more than 40% the number of those shares outstanding immediately before the merger; (ii) the merger of the corporation into a wholly owned subsidiary if certain conditions are met; (iii) (A) a merger or consolidation in which the corporation is a party or (B) a share exchange if (x) the shares held by the corporation’s shareholders are listed on a national securities exchange or are held of record by at least 1,000 holders or (ii) in the case of a merger or consolidation, the corporation’s shareholders will receive (I) cash, (II) shares, obligations or other securities that will either be listed on a national securities exchange or held of record by not less than 1,000 holders or (III) a combination thereof; (iv) a sale, lease, exchange or other disposition of all or substantially all of a corporation’s assets if the shares held by the corporation’s shareholders are listed on a national securities exchange or are held of record by at least

case of a merger or consolidation if the agreement of merger or consolidation requires stockholders to accept in exchange for its shares anything other than (w) shares or depository receipts of another corporation which at the date the merger or consolidation is completed will be either listed on a national securities exchange or held of record by more than 2,000 holders, (x) shares of stock or depositary receipts of the surviving corporation in the merger or consolidation, (y) cash in lieu of fractional shares or (z) any combination of the foregoing.

Neither the Denbury charter nor the Denbury bylaws address appraisal rights or dissenters’ rights.

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ExxonMobil Shareholder Rights

Denbury Stockholder Rights

1,000 holders; (v) a dissolution transaction in which substantially all of a corporation’s net assets are to be distributed to its shareholders within one year after the date of the transaction, so long as the transaction is wholly for cash, shares, obligations or other securities which will be listed on a national securities exchange or held of record by not less than 1,000 holders or a dissolutioncombination thereof; or (vi) from a sale pursuant to an order of a court having jurisdiction.

Neither the ExxonMobil restated certificate of incorporation nor the ExxonMobil by-laws address appraisal rights or dissenters’ rights.

Anti-Takeover ProvisionsNew Jersey law restricts the ability of certain persons to acquire control of a New Jersey corporation. In general, a corporation generally requiresorganized under the laws of New Jersey with its principal executive offices or significant business operations located in New Jersey (a “resident domestic corporation”) may not engage in a “business combination” with an “interested shareholder” for a period of five years following the date such shareholder first becomes an interested shareholder (“stock acquisition date”) unless (i) the business combination is approved by the board of directors prior to the stock acquisition date or (ii) the transaction or series of related transactions which caused the person to become an interested shareholder was approved by the board of directors of that resident domestic corporation prior to that interested shareholder’s stock acquisition date and any subsequent business combinations with that interestedSection 203 of the DGCL prevents a corporation from entering into a Business Combination (as defined below) with an Interested Stockholder (as defined below) for a period of three years following the time an Interested Stockholder becomes such, unless (A) prior to such time the board of directors of the corporation has approved such Business Combination or the transaction in which an Interested Stockholder became such; (B) the transaction in which an Interested Stockholder became such resulted in such stockholder owning more than 85% of the corporation’s voting stock (subject to certain exclusions); or (C) at or subsequent to the time of the transaction in which an Interested Stockholder becomes such, the Business Combination is approved by the board of directors of the corporation and authorized by two-thirds of the outstanding voting stock at an annual or special meeting (and not by written consent),

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ExxonMobil Shareholder Rights

Denbury Stockholder Rights

shareholder are approved by the board of directors of that resident domestic corporation, provided that any such subsequent business combination is approved by (1) the board of directors, or a committee of that board, consisting solely of persons who are not employees, officers, directors, shareholders, affiliates or associates of that interested shareholder (“independent directors”), and (2) the affirmative vote of the corporation’s board of directors and, with limited exceptions, the affirmative voteholders of a majority of the aggregatevoting stock not beneficially owned by such interested shareholder.

Covered “business combinations” include certain mergers, dispositions of assets or shares and recapitalizations. An interested shareholder is generally (i) a shareholder that beneficially owns at least 10% of the voting power of a corporation’s outstanding shares or (ii) an affiliate or associate of the corporation that held a 10% or greater beneficial ownership interest in the corporation at any time within the prior five years.

In addition, after the prohibition during the first five years, a resident domestic corporation may not engage in a business combination with the interested shareholder other than (i) a business combination approved by the board of directors prior to the interested stockholder’s stock acquisition date; (ii) a business combination approved by the affirmative vote of the holders of two-thirds of the voting stock not beneficially owned by such interested shareholder; (iii) a business combination in which the interested shareholder pays a formula price designed to ensure that all other shareholders receive at least the highest price per share paid by such interested shareholder from the date the entity became an interested shareholder; or (iv) a business

excluding the stock owned by the Interested Stockholder.

Section 203 of the DGCL defines “Business Combination” as, inter alia, (a) merger or consolidation with an Interested Stockholder, (b) sale, exchange or other disposition to or with an Interested Stockholder of 10% or more of the aggregate market value of either the assets on a consolidated basis or the outstanding stock entitledof the corporation and (c) any receipt by an Interested Stockholder of financial benefits (except proportionately as a stockholder) by or through the corporation other than those expressly permitted by the DGCL. Holding company mergers authorized by Section 251(g) of the DGCL are excluded from the definition of “Business Combination.”

Section 203 of the DGCL defines “Interested Stockholder” as any person or an affiliate of any such person (other than the corporation or any of its majority-owned subsidiaries) that beneficially (A) owns 15% or more of the outstanding voting stock of the corporation or (B) owned 15% or more of the outstanding voting stock of the corporation at any time within the previous three years, subject to certain exceptions.

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ExxonMobil Shareholder Rights

Denbury Stockholder Rights

combination approved by the independent directors and the affirmative vote onof the transaction. Becauseholders of a majority of the XTO Energyvoting stock not beneficially owned by such interested shareholder if the transaction or series of related transactions with the interested shareholder which caused the person to become an interested shareholder was approved by the board prior to the consummation of such transaction or series of transactions.

A resident domestic corporation may not opt out of the foregoing provisions.

There is no super-majority voting, fair price or similar provision in the ExxonMobil restated certificate of incorporation and amended and restated bylaws include no additional provisions in this regard, Delaware law applies without modification.incorporation.  Denbury has opted out of Section 203 of the DGCL.
Stockholder Vote on Fundamental or Extraordinary Corporate Transactions

New Jersey law provides that in the case of a corporation organized prior to January 1, 1969, a sale, lease, exchange or other disposition of all or substantially all of a corporation’s assets not in the usual and regular course of its business, a merger or consolidation of a corporation with another corporation or a dissolution of a corporation generally requires the affirmative vote of the corporation’s board of directors and the affirmative vote of two-thirds of the votes so cast by shareholders entitled to vote thereon, unless the corporation adopts by the affirmative vote of two-thirds of the votes cast by the holders of shares entitled to vote thereon a majority voting requirement.

ExxonMobil shareholders have previously adopted a majority voting requirement by the requisite shareholder approval, and the ExxonMobil restated certificate of incorporation provides that the following shareholder actions may be taken by the affirmative vote of a majority of the votes cast by the holders of shares of the corporation

Neither the Denbury charter nor the Denbury bylaws contains voting requirements for approval of mergers, sales or other fundamental or extraordinary corporate transactions that differ from those related to ordinary course corporate actions.

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Denbury Stockholder Rights

entitled to vote: (i) the adoption by shareholders of a proposed amendment of the certificate of incorporation; (ii) the adoption by shareholders of a proposed plan of merger or consolidation; (ii)(iii) the approval by shareholders of a sale, lease, exchange, or other disposition of all, or substantially all, of the assets of the corporation otherwise than in the usual and regular course of business as conducted by the corporation; and (iii)(iv) dissolution of the corporation.
Exclusive Forum

Under New Jersey law, a corporation may provide in its by-laws that the federal and state courts in New Jersey shall be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the corporation, (ii) any action by one or more shareholders asserting a claim of a breach of fiduciary duty owed by a director or officer, or former director or officer, to the corporation or its shareholders, or a breach of the certificate of incorporation or by-laws, (iii) any action brought by one or more shareholders asserting a claim against the corporation or its directors or officers, or former directors or officers, arising under the certificate of incorporation or New Jersey law, (iv) any other state law claim, including a class action asserting a breach of a duty to disclose, or a similar claim, brought by one or more shareholders against the corporation, its directors or officers, or its former directors or officers or (v) any other claim brought by one or more shareholders which is governed by the internal affairs or an analogous doctrine.

There is no exclusive forum provision in the ExxonMobil by-laws.

Unless Denbury consents in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware (or, if and only if the Court of Chancery of the State of Delaware lacks subject matter jurisdiction, any state or federal court located within the State of Delaware) and any appellate court therefrom will, to the fullest extent permitted by law, be the sole and exclusive forum for (i) any derivative action, suit, or proceeding brought on behalf of Denbury, (ii) any action, suit, or proceeding asserting a claim of breach of a fiduciary duty owed by, or other wrongdoing by, any current or former director, officer, employee, agent or stockholder of Denbury to Denbury or Denbury’s stockholders, creditors or other constituents, (iii) any action, suit, or proceeding asserting a claim against Denbury or any current or former director, officer, employee, agent or stockholder of Denbury arising pursuant to, or seeking to enforce any right, obligation, or remedy under, any provision of the DGCL, the Denbury charter, or the Denbury bylaws, (iv) any action, suit, or proceeding to interpret, apply, enforce or determine the validity of the Denbury charter or the Denbury bylaws, (v) any action, suit, or proceeding as to which the DGCL confers jurisdiction on the Court of Chancery of the State of

170


   

XTO Energy StockholderExxonMobil Shareholder Rights

  

ExxonMobil ShareholderDenbury Stockholder Rights

Stockholder or Shareholder Rights Plan  XTO Energy currently has no

Delaware, or (vi) any action, suit, or proceeding asserting a claim against Denbury or any current or former director, officer, employee, or stockholder rights plan. XTO Energy’s previous stockholder rights plan expiredof Denbury either (x) governed by its termsthe internal affairs doctrine or (y) asserting an “internal corporate claim” as such term is defined in August 2008. Notwithstanding the expirationDGCL.

Likewise, the federal district courts of the stockholder rights planUnited States will be the sole and subject toexclusive forum for the restrictions containedresolution of any complaint asserting a cause of action arising under the Securities Act.

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SECURITY OWNERSHIP OF CERTAIN DENBURY BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth information regarding the beneficial ownership of Denbury common stock as of July 31, 2023 (except as to stockholders listed below as owning 5% or more of Denbury’s outstanding common stock), by (i) each person who is known to Denbury to beneficially own more than 5% of the outstanding shares of Denbury common stock, (ii) each Denbury named executive officer, (iii) each Denbury director and (iv) all current Denbury directors and named executive officers as a group. Unless otherwise indicated, all persons named as beneficial owners of Denbury common stock have sole voting power and sole investment power with respect to the shares indicated as owned by them. In addition, unless otherwise indicated, the address for each person named below is c/o Denbury Inc., 5851 Legacy Circle, Suite 1200, Plano, Texas 75024.

Name and Address of Beneficial Owner

  Number of Shares of
Denbury Common
Stock Beneficially
Owned(1)
  Percentage of
Denbury Common
Stock Beneficially
Owned(2)
 

DIRECTORS AND NAMED EXECUTIVE OFFICERS(4):

 

Kevin O. Meyers

   5,831(3) (4) (8)   * 

Anthony M. Abate

   3,887(8)   * 

Caroline G. Angoorly

   3,887(8)   * 

James N. Chapman

   3,887(8)   * 

Lynn A. Peterson

   3,887(3) (8)   * 

Brett R. Wiggs

   3,887(8)   * 

Cindy A. Yeilding

   3,887(8)   * 

Christian S. Kendall

   42,723(3) (4) (5) (6) (8)   * 

Mark C. Allen

   20,517(3) (4) (5) (6) (8)   * 

James S. Matthews

   10,685(4) (5) (6) (8)   * 

David E. Sheppard

   12,005(3) (4) (5) (6) (7) (8)   * 

All current directors and executive officers as a group (11 persons)

   115,083(8)   * 
  

 

 

  

 

 

 

STOCKHOLDERS OWNING MORE THAN 5%:

   

The Vanguard Group(9)

100 Vanguard Blvd.

Malvern, PA 19355

   4,816,289   9.5

FMR LLC(10)

245 Summer Street

Boston, MA 02210

   4,450,325   8.7

The Goldman Sachs Group, Inc. (11)

200 West Street

New York, NY 10282

   3,878,261   7.6

Blackrock, Inc.(12)

55 East 52nd Street

New York, NY 10055

   3,556,803   7.0

*

Indicates less than 1%.

(1)

Beneficial ownership reported in the merger agreement,table has been determined according to SEC regulations and includes shares that may be acquired within 60 days after July 31, 2023 upon the XTO Energy boardexercise of directors could, pursuant to its authority to issue preferredDenbury equity awards.

(2)

Based on 50,902,023 shares of Denbury common stock adopt a stockholders rightsoutstanding as of July 31, 2023.

(3)

Includes Series B Warrants beneficially owned in the following amounts: Dr. Meyers (748); Mr. Kendall (3,568); Mr. Allen (3,597); and Mr. Sheppard (347). Each Series B Warrant may currently be exercised for one share of Denbury common stock at an exercise price of $35.41 per share until September 18, 2023, at which time the Series B Warrants expire.

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(4)

Includes shares acquired through Denbury’s employee stock purchase plan without stockholder approval at any future time.in the following amounts: Mr. Kendall (483), Mr. Allen (349) and Mr. Matthews (524).

(5)

Includes restricted stock granted on March 7, 2022, which vests ratably on March 7, 2024 and 2025, as follows:

Name

  ExxonMobilRestricted
Stock

Christian S. Kendall

15,119

Mark C. Allen

6,432

James S. Matthews

3,133

David E. Sheppard

2,626

(6)

Includes restricted stock granted on March 7, 2023, which vests ratably over a three-year period, as follows:

Name

Restricted
Stock

Christian S. Kendall

22,398

Mark C. Allen

8,130

James S. Matthews

5,422

David E. Sheppard

7,073

(7)

Includes 1,104 shares of unvested unrestricted stock granted on June 1, 2022, to Mr. Sheppard in connection with his promotion to Chief Operating Officer, which vests ratably on June 1, 2024 and 2025.

(8)

The table above does not include shares related to fourth quarter 2020 post emergence grants scheduled to be issued within 30 days after December 4, 2023 upon settlement of performance stock units (“Denbury PSUs”), which vested in March 2021, and Denbury RSUs, two-thirds of which have a shareholdervested as of December 2022, and the remaining one-third of which will vest on December 4, 2023. Holders of the Denbury PSUs and Denbury RSUs below have no rights plan. While ExxonMobilas stockholders of Denbury with respect to any shares of stock that may become deliverable thereunder unless and until the holder has no present intentionbecome the holder of record of such shares of stock. As of July 31, 2023, our executive officers and directors held the following number of vested Denbury PSUs and Denbury RSUs (vested and unvested), each of which represents the right to adopt a shareholder rights plan,receive one share of the ExxonMobil board of directors, pursuant to its authority to issue preferred stock, could do so without shareholder approval at any future time. See “Description of ExxonMobil Capital Stock—Description of Preferred Stock—Blank Check Preferred Stock” beginning on page [] of this proxy statement/prospectus. ExxonMobil’s board of directors has adopted a Policy Statement on Poison Pills, available on ExxonMobil’s Internet web site,http://www.exxonmobil.com, under the tab “investors,” then under the tab “corporate governance,” then the tab “additional policies and guidelines.” Under this policy, ExxonMobil undertakes that, if it ever were to adopt a shareholder rights plan, the board of directors would seek prior shareholder approval unless, due to timing or other reasons, a committee of independent directors determines that it would be in the best interest of shareholders to adopt a plan before obtaining shareholder approval. In that event, the plan must either be ratified by shareholders or must expire within one year.Denbury common stock:

Name

  Vested PSUs   Vested RSUs   Unvested RSUs   Total 

Christian S. Kendall

   362,242    241,210    124,501    727,953 

Mark C. Allen

   135,791    90,562    46,688    273,041 

James S. Matthews

   71,247    47,544    24,512    143,303 

David E. Sheppard

   67,817    45,280    23,344    136,441 

Kevin O. Meyers

   —     30,559    15,280    45,839 

Anthony M. Abate

   —     20,372    10,187    30,559 

Caroline G. Angoorly

   —     20,372    10,187    30,559 

James N. Chapman

   —     20,372    10,187    30,559 

Lynn A. Peterson

   —     20,372    10,187    30,559 

Brett R. Wiggs

   —     20,372    10,187    30,559 

Cindy A. Yeilding

   —     6,484    3,242    9,726 

All of the executive officers and directors as a group

   637,097    563,499    288,502    1,489,098 

(9)

Based on a Schedule 13G/A filed with the SEC on February 9, 2023, wherein The Vanguard Group (“Vanguard”) reported beneficial ownership of 4,816,289 shares of Denbury common stock as of December 31, 2022. Vanguard reported sole dispositive power as to 4,685,971 of the shares, shared dispositive power as to 130,018 of the shares and shared voting power as to 85,621 of the shares.

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LEGAL MATTERS


(10)

Based on a Schedule 13G/A filed with the SEC on August 10, 2023, wherein FMR LLC (“FMR”) reported beneficial ownership of 4,450,325 shares of Denbury common stock as of August 9, 2023. FMR reported sole dispositive power as to 4,450,325 of the shares and sole voting power as to 4,426,733 of the shares.

(11)

Based on a Schedule 13G filed with the SEC on February 14, 2023, wherein The Goldman Sachs Group, Inc. (“Goldman”) reported beneficial ownership of 3,878,261 shares of Denbury common stock as of December 31, 2022. Goldman reported shared dispositive power as to 3,875,347 of the shares and shared voting power as to 3,875,186 of the shares.

(12)

Based on a Schedule 13G/A filed with the SEC on January 31, 2023, wherein BlackRock, Inc. (“Blackrock”) reported beneficial ownership of 3,556,803 shares of Denbury common stock as of December 31, 2022. Blackrock reported sole dispositive power as to 3,556,803 of the shares and sole voting power as to 3,488,031 of the shares.

The validity of the ExxonMobil common stock to be issued to XTO Energy stockholders pursuant to the merger will be passed upon by Randall M. Ebner, Assistant General Counsel of ExxonMobil.174

As a condition to the completion of the merger, ExxonMobil will have received an opinion from Davis Polk & Wardwell LLP, and XTO Energy will have received an opinion from Skadden, Arps, Slate, Meagher & Flom LLP, in each case, dated as of the effective time of the merger, to the effect that, for U.S. federal income tax purposes, the merger will constitute a reorganization within the meaning of Section 368 of the Code.


EXPERTS

The consolidated financial statements of ExxonMobilExxon Mobil Corporation and ExxonMobil management’s assessment of the effectiveness of internal control over financial reporting incorporated in this proxy statement/prospectus and in the registration statement by reference to ExxonMobil’s Annual Report on Form 10-K for the year ended December 31, 2009 (which is included in Management’s Report on Internal Control over Financial Reporting) incorporated in this proxy statement/prospectus by reference to Exxon Mobil Corporation’s Annual Report on Form 10-K for the year ended December 31, 2022 have been so incorporated in reliance on the reports reportof PricewaterhouseCoopers LLP, an independent registered public accounting firm, incorporated by reference herein, given on the authority of said firm as experts in accountingauditing and auditing.accounting.

The consolidated financial statements of XTO Energy as of December 31, 2009Denbury Inc. (Successor) and 2008, and for each of the years in the three-year period ended December 31, 2009, and XTO Energy management’s assessment of the effectiveness of internal control over financial reporting as of December 31, 2009, have been(which is included in Management’s Report on Internal Control over Financial Reporting) incorporated intoin this proxy statement/prospectus and into the registration statement by reference to XTO Energy’sDenbury Inc.’s Annual Report on Form 10-K for the year ended December 31, 20092022 have been so incorporated in reliance uponon the report (which contains an explanatory paragraph relating to Denbury Inc.’s adoption of KPMGfresh start accounting as a result of its emergence from bankruptcy as described in Note 1 to the consolidated financial statements) of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.

The financial statements of Denbury Resources Inc. (Predecessor) incorporated in this proxy statement/prospectus by reference to Denbury Inc.’s Annual Report on Form 10-K for the year ended December 31, 2022 have been so incorporated in reliance on the report (which contains an explanatory paragraph relating to Denbury Resources Inc.’s adoption of fresh start accounting as a result of its emergence from bankruptcy as described in Note 1 to the consolidated financial statements) of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.

Certain information contained in the documents Denbury includes and incorporates by reference into this prospectus with respect to the oil and natural reserves associated with Denbury’s natural gas and oil prospects is derived from the reports of DeGolyer and MacNaughton, independent petroleum engineers located in Dallas, Texas, and has been incorporated by reference herein, andinto this proxy statement/prospectus upon the authority of said firm as experts with respect to the matters covered by such reports and in accountinggiving such reports. With respect to Denbury’s Annual Report on Form 10-K for the year ended December 31, 2022, the information derived from the reports of DeGolyer and auditing.MacNaughton is included under “Item 1. Business and Properties”, “Item 2. Properties” and “Unaudited Supplementary Information” of the Notes to Consolidated Financial Statements.

175


LEGAL MATTERS

The validity of the shares of ExxonMobil common stock to be issued to Denbury stockholders pursuant to the Merger will be passed upon by James E. Parsons, Esq., ExxonMobil’s Executive Counsel (Corporate and Securities Law).

Certain information incorporatedU.S. federal income tax consequences relating to the transactions will be passed upon for Exxon by reference in this proxy statement/prospectus regarding estimated quantities of oilDavis Polk and natural gas reserves ownedfor Denbury by XTO Energy, the future net revenues from those reserves and their present value is based on estimates of the reserves and present values prepared by or derived from estimates prepared by Miller and Lents, Ltd., independent petroleum engineers, and all such information has been so incorporated in reliance on the authority of such firm as experts regarding the matters contained in their report.

Vinson & Elkins.

176


FUTURE DENBURY STOCKHOLDER PROPOSALS

In lightIf the Merger Agreement is approved by the requisite vote of Denbury’s stockholders and the expected timingMerger is completed, Denbury will become a wholly owned subsidiary of ExxonMobil and, consequently, will not hold subsequent annual meetings of its stockholders. After the completion of the merger, XTO Energy expectsMerger, Denbury stockholders would be entitled to participate, as stockholders of ExxonMobil following the Merger, in the annual meetings of the stockholders of ExxonMobil. ExxonMobil and Denbury currently expect to complete the Merger in the fourth quarter of 2023.

If the Merger Agreement is not adopted by the requisite vote of holders of Denbury common stock or if the Merger is otherwise not completed for any reason, Denbury intends to hold its 2010an annual meeting of its stockholders only ifin 2024. Denbury’s proxy statement for the merger is not completed. In the event that XTO Energy holds a 20102023 annual meeting of Denbury stockholders contained information regarding presentation of stockholder proposals under Rule 14a-8 or other business or nominations at a 2024 annual meeting of Denbury stockholders.

Stockholder Proposals (Rule 14a-8). To be considered for inclusion in Denbury’s proxy materials for a 2024 annual meeting of Denbury stockholders, stockholder proposals must be received no later than December 20, 2023 (unless the date of the 2024 annual meeting of Denbury stockholders is more than 30 days before or after June 1, 2024, in which cash the proposal must be received a reasonable time before Denbury begins to print and send its proxy materials) by submission in writing to James S. Matthews, Executive Vice President, Chief Administrative Officer, General Counsel and Secretary, 5851 Legacy Circle, Suite 1200, Plano, Texas 75024, and must comply with all provisions of Rule 14a-8. Denbury may exclude from its proxy materials for a 2024 annual meeting of Denbury stockholders any stockholder proposal not received by the deadline described above.

Other Business Proposals or Nominations. A stockholder proposal that is not submitted for inclusion in Denbury’s proxy materials for a 2024 annual meeting of Denbury stockholders, but is instead intended to be presented pursuant to Rule 14a-8 underat the Exchange Act for inclusion in XTO Energy’s proxy statement and accompanying proxy card for XTO Energy’s 20102024 annual meeting of Denbury stockholders, must have been received at XTO Energy’s principal executive offices in Fort Worth, Texas, on or before December 18, 2009, and must meet the requirements of Rule 14a-8.

In addition, if a stockholder who intends to raisesubmit a mattercandidate for nomination as director at the XTO Energy 2010 annual meeting, and has not sought inclusion of the matter in the annual meeting proxy statement and accompanying proxy card pursuant to Rule 14a-8, the stockholder must comply with the advance notice provisions in XTO Energy’s amended and restated bylaws. These provisions require that written notice of an intention to raise a matter at an2024 annual meeting of stockholders must be received by the corporate secretary of XTO Energy not less than 90 days, nor more than 120 days, before the anniversary date of the immediately preceding annual meeting of stockholders. XTO Energy held its 2009 annual meeting of stockholders on May 19, 2009, so for the XTO Energy 2010 annual meeting of stockholders, such notice must have been received no earlier than January 19, 2010 and no later than February 18, 2010. If notice was received after February 18, 2010, the persons named in the proxy card may exercise discretionary voting authority with respect to the matter if raised at the XTO Energy 2010 annual meeting of stockholders, without XTO Energy including any discussion of it in the proxy statement. XTO Energy also reserves the right to reject, rule out of order or take other appropriate action with respect to any matter raised at the 2010 annual meeting of stockholders that did not comply with the requirements described above or other applicable requirements. An XTO Energy stockholder who desires to raise such matters should refer to XTO Energy’s amended and restated bylaws. Copies of XTO Energy’s amended and restated bylaws will be sent to holders of XTO Energy common stock upon request. See “Where You Can Find More Information” beginning on page[]of this proxy statement/prospectus.

A stockholder desiring to nominate an individual for election as a director at the XTO Energy 2010 annual meeting ofDenbury stockholders, must comply with the advance notice provisions“advance notice” deadlines in XTO Energy’s amended and restatedthe Denbury bylaws. The bylaws require that writtenAs such, notice of an intention to nominate a director candidatesuch business or nominations must be received by Denbury no earlier than February 2, 2024 and no later than March 3, 2024 as set forth more fully in the board of directors of XTO Energy,Denbury bylaws, and must comply with the other requirements set forth in the Denbury bylaws. Such notices must be in writing and received by James S. Matthews, Executive Vice President, Chief Administrative Officer, General Counsel and Secretary, 5851 Legacy Circle, Suite 1200, Plano, Texas 75024, within the “advance notice” deadlines described above.

You may contact Denbury’s corporate secretary at Denbury’s executive offices, 5851 Legacy Circle, Suite 1200, Plano, Texas 75024, for a copy to the president and the corporate secretary of XTO Energy, not later than 120 days in advance of the scheduled daterelevant provisions of the annual meeting. ForDenbury bylaws regarding the XTO Energy 2010 annual meeting of stockholders, notice of intent to nominate a director candidate at the meeting must have been received by January 18, 2010. Arequirements for making stockholder desiring to suggest an individual for consideration by the corporate governanceproposals and nominating committee as a possible candidate for election as a director at the 2010 annual meeting should have submitted the suggestion to the committee, c/o the corporate secretary, by January 18, 2010. For a description of the information required to suggest an individual for consideration by the committee for election as a director, which requirements apply also to direct stockholder nominations, see “Corporate Governance Matters—Nomination Process” on page 10 of the XTO Energy Proxy Statement on Schedule 14A filed on April 17, 2009 and incorporated by reference into this proxy statement/prospectus.candidates.

The above deadlines may change in the event that the XTO Energy 2010 annual meeting of stockholders is held on a date that differs substantially from the date of the 2009 annual meeting of stockholders.

177


WHERE YOU CAN FIND MORE INFORMATION

ExxonMobil has filed a registration statement on Form S-4 to register with the SEC the shares of ExxonMobil common stock to be issued to XTO EnergyDenbury stockholders in connection with the merger.Merger. This proxy statement/prospectus is a part of that registration statement and constitutes a prospectus of ExxonMobil in addition to being athe proxy statement of XTO EnergyDenbury for the special meeting.Special Meeting. The registration statement, including the attached exhibits and schedules, contains additional relevant information about ExxonMobil and itsExxonMobil common stock. The rules and regulations of the SEC allow ExxonMobil and XTO EnergyDenbury to omit certain information included in the registration statement from this proxy statement/prospectus.

ExxonMobil and XTO EnergyDenbury file annual, quarterly and special reports, proxy statements and other information with the SEC. You may read and copy this information at the SEC’s Public Reference Room, 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800 SEC-0330 for further information on the operation of the Public Reference Room. The SEC also maintains an Internet web sitea website that has reports, proxy and information statements and other information about ExxonMobil and XTO Energy.Denbury. The address of that site ishttp: https://www.sec.gov.www.sec.gov. The reports and other information filed by ExxonMobil and XTO EnergyDenbury with the SEC are also available at their respective Internet web sites,websites, which arehttp: https://www.exxonmobil.comcorporate.exxonmobil.com andhttp: https://www.xtoenergy.com.www.denbury.com. Information on these Internet web siteswebsites is not part of this proxy statement/prospectus.

The SEC allows ExxonMobil and XTO EnergyDenbury to “incorporate by reference” information into this proxy statement/prospectus. This means that important information can be disclosed to you by referring you to another document filed separately with the SEC. The information incorporated by reference is deemed to be part of this proxy statement/prospectus, except for any information superseded by information in this proxy statement/prospectus or in later filed documents incorporated by reference into this proxy statement/prospectus. This proxy statement/prospectus incorporates by reference the documents set forth below that ExxonMobil and XTO EnergyDenbury have, respectively, previously filed with the SEC and any additional documents that either company may file with the SEC under Section 13(a), 13(c), 14 or 15(d) of the Exchange Act betweenafter the dateinitial filing of this registration statement and on or prior to effectiveness of this registration statement and after the effectiveness of this proxy statement/prospectus and until the date ofthat the completion of the mergeroffering is terminated (other than, in each case, those documents, or the portions of those documents or exhibits thereto, deemed to be furnished and not filed in accordance with SEC rules). These documents contain important information about ExxonMobil and XTO EnergyDenbury and their respective financial performance.

This prospectus incorporates by reference the documents set forth below previously filed with the SEC:

 

ExxonMobil SEC Filings

(File No. 001-02256)

 

Period

Denbury’s Annual Report on Form 10-KFiscal for the fiscal year ended December 31, 20092022, filed on February 23, 2023.

Proxy Statement on Schedule 14A Filed on April 13, 2010
Current Report on Form 8-KFiled on March 16, 2010
Any description of ExxonMobil’s common stock contained in a registration statement filed pursuant to the Exchange Act and any amendment or report filed for the purpose of updating such description

XTO Energy’s SEC Filings

(File No. 001-10662)

 

Period

ExxonMobil’s Annual Report on Form 10-KFiscal for the year ended December 31, 20092022, filed on February 22, 2023.

Denbury’s Current Reports on Form 8-K filed on July 31, 2023 (on Form 8-K/A), July  14, 2023, July  13, 2023, June  6, 2023,May 3, 2023,February 23, 2023 (except for any prospective financial information contained therein) and January 5, 2023 (other than the portions of those documents not deemed to be filed).

ExxonMobil’s Current Reports on Form 8-K filed on July 28, 2023,July  13, 2023,July  5, 2023,June  6, 2023,April  28, 2023,April  4, 2023,February  24, 2023,January  31, 2023,January  26, 2023 and January 4, 2023 (other than the portions of those documents not deemed to be filed).

Denbury’s Definitive Proxy Statement on Schedule 14A for Denbury’s 2023 annual stockholder meeting, filed on April 18, 2023.

 Filed

ExxonMobil’s Definitive Proxy Statement on Schedule 14A for ExxonMobil’s 2023 annual meeting, filed on April 17, 200913, 2023.

Current Report

Denbury’s Quarterly Reports on Form 8-K10-Q for the quarters ended March 31, 2023 and June 30, 2023, filed on May  4, 2023 and August 4, 2023, respectively.

178


 Filed

ExxonMobil’s Quarterly Reports on March 16, 2010

Any description of XTO Energy’s common stock contained in a registration statement filed pursuant to the Exchange Act and any amendment or report filedForm 10-Q for the purpose of updating such descriptionquarters ended March 31, 2023 and June 30, 2023, filed on May  2, 2023 and August 1, 2023, respectively.

Any description of shares of ExxonMobil stock contained in a registration statement filed pursuant to the Exchange Act and any amendment or report filed for the purpose of updating such description.

Any description of shares of Denbury stock contained in a registration statement filed pursuant to the Exchange Act and any amendment or report filed for the purpose of updating such description.

ExxonMobil has supplied all information contained in or incorporated by reference into this proxy statement/prospectus relating to ExxonMobil, as well as all pro forma financial information, and XTO EnergyDenbury has supplied all such information relating to XTO Energy.Denbury.

Documents incorporated by reference are available from ExxonMobil or XTO Energy,Denbury, as the case may be, without charge, excluding any exhibits to those documents, unless the exhibit is specifically incorporated by reference into this proxy statement/prospectus. StockholdersExxonMobil shareholders or Denbury stockholders, as applicable, may obtain these documents incorporated by reference by requesting them in writing or by telephone from the appropriate party at the following addresses and telephone numbers:

ExxonMobil Shareholder ServicesEXXON MOBIL CORPORATION

c/o Computershare Trust Company, N.A.22777 Springwoods Village Parkway

P.O. Box 43078Spring, Texas 77389-1425

Providence, Rhode Island 02940-3078

Telephone: (800) 252-1800 (within the U.S. and Canada)

Telephone: (781) 575-2058 (outside the U.S. and Canada)

XTO Energy Inc.

810 Houston St.

Attn:Attention: Investor Relations

Fort Worth, Texas 76102-6298Telephone: (972) 940-6000 (General)

Email: Investor.relations@exxonmobil.com

DENBURY, INC.

5851 Legacy Circle, Suite 1200

Plano, TX 75024

Attention: Investor Relations

Telephone: (817) 870-2800 or (800) 299-2800(972) 673-2000

IfEmail: IR@denbury.com

To obtain timely delivery of the documents, you must request them no later than five business days before the date of the Special Meeting. Therefore, if you would like to request documents from ExxonMobil or Denbury, please do so by     [], 20102023 in order to receive them before the special meeting.Special Meeting.

You should rely only on the information contained in or incorporated by reference into this proxy statement/prospectus to vote on the merger agreement.approval of the Merger Agreement Proposal and the approval of the Advisory Compensation Proposal. Neither ExxonMobil nor XTO EnergyDenbury has authorized anyone to provide you with information that is different from what is contained in this proxy statement/prospectus.

If you are in a jurisdiction wherein which offers to exchange or sell, or solicitations of offers to exchange or purchase, the securities offered by this proxy statement/prospectus or solicitations of proxies are unlawful, or if you are a person to whom it is unlawful to direct these types of activities, then the offer presented in this proxy statement/prospectus does not extend to you.

This proxy statement/prospectus is dated  [], 2010.2023. You should not assume that the information in it is accurate as of any date other than that date, and neither its mailing to Denbury stockholders nor the issuance of shares of ExxonMobil common stock in the merger shallMerger will create any implication to the contrary.

179


Annex A

EXECUTION COPYVERSION

AGREEMENT AND PLAN OF MERGER

dated as of

July 13, 2023

December 13, 2009

by and among

DENBURY INC.,

XTO ENERGY INC.,

EXXON MOBIL CORPORATION

,

and

EMPF CORPORATION

EXXONMOBIL INVESTMENT CORPORATION



TABLE OF CONTENTS

 

  PAGE
ARTICLE 1  
DEFINITIONS  

Section 1.011.01.

. Definitions

 A-1

Section 1.021.02.

. Other Definitional and Interpretative Provisions

  A-7A-13
ARTICLE 2  
THE MERGER  

Section 2.01. The Merger2.01.

 A-8The MergerA-14

Section 2.02.

Conversion of SharesA-14

Section 2.03.

 A-8

Section 2.03. Surrender and Payment

A-15

Section 2.04.

 A-9Treatment of Company Equity Awards and ESPPA-17

Section 2.04.Equity-Based Awards2.05.

 A-10AdjustmentsA-18

Section 2.05. Treatment of Company Warrants2.06.

 A-11Fractional SharesA-18

Section 2.06.Adjustments2.07.

 A-12Withholding RightsA-18

Section 2.07.Fractional Shares2.08.

 A-12

Section 2.08.WithholdingLost Certificates

  A-12

Section 2.09.Lost Certificates

A-19A-12
ARTICLE 3  
THE SURVIVING CORPORATION  

Section 3.013.01.

. Certificate of IncorporationA-19

Section 3.02.

 A-12BylawsA-19

Section 3.02. Bylaws3.03.

 A-12

Section 3.03. Directors and Officers

  A-12A-19
ARTICLE 4  
REPRESENTATIONSAND WARRANTIESOFTHE COMPANY  

Section 4.014.01.

. Corporate Existence and PowerA-19

Section 4.02.

 A-13Corporate AuthorizationA-20

Section 4.02. Corporate Authorization4.03.

 A-13Governmental AuthorizationA-20

Section 4.03. Governmental Authorization4.04.

 A-13Non-contraventionA-20

Section 4.04. Non-contravention4.05.

 A-14CapitalizationA-21

Section 4.05. Capitalization4.06.

 A-14SubsidiariesA-22

Section 4.06. Subsidiaries4.07.

 A-15

Section 4.07. SEC Filings and the Sarbanes-Oxley Act

A-22

Section 4.08.

 A-15Financial StatementsA-23

Section 4.08. Financial Statements4.09.

 A-17Disclosure DocumentsA-24

Section 4.09. Disclosure Documents4.10.

 A-17

Section 4.10. Absence of Certain Changes

A-24

Section 4.11.

 A-17

Section 4.11. No Undisclosed Material Liabilities

A-24

Section 4.12.

 A-17

Section 4.12. Compliance with Laws, Permits and Court Orders

A-24

Section 4.13.

 A-18

Section 4.13. Litigation.Insurance

  A-18

Section 4.14. Regulatory Matters

A-18

Section 4.15. Reserve Reports

A-18

Section 4.16. Derivatives

A-19

Section 4.17.Properties

A-19

Section 4.18.Intellectual Property

A-20

Section 4.19. Taxes

A-21

Section 4.20. Employees and Company Plans

A-21

Section 4.21. Environmental Matters

A-23

Section 4.22. Material Contracts

A-23

Section 4.23. Tax Treatment

 A-25

Section 4.24. Finders’ Fees4.14.

 LitigationA-25

Section 4.15.

PropertiesA-25

Section 4.16.

Intellectual Property; IT Assets; Data Privacy and SecurityA-26

Section 4.17.

TaxesA-27

Section 4.18.

Employee Benefit PlansA-28

Section 4.19.

Labor MattersA-30

Section 4.20.

Environmental MattersA-30

 

A-i


Section 4.21.

Oil and Gas MattersA-31

Section 4.22.

Material ContractsA-33

Section 4.23.

Affiliate TransactionsA-34

Section 4.24.

Finders’ FeesA-34

Section 4.25.

Opinion of Financial AdvisorsA-35

Section 4.26.

Antitakeover StatutesA-35

Section 4.27.

No Other Representations or WarrantiesA-35
 PAGE

Section 4.25. Opinion of Financial Advisor

ARTICLE 5
  A-25

Section 4.26. Antitakeover Statutes

A-25

Section 4.27. No Additional Representations

A-25
ARTICLE 5 
REPRESENTATIONSAND WARRANTIESOF PARENT  

Section 5.015.01.

. Corporate Existence and PowerA-36

Section 5.02.

 A-26Corporate AuthorizationA-36

Section 5.02. Corporate Authorization5.03.

 A-26Governmental AuthorizationA-36

Section 5.03. Governmental Authorization5.04.

 A-26Non-contraventionA-36

Section 5.04. Non-contravention5.05.

 A-26CapitalizationA-37

Section 5.05. Capitalization5.06.

 A-27SubsidiariesA-37

Section 5.06. Subsidiaries5.07.

 A-27

Section 5.07. SEC Filings and the Sarbanes-Oxley Act

A-38

Section 5.08.

 A-28Financial StatementsA-39

Section 5.08. Financial Statements5.09.

 A-29Disclosure DocumentsA-39

Section 5.09. Disclosure Documents5.10.

 A-29Tax TreatmentA-39

Section 5.105.11.

. Absence of Certain ChangesA-39

Section 5.12.

 A-30Ownership of Company SharesA-39

Section 5.11. No Undisclosed Material Liabilities5.13.

 A-30

Section 5.12. Compliance with Laws and Court Orders

No Other Representations or Warranties
  A-30

Section 5.13. Litigation

A-39A-30

Section 5.14. Tax Treatment

A-30

Section 5.15. Finders’ Fees

A-30

Section 5.16. Opinion of Financial Advisor

A-30

Section 5.17. Certain Agreements

A-31

Section 5.18.Parent Plans; Continuing Employee Plans

A-31

Section 5.19. No Additional Representations

A-31
ARTICLE 6  
COVENANTSOFTHE COMPANY  

Section 6.016.01.

. Conduct of the CompanyA-40

Section 6.02.

 A-31Access to InformationA-43

Section 6.02. Company Stockholder Meeting6.03.

 A-34

Section 6.03. No Solicitation; Other Offers; Adverse Recommendation ChangeOffers

A-43

Section 6.04.

 A-34

Section 6.04. Tax MattersUpdated Equity Awards Schedule

  A-37

Section 6.05. Access to Information

A-46A-37
ARTICLE 7  
COVENANTSOF PARENT  

Section 7.017.01.

. Conduct of ParentA-47

Section 7.02.

 A-38

Section 7.02. Obligations of Merger SubsidiarySub

A-47

Section 7.03.

 A-39

Section 7.03. Approval by Sole Stockholder of Merger Subsidiary

A-39

Section 7.04. Voting of Shares

A-39

Section 7.05. Director and Officer Liability

A-47

Section 7.04.

 A-39Employee MattersA-48

Section 7.067.05.

. Stock Exchange ListingA-50

Section 7.06.

 A-40

Section 7.07.Employee MattersTransfer Taxes.

  A-40

Section 7.08.Continuation of Company’s Existence

A-50A-42
ARTICLE 8  
COVENANTSOF PARENTANDTHE COMPANY  

Section 8.01. Reasonable Best Efforts

A-42

Section 8.02. Proxy Statement; Registration Statement

A-43

Section 8.03. Public Announcements

A-44

Section 8.04. Further Assurances

A-44

Section 8.05. Notices of Certain Events

A-44

A-ii


PAGE

Section 8.06. Tax-free Reorganization8.01.

 A-45Reasonable Best EffortsA-50

Section 8.078.02.

. Certain FilingsA-51

Section 8.03.

Registration Statement; Proxy Statement/Prospectus; Company MeetingA-51

Section 8.04.

Public AnnouncementsA-53

Section 8.05.

Further AssurancesA-53

Section 8.06.

Section 16 MattersA-53

A-ii


Section 8.07.

 A-45Notices of Certain EventsA-54

Section 8.08. Stock Exchange De-listing; 1934 Act Deregistration8.08.

 A-45Stock Exchange De-listingA-54

Section 8.09. Dividends8.09.

 A-45Takeover StatutesA-54

Section 8.10.

Tax MattersA-54

Section 8.11.

Treatment of Company IndebtednessA-55
ARTICLE 9  
CONDITIONSTOTHE MERGER  

Section 9.019.01.

. Conditions to the Obligations of Each PartyA-56

Section 9.02.

 A-45

Section 9.02. Conditions to the Obligations of Parent and Merger SubsidiarySub

A-56

Section 9.03.

 A-46

Section 9.03. Conditions to the Obligations of the Company

  A-47A-57
ARTICLE 10  
TERMINATION  

Section 10.01. Termination10.01.

 A-47TerminationA-57

Section 10.0210.02.

. Effect of Termination

  A-48A-59
ARTICLE 11  
MISCELLANEOUS  

Section 11.01. Notices11.01.

 A-49NoticesA-59

Section 11.0211.02.

. Survival of Representations, Warranties, Covenants and WarrantiesAgreementsA-60

Section 11.03.

 A-49

Section 11.03. Amendments and Waivers

A-60

Section 11.04.

 A-49ExpensesA-60

Section 11.04. Expenses11.05.

 A-50

Section 11.05. Disclosure LetterSchedule and SEC Document References

A-61

Section 11.06.

 A-50

Section 11.06. Binding Effect; Benefit; Assignment

A-62

Section 11.07.

 A-51Governing LawA-62

Section 11.07. Governing Law11.08.

 A-51JurisdictionA-62

Section 11.08. Jurisdiction11.09.

 A-51

Section 11.09. WAIVER OF JURY TRIAL

  A-51

Section 11.10. Counterparts; Effectiveness

A-51

Section 11.11. Entire Agreement

A-52

Section 11.12. Severability

A-52

Section 11.13. Specific Performance

A-52
A-63

Exhibit A        Parent Representation LetterSection 11.10.

 Counterparts; EffectivenessA-63

Exhibit B        Company Representation LetterSection 11.11.

 Entire AgreementA-63

Section 11.12.

SeverabilityA-63

Section 11.13.

Specific PerformanceA-63

Exhibit A – Certificate of Incorporation of Surviving Corporation

 

A-iii



AGREEMENT AND PLAN OF MERGER

AGREEMENT AND PLAN OF MERGER (this “Agreement”) dated as of DecemberJuly 13, 20092023 by and among XTO EnergyDenbury Inc., a Delaware corporation (the “Company”), Exxon Mobil Corporation, a New Jersey corporation (“Parent”), and ExxonMobil InvestmentEMPF Corporation, a Delaware corporation and a wholly-owned subsidiary of Parent (“Merger SubsidiarySub”).

W I T N E S S E T H :

WHEREAS, the respective Boardsboards of Directorsdirectors of the Company, Parent (or a committee thereof) and Merger SubsidiarySub have approved and deemed itdeclared advisable that the respective stockholdersacquisition of the Company and Merger Subsidiary approve and adopt this Agreement pursuant to which, among other things,by Parent would acquire the Company by means of a merger of Merger SubsidiarySub with and into the Company on the terms and subject to the conditions set forth in this Agreement;

WHEREAS, Parent, in its capacity as sole stockholder of Merger Subsidiary, has agreed to approve and adopt this Agreement and the Merger by unanimous written consent in accordance with the requirements of Delaware Law as provided for herein and shall approve and adopt this Agreement and the Merger immediately after the execution of this Agreement; and

WHEREAS, for U.S. federal income tax purposes, it is intendedthe parties hereto intend that the Merger (as defined below) will qualify as a reorganization under“reorganization” within the provisionsmeaning of Section 368(a) of the Code and the Treasury regulations promulgated thereunder (the “Treasury Regulations”) and that this Agreement constitutesbe, and hereby is, adopted as a plan“plan of reorganization.reorganization” for purposes of Section 368 of the Code and the Treasury Regulations thereunder.

NOW, THEREFORE, in consideration of the foregoing and the representations, warranties, covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound agree as follows:

ARTICLE 1

DEFINITIONS

Section 1.011.01. Definitions. Definitions.(a) As used herein, the following terms have the following meanings:

1933 Act” means the Securities Act of 1933.

1934 Act” means the Securities Exchange Act of 1934.

Acquisition Proposal” means, other than the transactions contemplated by this Agreement, any offer or proposal, or inquiry relating to, orincluding any amendments, adjustments, changes, revisions and supplements thereto, from any Third Party indicationrelating to, in a single transaction or a series of interest in,related transactions, (i) any acquisition or purchase, directdirectly or indirect,indirectly, of assets constituting 20% or more than 30% of the consolidated assets of the Company and its Subsidiaries or more than 30%securities constituting 20% or more of any class of equity or voting securities of the Company or any of its Subsidiaries whosewith respect to which such Subsidiaries’ assets, individually or in the aggregate, constitute, directly or indirectly, 20% or more than 30% of the consolidated assets of the Company, (ii) any tender offer (including a self-tender offer) or exchange offer that, if consummated, would result in suchany Third Party beneficially owning 20% or more than 30% of any class of equity or voting securities of the Company or any of its Subsidiaries whose assets, individually or in the aggregate, constitute more than 30% of the consolidated assets of the Company or (iii) a merger, consolidation, amalgamation, share exchange, business combination, sale of substantially all the assets, reorganization, recapitalization, liquidation, dissolution or other similar transaction involving the Company or any of its Subsidiaries whose assets, individually or in the aggregate, constitute 20% or more than 30% of the consolidated assets of the Company.Company and its Subsidiaries.

Action” means any claim,action, cause of action, suit, audit, litigation, arbitration, mediation, inquiry,complaint, citation, claim (including any crossclaim or counterclaim), demand, subpoena, enforcement action or proceeding (including any civil, criminal, administrative, regulatory, appellate or investigationother proceeding), whether at equity or at law, in contract, in tort or otherwise.


Affiliate” means, with respect to any Person, any other Person who directly or indirectly controls, is controlled by or beforeis under common control with such Person.

Antitrust Action” means any action (including divestitures, hold separate arrangements, consent decrees, the termination, assignment, novation or modification of contracts or other business relationships, the acceptance of restrictions on business operations, the entry into other commitments and limitations) with respect to the Company, Parent and their respective Affiliates that is required by any Governmental Authority to provide its approval, consent, registration, permit, authorization, clearance, or other confirmation under Antitrust Laws for the consummation of the transactions contemplated by this Agreement, and litigation with respect to the foregoing.

Antitrust Laws” means any federal, state or foreign Law designed to prohibit, restrict or regulate actions for the purpose or effect of monopolization, lessening of competition or restraint of trade, including the HSR Act.

Applicable Data Protection Laws” means all Applicable Laws relating to data privacy, data protection, cybersecurity and/or data security, including, without limitation, if applicable, the Strengthening American Cybersecurity Act of 2022, the California Consumer Privacy Act of 2018, the California Privacy Rights Act of 2020, the EU General Data Protection Regulation 2016/679 and the equivalent thereof under the laws of the United Kingdom.

Applicable Data Protection Requirements” means all (i) Applicable Data Protection Laws and (ii) internal and external policies, binding industry standards, and restrictions and requirements contained in any Contract to which the Company or any of its Subsidiaries is bound, in each case, relating to data privacy, data protection, cybersecurity and/or the processing of Personal Information.

Applicable Law” means, with respect to any Person, any federal, state, local, foreign, international or transnational law (statutory, common or otherwise), constitution, treaty, convention, ordinance, code, rule, regulation, directive, order, permit, injunction, judgment, award, decree, ruling or other similar requirement enacted, adopted, promulgated or applied by a Governmental Authority that is binding on or applicable to such Person, in each case, as amended unless expressly specified otherwise.

Business Day” means a day, other than Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by Applicable Law to close.

CCUS Businessmeans the carbon capture, utilization and storage business of the Company and its Subsidiaries, including the (i) capture or sourcing of carbon dioxide, (ii) transportation of carbon dioxide (including Pipeline infrastructure owned or operated by the Company and its Subsidiaries) and (iii) storage or sequestration of carbon dioxide (including storage or sequestration sites).

COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985.

Code” means the Internal Revenue Code of 1986.

Collective Bargaining Agreement” means any written or oral agreement, memorandum of understanding or other contractual obligation between the Company or any of its Subsidiaries and any labor union or other, similar authorized employee representative representing Service Providers.

Company 10-K” means the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2022.

Company 10-Q” means the Company’s quarterly report on Form 10-Q for the quarterly period ended March 31, 2023.

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Company Balance Sheet” means the unaudited consolidated balance sheet of the Company as of the Company Balance Sheet Date and the footnotes thereto set forth in the Company 10-Q.

Company Balance Sheet Date” means March 31, 2023.

Company Credit Agreement” means that certain Credit Agreement, dated as of September 18, 2020, by and among the Company, as borrower, JPMorgan Chase Bank, N.A., as administrative agent, and the other parties and lenders party thereto from time to time, as amended, supplemented, or otherwise modified from time to time, including by the First Amendment thereto, dated as of November 3, 2021, the Second Amendment thereto, dated as of May 4, 2022, and the Third Amendment thereto, dated as of January 20, 2023.

Company Disclosure Schedule” means the disclosure schedule dated the date hereof regarding this Agreement that has been provided by the Company to Parent and Merger Sub.

Company DSU” means a deferred stock unit issued by the Company to a non-employee member of the Company Board pursuant to, or otherwise governed by, the Equity Plan, pursuant to which the holder has a right to receive Company Shares upon the settlement of such unit. “Company DSUs” shall not include any Company RSU or Company TSR Performance Award.

Company Employee” means any employee of the Company or any of its Subsidiaries.

Company IP” means any and all Intellectual Property owned or purported to be owned by the Company or any of its Subsidiaries.

Company Material Adverse Effect” means any event, circumstance, development, occurrence, fact, condition, effect or change that is, or would reasonably be expected to become, individually or in the aggregate, materially adverse to (i) the condition (financial or otherwise), business, assets, or results of operations of the Company and its Subsidiaries, taken as a whole, excluding any event, change, circumstance, effect, occurrence, condition, state of facts or development to the extent arising or resulting from (A) changes, developments or conditions after the date hereof in the general economic or political conditions in the United States, including in the financial, debt, credit, capital or securities markets, including changes in interest rates, (B) changes generally affecting the industries in which the Company and its Subsidiaries operate, (C) changes or proposed changes in Applicable Law or interpretations thereof or regulatory conditions or any changes in the enforcement thereof, including changes in tax law, interpretations and regulations after the date hereof, (D) changes or proposed changes in GAAP or other accounting standards or interpretations thereof, (E) changes in commodity prices, including the prices of natural gas, crude oil, refined petroleum products, other hydrocarbon products, natural gas liquids, carbon dioxide, methane, nitrous oxide, fluorinated and other “greenhouse” gases, and other commodities, (F) acts of war (whether or not declared), hostilities, military actions or acts of terrorism, or any escalation or worsening of the foregoing, (G) weather conditions or acts of God (including storms, earthquakes, tsunamis, tornados, hurricanes, floods or other natural disasters or other comparable events), (H) pandemic (including the COVID-19 pandemic), (I) any change, in and of itself, in the market price or trading volume of the Company’s securities; provided that the exception in this clause shall not prevent or otherwise affect a determination that any underlying event, circumstance, development, occurrence, fact, condition, effect or change that is the cause of such change has resulted in, or would reasonably be expected to result in, a Company Material Adverse Effect to the extent not otherwise falling within any of the other exceptions set forth in clauses (A) through (N) hereof, (J) the negotiation, execution, announcement or performance of this Agreement or the consummation of the Merger or the other transactions contemplated hereby, including the impact thereof on the relationships, contractual or otherwise, with employees, labor unions, financing sources, customers, suppliers, distributors, regulators, partners or other Persons, or any action or claim made or brought by any of the current or former stockholders of the Company (or on their behalf or on behalf of the Company) against the Company or any of its directors, officers or employees arising out of this Agreement or the Merger or the other transactions contemplated hereby (it being understood that this clause (J) shall not apply to a breach of any representation or

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warranty related to the announcement or consummation of the transactions contemplated hereby), (K) any failure of any of the Company or any of its Subsidiaries to meet, with respect to any period or periods, any internal or published projections, forecasts, estimates of earnings or revenues or business plans (but not the underlying facts or basis for such failure to meet projections, forecasts, estimates of earnings or revenues or business plans, which may be taken into account in determining whether there has been or would reasonably be expected to be a Company Material Adverse Effect to the extent not otherwise falling within any of the other exceptions set forth in clauses (A) through (N) hereof), (L) any action taken by the Company or any of its Subsidiaries that is expressly required by this Agreement, (M) a Specified Pipeline Event or (N) any Antitrust Actions; provided, however, that if any event, change, circumstance, effect, occurrence, condition, state of facts or development described in any of clauses (A) through (H) has a disproportionate effect on the Company and its Subsidiaries, taken as a whole, relative to other participants in the industries in which the Company and its Subsidiaries operate, such disproportionate effect shall be taken into account in determining whether there has been, or would reasonably be expected to be, a Company Material Adverse Effect, or (ii) the ability of the Company to consummate the transactions contemplated by, this Agreement.

Company Restricted Stock” means each unvested restricted Company Share issued by the Company pursuant to, or otherwise governed by, the Equity Plan that vests solely upon the continued service of the holder over a specified period of time.

Company RSU” means a restricted stock unit issued by the Company pursuant to, or otherwise governed by, the Equity Plan that vests solely upon the continued service of the holder over a specified period of time (including any such unit subject to previously satisfied performance goals), pursuant to which the holder has a right to receive Company Shares after the vesting or lapse of restrictions applicable to such unit. “Company RSUs” shall not include any Company DSU or Company TSR Performance Award.

Company Tax Representation Letter” means a tax representation letter in the form to be agreed upon by the Company and Parent and executed by the Company pursuant to Section 8.10(a).

Company TSR Performance Award” means a performance stock unit issued by the Company pursuant to, or otherwise governed by, the Equity Plan, that vests in (whole or in part) upon the achievement of one or more previously established but not yet satisfied performance goals relating to the Company’s absolute or relative total shareholder return (notwithstanding that the vesting of such performance stock unit may also be conditioned upon the continued services of the holder thereof), pursuant to which the holder has a right to receive Company Shares after the vesting or lapse of restrictions applicable to such unit. “Company TSR Performance Awards” shall not include any Company RSU or Company DSU.

Contract” means any contract, agreement, lease, sublease, occupancy agreement, license, sublicense, indenture, note, bond, loan, mortgage, deed of trust, concession, franchise, Permit or other instrument, commitment or undertaking, including any exhibits, annexes, appendices or attachments thereto, and any amendments, modifications, supplements, extension or renewals thereto.

control” (including the terms “controlled,” “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

COVID-19 Measures” means any quarantine, “shelter in place,” “stay at home,” workforce reduction, social distancing, shut down, closure, sequester or any other Applicable Law related to COVID-19.

COVID-19 Responses” means any reasonable action that is necessary to be taken in response to any COVID-19 Measures, including the establishment of any reasonably necessary policy, procedure or protocol.

DGCL” means the General Corporation Law of the State of Delaware.

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Employee Holder” means each holder of Company RSUs, Company DSUs, Company TSR Performance Awards and/or Company Restricted Stock, as applicable, who is a current or former employee of the Company or any of its Subsidiaries.

Employee Plan” means any (i) “employee benefit plan” as defined in Section 3(3) of ERISA (regardless of whether such plan is subject to ERISA), (ii) compensation, employment, consulting, severance, termination protection, change in control, transaction bonus, retention or similar plan, agreement, arrangement, program or policy or (iii) other plan, agreement, arrangement, program or policy providing for compensation, bonuses, profit-sharing, equity or equity-based compensation or other forms of incentive or deferred compensation, vacation benefits, insurance (including any self-insured arrangement), medical, dental, vision, prescription or fringe benefits, life insurance, relocation or expatriate benefits, perquisites, disability or sick leave benefits, employee assistance program, or post-employment or retirement benefits (including compensation, pension, health, medical or insurance benefits), in each case, whether or not written, that is sponsored, maintained, administered, contributed to, or entered into, by the Company, any of its Subsidiaries or any of their ERISA Affiliates (or any predecessor of such entity) for the current or future benefit of any current or former Service Provider or with respect to which the Company, any of its Subsidiaries or any of their ERISA Affiliates (or any predecessor of such entity) has or would reasonably be expected to have any direct or indirect liability. For the avoidance of doubt, a Collective Bargaining Agreement shall constitute an agreement for purposes of clauses (ii) and (iii) above.

Environment” means any air (whether ambient outdoor or indoor), surface water, drinking water, groundwater, land surface, wetland, subsurface strata, soil, sediment, plant or animal life and any other natural resources.

Environmental Laws” means any Applicable Laws (including common law), or any legally binding consent order or decree issued by any Governmental Authority, relating to protection of the Environment, the prevention of pollution, the containment, clean-up, preservation, protection and reclamation of the Environment, health and safety (as it relates to exposure to Hazardous Substances) or to the presence, generation, use, management, transportation, storage, disposal, treatment or release of Hazardous Substances.

Environmental Permits” means all Permits required under Environmental Laws.

EOR Business” means the enhanced oil recovery business of the Company and its Subsidiaries, including the use of thermal, gas injection (including the use of natural gas, nitrogen or carbon dioxide) and chemical injection (including the use of polymers) as a tertiary recovery mechanism for producing crude oil and excluding, for the avoidance of doubt, the CCUS Business.

Equity Plan” means the Company’s 2020 Omnibus Stock and Incentive Plan, as amended.

ERISA” means the Employee Retirement Income Security Act of 1974.

ERISA Affiliate” of any entity means any other entity that, together with such entity, would be treated as a single employer under Section 414 of the Code.

ESPP” means the Company Employee Stock Purchase Plan.

GAAP” means generally accepted accounting principles in the United States.

Governmental Authority” means any transnational, domestic or foreign federal, state, provincial, local or other governmental, regulatory or administrative authority, department, court, agency, commission or official, including any political subdivision thereof, or any other governmental or quasi-governmental (including self-regulatory) authority or instrumentality.

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Green Pipeline” means the Company’s 24-inch diameter carbon dioxide pipeline and associated laterals and facility piping owned by certain of the Company’s Subsidiaries known as the Green Pipeline, consisting of approximately 320 miles of pipeline mileage and servicing the Gulf Coast corridor from near Donaldsonville, Louisiana to the Hastings Field in Texas.

Hazardous Substance” means any pollutant, contaminant, waste or chemical or any toxic, radioactive, ignitable, corrosive, reactive or otherwise hazardous substance, waste or material, or any substance, waste or material having any constituent elements displaying any of the foregoing characteristics, in each case, that is regulated under any Environmental Law, including (i) petroleum and petroleum products, including crude oil and any fractions thereof, (ii) natural gas, synthetic gas and any mixtures thereof, (iii) polychlorinated biphenyls, (iv) asbestos or asbestos-containing materials, (v) radioactive materials, (vi) produced waters and (vii) per- and polyfluoroalkyl substances.

HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Hydrocarbons” means any of oil, bitumen and products derived therefrom, synthetic crude oil, petroleum, natural gas, natural gas liquids, coal bed methane, and any and all other substances produced in association with any of the foregoing, whether liquid, solid or gaseous or any combination thereof.

Indebtedness” means, with respect to any Person, without duplication, all obligations or undertakings by such Person: (i) for borrowed money; (ii) evidenced by bonds, debentures, notes or similar instruments; (iii) pursuant to securitization or factoring programs or arrangements; (iv) pursuant to guarantees of any Indebtedness of any other Person (other than between or among any of the Company and its wholly owned Subsidiaries); (v) net cash payment obligations of such Person under swaps, options, derivatives and other hedging Contracts or arrangements that will be payable upon termination thereof (assuming termination on the date of determination); or (vi) letters of credit and bank guarantees entered into by or on behalf of such Person.

Intellectual Property” means any and all intellectual property rights or similar proprietary rights arising from or under the Applicable Laws of the United States or any other jurisdiction, including rights in all of the following: (i) trademarks, service marks, trade names, slogans, logos, brand names, certification marks, trade dress, domain names, social media identifiers and accounts, and other indications of origin (whether or not registered), the goodwill associated with the foregoing and registrations in any jurisdiction of, and applications in any jurisdiction to register, the foregoing, including any extension, modification or renewal of any such registration or application, (ii) inventions, whether patentable or not, all improvements thereto, statutory invention registrations, utility models, supplementary protection certificates, patents, applications for patents (including divisions, continuations, continuations in part, provisionals, and renewal applications), and any renewals, reexaminations, substitutions, extensions or reissues thereof, in any jurisdiction, (iii) Trade Secrets, (iv) copyrightable writings and other copyrightable works, in any jurisdiction, and any and all copyright rights, whether registered or not, and registrations or applications for registration of copyrights in any jurisdiction, and any renewals, reversions, restorations, derivative works or extensions in connection with the foregoing, now or hereafter provided by Applicable Law, regardless of the medium of fixation or means of expression, (v) moral rights, data and database rights, design rights, industrial property rights, publicity rights and privacy rights, (vi) computer software (including source code, object code, firmware, operating systems and specifications) and (vii) all rights to sue or recover and retain damages and costs and attorneys’ fees for past, present and future infringement, misappropriation or other violation of any of the foregoing.

International Plan” means any Employee Plan that is not a U.S. Plan.

IT Assets” means information technology devices, computers, computer software, firmware, middleware, servers, networks, workstations, routers, hubs, circuits, switches, data communications lines and all other information technology equipment, and all associated documentation, owned by, or licensed or leased to, the Company or any of its Subsidiaries, including any and all such assets relating to any Pipelines owned or operated by the Company or any of its Subsidiaries.

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Knowledge” means with respect to the Company, the actual knowledge after reasonable inquiry of the individuals listed on Section 1.01(a) of the Company Disclosure Schedule.

Licensed IP” means any and all Intellectual Property owned by a third party and licensed or sublicensed (or purported to be licensed or sublicensed) to the Company or any of its Subsidiaries.

Lien” means, with respect to any property or asset, any mortgage, lien, license, sublicense, pledge, option, hypothecation, adverse right, restriction, charge, security interest, right of first refusal, restriction on transfer and assignment, encumbrance or other adverse claim of any kind or nature whatsoever, whether contingent or absolute, or any agreement, option, right or privilege (whether by Applicable Law, Contract or otherwise) capable of becoming any of the foregoing, in respect of such property or asset. For purposes of this Agreement, a Person shall be deemed to own, subject to a Lien, any property or asset that it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, capital lease or other title retention agreement relating to such property or asset.

made available to Parent” means that such information, document or material was: (i) included in the Company SEC Documents and publicly available on the SEC EDGAR database at least 24 hours prior to the execution of this Agreement; (ii) made available for review by Parent or Parent’s representatives at least 24 hours prior to the execution of this Agreement in the virtual “data room” hosted by Intralinks and maintained by the Company in connection with this Agreement; or (iii) provided by the Company or its Representatives via email to Parent or its Representatives at least 24 hours prior to the execution of this Agreement.

Multiemployer Plan” means a “multiemployer plan” as defined in Section 3(37) of ERISA.

NEJD Pipeline” means the Company’s 20-inch diameter carbon dioxide pipeline and associated laterals and facility piping owned by certain of the Company’s Subsidiaries known as the NEJD Pipeline, consisting of approximately 183 miles of pipeline mileage and extending from the Jackson Dome in Mississippi to the Green Pipeline connection near Donaldsonville, Louisiana.

Non-Employee Holder” means each holder of Company RSUs, Company DSUs, Company TSR Performance Awards and/or Company Restricted Stock, as applicable, who is not a current or former employee of the Company or any of its Subsidiaries.

NYSE” means the New York Stock Exchange.

Oil and Gas Leases” means all leases, subleases, licenses or other occupancy or similar agreements (including any series of related leases with the same lessor) under which a Person leases, subleases or licenses or otherwise acquires or obtains rights to produce Hydrocarbons from real property interests.

Oil and Gas Properties” means (i) all direct and indirect interests in and rights with respect to Hydrocarbon, mineral, water and similar properties of any kind and nature, including all Oil and Gas Leases and interests in lands covered thereby or included in Units with which the Oil and Gas Leases may have been pooled, communitized or unitized, working, leasehold and mineral interests and estates and operating rights and royalties, overriding royalties, production payments, net profit interests, carried interests, non-participatory royalty interests and other non-working interests and non-operating interests (including all Oil and Gas Leases, operating agreements, unitization, communitization and pooling agreements and orders, division orders, transfer orders, mineral deeds, royalty deeds and, in each case, interests thereunder), fee interests, reversionary interests, back-in interests, reservations and concessions; and (ii) all Wells located on or producing from any of the Oil and Gas Leases, Units or mineral interests and the rights to all Hydrocarbons and other minerals produced therefrom (including the proceeds thereof).

ordinary course of business” means any action taken by the Company or any of its Subsidiaries in the ordinary course of the Company’s and its Subsidiaries’ business substantially consistent with past practice.

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Parent 10-Q” means the Parent’s quarterly report on Form 10-Q for the quarterly period ended March 31, 2023.

“Parent Balance Sheet” means the unaudited consolidated balance sheet of the Parent as of the Parent Balance Sheet Date and the footnotes thereto set forth in the Parent 10-Q.

Parent Balance Sheet Date” means March 31, 2023.

Parent Board” means the board of directors of Parent.

Parent Disclosure Schedule” means the disclosure schedule dated the date hereof regarding this Agreement that has been provided by Parent and Merger Sub to the Company.

Parent Material Adverse Effect” means any event, circumstance, development, occurrence, fact, condition, effect or change that is, or would reasonably be expected to become, individually or in the aggregate, materially adverse to (i) the condition (financial or otherwise), business, assets, or results of operations of Parent and its Subsidiaries, taken as a whole, excluding any event, change, circumstance, effect, occurrence, condition, state of facts or development to the extent arising or resulting from (A) changes, developments or conditions after the date hereof in the general economic or political conditions in the United States, including in the financial, debt, credit, capital or securities markets, including changes in interest rates, (B) changes generally affecting the industries in which Parent and its Subsidiaries operate, (C) changes or proposed changes in Applicable Law or interpretations thereof or regulatory conditions or any changes in the enforcement thereof, including changes in tax law, interpretations and regulations after the date hereof, (D) changes or proposed changes in GAAP or other accounting standards or interpretations thereof, (E) changes in commodity prices, including the prices of natural gas, crude oil, refined petroleum products, other hydrocarbon products, natural gas liquids, carbon dioxide, methane, nitrous oxide, fluorinated and other “greenhouse” gases, and other commodities, (F) acts of war (whether or not declared), hostilities, military actions or acts of terrorism, or any escalation or worsening of the foregoing, (G) weather conditions or acts of God (including storms, earthquakes, tsunamis, tornados, hurricanes, floods or other natural disasters or other comparable events), (H) pandemic (including the COVID-19 pandemic), (I) any change, in and of itself, in the market price or trading volume of Parent’s securities; provided that the exception in this clause shall not prevent or otherwise affect a determination that any underlying event, circumstance, development, occurrence, fact, condition, effect or change that is the cause of such change has resulted in, or would reasonably be expected to result in, a Parent Material Adverse Effect to the extent not otherwise falling within any of the other exceptions set forth in clauses (A) through (M) hereof, (J) the negotiation, execution, announcement or performance of this Agreement or the consummation of the Merger or the other transactions contemplated hereby, including the impact thereof on the relationships, contractual or otherwise, with employees, labor unions, financing sources, customers, suppliers, distributors, regulators, partners or other Persons, or any action or claim made or brought by any of the current or former stockholders of Parent (or on their behalf or on behalf of Parent) against Parent or any of its directors, officers or employees arising out of this Agreement or the Merger or the other transactions contemplated hereby (it being understood that this clause (J) shall not apply to a breach of any representation or warranty related to the announcement or consummation of the transactions contemplated hereby), (K) any failure of any of Parent or any of its Subsidiaries to meet, with respect to any period or periods, any internal or published projections, forecasts, estimates of earnings or revenues or business plans (but not the underlying facts or basis for such failure to meet projections, forecasts, estimates of earnings or revenues or business plans, which may be taken into account in determining whether there has been or would reasonably be expected to be a Parent Material Adverse Effect to the extent not otherwise falling within any of the other exceptions set forth in clauses (A) through (M) hereof), (L) any action taken by Parent or any of its Subsidiaries that is expressly required by this Agreement or (M) any Antitrust Actions; provided, however, that if any event, change, circumstance, effect, occurrence, condition, state of facts or development described in any of clauses (A) through (H) has a disproportionate effect on Parent and its Subsidiaries, taken as a whole, relative to other participants in the industries in which Parent and its Subsidiaries operate, such disproportionate effect shall be taken into account in determining whether there has

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been, or would reasonably be expected to be, a Parent Material Adverse Effect, or (ii) the ability of Parent or Merger Sub to perform any of its obligations under, or to consummate the transactions contemplated by, this Agreement.

Parent Tax Representation Letter” means a tax representation letter in the form to be agreed upon by the Company and Parent and executed by Parent pursuant to Section 8.10(a).

PBGC” means the Pension Benefit Guaranty Corporation.

Permits” means each grant, license, franchise, permit, easement, variance, exception, exemption, waiver, consent, certificate, certification, registration, accreditation, approval, order, qualification or other similar authorization of any Governmental Authority.

Permitted Liens” means (i) carriers’, warehousemen’s, mechanics’, materialmen’s, landlords’, laborers’, suppliers’ and vendors’ liens and other similar Liens, if any, arising or incurred in the ordinary course of business that do not, individually or in the aggregate, materially impair or interfere with the use of the subject assets or otherwise materially impair business operations as presently conducted; (ii) Liens for Taxes not yet delinquent or, if delinquent, that are being contested in good faith by appropriate actions and that are adequately reserved for as of the date hereof in the applicable financial statements of the Company in accordance with GAAP; (iii) applicable zoning, planning, entitlement, conservation restrictions, land use restrictions, building codes and other governmental rules and regulations imposed by a Governmental Authority having jurisdiction over the real property, none of which would reasonably be expected to have an adverse impact on the Company’s conduct of its business; (iv) the terms and conditions of the leases, subleases, licenses, sublicenses or other occupancy agreements pursuant to which the Company or any of its Subsidiaries is a tenant, subtenant or occupant (other than in connection with any breach thereof) that do not, and would not be reasonably expected to, materially impair or interfere with the use of the subject assets or otherwise materially impair business operations as presently conducted; (v) non-exclusive licenses to Intellectual Property granted in the ordinary course of business; (vi) to the extent not applicable to the transactions contemplated by this Agreement or otherwise waived prior to the Effective Time, preferential purchase rights, rights of first refusal, purchase options and similar rights granted pursuant to any Contracts that have been made available to Parent prior to the date hereof and would not be reasonably expected to materially affect the value, use or operation of the property encumbered thereby, including joint operating agreements, joint ownership agreements, participation agreements, development agreements, stockholders agreements, consents, and other similar agreements and documents; (vii) Production Burdens payable to third parties that are deducted in the calculation of discounted present value in the Company Independent Reserve Reports and any Production Burdens payable to third parties affecting any Oil and Gas Property that was acquired subsequent to the date of the Company Independent Reserve Reports; (viii) Liens arising in the ordinary course of business under operating agreements, joint venture agreements, partnership agreements, Oil and Gas Leases, farm-out agreements, division orders, Contracts for the sale, purchase, transportation, processing or exchange of oil, gas or other Hydrocarbons, unitization and pooling declarations and agreements, area of mutual interest agreements, development agreements, joint ownership arrangements and other agreements that are customary in the oil and gas business, provided, however, that, in each case, such Lien (a) secures obligations that are not Indebtedness or a deferred purchase price and are not delinquent and (b) would not be reasonably expected to materially affect the value, use or operation of the property encumbered thereby; (ix) any Liens discharged at or prior to the Effective Time; (x) any Liens arising under the Company Credit Agreement; and (xi) Liens, exceptions, defects or irregularities in title, easements, imperfections of title, claims, charges, security interests, rights of way, covenants, restrictions and other similar matters that (a) would be accepted by a reasonably prudent purchaser of oil and gas interests in the geographic area where such oil and gas interests are located, (b) would not, individually or in the aggregate, reduce the net revenue interest share of the Company and its Subsidiaries in any Oil and Gas Lease below the net revenue interest share shown in the Company Independent Reserve Reports with respect to such Oil and Gas Lease, or increase the working interest of the Company and its Subsidiaries (without at least a proportionate increase in net revenue interest) in any Oil and Gas Lease above the working interest shown on the Company Independent

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Reserve Reports with respect to such Oil and Gas Lease and (c) would not be reasonably expected to materially affect the value, use or operation of the property encumbered thereby.

Person” means an individual, corporation, partnership, limited liability company, association, trust or other entity or organization, including a Governmental Authority or any “group” within the meaning of Section 13(d) of the 1934 Act.

Personal Information” means “personal information,” “personally identifiable information,” “personal data,” and any terms of similar import, including, but not limited to, information that relates to a person’s name, health, finances, education, business, use or receipt of governmental services or other activities, addresses, telephone numbers, social security numbers, driver license numbers, other identifying numbers, and any financial identifiers.

Pipeline” means all parts of those physical facilities through which gas, hazardous liquid, or carbon dioxide moves in transportation and includes, but is not limited to, line pipe, valves and other appurtenances attached to the pipe, pumping/compressor units and associated fabricated units, metering, regulating, and delivery stations, and holders and fabricated assemblies located therein and breakout tanks.

Production Burdens” means any royalties (including lessor’s royalties), overriding royalties, production payments, net profit interests or other burdens upon, measured by or payable out of oil, gas or mineral production.

Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing into the environment.

Representative” means, with respect to any Person, the officers, directors, employees, investment bankers, accountants, consultants, agents, legal counsel, financial advisors and other representatives of such Person.

Sarbanes-Oxley Act” means the Sarbanes-Oxley Act of 2002.

SEC” means the U.S. Securities and Exchange Commission.

Service Provider” means any director, officer or employee of the Company or any of its Subsidiaries or any individual directly (or through an alter ego entity) engaged by the Company or any of its Subsidiaries as an independent contractor.

Specified Pipeline Event” means any event, circumstance, development, occurrence, fact, condition, effect or change that, individually or in the aggregate, has resulted in, or would reasonably be expected to result in, a material detriment in the ability of the Company or its Subsidiaries (or after the Closing, Parent and its Subsidiaries) to realize the benefits or have the use of the Green Pipeline or the NEJD Pipeline, excluding any event, change, circumstance, effect, occurrence, condition, state of facts or development to the extent arising or resulting from (A) changes, developments or conditions after the date hereof in the general economic conditions in the United States, including in the financial, debt, credit, capital or securities markets, including changes in interest rates, (B) changes in GAAP or other accounting standards or interpretations thereof, (C) changes in commodity prices, including the prices of natural gas, crude oil, refined petroleum products, other hydrocarbon products, natural gas liquids, carbon dioxide, methane, nitrous oxide, fluorinated and other “greenhouse” gases, and other commodities, (D) the negotiation, execution, announcement or performance of this Agreement or the consummation of the Merger or the other transactions contemplated hereby, including the impact thereof on the relationships, contractual or otherwise, with employees, labor unions, financing sources, customers, suppliers, distributors, partners or other Persons (but, subject to clause (E), excluding Governmental Authorities), or any action or claim made or brought by any of the current or former stockholders of the Company (or on their behalf or on behalf of the Company) against the Company or any of its directors, officers or employees arising out of

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this Agreement or the Merger or the other transactions contemplated hereby (it being understood that this clause (D) shall not apply to a breach of any representation or warranty related to the announcement or consummation of the transactions contemplated hereby), (E) any Antitrust Actions or (F) any failure of any of the Company or any of its Subsidiaries to meet, with respect to any period or periods, any internal or published projections, forecasts, estimates of earnings or revenues or business plans relating to either of the Green Pipeline or the NEJD Pipeline (but not the underlying facts or basis for such failure to meet projections, forecasts, estimates of earnings or revenues or business plans, which may be taken into account in determining whether there has been a Specified Pipeline Event to the extent not otherwise falling within any of the other exceptions set forth in clauses (A) through (E) hereof).

Subsidiary” means, with respect to any Person, any Person of which securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other Persons performing similar functions are at any time directly or indirectly owned or controlled by such Person.

Tax” (and, with correlative meaning, “Taxes”) means all U.S. federal, state, local or non-U.S. taxes (including assessments, duties, levies, imposts or other similar charges in the nature of a tax) imposed by a Governmental Authority (whether payable directly or by withholding and whether or not requiring the filing of a Tax Return), including income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise profits, withholding (including backup withholding), social security, unemployment, disability, real property, personal property, sales, use, transfer, registration, ad valorem, value added, alternative or add-on minimum or estimated tax or any other tax of any kind whatsoever, together with any interest, penalty, addition to tax or additional amount, whether disputed or not, and any liability for any of the foregoing by reason of (i) assumption, transferee or successor liability or operation of Applicable Law, or (ii) being or having been before the Effective Time a member of an affiliated, consolidated, combined or unitary group, or a party to any agreement or arrangement, as a result of which liability of the Company or any of its Subsidiaries is determined or taken into account with reference to the activities of any other Person.

Tax Return” means any report, return, document, claim for refund, information return, declaration or statement or filing with respect to Taxes (and any amendments thereof), including any schedules or documents with respect thereto.

Tax Sharing Agreement” means any agreement or arrangement binding the Company or any of its Subsidiaries that provides for the allocation, apportionment, sharing, indemnification or assignment of any Tax liability or benefit, or the transfer or assignment of income, revenues, receipts, or gains for the purpose of determining any Person’s Tax liability (other than customary Tax sharing or indemnification provisions contained in an agreement entered into in the ordinary course of business the primary subject matter of which does not relate to Taxes).

Termination Fee” means the Company Termination Fee or the Parent Pipeline Termination Fee, as applicable.

Third Party” means any Person other than Parent or any of its Subsidiaries.

Title IV Plan” means any Employee Plan that is subject to Title IV of ERISA.

Trade Secrets” means trade secrets and other confidential know-how and confidential information and rights in any jurisdiction, including formulae, concepts, methods, techniques, procedures, processes (including manufacturing and production processes), algorithms, schematics, prototypes, models, designs, and business information (including customer lists and supplier lists, financial and marketing plans, and pricing and cost information).

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Units” means all pooled, communitized or unitized acreage that includes all or a part of any Oil and Gas Lease.

U.S. Plan” means any Employee Plan that covers Service Providers located primarily in the United States.

WARN” means the Worker Adjustment and Retraining Notification Act and any similar, applicable foreign, state or local law.

Warrant Agreements” means (i) the Series A Warrant Agreement, dated as of September 18, 2020, by and between the Company and Broadridge Corporate Issuer Solutions, Inc., and (ii) the Series B Warrant Agreement, dated as of September 18, 2020, by and between the Company and Broadridge Corporate Issuer Solutions, Inc.

“Warrants” means the Warrants, as defined in the Warrant Agreements.

Wells” means all oil or gas wells, whether producing, operating, shut-in or temporarily abandoned, located on an Oil and Gas Lease or any Unit that includes all or a part of such Oil and Gas Lease or otherwise associated with an Oil and Gas Property of the applicable Person or any of its Subsidiaries, together with all Hydrocarbon production from such well.

(b) Each of the following terms is defined in the Section set forth opposite such term:

Term

Section

Adverse Recommendation Change

6.03

Agreement

Preamble

Applicable Date

4.07

Burdensome Condition

8.01(c)

Certificates

2.03

Closing

2.01(b)

Closing Date

2.01(b)

Company

Preamble

Company 401(k) Plan

7.04(d)

Company Activities

8.01(c)

Company Board

4.02(b)

Company Board Recommendation

4.02(b)

Company DSU Consideration

2.04(b)

Company Equity Award Consideration

2.04(d)

Company Indebtedness Payoff Amount

8.11

Company Independent Petroleum Engineers

4.21

Company Independent Reserve Reports

4.21

Company Meeting

4.09

Company Preferred Stock

4.05

Company Restricted Stock Consideration

2.04(d)

Company RSU Consideration

2.04(a)

Company SEC Documents

4.07

Company Securities

4.05(b)

Company Shares

2.02

Company Subsidiary Securities

4.06

Company Termination Fee

11.04(b)(i)

Company TSR Performance Award Consideration

2.04(c)

Confidentiality Agreement

6.02

Continuation Period

7.04(b)

Continuing Employee

7.04(b)

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Data Breach

4.16

Davis Polk

8.10

Defensible Title

4.21

D&O Insurance

7.03(c)

Effective Time

2.01

Electronic Delivery

11.10

email

11.01

End Date

10.01

Exchange Agent

2.03

Indemnified Person

7.03(a)

Intervening Event

6.03(c)

IRS

4.18(a)

JPM

4.24

Lease

4.15

Material Contract

4.22(b)

Measurement Date

4.05(a)

Merger

2.01

Merger Consideration

2.02

Merger Sub

Preamble

Parent

Preamble

Parent 401(k) plan

7.04(d)

Parent Pipeline Termination Fee

11.04(c)

Parent Preferred Stock

5.05

Parent SEC Documents

5.07

Parent Securities

5.05

Parent Shares

2.02

Parent Subsidiary Securities

5.06

PJT

4.24

Proxy Statement/Prospectus

4.09

PWP

4.24

Registered IP

4.16

Registration Statement

4.09

Requisite Company Vote

4.02(a)

Rights-of-Way

4.15(c)

Sanctions

4.12(c)

Significant Subsidiaries

5.06

Superior Proposal

6.03(f)

Surviving Corporation

2.01

Transfer Taxes

2.03(c)

Treasury Regulations

Recitals

Uncertificated Shares

2.03

V&E

8.10

Section 1.02. Other Definitional and Interpretative Provisions. The words “hereof,” “herein” and “hereunder” and words of like import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation hereof. References to Articles, Sections, Exhibits and Schedules are to Articles, Sections, Exhibits and Schedules of this Agreement unless otherwise specified. All Exhibits and Schedules (including the Company Disclosure Schedule and the Parent Disclosure Schedule) annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Any capitalized terms used in any Exhibit or Schedule but not otherwise defined therein, shall have the meaning as defined in this Agreement. Any singular term in this Agreement shall be deemed to include the

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plural, and any plural term the singular. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation,” whether or not they are in fact followed by those words or words of like import. “Writing,” “written” and comparable terms refer to printing, typing and other means of reproducing words (including electronic media) in a visible form. References to any statute shall be deemed to refer to such statute as amended from time to time and, if applicable, to any rules, regulations or interpretations promulgated thereunder. References to any agreement or contract are to that agreement or contract as amended, modified, supplemented, extended or renewed from time to time in accordance with the terms hereof and thereof; provided that with respect to any agreement or contract listed on any schedule hereto (including the Company Disclosure Schedule and the Parent Disclosure Schedule), all such amendments, modifications, supplements, extensions or renewals must also be listed in the appropriate schedule. References to any Person include the successors and permitted assigns of that Person. References to a “party” or the “parties” means a party or the parties to this Agreement unless the context otherwise requires. References from or through any date mean, unless otherwise specified, from and including or through and including, respectively. The parties hereto have participated jointly in the negotiation and drafting of this Agreement and each has been represented by counsel of its choosing and, in the event of an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by such parties and no presumption or burden of proof will arise favoring or disfavoring any party due to the authorship of any provision of this Agreement. Unless otherwise specifically indicated, all references to “dollars” and “$” will be deemed references to the lawful money of the United States of America.

ARTICLE 2

THE MERGER

Section 2.01. The Merger. (a) Upon the terms and subject to the conditions set forth in this Agreement, at the Effective Time, Merger Sub shall merge (the “Merger”) with and into the Company in accordance with the DGCL, whereupon the separate existence of Merger Sub shall cease and the Company shall be the surviving corporation as a wholly owned Subsidiary of Parent (the “Surviving Corporation”).

(b) Subject to the provisions of Article 9, the closing of the Merger (the “Closing”) shall take place in New York City at the offices of Davis Polk & Wardwell LLP, 450 Lexington Avenue, New York, New York, 10017 as soon as possible, but in any event no later than four Business Days after the date the conditions set forth in Article 9 (other than conditions that by their nature are to be satisfied at the Closing, but subject to the satisfaction or, to the extent permissible, waiver of such conditions at the Closing) have been satisfied or, to the extent permissible, waived by the party or parties entitled to the benefit of such conditions, or at such other place (or by means of remote communication), at such other time or on such other date as Parent and the Company may mutually agree (the date on which the Closing occurs, the “Closing Date”).

(c) At the Closing, the Company and Merger Sub shall file a certificate of merger with the Delaware Secretary of State and make all other filings or recordings required by the DGCL in connection with the Merger. The Merger shall become effective at such time (the “Effective Time”) as the certificate of merger is duly filed with the Delaware Secretary of State (or at such later time as may be specified in the certificate of merger).

(d) From and after the Effective Time, the Surviving Corporation shall possess all the rights, powers, privileges and franchises and be subject to all of the obligations, liabilities, restrictions and disabilities of the Company and Merger Sub, all as provided under the DGCL.

Section 2.02. Conversion of Shares. At the Effective Time, by virtue of the Merger and without any action on the part of any holder of Company Shares or any holder of shares of common stock of Merger Sub:

(a) Except as otherwise provided in Section 2.02(b) or Section 2.02(d), each share of common stock of the Company, par value $0.001 per share (each a “Company Share” and collectively, the “Company Shares”),

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outstanding immediately prior to the Effective Time (including the Company Restricted Stock which shall also be governed by Section 2.04(d) below) shall be converted into the right to receive 0.840 shares of common stock of Parent, each without par value (each a “Parent Share” and collectively, the “Parent Shares”) (together with any cash in lieu of fractional Parent Shares as specified below, the “Merger Consideration”). As of the Effective Time, all such Company Shares shall no longer be outstanding and shall automatically be canceled and retired and shall cease to exist, and shall thereafter represent only the right to receive the Merger Consideration and the right to receive any dividends or other distributions pursuant to Section 2.03(f), in each case, to be issued or paid in accordance with Section 2.03, without interest and subject to any withholding of Taxes required by Applicable Law.

(b) Each Company Share held by the Company as treasury stock (other than Company Shares subject to or issuable in connection with an Employee Plan of the Company) or owned by Parent or Merger Sub immediately prior to the Effective Time shall be canceled, and no payment shall be made with respect thereto.

(c) Each share of common stock of Merger Sub outstanding immediately prior to the Effective Time shall be converted into and become one share of common stock of the Surviving Corporation with the same rights, powers and privileges as the shares so converted and shall constitute the only outstanding shares of capital stock of the Surviving Corporation.

(d) Each Company Share held by any Subsidiary of either the Company or Parent (other than the Merger Sub) immediately prior to the Effective Time shall be converted into such number of shares of stock of the Surviving Corporation such that each such Subsidiary owns the same percentage of the outstanding capital stock of the Surviving Corporation immediately following the Effective Time as such Subsidiary owned in the Company immediately prior to the Effective Time.

Section 2.03. Surrender and Payment. (a) Prior to the Effective Time, Parent shall appoint a nationally recognized financial institution reasonably acceptable to Parent and the Company (the “Exchange Agent”) for the purpose of exchanging for the Merger Consideration (i) certificates representing Company Shares (the “Certificates”) or (ii) uncertificated Company Shares (the “Uncertificated Shares”). The Exchange Agent agreement pursuant to which Parent shall appoint the Exchange Agent shall be in form and substance reasonably acceptable to the Company and Parent. At or prior to the Effective Time, Parent shall deposit with or otherwise make available to the Exchange Agent, the Merger Consideration to be paid in respect of the Certificates and the Uncertificated Shares (other than the Company Restricted Stock) and the Company Equity Award Consideration in respect of the Non-Employee Holders (and, if determined by Parent pursuant to Section 2.04(e), all or a portion of the Company Equity Award Consideration to all or a portion of the Employee Holders). Parent agrees to make available to the Exchange Agent, from time to time as needed, any dividends or distributions to which such holder is entitled pursuant to Section 2.03(f). Promptly after the Effective Time (and in any event within five Business Days thereafter), Parent shall send, or shall cause the Exchange Agent to send, to each holder of Company Shares at the Effective Time (other than the Company Restricted Stock), a letter of transmittal and instructions in customary form and reasonably acceptable to the Company (which shall specify that the delivery shall be effected, and risk of loss and title shall pass, only upon proper delivery of the Certificates (or affidavits of loss in lieu thereof) or transfer of the Uncertificated Shares to the Exchange Agent and shall include customary provisions with respect to delivery of an “agent’s message” regarding book-entry transfer of Uncertificated Shares) for use in such exchange. Such letter of transmittal shall be in the form and have such provisions as Parent and the Company may reasonably agree.

(b) Each holder of Company Shares that have been converted into the right to receive the Merger Consideration (other than the Company Restricted Stock) shall be entitled to receive, upon (i) surrender to the Exchange Agent of a Certificate, together with a properly completed letter of transmittal, or (ii) receipt of an “agent’s message” by the Exchange Agent (or such other evidence, if any, of transfer as the Exchange Agent may reasonably request) in the case of a book-entry transfer of Uncertificated Shares, the Merger Consideration payable for each such Company Share represented by such Certificate or for each such Uncertificated Share. The

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Parent Shares constituting part of such Merger Consideration, at Parent’s option, shall be in uncertificated book-entry form, unless a physical certificate is required under Applicable Law. Until so surrendered or transferred, as the case may be, each such Certificate or Uncertificated Share shall represent after the Effective Time for all purposes only the right to receive the Merger Consideration and the right to receive any dividends or other distributions pursuant to Section 2.03(f). At the time set forth in Section 2.04(e), each Non-Employee Holder shall be entitled to receive such Non-Employee Holder’s Company Equity Award Consideration and, if determined by Parent pursuant to Section 2.04(e), all or a portion of the Company Equity Award Consideration payable to all or a portion of the Employee Holders shall be paid pursuant to this Section 2.03. No interest shall be paid or shall accrue on any cash payable upon surrender of any Company Shares or upon the Company Equity Award Consideration.

(c) If any portion of the Merger Consideration (other than in respect of the Company Restricted Stock) is to be paid to a Person other than the Person in whose name the surrendered Certificate or the transferred Uncertificated Share is registered, it shall be a condition to such payment that (i) either such Certificate shall be properly endorsed or shall otherwise be in proper form for transfer or such Uncertificated Share shall be properly transferred and (ii) the Person requesting such payment shall pay to the Exchange Agent any Transfer Taxes required as a result of such payment to a Person other than the registered holder of such Certificate or Uncertificated Share or establish to the satisfaction of the Exchange Agent and Parent that such Transfer Tax has been paid or is not payable. The payment of any transfer, documentary, sales, use, stamp, registration, value-added and other Taxes and fees (including any penalties and interest) (“Transfer Taxes”) incurred solely by a holder of Company Shares in connection with the Merger and any other transactions contemplated hereby, and the filing of any related Tax Returns, shall be the sole responsibility of such holder.

(d) After the Effective Time, there shall be no further registration of transfers of Company Shares. If, after the Effective Time, Certificates or Uncertificated Shares are presented to Parent, the Surviving Corporation or the Exchange Agent, they shall be canceled and exchanged for the Merger Consideration provided for, and in accordance with the procedures set forth, in this Article 2.

(e) Any portion of the Merger Consideration made available to the Exchange Agent pursuant to Section 2.03(a) (and any interest or other income earned thereon) that remains unclaimed by the holders of Company Shares that have been converted into the right to receive the Merger Consideration nine months after the Effective Time shall be returned to Parent, upon demand, and any such holder who has not exchanged such Company Shares for the Merger Consideration in accordance with this Section 2.03 prior to that time shall thereafter look only to Parent for, and Parent shall remain liable for, payment of the Merger Consideration, and any dividends and distributions with respect thereto pursuant to Section 2.03(f), in respect of such Company Shares without any interest thereon and subject to any withholding of Taxes required by Applicable Law in accordance with this Section 2.03(e). Notwithstanding the foregoing, Parent shall not be liable to any holder of Company Shares for any amount paid to a public official pursuant to applicable abandoned property, escheat or similar laws. Any amounts remaining unclaimed by holders of Company Shares that have been converted into the right to receive the Merger Consideration two years after the Effective Time (or such earlier date immediately prior to such time when the amounts would otherwise escheat to or become property of any Governmental Authority) shall become, to the extent permitted by Applicable Law, the property of Parent free and clear of any claims or interest of any Person previously entitled thereto.

(f) No dividends or other distributions with respect to securities of Parent constituting part of the Merger Consideration, and no cash payment in lieu of fractional shares as provided in Section 2.06, shall be paid to the holder of any Certificates not surrendered or of any Uncertificated Shares not transferred until such Certificates or Uncertificated Shares are surrendered or transferred, as the case may be, as provided in this Section 2.03. Following such surrender or transfer, there shall be paid, without interest, to the Person in whose name the securities of Parent have been registered, at the time of such surrender or transfer, the amount of any cash payable in lieu of fractional shares to which such Person is entitled pursuant to Section 2.06 and the amount of all dividends or other distributions with a record date after the Effective Time previously paid or payable on the date of such surrender or transfer with respect to such securities.

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Section 2.04. Treatment of Company Equity Awards and ESPP. (a) At or immediately prior to the Effective Time, except as otherwise agreed in writing by Parent and the holder thereof or as set forth on Section 6.01(m) of the Company Disclosure Schedule, each Company RSU outstanding as of immediately prior to the Effective Time, whether vested or unvested, shall, without any action on the part of Parent, Merger Sub, the Company or the holder thereof, be canceled and converted into the right to receive, the Merger Consideration in respect of the total number of Company Shares subject to such Company RSU (the “Company RSU Consideration”). The payment of the Company RSU Consideration shall be subject to withholding for all Taxes required by Applicable Law.

(b) At or immediately prior to the Effective Time, each Company DSU outstanding as of immediately prior to the Effective Time, whether vested or unvested, shall, without any action on the part of Parent, Merger Sub, the Company or the holder thereof, be canceled and converted into the right to receive, the Merger Consideration in respect of the total number of Company Shares subject to such Company DSU (the “Company DSU Consideration”). The payment of the Company DSU Consideration shall be subject to withholding for all Taxes required by Applicable Law.

(c) At or immediately prior to the Effective Time, except as otherwise agreed in writing by Parent and the holder thereof, each Company TSR Performance Award outstanding as of immediately prior to the Effective Time, shall, without any action on the part of Parent, Merger Sub, the Company or the holder thereof, be deemed to vest at actual performance levels (as determined by the Company Board (or a duly authorized committee thereof) reasonably and in good faith in accordance with the terms of the applicable Company TSR Performance Award, as in effect on the date of this Agreement, and after reasonable consultation with Parent) with respect to the applicable performance-based vesting conditions relating to such Company TSR Performance Awards and such vested number of Company TSR Performance Awards (if any) shall be canceled and converted into the right to receive, the Merger Consideration in respect of the total number of Company Shares subject to such Company TSR Performance Awards that are deemed vested in accordance with the foregoing based on actual performance achieved as of the Effective Time with respect to applicable performance-based vesting conditions (the “Company TSR Performance Award Consideration”). The payment of the Company TSR Performance Award Consideration shall be subject to withholding for all required Taxes.

(d) At or immediately prior to the Effective Time, except as otherwise agreed by in writing by Parent and the holder thereof or as set forth on Section 6.01(m) of the Company Disclosure Schedule, each Company Restricted Stock outstanding as of immediately prior to the Effective Time shall, without any action on the part of Parent, Merger Sub, the Company or the holder thereof, become a fully vested Company Share and be converted into the right to receive the Merger Consideration in accordance with Section 2.02(a) (the “Company Restricted Stock Consideration” and, together with the Company RSU Consideration, Company DSU Consideration and Company TSR Performance Award Consideration, the “Company Equity Award Consideration). The payment of the Company Restricted Stock Consideration shall be subject to withholding for all required Taxes.

(e) As promptly as practicable and, in any event, no later than thirty (30) days following the Effective Time (or, with respect to any Company RSUs, Company DSUs and/or Company TSR Performance Awards that constitute nonqualified deferred compensation subject to (and within the meaning of) Section 409A of the Code, at the earliest practicable time permitted under the applicable Employee Plan or Section 409A of the Code that will not trigger a Tax or penalty under Section 409A of the Code), the Parent shall pay or cause to be paid to the applicable holders of Company RSUs, Company DSUs, Company TSR Performance Awards and/or Company Restricted Stock all Company Equity Award Consideration. Notwithstanding the foregoing, in the case of any payment owed to a Non-Employee Holder, the applicable payments shall be made through the Exchange Agent pursuant to Section 2.03, and Parent, in its sole discretion, shall be permitted to determine to pay all or any portion of the Company Equity Award Consideration to all or a portion of the Employee Holders through the Exchange Agent pursuant to Section 2.03.

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(f) As soon as practicable following the date of this Agreement and in any event, at least five days prior to the Effective Time, the Company Board shall adopt resolutions or take all other actions as may be required to provide that: (i) no new participants will commence participation in the ESPP after the date of this Agreement; (ii) no participant in the ESPP shall be allowed to increase his or her payroll contribution rate in effect as of the date of this Agreement or make separate non-payroll contributions following the date of this Agreement; and (iii) no new Offering Period (as defined in the ESPP) shall commence or be extended pursuant to the ESPP, in each case, after the date of this Agreement. With respect to each Offering Period that would otherwise be in effect on the Closing Date, the Company shall take action to provide that such Offering Period shall terminate on the date immediately preceding the Closing Date, and the Company shall apply the funds credited as of such date under the ESPP to each participant’s payroll withholding account under the ESPP to the purchase of whole Company Shares in accordance with the terms of the ESPP, which Company Shares shall be converted into the right to receive the Merger Consideration in accordance with Section 2.02(a) and shall be paid through the Exchange Agent pursuant to Section 2.03. The Company shall take all action to terminate the ESPP no later than immediately prior to and effective as of the Effective Time (but subject to the consummation of the Merger).

(g) In exchange for the payment of the consideration provided for under this Section 2.04, except as otherwise agreed in writing by Parent and the holder thereof or as set forth on Section 6.01(m) of the Company Disclosure Schedule, the Company shall terminate all Company RSUs, Company DSUs, Company TSR Performance Awards, the Equity Plan and the ESPP and shall cancel the Company Shares of Company Restricted Stock in accordance with Section 2.02(a), as of the Effective Time, and terminate the provisions in any other Employee Plan, Contract or arrangement providing for the issuance of grant or vesting of any other interest in respect of the capital stock of the Company or any of its Subsidiaries as of the Effective Time (but subject to the consummation of the Merger) without any liability to Parent, the Company and Merger Sub. The Company shall ensure that, following the Effective Time, no participant in any Equity Plan or other Employee Plan shall have any right thereunder to acquire any equity securities of Parent, the Company, the Surviving Corporation or any of their respective Subsidiaries, except for the Merger Consideration or as otherwise agreed in writing by Parent and the holder thereof or as set forth on Section 6.01(m) of the Company Disclosure Schedule.

Section 2.05. Adjustments. If, during the period between the date of this Agreement and the Effective Time, the outstanding capital stock of the Company or Parent shall have been changed into a different number of shares or a different class by reason of any reclassification, recapitalization, stock split or combination, exchange or readjustment of shares, respectively, or any stock dividend thereon with a record date during such period, or any other similar event, but excluding any change that results from (a) the exercise of Warrants, stock options or other equity awards to purchase Company Shares or Parent Shares (as set forth in Section 4.05 and Section 5.05, respectively), (b) the settlement of any other equity awards to purchase or otherwise acquire Company Shares or Parent Shares or (c) the grant of stock based compensation to directors or employees of Parent or (other than any such grants not made in accordance with the terms of this Agreement) the Company under Parent’s or the Company’s, as applicable, stock option or compensation plans or arrangements, the Merger Consideration and any other amounts payable pursuant to this Agreement, as applicable, shall be appropriately and proportionately adjusted. Nothing in this Section 2.05 shall be construed to permit any party to take any action that is otherwise prohibited or restricted by any other provision of this Agreement.

Section 2.06. Fractional Shares. No fractional Parent Shares shall be issued in the Merger. All fractional Parent Shares that a holder of Company Shares would otherwise be entitled to receive as a result of the Merger shall be aggregated and if a fractional share results from such aggregation, such holder shall be entitled to receive, in lieu thereof, an amount in cash without interest determined by multiplying the closing sale price of a Parent Share on the NYSE on the trading day immediately preceding the Effective Time by the fraction of a Parent Share to which such holder would otherwise have been entitled.

Section 2.07. Withholding Rights. Notwithstanding any provision contained herein to the contrary, each of the Exchange Agent, Parent, the Company, Merger Sub and the Surviving Corporation shall be entitled to deduct and withhold from the consideration otherwise payable to any Person pursuant to this Agreement such amounts

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as it reasonably concludes it is required to deduct and withhold with respect to the making of such payment under the Code, under any Tax law or pursuant to any other Applicable Law. If the Exchange Agent, Parent, the Company, Merger Sub or the Surviving Corporation, as the case may be, so deducts or withholds amounts, such amounts shall be treated for all purposes of this Agreement as having been paid to such Person in respect of which such deduction and withholding was made.

Section 2.08. Lost Certificates. If any Certificate shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the Person claiming such Certificate to be lost, stolen or destroyed and, if required by the Surviving Corporation, the posting by such Person of a bond, in such reasonable amount as the Surviving Corporation may direct, as indemnity against any claim that may be made against it with respect to such Certificate, the Exchange Agent shall pay, in exchange for such lost, stolen or destroyed Certificate, the Merger Consideration to be paid in respect of the Company Shares represented by such Certificate and any dividends or distributions with respect thereto pursuant to Section 2.03(f), as contemplated by this Article 2.

ARTICLE 3

THE SURVIVING CORPORATION

Section 3.01. Certificate of Incorporation. At the Effective Time, the certificate of incorporation of the Surviving Corporation shall be amended and restated as set forth in Exhibit A and, as so amended and restated, shall be the certificate of incorporation of the Surviving Corporation until further amended in accordance with Applicable Law.

Section 3.02. Bylaws. The bylaws of Merger Sub in effect at the Effective Time shall be the bylaws of the Surviving Corporation (except that references to the name of Merger Sub shall be replaced by reference to the name of the Surviving Corporation) until thereafter amended in accordance with Applicable Law.

Section 3.03. Directors and Officers. From and after the Effective Time, until successors are duly elected or appointed and qualified in accordance with Applicable Law, (a) the directors of Merger Sub at the Effective Time shall be the directors of the Surviving Corporation and (b) the officers of Merger Sub at the Effective Time shall be the officers of the Surviving Corporation.

ARTICLE 4

REPRESENTATIONSAND WARRANTIESOFTHE COMPANY

Subject to Section 11.05, except (x) as disclosed in any Company SEC Document filed with or furnished to the SEC and publicly available since January 1, 2022 through the Business Day prior to the date of this Agreement (but excluding any general cautionary or forward-looking statements contained in the “Risk Factors” section or “Forward-Looking Statements” and any other statements that are similarly cautionary, predictive or forward-looking in nature, in each case other than any description of historical facts or events included therein); provided that this clause (x) shall not apply to the representations and warranties set forth in Sections 4.05 or 4.06(b), or (y) as set forth in the Company Disclosure Schedule, the Company represents and warrants to Parent and Merger Sub that:

Section 4.01. Corporate Existence and Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has all corporate powers required to carry on its business as now conducted, other than as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. The Company is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction where the conduct of its business in such jurisdiction as currently conducted requires such qualification is necessary, except for those jurisdictions where failure to be so qualified or in good standing has not had and would not reasonably be expected to have, individually or in the

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aggregate, a Company Material Adverse Effect. The Company has made available to Parent (or included as an exhibit to the Company SEC Documents made available to Parent) complete and correct copies of the organizational documents of the Company and each Subsidiary of the Company, and each as so made available is in full force and effect. The Company and each of its Subsidiaries is not in breach of any of its organizational documents in any material respect.

Section 4.02. Corporate Authorization. (a) The Company has all requisite corporate power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the Merger, except for the required approval of the holders of at least a majority of the outstanding Company Shares entitled to vote in connection with the adoption and approval of this Agreement and the transactions contemplated hereby, including the Merger, in accordance with Applicable Law and the Company’s certificate of incorporation (the “Requisite Company Vote”). The Requisite Company Vote is the only vote of the holders of any of the capital stock of the Company or the capital stock of any of its Subsidiaries (including any Company Securities or Company Subsidiary Securities) necessary in connection with consummation of the Merger. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby, subject to obtaining the Requisite Company Vote at the Company Meeting, are within the Company’s corporate powers and have been duly authorized by all necessary corporate action on the part of the Company. The Company has duly executed and delivered this Agreement, and, assuming due authorization, execution and delivery by each of Parent and Merger Sub, this Agreement constitutes a valid and binding agreement of the Company enforceable against the Company in accordance with its terms (subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Applicable Laws affecting creditors’ rights generally and general principles of equity).

(b) At a meeting duly called and held, the board of directors of the Company (the “Company Board”) has unanimously (i) determined that this Agreement and the transactions contemplated hereby, including the Merger, are fair to and in the best interests of the Company and its stockholders, (ii) approved, adopted and declared advisable this Agreement and the transactions contemplated hereby, including the Merger, in accordance with the requirements of the DGCL and (iii) resolved, subject to Section 6.03(c), to recommend approval and adoption of this Agreement by the stockholders of the Company (such recommendation, the “Company Board Recommendation”). As of the date of this Agreement, the foregoing determinations and resolutions have not been rescinded, modified or withdrawn in any way.

Section 4.03. Governmental Authorization. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby require no action by or in respect of, or filing by or on behalf of the Company with, any Governmental Authority, other than (a) the filing of a certificate of merger with respect to the Merger with the Delaware Secretary of State and appropriate documents with the relevant authorities of other states in which the Company is qualified to do business, (b) compliance with any applicable requirements of the HSR Act, (c) compliance with any applicable requirements of the NYSE, 1933 Act, the 1934 Act and any other applicable state or federal securities laws, including the filing with the SEC of the Proxy Statement/Prospectus relating to the matters to be submitted to the stockholders of the Company at the Company Meeting, (d) any of the actions or filings set forth on Section 4.03 of the Company Disclosure Schedule and (e) any actions or filings the absence of which has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

Section 4.04. Non-contravention. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby do not and will not (a) contravene, conflict with, or result in any violation or breach of any provision of the certificate of incorporation or bylaws of the Company or any of its Subsidiaries, (b) assuming compliance with the matters referred to in Section 4.03, contravene, conflict with or result in a violation or breach of any provision of any Applicable Law, (c) assuming termination of the Company Credit Agreement and satisfaction in full of all obligations outstanding thereunder and compliance with the matters referred to in Section 4.03, require payment or notice to, or any consent or other action by any Person under, constitute a breach or default, or an event that,

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with or without notice or lapse of time or both, would constitute a violation or breach of, or give rise to any right of termination, suspension, cancellation, acceleration, payment or any other change of any rights or obligations of the Company or any of its Subsidiaries or the loss of any benefit to which the Company or any of its Subsidiaries is entitled under any provision of any Contract binding on the Company or any of its Subsidiaries or any Permit affecting, or relating to, the assets or business of the Company or its Subsidiaries or (d) result in the creation or imposition of any Lien on any asset of the Company or any of its Subsidiaries except, in the case of each of clauses (b) through (d), as have not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

Section 4.05. Capitalization. (a) The authorized capital stock of the Company consists of 250,000,000 Company Shares and 50,000,000 shares of preferred stock, par value $0.001 per share (the “CompanyPreferred Stock”). As of July 10, 2023 (the “Measurement Date”), there were outstanding (i) 50,473,057 Company Shares, of which 340,102 Company Shares constitute Company Restricted Stock, (ii) Warrants exercisable for 2,581,409 Company Shares and (iii) no shares of Company Preferred Stock. As of the Measurement Date, there were 5,679,352 Company Shares reserved and still available for issuance under the Equity Plan, of which there were outstanding awards with respect to 1,950,053 Company Shares subject to issuance upon vesting of Company RSUs, 230,096 Company Shares subject to issuance upon vesting of Company DSUs and 221,729 Company Shares subject to issuance upon vesting of Company TSR Performance Awards (assuming achievement of applicable performance objectives at target levels). As of the Measurement Date, 1,981,281 Company Shares are subject to outstanding purchase rights under the ESPP. All outstanding shares of capital stock of the Company have been, and all shares that may be issued pursuant to any employee stock option or other compensation plan or arrangement will be, when issued in accordance with the respective terms thereof, duly authorized and validly issued, fully paid and nonassessable, and free of preemptive rights. Section 4.05(a) of the Company Disclosure Schedule sets forth, for each equity award, the holder, type of award, grant date, number of shares, vesting schedule (including any acceleration provisions) and, if applicable, exercise price and expiration date.

(b) There are no outstanding bonds, debentures, notes or other Indebtedness of the Company having the right to vote (or convertible into, or exchangeable or exercisable for, securities having the right to vote) on any matters on which stockholders of the Company may vote. Except as set forth in Section 4.05(a) of the Company Disclosure Schedule and for changes since the Measurement Date resulting from the issuance of Company Shares pursuant to the settlement of Company RSUs, Company DSUs and Company TSR Performance Awards or the exercise of Warrants, in each case outstanding on such date in accordance with the terms thereof on such date, there are no issued, reserved for issuance or outstanding (i) shares of capital stock or other voting securities of or ownership interests in the Company, (ii) securities of the Company convertible into or exchangeable or exercisable for shares of capital stock or other voting securities of or ownership interests in the Company, (iii) warrants (other than Warrants), calls, options, subscriptions, commitments, Contracts or other rights to acquire from the Company, or other obligation of the Company to issue, any capital stock or other voting securities of, or ownership interests in, or any securities convertible into or exchangeable or exercisable for capital stock or other voting securities of or ownership interests in, the Company or (iv) restricted shares, restricted stock units, stock appreciation rights, performance units, contingent value rights, “phantom” stock or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the value or price of, any capital stock or voting securities of, or ownership interests in, the Company (the items in clauses (i) through (iv), including, for the avoidance of doubt, the Company Shares, being referred to collectively as the “Company Securities”). There are no outstanding obligations of the Company or any of its Subsidiaries to repurchase, redeem or otherwise acquire any of the Company Securities. Neither the Company nor any of its Subsidiaries is a party to any voting agreement with respect to the voting, registration or transfer of any Company Securities. Since the Company Balance Sheet Date, neither the Company nor any of its Subsidiaries has declared, set aside or paid any dividends on, or made any other distributions (whether in cash, stock, property or otherwise) in respect of, any capital stock of such Person (other than cash dividends and distributions by a direct or indirect wholly owned Subsidiary of the Company to its parent).

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(c) None of (i) the Company Shares or (ii) any Company Securities are owned by any Subsidiary of the Company.

Section 4.06. Subsidiaries. (a) Each Subsidiary of the Company has been duly organized, is validly existing and (where applicable) in good standing under the laws of its jurisdiction of organization, has all organizational powers and all governmental licenses, authorizations, permits, consents and approvals required to carry on its business as now conducted, other than where the failure to be so organized or to have such power, authority or standing would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Each such Subsidiary is duly qualified to do business as a foreign entity and is in good standing in each jurisdiction where such qualification is necessary, except for those jurisdictions where failure to be so qualified has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as set forth in Section 4.06(a) of the Company Disclosure Schedule, all Subsidiaries of the Company as of the date hereof and their respective jurisdictions of organization are identified in the Company 10-K.

(b) All of the outstanding capital stock or other voting securities of, or ownership interests in, each Subsidiary of the Company have been duly authorized and validly issued and are fully paid and nonassessable and not subject to any preemptive rights and are owned by the Company, directly or indirectly, free and clear of any Lien and free of any other limitation or restriction (including any restriction on the right to vote, sell or otherwise dispose of such capital stock or other voting securities or ownership interests). There are no issued, reserved for issuance or outstanding (i) securities of the Company or any of its Subsidiaries convertible into, or exchangeable or exercisable for, shares of capital stock or other voting securities of, or ownership interests in, any Subsidiary of the Company, (ii) warrants, calls, options, subscriptions, commitments, Contracts or other rights to acquire from the Company or any of its Subsidiaries, or other obligations of the Company or any of its Subsidiaries to issue, any capital stock or other voting securities of, or ownership interests in, or any securities convertible into, or exchangeable or exercisable for, any capital stock or other voting securities of, or ownership interests in, any Subsidiary of the Company or (iii) restricted shares, restricted stock units, stock appreciation rights, performance units, contingent value rights, “phantom” stock or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the value or price of, any capital stock or other voting securities of, or ownership interests in, any Subsidiary of the Company (the items in clauses (i) through (iii) being referred to collectively as the “Company Subsidiary Securities”). There are no outstanding obligations of the Company or any of its Subsidiaries to repurchase, redeem or otherwise acquire any of the Company Subsidiary Securities. Except for ownership interests in its Subsidiaries, the Company does not own, directly or indirectly, any capital stock or other voting securities of, or ownership interests in, any Person. The Company and its Subsidiaries have no obligation to acquire equity securities of, or make any capital contribution or investment in, any other Person, other than as set forth in Section 4.06(b) of the Company Disclosure Schedule.

Section 4.07. SEC Filings and the Sarbanes-Oxley Act. (a) Since January 1, 2021 (the “Applicable Date”), the Company has timely filed with or furnished to the SEC, all reports, schedules, forms, statements, prospectuses, registration statements and other documents required to be filed with or furnished to the SEC by the Company (such reports, schedules, forms, statements, prospectuses, registration statements and other documents so filed or furnished since the Applicable Date, collectively, together with any exhibits and schedules thereto and other information incorporated therein, the “Company SEC Documents”). No Subsidiary of the Company is, and since the Applicable Date, no Subsidiary of the Company has been, required to file any reports, schedules, forms, statements or other documents with the SEC. As of the date of this Agreement, (i) there are no outstanding or unresolved written comments from the SEC with respect to the Company SEC Documents and (ii) to the Company’s Knowledge, none of the Company SEC Documents filed on or prior to the date hereof is the subject of ongoing SEC review.

(b) As of its filing date (or, if amended by a filing prior to the date hereof, on the date of any such filing), each Company SEC Document complied, and each Company SEC Document filed subsequent to the date hereof

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will comply, as to form in all material respects with the applicable requirements of the NYSE, the 1933 Act, the 1934 Act, the Sarbanes-Oxley Act and the rules and regulations of the SEC promulgated under the 1933 Act, the 1934 Act and the Sarbanes-Oxley Act, as the case may be.

(c) As of its filing date (or, if amended by a filing prior to the date hereof, on the date of such filing), each Company SEC Document filed pursuant to the 1934 Act did not, and each Company SEC Document filed subsequent to the date hereof will not, contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.

(d) Each Company SEC Document that is a registration statement, as amended or supplemented, if applicable, filed pursuant to the 1933 Act, as of the date such registration statement or amendment became effective, did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading.

(e) The Company has established and maintained disclosure controls and procedures and internal control over financial reporting (as such terms are defined in paragraphs (e) and (f), respectively, of Rule 13a-15 under the 1934 Act) as required by Rule 13a-15 or 15d-15, as applicable, under the 1934 Act. The Company’s disclosure controls and procedures are designed to ensure that all material information required to be disclosed by the Company in the reports that it files or furnishes under the 1934 Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and that all such material information is accumulated and communicated to the Company’s management as appropriate to allow timely decisions regarding required disclosure and to make the certifications required pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act. The Company’s internal control over financial reporting is in compliance with the applicable requirements of Section 404 of the Sarbanes-Oxley Act, and the Company’s internal control over financial reporting is effective. Except as set forth on Section 4.07(e) of the Company Disclosure Schedule, since September 18, 2020, neither the Company nor, to the Knowledge of the Company, the Company’s independent registered accountant has identified or been made aware of (i) any significant deficiencies or material weaknesses in the design or operation of the Company’s internal control over financial reporting that are reasonably expected to adversely affect the Company’s ability to record, process, summarize or report financial information or (ii) any fraud, whether or not material, that involves the management or other employees of the Company who have a significant role in the Company’s internal control over financial reporting.

(f) There are no outstanding loans or other extensions of credit made by the Company or any of its Subsidiaries to any executive officer (as defined in Rule 3b-7 under the 1934 Act) or director of the Company.

(g) Since the Applicable Date, each of the principal executive officer and principal financial officer of the Company (or each former principal executive officer and principal financial officer of the Company, as applicable) has made all certifications required by Rule 13a-14 and 15d-14 under the 1934 Act and Sections 302 and 906 of the Sarbanes-Oxley Act and any related rules and regulations promulgated by the SEC and the NYSE, and the statements contained in any such certifications are complete and correct as of their respective dates.

Section 4.08. Financial Statements. The audited consolidated financial statements and unaudited consolidated interim financial statements of the Company included or incorporated by reference in the Company SEC Documents (a) as of their respective dates of filing with the SEC complied as to form in all material respects with the published rules and regulations of the SEC with respect thereto and (b) fairly present in all material respects, in conformity with GAAP applied on a consistent basis (except as may be indicated in the notes thereto), the consolidated financial position of the Company and its consolidated Subsidiaries as of the dates thereof and their consolidated results of operations and cash flows for the periods then ended (subject to normal year-end audit adjustments and the absence of footnotes in the case of any unaudited interim financial statements).

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Section 4.09. Disclosure Documents. (a) The information supplied by the Company for inclusion or incorporation by reference in the registration statement on Form S-4 or any amendment or supplement thereto pursuant to which Parent Shares issuable as part of the Merger Consideration will be registered with the SEC (the “Registration Statement”) shall not at the time the Registration Statement is declared effective by the SEC (or, with respect to any post-effective amendment or supplement, at the time such post-effective amendment or supplement becomes effective) contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The information supplied by the Company for inclusion in the proxy statement/prospectus, or any amendment or supplement thereto, to be sent to the Company stockholders in connection with the Merger and the other transactions contemplated by this Agreement (the “Proxy Statement/Prospectus”) shall not, on the date the Proxy Statement/Prospectus, and any amendments or supplements thereto, is first mailed to the stockholders of the Company or at the time of a meeting of such stockholders for purpose of adopting this Agreement and approving the Merger (including any adjournment or postponement thereof, the “Company Meeting”) or Requisite Company Vote contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

(b) The representations and warranties contained in this Section 4.09 will not apply to statements or omissions included or incorporated by reference in the Registration Statement or Proxy Statement/Prospectus based upon information supplied in writing by Parent, Merger Sub or any of their representatives or advisors specifically for use or incorporation by reference therein.

Section 4.10. Absence of Certain Changes. Since the Company Balance Sheet Date through the date of this Agreement, (a) the business of the Company and its Subsidiaries has been conducted in the ordinary course of business in all material respects, (b) there has not been any event, change, occurrence, development or state of circumstances or facts that has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect and (c) none of the Company or any of its Subsidiaries has taken or agreed or omitted to take any action that, if taken or omitted during the period from the date of this Agreement through the Effective Time without Parent’s consent, would constitute a breach of Section 6.01(a), Section 6.01(b), Section 6.01(c), Section 6.01(d), Section 6.01(g), Section 6.01(j), Section 6.01(k), Section 6.01(m), Section 6.01(n), Section 6.01(o), Section 6.01(p) or, as it relates to the foregoing, Section 6.01(s).

Section 4.11. No Undisclosed Material Liabilities. There are no liabilities or obligations of the Company or any of its Subsidiaries of any kind whatsoever, whether accrued, contingent, absolute, known or unknown, determined, determinable, due or to become due or otherwise, and there is no existing condition, situation or set of circumstances that could reasonably be expected to result in such a liability or obligation, other than: (a) liabilities or obligations disclosed and provided for in the Company Balance Sheet or in the notes thereto; (b) liabilities or obligations incurred in the ordinary course of business since the Company Balance Sheet Date (but excluding violations of law or regulation, compliance matters, internal investigations, major spills or pipeline damage, breaches of Contracts or Permits, torts or infringement); (c) liabilities incurred in connection with the Merger; and (d) liabilities or obligations that have not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

Section 4.12. Compliance with Laws, Permits and Court Orders. (a) The Company and each of its Subsidiaries is, and since the Applicable Date, has been, in compliance with, is not, to the Knowledge of the Company, under investigation with respect to, nor has been threatened in writing, to be charged with or given notice of any violation of, any Applicable Law, except for failures to comply or violations that have not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. There is no judgment, decree, injunction, rule or order of any arbitrator or mediator.Governmental Authority outstanding against the Company or any of its Subsidiaries: (i) that is or would reasonably be expected to be, individually or in the aggregate, material to the Company and its Subsidiaries, taken as a whole; or (ii) that is outstanding as of the date hereof and that in any manner seeks to prevent, enjoin, alter or materially delay the Merger or any of the other transactions contemplated hereby.

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(b) Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) the Company and each of its Subsidiaries has all Permits necessary to own, lease and operate its properties and assets and to carry on its business as now conducted, (ii) the Company and each of its Subsidiaries is in compliance with the terms and requirements of such Permits, (iii) such Permits are in full force and effect and are not subject to any pending or threatened Action by any Governmental Authority to suspend, cancel, modify, terminate or revoke any such Permit and (iv) since the Applicable Date, there has occurred no violation by the Company or any of its Subsidiaries of, or default (with or without notice or lapse of time, or both) that would reasonably be expected to result in any suspension, cancellation, modification, termination or revocation of any such Permit.

(c) The Company, each of its Subsidiaries, and each of their respective directors, officers and, to the Knowledge of the Company, employees (in connection with their activities on behalf of the Company or any of its Subsidiaries) are, and since the Applicable Date have been, in compliance in all material respects with (i) the Foreign Corrupt Practices Act of 1977 and all other applicable anti-corruption laws, (ii) all economic sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control or the U.S. Department of State (collectively, “Sanctions”) and (iii) all applicable export controls laws.

(d) None of the Company or any of its Subsidiaries, or any director or officer, or, to the Company’s Knowledge, any Affiliate or representative of the Company or any of its Subsidiaries, is a Person that is, or is owned or controlled by Persons that are: (i) the subject of any Sanctions or (ii) located, organized or resident in a country or region that is the subject of Sanctions.

Section 4.13. Insurance. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (a) all insurance policies of the Company and its Subsidiaries relating to the business, assets and operations of the Company and its Subsidiaries in effect as of the date of this Agreement are in full force and effect and (b) no notice of cancellation or modification has been received by the Company relating to any material insurance policy of the Company, and there is no existing default or event which, with the giving of notice or lapse of time or both, would constitute a default by any insured under such insurance policies. Section 4.13 of the Company Disclosure Schedule sets forth all material insurance policies held by the Company and its Subsidiaries as of the date hereof.

Section 4.14. Litigation. There is no Action pending against, threatened in writing against or, to the Knowledge of the Company, otherwise threatened against, the Company, any of its Subsidiaries, any present or former officer, director or employee of the Company or any of its Subsidiaries or any Person for whom the Company or any of its Subsidiaries may be liable or any of their respective properties before (or, in the case of threatened Actions, would be before) or by any Governmental Authority or arbitrator, that would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Since the Applicable Date through the date hereof, there has not been any internal investigation conducted by the Company or the Company Board (or any committee thereof) concerning any material allegations of fraud or malfeasance. Since the Applicable Date, there has been no material allegation of fraud or malfeasance involving the Company any of its Subsidiaries or any their respective assets.

Section 4.15. Properties. (a) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the Company and its Subsidiaries have good title to, or valid leasehold interests in, all property and assets reflected on the Company Balance Sheet or acquired after the Company Balance Sheet Date, except as have been disposed of since the Company Balance Sheet Date in the ordinary course of business.

(b) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) each lease, sublease or license (each, a “Lease”) under which the Company or any of its Subsidiaries leases, subleases or licenses any material real property is valid and in full force and effect (subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Applicable Laws

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affecting creditors’ rights generally and general principles of equity), free and clear of all Liens other than Permitted Liens and (ii) neither the Company nor any of its Subsidiaries, nor to the Company’s Knowledge any other party to a Lease, has violated any provision of, or taken or failed to take any act which, with or without notice, lapse of time, or both, would constitute a default under the provisions of such Lease, and neither the Company nor any of its Subsidiaries has received notice that it has breached, violated or defaulted under any Lease.

(c) Each of the Company and its Subsidiaries has such consents, easements, rights-of-way, fee assets, permits, servitudes and licenses (including rights to use the surface or subsurface under an Oil and Gas Lease) from each Person (collectively, “Rights-of-Way”) as are sufficient to conduct its business as it is presently conducted, except for such Rights-of-Way the absence of which would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. No event has occurred that allows, or after notice or lapse of time would allow, revocation or termination thereof or would result in any impairment of the rights of the holder of any such Rights-of-Way, except for such revocations, terminations and impairments that would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. All Pipelines owned or operated by the Company and any of its Subsidiaries are subject to Rights-of-Way or are located on real property owned or leased by the Company or its Subsidiaries, and there are no gaps (including any gap arising as a result of any violation, breach or default by the Company or any of its Subsidiaries of the terms of any Rights-of-Way) in the Rights-of-Way other than gaps that would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, no Right-of-Way contains a requirement that the holder thereof make royalty or other payments based, directly or indirectly, on the throughput of Hydrocarbons on or across such Right-of-Way (other than customary royalties under Oil and Gas Leases based solely on Hydrocarbons produced from such Oil and Gas Lease).

Section 4.16. Intellectual Property; IT Assets; Data Privacy and Security. (a) Section 4.16(a)of the Company Disclosure Schedule sets forth a complete and correct list as of the date hereof of all registrations, issuances and applications for registration or issuance of Company IP comprising trademarks, patents, copyrights and domain names (“Registered IP”). Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) the Company and its Subsidiaries solely and exclusively own all of the Company IP, and, to the Knowledge of the Company, hold their rights in the Licensed IP, in each case, free and clear of any Liens (other than Permitted Liens), (ii) the Company and each of its Subsidiaries own or have a valid and, to the Knowledge of the Company, enforceable license or other right to use all Intellectual Property used or held for use in, or necessary for, the conduct of its business as currently conducted, (iii) all Registered IP is subsisting and valid and, to the Knowledge of the Company, is enforceable, (iv) neither the Company nor its Subsidiaries, nor the conduct of their respective businesses, has infringed, misappropriated, diluted or otherwise violated, or is infringing, misappropriating, diluting or otherwise violating, the Intellectual Property rights of any Person, (v) to the Knowledge of the Company, no Person has challenged, infringed, misappropriated, diluted, tarnished or otherwise violated any Company IP or any rights of the Company or any of its Subsidiaries in any Licensed IP, (vi) neither the Company nor any of its Subsidiaries is subject to any Action, nor, to the Knowledge of the Company, is any Action threatened against the Company or any of its Subsidiaries, with respect to any Intellectual Property owned, used or held for use by the Company or any of its Subsidiaries or alleging that any services provided, processes used or products manufactured, used, imported, offered for sale or sold by the Company or any of its Subsidiaries infringes, misappropriates, dilutes or otherwise violates any Intellectual Property rights of any Person, (vii) the Company and its Subsidiaries have taken commercially reasonable actions to maintain, enforce and protect all Company IP and none of the Company IP has been adjudged invalid or unenforceable in whole or in part, (viii) the Company and its Subsidiaries have taken commercially reasonable steps designed to maintain the confidentiality of all Trade Secrets owned, used or held for use by the Company or any of its Subsidiaries, and none of such Trade Secrets has been disclosed other than to employees, contractors, consultants, representatives and agents of the Company or any of its Subsidiaries under appropriate written confidentiality agreements or comparable professional obligations of confidentiality, (ix) the Company and each of its Subsidiaries have either entered into binding, written agreements with their

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respective current and former employees and independent contractors who have participated in the development of any material Intellectual Property for or on behalf of the Company or such Subsidiary, as applicable, whereby such employees and independent contractors presently assign to the Company or such Subsidiary, as applicable, any ownership interest and right they may have in all such Intellectual Property, or have had such current and former employees and independent contractors assign to the Company or such Subsidiary, as applicable, any ownership interest and rights they may have in all such Intellectual Property by operation of law, (x) the consummation of the transactions contemplated by this Agreement will not (A) materially alter, encumber, extinguish or impair the Company IP or the Company’s or its Subsidiaries’ right to use any Licensed IP or (B) to the Knowledge of the Company, encumber any of the Intellectual Property owned or licensed by Parent or any of its Affiliates, and (xi) there exist no restrictions on the disclosure, use, license or transfer of the Company IP.

(b) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) the IT Assets operate and perform in a manner that permits the Company and its Subsidiaries to conduct their respective businesses as currently conducted, (ii) the Company and its Subsidiaries have taken commercially reasonable actions, consistent with current industry standards and Applicable Data Protection Requirements, designed to protect the confidentiality, integrity and security of the IT Assets (and all information and transactions stored or contained therein or transmitted thereby) against any unauthorized use, access, interruption, modification or corruption, including the implementation of commercially reasonable data backup, disaster avoidance and recovery procedures, business continuity procedures, multi-factor authentication procedures and encryption and other security protocol technology, and (iii) there has been no breach, or unauthorized use, access, interruption, modification or corruption, of any IT Assets (or any information or transactions stored or contained therein or transmitted thereby).

(c) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) the Company and its Subsidiaries have at all times complied, and are currently in compliance, with all Applicable Data Protection Requirements, (ii) no Actions are pending or, to the Knowledge of the Company, threatened against the Company or any of its Subsidiaries by any Person alleging a violation of any Applicable Data Protection Requirement or such Person’s privacy, personal or confidentiality rights, nor, to the Knowledge of the Company, are any investigations by any Governmental Authorities pending against the Company or any of its Subsidiaries relating to any Applicable Data Protection Requirements, (iii) the Company and its Subsidiaries have implemented and maintained commercially reasonable physical, technical, and organizational measures designed to protect all IT Assets and Personal Information in their possession or control against a breach, or unauthorized use, access, exfiltration, destruction, alteration, disclosure, loss, theft, interruption, modification or corruption, thereof (“Data Breach”), including procedures with respect to notification of any Data Breach that are required under any Applicable Data Protection Requirements, and (iv) there has been no Data Breach with respect to any such Personal Information, and the Company and its Subsidiaries have not been required under any Applicable Data Protection Requirement to provide any notice to any Governmental Authority or Person in connection with any Data Breach.

Section 4.17. Taxes.

(a) All material Tax Returns required to be filed by Applicable Law by, or on behalf of, the Company or any of its Subsidiaries have been timely filed (taking into account valid extensions of time to file), and all such Tax Returns are true, complete and correct in all material respects. Each of the Company and each of its Subsidiaries has timely paid (or has had paid on its behalf) in full to the appropriate Governmental Authority all material Taxes due and payable by it, whether or not shown as due on any Tax Returns.

(b) Each of the Company and each of its Subsidiaries has properly and timely withheld or collected and timely paid, or is properly holding for timely payment, all material Taxes required to be withheld, collected and paid over by it under Applicable Law, and each of the Company and each of its Subsidiaries has complied in all material respects with all related information reporting, withholding and record retention requirements.

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(c) There is no Action in respect of a material amount of Taxes of the Company and its Subsidiaries that is currently being conducted or, to the Knowledge of the Company, threatened in writing by a Governmental Authority. There are no outstanding requests for filings or determinations in respect of any material Tax or Tax asset between the Company or any of its Subsidiaries and any Governmental Authority.

(d) No material Tax deficiency has been asserted in writing against the Company or any of its Subsidiaries that has not been resolved or paid in full. Within the past six years, no material written claim has been made by any Governmental Authority in a jurisdiction where the Company or a Subsidiary of the Company does not file a particular type of Tax Return or pay a particular type of Tax that the Company or a Subsidiary of the Company is or may be required to file such Tax Return or pay such Tax.

(e) There are no Liens on any of the assets of the Company or any of its Subsidiaries attributable to a material amount of Taxes other than Permitted Liens.

(f) Neither the Company nor any of its Subsidiaries has waived any statute of limitation in respect of Taxes or agreed to any extension of time with respect to an assessment or deficiency for any material amount of Taxes, which waiver or extension is currently in effect (other than pursuant to extensions of time to file Tax Returns obtained in the ordinary course of business for no more than six months).

(g) Neither the Company nor any Subsidiary of the Company (i) is, or has been, a member of any affiliated, consolidated, combined or unitary Tax group, other than a group the common parent of which is the Company or any Subsidiary of the Company, or (ii) has any liability for any material amount of Taxes of any Person (other than the Company or current or former Subsidiary of the Company) arising from the application of Treasury Regulations Section 1.1502-6 (or any analogous provision of U.S. state or local or non-U.S. Tax law) or as a transferee or successor.

(h) Neither the Company nor any of its Subsidiaries has entered into, or participated in, any “listed transaction” within the meaning of Treasury Regulations Section 1.6011-4(b)(2).

(i) Neither the Company nor any of its Subsidiaries has taken or agreed to take any action, or has knowledge of any fact or circumstance, that could reasonably be expected to prevent or impede the Merger from qualifying as a “reorganization” within the meaning of Section 368(a) of the Code.

(j) Neither the Company nor any of its Subsidiaries has been a “distributing” corporation or a “controlled corporation” (each within the meaning of Section 355(a)(1)(A) of the Code) in any distribution of stock during the two-year period ending on the date of this Agreement that was purported or intended to be governed by Section 355 of the Code (or so much of Section 356 of the Code as relates to Section 355 of the Code).

(k) Neither the Company nor any Subsidiary of the Company is a party to, or is bound by or has any obligation under any material Tax Sharing Agreement (other than agreements solely by and among the Company and its Subsidiaries).

Section 4.18. Employee Benefit Plans. (a) Section 4.18(a) of the Company Disclosure Schedule contains a correct and complete list of each material Employee Plan. With respect to each material Employee Plan, the Company has made available to Parent true, correct and complete copies of, to the extent applicable, (i) such Employee Plan, including any amendment thereto (or, in the case of any unwritten Employee Plan, a written description thereof), (ii) each trust, insurance, annuity or other funding arrangement or amendment related thereto, (iii) the most recent summary plan description and any summary of material modifications prepared, (iv) the three most recent financial statements and actuarial or other valuation reports prepared with respect thereto, (v) the most recent determination or opinion letter from the Internal Revenue Service (the “IRS”) and (vi) the three most recent annual reports on Form 5500 (or comparable form).

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(b) Neither the Company nor any of its ERISA Affiliates (nor any predecessor of any such entity) sponsors, maintains, administers or contributes to (or has any obligation to contribute to), or has in the past six years sponsored, maintained, administered or contributed to (or had any obligation to contribute to), or has or is reasonably expected to have any direct or indirect liability with respect to, any Title IV Plan (including any liability on account of a “complete withdrawal” or a “partial withdrawal” (within the meaning of Sections 4203 and 4205 of ERISA, respectively) from any Multiemployer Plan) or any International Plan.

(c) Each Employee Plan that is intended to be qualified under Section 401(a) of the Code has received a favorable determination or opinion letter, or has pending or has time remaining in which to file, an application for such determination from the IRS, and the Company is not aware of any reason why any such determination letter should be revoked or not be issued or reissued.

(d) Each Employee Plan, and any award thereunder, that is or forms part of a “nonqualified deferred compensation plan” within the meaning of Section 409A of the Code has been timely amended (if applicable) to comply and has been operated in compliance with, and the Company and its Subsidiaries have complied in practice and operation with, all applicable requirements of Section 409A of the Code.

(e) Except as set forth on Section 4.18(e) of the Company Disclosure Schedule, neither the execution of this Agreement nor the consummation of the transactions contemplated hereby (either alone or together with any other event) will (i) entitle any current or former Service Provider to any payment or benefit, including any bonus, retention, severance, retirement or job security payment or benefit, (ii) accelerate the time of payment or vesting or trigger any payment or funding (through a grantor trust or otherwise) of compensation or benefits under, or increase the amount payable or trigger any other obligation under, any Employee Plan, (iii) limit or restrict the right of the Company or any of its Subsidiaries or, after the Closing, Parent, to merge, amend or terminate any Employee Plan or (iv) result in the payment of any amount that would not be deductible by reason of Section 280G of the Code or would be expected to be subject to an excise Tax under Section 4999 of the Code.

(f) Neither the Company nor any of its Subsidiaries has any obligation to gross-up, indemnify or otherwise reimburse any current or former Service Provider for any Tax incurred by such Service Provider, including under Section 409A or 4999 of the Code.

(g) Neither the Company nor any of its Subsidiaries has any current or projected liability for, and no Employee Plan provides or promises, any post-employment or post-retirement medical, dental, disability, hospitalization, life or similar benefits (whether insured or self-insured) to any current or former Service Provider (other than coverage mandated by Applicable Law, including COBRA).

(h) Each Employee Plan and its related trust, insurance contract or other funding vehicle has been maintained in compliance with its terms and all Applicable Law, including ERISA and the Code, except for failures to comply that would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. No action, suit, investigation, audit, proceeding or claim (other than routine claims for benefits) is pending against or involves or, to the Company’s Knowledge, is threatened against or threatened to involve, any Employee Plan before any arbitrator or any Governmental Authority, including the IRS, the Department of Labor or the PBGC, which, individually or in the aggregate, if determined or resolved adversely in accordance with the plaintiff’s demands, could reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

(i) There has been no amendment to, written interpretation or announcement (whether or not written) by the Company or any of its Affiliates relating to, or change in employee participation or coverage under, an Employee Plan which would increase materially the expense of maintaining such Employee Plan above the level of the expense incurred in respect thereof for the fiscal year ended prior to the date hereof.

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(j) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, all contributions, premiums and payments that are due have been made for each Employee Plan within the time periods prescribed by the terms of such plan and Applicable Law, and all contributions, premiums and payments for any period ending on or before the Closing Date that are not due are properly accrued to the extent required to be accrued under applicable accounting principles and have been properly reflected on the Company Balance Sheet or disclosed in the notes thereto.

Section 4.19. Labor Matters. (a) Neither the Company nor any of its Subsidiaries is a party to or otherwise bound by any Collective Bargaining Agreement or any other Contract with a labor union or similar labor organization, and, to the Company’s Knowledge, no Person has applied to the National Labor Relations Board to be certified as the bargaining agent of any Company Employee with respect to such employee’s employment with the Company and its Subsidiaries.

(b) There are no unfair labor practice complaints pending or, to the Company’s Knowledge, threatened against the Company or any of its Subsidiaries before the National Labor Relations Board or any other Governmental Authority or any current union representation questions involving Company Employees. There is no, and there has not been since the Applicable Date, labor strike, slowdown, stoppage, picketing, interruption of work or lockout pending or, to the Company’s Knowledge, threatened against the Company or any of its Subsidiaries.

(c) Neither the Company nor any of its Subsidiaries currently employs or engages any Service Provider outside of the U.S.

(d) The Company and its Subsidiaries are, and have been since the Applicable Date, in compliance with all Applicable Laws relating to labor and employment, including those relating to labor management relations, wages, hours, overtime, employee classification, discrimination, civil rights, affirmative action, work authorization, immigration, safety and health, information privacy and security, workers compensation, continuation coverage under group health plans, wage payment, and the payment and withholding of Taxes, except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

(e) Since the Applicable Date, except as has not had and would not reasonably be expected to, individually or in the aggregate, material to the Company and its Subsidiaries, taken as a whole, (i) no allegations of sexual harassment, sexual abuse, or other sexual misconduct have been made against any Service Provider of the Company or any of its Subsidiaries with respect to actions taken in the course of employment or engagement with the Company or its Subsidiaries and (ii) there are no proceedings pending or, to the Knowledge of the Company, threatened related to allegations of sexual harassment, sexual abuse or other sexual misconduct by any Service Provider of the Company or any of its Subsidiaries. Since the Applicable Date, except as has not had and would not reasonably be expected to result in material liability to the Company and its Subsidiaries, taken as a whole, neither the Company nor any of its Subsidiaries has entered into any settlement agreements related to allegations of sexual harassment, sexual abuse or other sexual misconduct by any Service Provider of the Company or any of its Subsidiaries.

(f) Since the Applicable Date, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the Company and its Subsidiaries are in compliance with WARN and has no liabilities thereunder and have not taken any action during the 90-day period prior to the date hereof, or will take any action, that would reasonably be expected to cause Parent or any of its Affiliates or the Surviving Corporation or any of its successors or assigns to have any liability following the Closing Date under WARN.

Section 4.20. Environmental Matters. (a) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect: (i) no notice, notification, demand, request for

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information, citation, summons or order has been received, no complaint has been filed, no penalty has been assessed, and no Action is pending or, to the Knowledge of the Company, threatened by any Person relating to the Company or any of its Subsidiaries under or relating to any Environmental Law, Hazardous Substance or Environmental Permit; (ii) the Company and its Subsidiaries are and for the past three years have been in compliance with all Environmental Laws, and such compliance includes obtaining, maintaining, timely renewing, and complying with, all Environmental Permits; (iii) there has been no Release of any Hazardous Substance at, from, in, on, under, to or about (A) any property currently or, to the Knowledge of the Company, formerly owned, leased or operated by, or (B) to the Knowledge of the Company, any property or facility to which any Hazardous Substance has been transported for disposal, recycling or treatment by or on behalf of, in each case the Company or any of its Subsidiaries (or any of their respective predecessors); and (iv) the Company has made available to Parent complete and accurate copies of all environmental assessment and audit reports and studies that relate to the Company or its Subsidiaries (or any of their respective predecessors), in each case that are in the Company’s possession, custody or control.

(b) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the consummation of the transactions contemplated hereby requires no filings or notifications to be made or actions to be taken pursuant to any financial assurance, bond, letter of credit or similar instrument required for the operations of the Company or its Subsidiaries under any Environmental Law or Environmental Permit.

(c) The consummation of the transactions contemplated herein does not subject any Company owned or leased real property interest to the New Jersey Industrial Site Recovery Act (N.J.A.C. 7:26B) or the Connecticut Property Transfer Law (Conn. Gen. Stat. § 22a-134,et seq. as amended by Public Act 01-204).

Section 4.21. Oil and Gas Matters. (a) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, and except for property (i) sold, leased or otherwise disposed of in the ordinary course of business since the dates of the reserve reports prepared by DeGolyer and MacNaughton (collectively, the “Company Independent Petroleum Engineers” and such reserve reports, the “Company Independent Reserve Reports”) relating to the Company’s and its Subsidiaries’ interests referred to therein as of December 31, 2022, (ii) reflected in the Company Independent Reserve Report or in the Company SEC Documents as having been sold, leased or otherwise disposed of prior to the date hereof, or (iii) sold, leased or otherwise disposed of as permitted under Section 6.01, the Company and its Subsidiaries have Defensible Title to all Oil and Gas Properties forming the basis for the reserves reflected in the Company Independent Reserve Report and in each case as attributable to interests owned by the Company and its Subsidiaries. For purposes of the foregoing sentence, “Defensible Title” means the Company’s or one or more of its Subsidiaries’, as applicable, title (as of the date hereof and as of the Closing) to each of the Oil and Gas Properties held or owned by them (or purported to be held or owned by them) that (A) entitles the Company (or one or more of its Subsidiaries, as applicable) to receive (after satisfaction of all Production Burdens applicable thereto), not less than the net revenue interest share shown in the Company Independent Reserve Report of all Hydrocarbons produced from or allocated to such Oil and Gas Properties throughout the life of such Oil and Gas Properties and (B) is free and clear of all Liens (other than Permitted Liens).

(b) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the factual, non-interpretive data supplied by the Company to the Company Independent Petroleum Engineers relating to the Oil and Gas Properties referred to in the Company Independent Reserve Reports that was material to such firm’s estimates of proved oil and gas reserves attributable to the Oil and Gas Properties of the Company and its Subsidiaries in connection with the preparation of the Company Independent Reserve Reports was, as of the time provided, accurate in all respects. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the oil and gas reserve estimates of the Company set forth in the Company Independent Reserve Reports are derived from reports that have been prepared by the Company Independent Petroleum Engineers, and such reserve estimates fairly reflect, in all respects, the oil and gas reserves of the Company and its Subsidiaries at the dates indicated

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therein and are in accordance with SEC guidelines applicable thereto applied on a consistent basis throughout the periods involved. Except for changes generally affecting the oil and gas exploration, development and production industry (including changes in commodity prices) and normal depletion by production, there has been no change in respect of the matters addressed in the Company Independent Reserve Reports that would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

(c) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) all rentals, shut-ins and similar payments owed to any Person under (or otherwise with respect to) any Oil and Gas Leases owned or held by the Company or any of its Subsidiaries have been properly and timely paid or contested in good faith in the ordinary course of business, as to which reserves have been taken in accordance with GAAP, (ii) all royalties, minimum royalties, overriding royalties and other Production Burdens with respect to any Oil and Gas Properties owned or held by the Company or any of its Subsidiaries have been timely and properly paid or contested in good faith in the ordinary course of business, as to which reserves have been taken in accordance with GAAP and (iii) none of the Company or any of its Subsidiaries (and, to the Company’s Knowledge, no third-party operator) has violated any provision of, or taken or failed to take any act that, with or without notice, lapse of time, or both, would constitute a default under the provisions of any Oil and Gas Lease (or entitle the lessor thereunder to cancel or terminate such Oil and Gas Lease) included in the Oil and Gas Properties owned or held by the Company or any of its Subsidiaries.

(d) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, all proceeds from the sale of Hydrocarbons produced from the Oil and Gas Properties of the Company and its Subsidiaries are being received by them in a timely manner (other than those being contested in good faith in the ordinary course of business, as to which reserves have been taken in accordance with GAAP) and are not being held in suspense (by the Company, any of its Subsidiaries, any third-party operator thereof or any other Person) for any reason other than awaiting preparation and approval of division order title opinions and the receipt of division orders for execution for recently drilled Wells. Neither the Company nor any of its Subsidiaries is obligated by virtue of a take-or-pay payment, advance payment, or similar payment (other than royalties, overriding royalties, deliveries required to resolve imbalances and similar arrangements established in the Oil and Gas Leases owned or held by the Company or its Subsidiaries) to deliver Hydrocarbons or proceeds from the sale thereof, attributable to such Person’s interest in the Oil and Gas Properties at some future time without receiving payment therefor at the time of delivery, except, in each case, as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

(e) All of the Wells and all water, carbon dioxide, injection or other wells (i) located on the Oil and Gas Properties of the Company and its Subsidiaries or on the Units included in the Oil and Gas Properties owned or held by the Company or its Subsidiaries or (ii) otherwise associated with an Oil and Gas Property of the Company or its Subsidiaries, have been drilled, completed and operated within the limits permitted by the applicable Contracts and Oil and Gas Leases entered into by the Company or any of its Subsidiaries (or their respective predecessor in interest) related to such wells and in compliance with Applicable Law, and all drilling and completion (and plugging and abandonment, if applicable) of such wells and all related development, production and other operations with respect to such wells have been conducted in compliance with all Applicable Law except, in each case, as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

(f) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, none of the Oil and Gas Properties of the Company or its Subsidiaries is subject to any preferential purchase, consent or similar right that would become operative as a result of the Merger and the other transactions contemplated by this Agreement.

(g) All Oil and Gas Properties operated by the Company and its Subsidiaries have been operated in accordance with reasonable, prudent oil and gas field practices, except where the failure to so operate would not reasonably have, individually or in the aggregate, a Company Material Adverse Effect.

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Section 4.22. Material Contracts. (a) Except as set forth in Section 4.22(a) of the Company Disclosure Schedule, as of the date hereof, neither the Company nor any of its Subsidiaries is party to or bound by any Contract:

(i) that would be required to be filed by the Company as a “material contract” pursuant to Item 601(b)(10) of Regulation S-K under the 1933 Act;

(ii) that are employment, independent contractor, consulting, severance or similar agreements with any individual (or such individual’s alter ego entity) under which the Company or any of its Subsidiaries is or could become obligated to provide a base salary or annual consulting fees in excess of $500,000;

(iii) that (or, together with additional related Contracts with the same Person or its Affiliates) (A) involves the payment or receipt of amounts by the Company or any of its Subsidiaries of more than $35,000,000 in the calendar year ended December 31, 2022 or any subsequent calendar year or (B) is material to the CCUS Business and cannot be cancelled at any time by the Company or its applicable Subsidiary without penalty or further payment on no more than ninety (90) days’ notice;

(iv) that are partnership, strategic alliance or joint venture agreements (A) if the interest of the Company or any of its Subsidiaries therein has an aggregate book value in excess of $35,000,000 or (B) that are material to the CCUS Business;

(v) that provides for the acquisition or disposition, directly or indirectly (by merger or otherwise) of assets (including properties) or capital stock (other than acquisitions or dispositions of Hydrocarbons or inventory and raw materials and supplies in the ordinary course of business) (A) for aggregate consideration under such Contract in excess of $25,000,000 or (B) pursuant to which the Company or its Subsidiaries has continuing material earn-out” or other contingent payment obligations;

(vi) providing for material indemnification by the Company or any its Subsidiaries, other than indemnification obligations in (A) customary joint operating agreements and (B) commercial agreements, in each case, in the ordinary course of business relating to the EOR Business;

(vii) that contains any “most favored nation” or most favored customer provision, preferential right or rights of first or last offer, negotiation or refusal (other than customary preferential rights in customary joint operating agreements entered into relating to the EOR Business in the ordinary course of business);

(viii) that contains a put, call or similar right pursuant to which the Company or any of its Subsidiaries could be required to purchase or sell, as applicable, any assets or any equity interests of any Person (excluding, in respect of the foregoing, agreements between the Company and its wholly-owned Subsidiaries);

(ix) that materially restricts or purports to materially restrict the ability of the Company or any of its Affiliates to compete with, or to provide services in any line of business or with any Person or in any geographic area or market segment, in each case that would be applicable to the Surviving Corporation or any of its Subsidiaries or the Parent or any of its Subsidiaries following the Effective Time;

(x) that is a Collective Bargaining Agreement;

(xi) containing any swap, cap, floor, collar, futures contract, forward contract, option and any other derivative financial instrument, contract or arrangement, based on any commodity, security, instrument, asset, rate or index of any kind or nature whatsoever (other than hedges or forward Contracts entered into in the ordinary course of business);

(xii) (A) with (1) any beneficial owner (as defined in Rule 13d-3 under the 1934 Act) of 5% or more of any class of securities of the Company or any of its Subsidiaries who has filed a Schedule 13D or Schedule 13G

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under the 1934 Act (or, to the Company’s Knowledge, is required to make such a filing), or (2) any director or officer of the Company or any of its Subsidiaries or (B) that is required to be disclosed under Item 404 of Regulation S-K promulgated under the 1933 Act;

(xiii) that (A) evidences Indebtedness for borrowed money of the Company or any Subsidiary of the Company (committed or outstanding) in excess of $15,000,000, (B) evidences a capitalized lease obligation in excess of $15,000,000 that is required to be classified as a balance sheet liability of the Company in accordance with GAAP or (C) restricts the payment of dividends or other distribution of assets by any of the Company or its Subsidiaries;

(xiv) that would be required to be scheduled against Section 4.04 if in existence as of the date hereof;

(xv) requiring future capital expenditures by the Company or any of its Subsidiaries other than any capital expenditure contemplated by Section 6.01(e) of the Company Disclosure Schedule;

(xvi) under which the Company or any of its Subsidiaries (A) grants any right, license or covenant not to sue with respect to any Intellectual Property (other than non-exclusive licenses granted to customers or vendors in the ordinary course of business) or (B) obtains any right, license or covenant not to be sued with respect to any Intellectual Property owned by any third party (other than licenses for commercial off-the-shelf software which are generally available on non-discriminatory pricing terms); or

(xvii) that is the subject of any Action individually in excess of $5,000,000 and under which there are outstanding obligations (including settlement agreements) of the Company or any of its Subsidiaries.

(b) The Company has made available to Parent a true and complete copy of each Contract listed or required to be listed in Section 4.22(a) of the Company Disclosure Schedule (such Contracts, together with any Contract to which the Company or any of its Subsidiaries becomes a party or by which it becomes bound after the date hereof that would be required to be listed in Section 4.22(a) of the Company Disclosure Schedule if in effect as of the date hereof, the “Material Contracts” and each, a “Material Contract”). Except for breaches, violations or defaults which would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) each of the Material Contracts is valid, binding obligation of the Company, and to the Knowledge of the Company, each other party thereto, and in full force and effect, in each case subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles (whether considered in a proceeding in equity or at law), and (ii) since the Applicable Date, neither the Company nor any of its Subsidiaries, nor to the Knowledge of the Company any other party to a Material Contract, has breached or violated any provision of, or taken or failed to take any act which, with or without notice, lapse of time, or both, would constitute a breach or default under the provisions of such Material Contract, and neither the Company nor any of its Subsidiaries has received notice that it has breached, violated or defaulted under any Material Contract.

Section 4.23. Affiliate Transactions. Neither the Company nor any Subsidiary of the Company is a party to any Contract or other transaction, agreement or binding arrangement or understanding between the Company or its Subsidiaries, on the one hand, and any Affiliates thereof (other than wholly owned Subsidiaries of such Person) on the other hand.

Section 4.24. Finders Fees. Except for J.P. Morgan Securities LLC (“JPM”), Perella Weinberg Partners L.P. (“PWP”) and PJT Partners LP (“PJT”),there is no financial advisor, investment banker, broker, finder or other intermediary that has been retained by or is authorized to act on behalf of the Company or any of its Subsidiaries who might be entitled to any fee or commission from the Company or any of its Affiliates in connection with the transactions contemplated by this Agreement.

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Section 4.25. Opinion of Financial Advisors.

(a) The Company Board has received an opinion of JPM, to the effect that, as of the date of such opinion, the Merger Consideration to be paid to the holders of the Company Shares in the Merger is fair, from a financial point of view, to such holders. A written copy of such opinion will be delivered promptly after the date hereof to Parent for informational purposes only.

(b) The Company Board has received an opinion of PWP, to the effect that, as of the date of such opinion, the Merger Consideration to be received by holders of outstanding Company Shares (other than Parent and its affiliates) in the proposed Merger pursuant to this Agreement is fair, from a financial point of view, to such holders. A written copy of such opinion will be delivered promptly after the date hereof to Parent for informational purposes only.

(c) The Company Board has received an opinion of PJT, to the effect that, as of the date of such opinion, the Merger Consideration to be received by the holders of the Company Shares in the Merger is fair to such holders from a financial point of view. A written copy of such opinion will be delivered promptly after the date hereof to Parent for informational purposes only.

Section 4.26. Antitakeover Statutes. The restrictions applicable to business combinations contained in Section 203 of the DGCL (or any other antitakeover or similar statute or regulation) are inapplicable to the execution, delivery and performance of this Agreement and the consummation of the Merger and the other transactions contemplated hereby. No other “control share acquisition,” “fair price,” “moratorium” or other antitakeover laws enacted under U.S. state or federal laws apply to this Agreement or any of the transactions contemplated hereby. There is no rights agreement, stockholder rights plan, tax preservation plan, net operating loss preservation plan or “poison pill” antitakeover plan in effect to which the Company or any of its Subsidiaries is subject, party to or otherwise bound.

Section 4.27. No Other Representations or Warranties.

(a) Except for the representations and warranties made in this Article 4, as qualified by the Company Disclosure Schedule, or any certificate delivered pursuant to this Agreement, neither the Company nor any other Person makes any express or implied representation or warranty with respect to the Company or its Subsidiaries or their respective businesses, operations, assets, liabilities or conditions (financial or otherwise) in connection with this Agreement, the Merger or the transactions contemplated hereby, and the Company hereby disclaims any such other representations or warranties. In particular, without limiting the foregoing disclaimer, except as expressly provided in this Article 4, as qualified by the Company Disclosure Schedule, or any certificate delivered pursuant to this Agreement, neither the Company nor any other Person makes or has made any representation or warranty to Parent or any of its Affiliates or Representatives with respect to (i) any financial projection, forecast, estimate, budget or prospect information relating to the Company or any of its Subsidiaries or their respective business; or (ii) any oral or written information presented to Parent or any of its Affiliates or Representatives in the course of their due diligence investigation of the Company, the negotiation of this Agreement or in the course of the Merger or the transactions contemplated hereby.

(b) The Company acknowledges and agrees that the representations and warranties by Parent and Merger Sub set forth in this Agreement constitute the sole and exclusive representations and warranties of such parties in connection with the transactions contemplated hereby, and the Company understands, acknowledges and agrees that all other representations and warranties of any kind or nature whether express, implied or statutory are specifically disclaimed by Parent and Merger Sub.

ARTICLE 5

REPRESENTATIONSAND WARRANTIESOF PARENT

Subject to Section 11.05, except (x) as disclosed in any Parent SEC Document filed with or furnished to the SEC and publicly available since January 1, 2022 through the Business Day prior to the date of this Agreement

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(but excluding any general cautionary or forward-looking statements contained in the “Risk Factors” section or “Forward-Looking Statements” and any other statements that are similarly cautionary, predictive or forward-looking in nature, in each case other than any description of historical facts or events included therein); provided that this clause (x) shall not apply to the representations and warranties set forth in Sections 5.05 or 5.06(b), or (y) as set forth in the Parent Disclosure Schedule, Parent represents and warrants to the Company that:

Section 5.01. Corporate Existence and Power. Each of Parent and Merger Sub is a corporation duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation and has all corporate powers and all governmental licenses, authorizations, permits, consents and approvals required to carry on its business as now conducted, except for those licenses, authorizations, permits, consents and approvals the absence of which have not had and would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect. Since the date of its incorporation, Merger Sub has not engaged in any activities other than in connection with or as contemplated by this Agreement.

Section 5.02. Corporate Authorization. Each of Parent and Merger Sub has all requisite corporate power and authority, as applicable, to perform its obligations hereunder and consummate the Merger. The execution, delivery and performance by Parent and Merger Sub of this Agreement and the consummation by Parent and Merger Sub of the transactions contemplated hereby are within the corporate powers of Parent and Merger Sub and have been duly authorized by all necessary corporate action on the part of Parent and Merger Sub, except for the adoption of this Agreement by the sole stockholder of Merger Sub. Each of Parent and Merger Sub has duly executed and delivered this Agreement, and, assuming due authorization, execution and delivery by the Company, this Agreement constitutes a valid and binding agreement of each of Parent and Merger Sub, enforceable against Parent and Merger Sub in accordance with its terms (subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other similar Applicable Laws affecting creditors’ rights generally and general principles of equity).

Section 5.03. Governmental Authorization. The execution, delivery and performance by Parent and Merger Sub of this Agreement and the consummation by Parent and Merger Sub of the transactions contemplated hereby require no action by or in respect of, or filing by or with respect to Parent or Merger Sub with, any Governmental Authority, other than (a) the filing of a certificate of merger with respect to the Merger with the Delaware Secretary of State and appropriate documents with the relevant authorities of other states in which Parent is qualified to do business, (b) compliance with any applicable requirements of the HSR Act, (c) compliance with any applicable requirements of the NYSE, 1933 Act, the 1934 Act and any other state or federal securities laws, (d) any of the actions or filings set forth on Section 5.03 of the Parent Disclosure Schedule and (e) any actions or filings the absence of which would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect.

Section 5.04. Non-contravention. The execution, delivery and performance by Parent and Merger Sub of this Agreement and the consummation by Parent and Merger Sub of the transactions contemplated hereby do not and will not (a) contravene, conflict with, or result in any violation or breach of any provision of the certificate of incorporation or bylaws of Parent or Merger Sub, (b) assuming compliance with the matters referred to in Section 5.03, contravene, conflict with, or result in a violation or breach of any provision of any Applicable Law or (c) assuming compliance with the matters referred to in Section 5.03, require payment or notice to, or any consent or other action by any Person under, constitute a breach or default, or an event that, with or without notice or lapse of time or both, would constitute a violation or breach of, or give rise to any right of termination, suspension, cancellation, acceleration, payment or any other change of any rights or obligations of Parent or any of its Subsidiaries, or the loss of any benefit to which Parent or any of its Subsidiaries is entitled under any provision of any Contract binding on Parent or any of its Subsidiaries or any Permit affecting, or relating to, the assets or business of Parent and its Subsidiaries or (d) result in the creation or imposition of any Lien on any asset of Parent or any of its Subsidiaries, except, in the case of each of clauses (b) through (d), as have not had and would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect.

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Section 5.05. Capitalization. (a) The authorized capital stock of Parent consists of (i) 9,000,000,000 Parent Shares and (ii) 200,000,000 shares of preferred stock, without par value (the “ParentPreferred Stock”). As of March 31, 2023, (A) 4,042,984,946 Parent Shares were issued and outstanding, (B) 38,353,868 Parent Shares were subject to awards made in the form of restricted common stock or restricted common stock units and (C) no shares of Parent Preferred Stock were issued or outstanding. All outstanding shares of capital stock of Parent have been duly authorized and validly issued, fully paid and nonassessable and free of preemptive rights.

(b) There are no outstanding bonds, debentures, notes or other Indebtedness of Parent having the right to vote (or convertible into, or exchangeable or exercisable for, securities having the right to vote) on any matters on which stockholders of the Parent may vote. As of March 31, 2023, except as set forth in this Section 5.05, there were no outstanding (i) shares of capital stock or other voting securities of or ownership interests in Parent, (ii) securities of Parent convertible into or exchangeable or exercisable for shares of capital stock or other voting securities of or ownership interests in Parent, (iii) warrants, calls, options, subscriptions, commitments, Contracts or other rights to acquire from Parent, or other obligation of Parent to issue, any capital stock or other voting securities of, or ownership interests in, or any securities convertible into or exchangeable or exercisable for capital stock or other voting securities of or ownership interests in, Parent or (iv) restricted shares, stock appreciation rights, performance shares or units, contingent value rights, “phantom” stock or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the value or price of, any capital stock or voting securities of, or ownership interests in, Parent (the items in clauses (i) through (iv), including, for the avoidance of doubt, the Parent Shares, being referred to collectively as the “Parent Securities”). Neither Parent nor any of its Subsidiaries is a party to any voting agreement with respect to the voting, registration or transfer of any Parent Securities.

(c) The Parent Shares to be issued as part of the Merger Consideration have been duly authorized and, when issued and delivered in accordance with the terms of this Agreement, will have been validly issued and will be fully paid and nonassessable and the issuance thereof is not subject to any preemptive or other similar right.

Section 5.06. Subsidiaries. (a) Each Subsidiary of Parent is an entity duly incorporated or otherwise duly organized, validly existing and (where applicable) in good standing under the laws of its jurisdiction of incorporation or organization, has all corporate, limited liability company or comparable powers and all governmental licenses, authorizations, permits, consents and approvals required to carry on its business as now conducted, except for those licenses, authorizations, permits, consents and approvals the absence of which would not, individually or in the aggregate, reasonably be expected to have a Parent Material Adverse Effect. Each such Subsidiary is duly qualified to do business as a foreign entity and is in good standing (with respect to jurisdictions that recognize such concept) in each jurisdiction where such qualification is necessary, except for those jurisdictions where failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Parent Material Adverse Effect. Parent’s annual report on Form 10-K for the fiscal year ended December 31, 2022 identifies, as of its filing date, all “significant subsidiaries” (as defined under Rule 1-02(w) of Regulation S-X promulgated pursuant to the 1934 Act) (each, a “Significant Subsidiary”) of Parent and their respective jurisdictions of organization.

(b) As of the date hereof, there were no issued, reserved for issuance or outstanding (i) securities of Parent or any of its Significant Subsidiaries convertible into, or exchangeable for, shares of capital stock or other voting securities of, or ownership interests in, any of its Significant Subsidiaries, (ii) warrants, calls, options or other rights to acquire from Parent or any of its Significant Subsidiaries, or other obligations of Parent or any of its Significant Subsidiaries to issue, any capital stock or other voting securities of, or ownership interests in, or any securities convertible into, or exchangeable for, any capital stock or other voting securities of, or ownership interests in, any Significant Subsidiary of Parent or (iii) restricted shares, stock appreciation rights, performance units, contingent value rights, “phantom” stock or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the value or price of, any capital stock or other voting securities of, or ownership interests in, any Significant Subsidiary of Parent (the items in clauses (i) through (iii) being referred to collectively as the “Parent Subsidiary Securities”). As of the date hereof, there are no

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outstanding obligations of Parent or any of its Significant Subsidiaries to repurchase, redeem or otherwise acquire any of the Parent Subsidiary Securities.

(c) The authorized capital stock of Merger Sub consists of 1,000 shares of common stock, par value $1.00 per share, all which are validly issued and outstanding. All of the issued and outstanding capital stock of Merger Sub is, and at the Effective Time will be, owned by Parent. Merger Sub was formed solely for the purpose of engaging in the transactions contemplated by this Agreement and, prior to the Effective Time, Merger Sub will have engaged in no business and have no liabilities or obligations other than in connection with such transactions. Merger Sub has no Subsidiaries.

Section 5.07. SEC Filings and the Sarbanes-Oxley Act. (a) Since the Applicable Date, Parent has timely filed with or furnished to the SEC all reports, schedules, forms, statements, prospectuses, registration statements and other documents required to be filed or furnished by Parent (collectively, together with any exhibits and schedules thereto and other information incorporated therein, as they may have been supplemented, modified or amended since the date of filing, the “Parent SEC Documents”).

(b) As of its filing date (or, if amended or superseded by a filing, on the date of such filing), each Parent SEC Document complied as to form in all material respects with the applicable requirements of the 1933 Act and the 1934 Act and the Sarbanes-Oxley Act, as the case may be.

(c) As of its filing date (or, if amended or superseded by a filing, on the date of such filing), each Parent SEC Document filed pursuant to the 1934 Act did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

(d) Each Parent SEC Document that is a registration statement, as amended or supplemented, if applicable, filed pursuant to the 1933 Act, as of the date such registration statement or amendment became effective, did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading.

(e) Since the Applicable Date, Parent has established and maintains disclosure controls and procedures (as defined in Rules 13a-15 and 15d-15 under the 1934 Act). Such disclosure controls and procedures are reasonably designed to ensure that material information relating to Parent, including its consolidated Subsidiaries, required to be included in Parent’s periodic and current reports under the 1934 Act, is made known to Parent’s principal executive officer and its principal financial officer by others within those entities. Such disclosure controls and procedures are effective in timely alerting Parent’s principal executive officer and principal financial officer to material information required to be included in Parent’s periodic and current reports required under the 1934 Act.

(f) Since the Applicable Date, Parent and its Subsidiaries have established and maintained a system of internal controls over financial reporting (as defined in Rule 13a-15 under the 1934 Act) sufficient to provide reasonable assurance regarding the reliability of Parent’s financial reporting and the preparation of Parent financial statements for external purposes in accordance with GAAP. Parent has disclosed, based on its most recent evaluation of internal controls prior to the date hereof, to Parent’s auditors and audit committee (i) any significant deficiencies and material weaknesses in the design or operation of internal controls which are reasonably likely to adversely affect Parent’s ability to record, process, summarize and report financial information and (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in internal controls. There has not been any such disclosure made by management to Parent’s auditors and audit committee since the Applicable Date.

(g) Neither Parent nor any of its Subsidiaries has extended or maintained credit, arranged for the extension of credit, or renewed an extension of credit, in the form of a personal loan to or for any executive officer (as defined in Rule 3b-7 under the 1934 Act) or director of Parent in violation of Section 402 of the Sarbanes-Oxley Act.

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(h) Parent is in compliance with, and since the Applicable Date has complied, in each case in all material respects with (i) the applicable provisions of the Sarbanes-Oxley Act and (ii) the applicable listing and corporate governance rules and regulations of the NYSE.

(i) Each of the principal executive officer and principal financial officer of Parent (or each former principal executive officer and principal financial officer of Parent, as applicable) have made all certifications required by Rules 13a-14 and 15d-14 under the 1934 Act and Sections 302 and 906 of the Sarbanes-Oxley Act and any related rules and regulations promulgated by the SEC and the NYSE, and the statements contained in any such certifications are complete and correct.

Section 5.08. Financial Statements. The audited consolidated financial statements and unaudited consolidated interim financial statements of Parent included or incorporated by reference in the Parent SEC Documents (including all related notes and schedules thereto) fairly present in all material respects, in conformity with GAAP (except, in the case of unaudited consolidated interim financial statements, as permitted by Form 10-Q of the SEC) applied on a consistent basis (except as may be indicated therein or in the notes thereto), the consolidated financial position of Parent and its consolidated Subsidiaries as of the dates thereof and their consolidated results of operations and cash flows for the periods then ended (subject to normal year-end audit adjustments in the case of any unaudited interim financial statements).

Section 5.09. Disclosure Documents. The Registration Statement, and any amendments or supplements thereto, when filed, will comply as to form in all material respects with the applicable requirements of the 1933 Act. At the time the Registration Statement or any amendment or supplement thereto becomes effective, the Registration Statement, as amended or supplemented, will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The information supplied by Parent in writing for inclusion or incorporation by reference in the Proxy Statement/Prospectus or any amendment or supplement thereto shall not, at the time the Proxy Statement/Prospectus or any amendment or supplement thereto is first mailed to stockholders of the Company and at the time of the Requisite Company Vote, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. The representations and warranties contained in this Section 5.09 will not apply to statements or omissions included or incorporated by reference in the Registration Statement or Proxy Statement/Prospectus or any amendment or supplement thereto based upon information furnished by the Company or any of its representatives or advisors in writing specifically for use or incorporation by reference therein.

Section 5.10. Tax Treatment. Neither Parent nor any of its Subsidiaries has taken or agreed to take any action, or has knowledge of any fact or circumstance, that could reasonably be expected to prevent or impede the Merger from qualifying as a “reorganization” within the meaning of Section 368(a) of the Code.

Section 5.11. Absence of Certain Changes. Since the Parent Balance Sheet Date through the date of this Agreement, there has not been any event, change, occurrence, development or state of circumstances or facts that has had or would reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect.

Section 5.12. Ownership of Company Shares. Neither Parent nor any of its Subsidiaries (including Merger Sub but excluding any pension or benefit plan managed or advised by Parent, its Subsidiaries or their respective employees) owns or has owned at any time in the three years preceding the date of this Agreement any Company Shares beneficially or of record.

Section 5.13. No Other Representations or Warranties.

(a) Except for the representations and warranties made in this Article 5, as qualified by the Parent Disclosure Schedule, or any certificate delivered pursuant to this Agreement, neither Parent, Merger Sub nor any

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other Person makes any express or implied representation or warranty with respect to Parent or its Subsidiaries or their respective businesses, operations, assets, liabilities or conditions (financial or otherwise) in connection with this Agreement, the Merger or the transactions contemplated hereby, and Parent hereby disclaims any such other representations or warranties. In particular, without limiting the foregoing disclaimer, except as expressly provided in this Article 5, as qualified by the Parent Disclosure Schedule, or any certificate delivered pursuant to this Agreement, neither Parent, Merger Sub nor any other Person makes or has made any representation or warranty to Company or any of its Affiliates or Representatives with respect to (i) any financial projection, forecast, estimate, budget or prospect information relating to Parent or any of its Subsidiaries or their respective businesses; or (ii) any oral or written information presented to Company or any of its Affiliates or Representatives in the course of the negotiation of this Agreement or in the course of the Merger or the transactions contemplated hereby.

(b) Parent acknowledges and agrees that the representations and warranties by the Company set forth in this Agreement constitute the sole and exclusive representations and warranties of the Company in connection with the transactions contemplated hereby, and each of Parent and Merger Sub understands, acknowledges and agrees that all other representations and warranties of any kind or nature whether express, implied or statutory are specifically disclaimed by the Company. In connection with their due diligence investigation of the Company, Parent and Merger Sub have received and may continue to receive after the date hereof from the Company certain estimates, projections, forecasts and other forward-looking information regarding the Company and its businesses and operations. Parent and Merger Sub acknowledge that there are uncertainties inherent in attempting to make such estimates, projections, forecasts and other forward-looking statements and that Parent and Merger Sub will have no claim against the Company with respect thereto unless any such information is expressly included in a representation or warranty contained in this Agreement.

ARTICLE 6

COVENANTSOFTHE COMPANY

The Company agrees that:

Section 6.01. Conduct of the Company. During the period from the date hereof until the Effective Time, except (i) with the prior written consent of Parent in each instance (which consent shall not be unreasonably withheld, delayed or conditioned); provided, that Parent’s consent will be deemed obtained if Parent has not expressly denied its consent with respect to a given action within five Business Days following the Company’s request for Parent’s consent, (ii) as required by Applicable Law, (iii) as otherwise expressly contemplated or permitted by this Agreement or (iv) as set forth in Section 6.01 of the Company Disclosure Schedule, (A) the Company shall, and shall cause each of its Subsidiaries to use commercially reasonable efforts to (1) conduct its business in the ordinary course of business, (2) preserve intact its present business organization, (3) comply with Applicable Laws and its Contracts, and maintain in effect all necessary Permits, (4) keep available the services of its directors, officers and key employees on commercially reasonable terms and (5) preserve satisfactory business relationships with its customers, lenders, suppliers and others having material business relationships with it; provided that no COVID-19 Response shall be deemed to be a breach of this Section 6.01 provided that, prior to taking any COVID-19 Response, the Company shall provide advance notice to and consult with Parent in good faith with respect thereto, and (B) the Company shall not, nor shall it permit any of its Subsidiaries to:

(a) amend its certificate of incorporation, bylaws or other similar organizational documents (whether by merger, consolidation or otherwise);

(b) enter into any new line of business outside of the CCUS Business, the EOR Business and the existing other businesses of the Company and its Subsidiaries as of the date of this Agreement;

(c) (i) adjust, split, combine, subdivide or reclassify any shares of its capital stock (other than such transactions by a wholly owned Subsidiary of the Company), (ii) declare, authorize, establish a record date for,

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set aside or pay any dividend or other distribution (whether in cash, stock or property or any combination thereof) in respect of its capital stock (including any Company Shares), except for dividends by any of its wholly-owned Subsidiaries or (iii) redeem, repurchase or otherwise acquire or offer to redeem, repurchase, or otherwise acquire any shares of its capital stock (including any Company Shares), Company Securities or any Company Subsidiary Securities, other than (A) the withholding of equity securities to satisfy tax obligations with respect to awards granted pursuant to any Equity Plan existing as of the date of this Agreement or (B) the acquisition by the Company of awards granted pursuant to any Equity Plan prior to the date hereof or otherwise in accordance with this Agreement in connection with the forfeiture of such awards;

(d) (i) issue, deliver, sell, dispose, encumber, grant, confer, award or authorize the issuance, delivery, sale, disposal, encumbrance, grant, conferral or award of, any Company Securities or Company Subsidiary Securities, other than the issuance (A) of any Company Shares upon settlement of Company RSUs, Company DSUs or Company TSR Performance Awards that are outstanding on the date of this Agreement in accordance with the terms of those equity-based awards on the date of this Agreement, (B) of any Company Shares upon the exercise of Warrants that are outstanding on the date of this Agreement in accordance with the terms of the Warrants on the date of this Agreement, (C) of any Company Subsidiary Securities to the Company or any other wholly owned Subsidiary of the Company, (D) of Company Shares under the ESPP in accordance with Section 2.04(f) and (E) of any equity or equity-based awards to the extent permitted by Section 6.01(m) or (ii) amend or otherwise change any term of any Company Security or any Company Subsidiary Security (in each case, whether by merger, consolidation or otherwise);

(e) incur any capital expenditures or any obligations or liabilities in respect thereof, except as contemplated by Section 6.01(e) of the Company Disclosure Schedule;

(f) acquire (by merger, consolidation, acquisition of stock or assets or otherwise), directly or indirectly, any assets, securities, properties, interests or businesses, other than (i) pursuant to an agreement of the Company or any of its Subsidiaries in effect on the date of this Agreement that is made available to Parent, (ii) acquisitions for which the consideration is less than $35,000,000 individually or $70,000,000 in the aggregate or (iii) acquisitions and licenses in the ordinary course of business;

(g) adopt a plan of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization, other than such transactions among wholly owned Subsidiaries of the Company;

(h) sell, lease, license or otherwise transfer, or dispose of, mortgage, sell and lease back or otherwise, or create or incur any Lien on, any of the Company’s or its Subsidiaries’ assets, securities, properties, interests or businesses or other interests therein whether tangible or intangible (including securitizations) (other than Intellectual Property), other than (i) sales of inventory and equipment, or sales of Hydrocarbons, in each case in the ordinary course of business, or sales of or disposals of obsolete or worthless assets at the end of their scheduled retirement, (ii) pursuant to Contracts in effect on the date hereof that are made available to Parent, (iii) Permitted Liens, (iv) transfers among the Company and its wholly owned Subsidiaries, or among the wholly owned Subsidiaries of the Company and (v) sales, leases or dispositions for which the consideration is less than $35,000,000 individually or $70,000,000 in the aggregate;

(i) sell, assign, license, sublicense, transfer, convey, abandon, or incur any Lien other than Permitted Liens on or otherwise dispose of or fail to maintain, enforce or protect any material Intellectual Property owned, used or held for use by the Company or any of its Subsidiaries (except for non-exclusive licenses or sublicenses of Intellectual Property granted by the Company or any of its Subsidiaries in the ordinary course of business);

(j) make any loans, advances or capital contributions to, or investments in, any other Person, other than in the ordinary course of business;

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(k) create, incur, assume, refinance or otherwise become liable with respect to any Indebtedness for borrowed money or guarantees thereof, other than (i) as required by its terms, (ii) additional borrowings under the Company Credit Agreement as in effect as of the date hereof, (iii) additional Indebtedness for borrowed money to fund the capital expenditures contemplated by Section 6.01(e) of the Company Disclosure Schedule if such Indebtedness may be repaid at Closing without penalty, or (iv) Indebtedness for borrowed money among the Company and its Subsidiaries or among Subsidiaries of the Company, or guarantees thereof;

(l) enter into, amend or modify in any material respect or terminate any Material Contract or any Contract that would constitute a Material Contract if it were in effect on the date of this Agreement or otherwise waive, release or assign any material rights, claims or benefits of the Company or any of its Subsidiaries, except in the ordinary course of business consistent with past practice and, in the case of Contracts relating to the CCUS Business, subject to Section 6.01(r);

(m) (i) with respect to any current or former Service Provider (A) grant or increase any compensation, bonus, severance, retention, change in control, termination pay, welfare or other benefits, except for (x) increases in base compensation or wages (and corresponding increases in target annual bonus opportunities) of not more than 6% per Company Employee for Company Employees with base compensation of less than $500,000 and (y) (i) payment of annual bonuses to the extent earned for the fiscal year ending December 31, 2023 pursuant to the applicable Employee Plan and (ii) grants of annual bonus opportunities in respect of any fiscal year that commences after the date of this Agreement and prior to the Effective Time with target amounts consistent with the preceding clause (x) and with performance goals that are consistent with the budget for the applicable fiscal year, in the case of each of clauses (x) and (y), in the ordinary course of business consistent with past practice, (B) grant any equity or equity-based awards to, or discretionarily accelerate the vesting or payment of any equity or equity-based awards held by, any current or former Service Provider except as set forth in Section 6.01(m)(i)(B) of the Company Disclosure Schedule, (C) take any action to accelerate the vesting or payment of, or otherwise fund or secure the payment of, any compensation or benefits under any Employee Plan or (D) enter into or amend any employment, consulting, severance, retention, change in control, termination pay, retirement, deferred compensation, transaction bonus or similar agreement or arrangement other than Contracts entered into or amended in the ordinary course of business consistent with past practice that are immaterial to the Company in both cost and significance, (ii) establish, terminate, adopt, enter into or amend any Employee Plan, (iii) establish, adopt or enter into any Collective Bargaining Agreement or recognize any new union, works council or similar employee representative with respect to any current or former Company Employee, (iv) hire any employees with base compensation of $200,000 or more (unless necessary to replace an employee (other than an officer of the Company or any of its Subsidiaries) whose employment has ended, in which case such replacement employee shall be hired on comparable terms as the employee being replaced), or (v) terminate the employment of any Company Employee with base compensation of $200,000 or more, other than for cause;

(n) change in any respect the Company’s methods of accounting, except as required by changes in GAAP or in Regulation S-X of the 1934 Act, as agreed to by its independent public accountants;

(o) settle, release, waive, discharge or compromise, or offer or propose to settle, release, waive, discharge or compromise, (i) any Action or threatened Action (excluding any Action or threatened Action relating to Taxes, which shall be subject to Section 6.01(p)) involving or against the Company or any of its Subsidiaries that results in a payment obligation (net of insurance proceeds) of the Company or any of its Subsidiaries in excess of $5,000,000 individually or $15,000,000 in the aggregate, or that imposes any material restrictions or limitations upon the assets, operations or business of the Company or any of its Subsidiaries or equitable or injunctive remedies or the admission of any criminal wrongdoing or (ii) any Action or threatened Action (excluding any Action or threatened Action relating to Taxes, which shall be subject to Section 6.01(p)) that relates to the transactions contemplated hereby;

(p) (i) make, change or revoke any material election with respect to Taxes, other than in the ordinary course of business, (ii) file any amended material Tax Return, (iii) settle or compromise any material Tax claim, audit or

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assessment, (iv) prepare and file any material Tax Return in a manner materially inconsistent with past practice, (v) adopt or change any material Tax accounting method, (vi) change any Tax accounting period, (vii) enter into any closing agreement with respect to any material Tax or surrender any right to claim a material Tax refund, offset or reduction in Tax, or (viii) consent to any extension or waiver of the limitations period applicable to any material Tax claim or assessment (other than any such extensions or waivers automatically granted);

(q) fail to use reasonable best efforts to maintain in full force and effect existing material insurance policies (or substantially similar replacements thereto); provided that in the event of a termination, cancellation or lapse of any material insurance policy, the Company shall use commercially reasonable efforts to promptly obtain replacement policies providing substantially comparable insurance coverage with respect to the material assets, operations and activities of the Company and its Subsidiaries as currently in effect as of the date hereof;

(r) enter into, amend or modify any Contract that materially commits, restricts or encumbers the assets, capacities or volumes of either the Green Pipeline or the NEJD Pipeline following the Closing that cannot be cancelled at any time by the Company or its applicable Subsidiary without penalty or further payment on no more than ninety (90) days’ notice; or

(s) agree, resolve or commit to do any of the foregoing.

Section 6.02. Access to Information. From the date hereof until the Effective Time and subject to Applicable Law and the Confidentiality Agreement dated as of May 10, 2021 between the Company and Parent (the “Confidentiality Agreement”), the Company shall (and shall cause its Subsidiaries to) (a) provide Parent or its Representatives reasonable access to the Representatives and offices, properties, books and records, work papers and other documents of the Company and its Subsidiaries (including existing financial and operating data relating to the Company and its Subsidiaries) and to Service Providers in accordance with Section 6.02 of the Company Disclosure Schedule and (b) furnish to Parent and its Representatives such existing information as such Persons may reasonably request within a reasonable time of such request, including copies of such existing information. Any investigation pursuant to this Section 6.02 shall be conducted in such manner as not to interfere unreasonably with the conduct of the business of the Company and its Subsidiaries and Parent shall only have the right to perform a visual site assessments of the Company properties. Notwithstanding anything to the contrary herein, (a) the Company shall not be required to, or to cause any of its Subsidiaries to, grant access or furnish information to Parent or any of its Representatives to the extent that such information is subject to an attorney/client privilege or the attorney work product doctrine or that such access or the furnishing of such information is prohibited by Applicable Law or an existing Contract or agreement, but the Company will institute an alternate arrangement reasonably acceptable to Parent that enables Parent to gain access to the relevant information; (b) Parent shall not have access to personnel records of the Company or any of its Subsidiaries relating to individual performance or evaluation records, medical histories or other information that in the Company’s good faith opinion the disclosure of which could subject the Company or any of its Subsidiaries to risk of liability; (c) Parent and its Representatives shall not be permitted to conduct any sampling or analysis of any environmental media or building materials at any facility of the Company or its Subsidiaries without the prior written consent of the Company, which may be granted or withheld in the Company’s sole discretion; and (d) to the extent the Company is obligated to provide Parent or its Representatives with physical access to the officers, key employees, agents, properties, offices and other facilities of the Company and its Subsidiaries and to their books, records, contracts and documents pursuant to this Section 6.02, the Company may instead provide such access by electronic means if physical access would not be permitted under Applicable Law (including any COVID-19 Measures). Parent agrees that it will not, and will cause its Representatives not to, use any information obtained pursuant to this Section 6.02 for any purpose unrelated to the consummation of the transactions contemplated by this Agreement. No information or knowledge obtained by Parent in any investigation pursuant to this Section shall affect or be deemed to modify any representation or warranty made by the Company hereunder or to operate as a non-compete obligation against Parent and its Subsidiaries.

Section 6.03. No Solicitation; Other Offers. (a) From the date hereof until the Effective Time, the Company shall not and shall cause its Subsidiaries and its and their directors and officers not to, and shall use reasonable

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best efforts to cause its and their Representatives not to, directly or indirectly, (i) solicit, initiate or knowingly facilitate or knowingly encourage the submission by a Third Party of any Acquisition Proposal, (ii) enter into, engage in or participate in any discussions or negotiations with, furnish any information relating to the Company or any of its Subsidiaries or afford access to the business, properties, assets, books, records, work papers and other documents related to the Company or any of its Subsidiaries to, otherwise knowingly cooperate in any way with, or knowingly assist, facilitate or encourage any effort by any Third Party, in each case, in connection with or in response to an Acquisition Proposal, or any inquiry that would reasonably be expected to lead an Acquisition Proposal, or (iii) enter into any oral or written or binding or non-binding agreement in principle, letter of intent, indication of interest, term sheet, merger agreement, acquisition agreement, option agreement or other similar instrument contemplating an Acquisition Proposal; provided that notwithstanding anything to the contrary in this Agreement, the Company or any of its Representatives may, (A) in response to an unsolicited inquiry or proposal, seek to clarify the terms and conditions of such inquiry or proposal and (B) in response to an inquiry or proposal from a Third Party, inform a Third Party or its Representative of the restrictions imposed by the provisions of this Section 6.03. The Company agrees not to release or permit the release of any Person from, or to waive or permit the waiver of, any standstill or similar agreement with respect to any class of equity securities of the Company or any of its Subsidiaries, and will enforce or cause to be enforced each such agreement in accordance with its terms at the request of Parent; provided, however, that the Company may waive or fail to enforce any provision of such standstill or similar agreement of any Person if the Company Board determines in good faith, after consultation with outside legal counsel, that the failure to take such action would be reasonably likely to be inconsistent with its fiduciary duties to the Company’s stockholders under Applicable Law. It is agreed that any violation of the restrictions on the Company set forth in this Section by any Subsidiary of the Company or by any Representative of the Company or any of its Subsidiaries shall be a breach of this Section 6.03(a) by the Company.

(b) Except as permitted by Section 6.03(c), the Company Board, including any committee thereof, agrees it will not (i) qualify, withdraw or modify in a manner adverse to Parent or Merger Sub, or propose publicly to qualify, withdraw or modify in a manner adverse to Parent or Merger Sub, the Company Board Recommendation, (ii) adopt, endorse, approve or recommend, or propose publicly to adopt, endorse, approve or recommend, any Acquisition Proposal, or resolve to take any such action, (iii) publicly make any recommendation in connection with a tender offer or exchange offer by a Third Party other than a recommendation against such offer or a temporary “stop, look and listen” communication by the Company Board of the type contemplated by Rule 14d-9(f) under the 1934 Act, (iv) other than with respect to a tender or exchange offer described in clause (iii), following the date any Acquisition Proposal or any material modification thereto is first publicly announced, fail to issue a press release reaffirming the Company Board Recommendation within ten Business Days after a request by Parent to do so or (v) fail to include the Company Board Recommendation in the Proxy Statement/Prospectus when disseminated to the Company’s stockholders (any of the foregoing in these clauses (i) through (v), an “Adverse Recommendation Change” means either of the following, as the context may indicate: (i) any failure by the Board of Directors of the Company to make, or any withdrawal or modification in a manner adverse to Parent of, the Company Board Recommendation or (ii) the Company or its Board of Directors recommending an Acquisition Proposal.

Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with such Person;provided that (i) none of the Company or any of its Subsidiaries shall be considered an Affiliate of any of Parent or any of its Affiliates (other than the Company and its Subsidiaries) and (ii) none of Parent or any of its Affiliates (other than the Company and its Subsidiaries) shall be considered an Affiliate of the Company or any of its Subsidiaries.

Applicable Law” means, with respect to any Person, any federal, state or local law (statutory, common or otherwise), constitution, treaty, convention, ordinance, code, rule, regulation, order, injunction, judgment, decree, ruling or other similar requirement enacted, adopted, promulgated or applied by a Governmental Authority that is binding upon or applicable to such Person.

Benefit Plan” means (A) each material “employee benefit plan,” as defined in Section 3(3) of ERISA, (B) each employment, consulting, severance or similar contract, plan, arrangement or policy and (C) each other plan, arrangement or policy (written or oral) providing for compensation, bonuses, perquisites, profit-sharing, stock option or other stock related rights or other forms of incentive or deferred compensation, vacation benefits, insurance (including any self-insured arrangements), health or medical benefits, employee assistance program, disability or sick leave benefits, workers’ compensation, supplemental unemployment benefits, severance benefits or post-employment or retirement benefits (including compensation, pension, health, medical or life insurance benefits).

Business Day” means a day, other than Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by Applicable Law to close.

Closing Date” means the date on which the Closing occurs.

Code” means the Internal Revenue Code of 1986.

Company Balance Sheet” means the unaudited consolidated interim balance sheet of the Company as of September 30, 2009 and the footnotes thereto set forth in the Company 10-Q.

Company Balance Sheet Date” means September 30, 2009.March 31, 2023.

CompanyParent Board” means the board of directors of Parent.

Parent Disclosure LetterSchedule” means the disclosure letterschedule dated the date hereof regarding this Agreement that has been provided by the Company to Parent and Merger Subsidiary.Sub to the Company.

CompanyParent Material Adverse Effect” means a materialany event, circumstance, development, occurrence, fact, condition, effect or change that is, or would reasonably be expected to become, individually or in the aggregate, materially adverse effect onto (i) the financial condition (financial or otherwise), business, assets, or results of operations of the CompanyParent and its Subsidiaries, taken as a whole, excluding any event, change, circumstance, effect, occurrence, condition, state of facts or development to the extent arising or resulting from arising out of or relating to (A) changes, developments or conditions after the date hereof in the financial or securities markets or general economic or political conditions in the United States, or elsewhereincluding in the world,financial, debt, credit, capital or securities markets, including changes in interest rates, (B) changes generally affecting the industries in which Parent and its Subsidiaries operate, (C) changes or proposed changes in Applicable Law or interpretations thereof or regulatory conditions or any changes in the enforcement thereof, including changes in tax law, interpretations and regulations after the date hereof, (D) changes or proposed changes in GAAP or other thanaccounting standards or interpretations thereof, (E) changes in commodity prices, including the prices of natural gas, crude oil, refined petroleum products, other hydrocarbon products, natural gas liquids, carbon dioxide, methane, nitrous oxide, fluorinated and other “greenhouse” gases, and other commodities, (F) acts of war (whether or not declared), hostilities, military actions or acts of terrorism, or any escalation or worsening of the foregoing, (G) weather conditions or acts of God (including storms, earthquakes, tsunamis, tornados, hurricanes, floods or other natural disasters or other comparable events), (H) pandemic (including the COVID-19 pandemic), (I) any change, in and of itself, in the market price or trading volume of Parent’s securities; provided that the exception in this clause shall not prevent or otherwise affect a determination that any underlying event, circumstance, development, occurrence, fact, condition, effect or change that is the cause of such change has resulted in, or would reasonably be expected to result in, a Parent Material Adverse Effect to the extent not otherwise falling within any of the other exceptions set forth in clauses (A) through (M) hereof, (J) the negotiation, execution, announcement or performance of this Agreement or the consummation of the Merger or the other transactions contemplated hereby, including the impact thereof on the relationships, contractual or otherwise, with employees, labor unions, financing sources, customers, suppliers, distributors, regulators, partners or other Persons, or any action or claim made or brought by any of the current or former stockholders of Parent (or on their behalf or on behalf of Parent) against Parent or any of its directors, officers or employees arising out of this Agreement or the Merger or the other transactions contemplated hereby (it being understood that this clause (J) shall not apply to a breach of any representation or warranty related to the announcement or consummation of the transactions contemplated hereby), (K) any failure of any of Parent or any of its Subsidiaries to meet, with respect to changesany period or periods, any internal or published projections, forecasts, estimates of earnings or revenues or business plans (but not the underlying facts or basis for such failure to Applicable Laws relatedmeet projections, forecasts, estimates of earnings or revenues or business plans, which may be taken into account in determining whether there has been or would reasonably be expected to hydraulic fracturingbe a Parent Material Adverse Effect to the extent not otherwise falling within any of the other exceptions set forth in clauses (A) through (M) hereof), (L) any action taken by Parent or any of its Subsidiaries that is expressly required by this Agreement or (M) any Antitrust Actions; provided, however, that if any event, change, circumstance, effect, occurrence, condition, state of facts or development described in any of clauses (A) through (H) has a disproportionate effect on Parent and its Subsidiaries, taken as a whole, relative to other participants in the industries in which Parent and its Subsidiaries operate, such disproportionate effect shall be taken into account in determining whether there has

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been, or would reasonably be expected to be, a Parent Material Adverse Effect, or (ii) the ability of Parent or Merger Sub to perform any of its obligations under, or to consummate the transactions contemplated by, this Agreement.

Parent Tax Representation Letter” means a tax representation letter in the form to be agreed upon by the Company and Parent and executed by Parent pursuant to Section 8.10(a).

PBGC” means the Pension Benefit Guaranty Corporation.

Permits” means each grant, license, franchise, permit, easement, variance, exception, exemption, waiver, consent, certificate, certification, registration, accreditation, approval, order, qualification or other similar processesauthorization of any Governmental Authority.

Permitted Liens” means (i) carriers’, warehousemen’s, mechanics’, materialmen’s, landlords’, laborers’, suppliers’ and vendors’ liens and other similar Liens, if any, arising or incurred in the ordinary course of business that do not, individually or in the aggregate, materially impair or interfere with the use of the subject assets or otherwise materially impair business operations as presently conducted; (ii) Liens for Taxes not yet delinquent or, if delinquent, that are being contested in good faith by appropriate actions and that are adequately reserved for as of the date hereof in the applicable financial statements of the Company in accordance with GAAP; (iii) applicable zoning, planning, entitlement, conservation restrictions, land use restrictions, building codes and other governmental rules and regulations imposed by a Governmental Authority having jurisdiction over the real property, none of which would reasonably be expected to have an adverse impact on the Company’s conduct of its business; (iv) the terms and conditions of the leases, subleases, licenses, sublicenses or other occupancy agreements pursuant to which the Company or any of its Subsidiaries is a tenant, subtenant or occupant (other than in connection with any breach thereof) that do not, and would not be reasonably expected to, materially impair or interfere with the use of the subject assets or otherwise materially impair business operations as presently conducted; (v) non-exclusive licenses to Intellectual Property granted in the ordinary course of business; (vi) to the extent not applicable to the transactions contemplated by this Agreement or otherwise waived prior to the Effective Time, preferential purchase rights, rights of first refusal, purchase options and similar rights granted pursuant to any Contracts that have been made available to Parent prior to the date hereof and would not be reasonably expected to materially affect the value, use or operation of the property encumbered thereby, including joint operating agreements, joint ownership agreements, participation agreements, development agreements, stockholders agreements, consents, and other similar agreements and documents; (vii) Production Burdens payable to third parties that are deducted in the calculation of discounted present value in the Company Independent Reserve Reports and any Production Burdens payable to third parties affecting any Oil and Gas Property that was acquired subsequent to the date of the Company Independent Reserve Reports; (viii) Liens arising in the ordinary course of business under operating agreements, joint venture agreements, partnership agreements, Oil and Gas Leases, farm-out agreements, division orders, Contracts for the sale, purchase, transportation, processing or exchange of oil, gas or other Hydrocarbons, unitization and pooling declarations and agreements, area of mutual interest agreements, development agreements, joint ownership arrangements and other agreements that are customary in the oil and gas business, provided, however, that, in each case, such Lien (a) secures obligations that are not Indebtedness or a deferred purchase price and are not delinquent and (b) would not be reasonably expected to materially affect the value, use or operation of the property encumbered thereby; (ix) any Liens discharged at or prior to the Effective Time; (x) any Liens arising under the Company Credit Agreement; and (xi) Liens, exceptions, defects or irregularities in title, easements, imperfections of title, claims, charges, security interests, rights of way, covenants, restrictions and other similar matters that (a) would be accepted by a reasonably prudent purchaser of oil and gas interests in the geographic area where such oil and gas interests are located, (b) would not, individually or in the aggregate, reduce the net revenue interest share of the Company and its Subsidiaries in any Oil and Gas Lease below the net revenue interest share shown in the Company Independent Reserve Reports with respect to such Oil and Gas Lease, or increase the working interest of the Company and its Subsidiaries (without at least a proportionate increase in net revenue interest) in any Oil and Gas Lease above the working interest shown on the Company Independent

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Reserve Reports with respect to such Oil and Gas Lease and (c) would not be reasonably expected to materially affect the value, use or operation of the property encumbered thereby.

Person” means an individual, corporation, partnership, limited liability company, association, trust or other entity or organization, including a Governmental Authority or any “group” within the meaning of Section 13(d) of the 1934 Act.

Personal Information” means “personal information,” “personally identifiable information,” “personal data,” and any terms of similar import, including, but not limited to, information that relates to a person’s name, health, finances, education, business, use or receipt of governmental services or other activities, addresses, telephone numbers, social security numbers, driver license numbers, other identifying numbers, and any financial identifiers.

Pipeline” means all parts of those physical facilities through which gas, hazardous liquid, or carbon dioxide moves in transportation and includes, but is not limited to, line pipe, valves and other appurtenances attached to the pipe, pumping/compressor units and associated fabricated units, metering, regulating, and delivery stations, and holders and fabricated assemblies located therein and breakout tanks.

Production Burdens” means any royalties (including lessor’s royalties), overriding royalties, production payments, net profit interests or other burdens upon, measured by or payable out of oil, gas or mineral production.

Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing into the environment.

Representative” means, with respect to any Person, the officers, directors, employees, investment bankers, accountants, consultants, agents, legal counsel, financial advisors and other representatives of such Person.

Sarbanes-Oxley Act” means the Sarbanes-Oxley Act of 2002.

SEC” means the U.S. Securities and Exchange Commission.

Service Provider” means any director, officer or employee of the Company or any of its Subsidiaries or any individual directly (or through an alter ego entity) engaged by the Company or any of its Subsidiaries as an independent contractor.

Specified Pipeline Event” means any event, circumstance, development, occurrence, fact, condition, effect or change that, individually or in the aggregate, has resulted in, or would reasonably be expected to result in, a material detriment in the ability of making illegalthe Company or commercially impracticableits Subsidiaries (or after the Closing, Parent and its Subsidiaries) to realize the benefits or have the use of the Green Pipeline or the NEJD Pipeline, excluding any event, change, circumstance, effect, occurrence, condition, state of facts or development to the extent arising or resulting from (A) changes, developments or conditions after the date hereof in the general economic conditions in the United States, including in the financial, debt, credit, capital or securities markets, including changes in interest rates, (B) changes in GAAP or other accounting standards or interpretations thereof, (C) changes in commodity prices, including the prices of natural gas, crude oil, refined petroleum products, other hydrocarbon products, natural gas liquids, carbon dioxide, methane, nitrous oxide, fluorinated and other “greenhouse” gases, and other commodities, (D) the negotiation, execution, announcement or performance of this Agreement or the consummation of the Merger or the other transactions contemplated hereby, including the impact thereof on the relationships, contractual or otherwise, with employees, labor unions, financing sources, customers, suppliers, distributors, partners or other Persons (but, subject to clause (E), excluding Governmental Authorities), or any action or claim made or brought by any of the current or former stockholders of the Company (or on their behalf or on behalf of the Company) against the Company or any of its directors, officers or employees arising out of

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this Agreement or the Merger or the other transactions contemplated hereby (it being understood that this clause (D) shall not apply to a breach of any representation or warranty related to the announcement or consummation of the transactions contemplated hereby), (E) any Antitrust Actions or (F) any failure of any of the Company or any of its Subsidiaries to meet, with respect to any period or periods, any internal or published projections, forecasts, estimates of earnings or revenues or business plans relating to either of the Green Pipeline or the NEJD Pipeline (but not the underlying facts or basis for such hydraulic fracturingfailure to meet projections, forecasts, estimates of earnings or similar processes (which changesrevenues or business plans, which may be taken into account in determining whether there has been a Company Material Adverse Effect), changes or conditions generally affectingSpecified Pipeline Event to the oil and gas exploration, development and/or production industry or industries (including changesextent not otherwise falling within any of the other exceptions set forth in oil, gas or other commodity prices), (C) other thanclauses (A) through (E) hereof).

Subsidiary” means, with respect to changesany Person, any Person of which securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other Persons performing similar functions are at any time directly or indirectly owned or controlled by such Person.

Tax” (and, with correlative meaning, “Taxes”) means all U.S. federal, state, local or non-U.S. taxes (including assessments, duties, levies, imposts or other similar charges in the nature of a tax) imposed by a Governmental Authority (whether payable directly or by withholding and whether or not requiring the filing of a Tax Return), including income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise profits, withholding (including backup withholding), social security, unemployment, disability, real property, personal property, sales, use, transfer, registration, ad valorem, value added, alternative or add-on minimum or estimated tax or any other tax of any kind whatsoever, together with any interest, penalty, addition to tax or additional amount, whether disputed or not, and any liability for any of the foregoing by reason of (i) assumption, transferee or successor liability or operation of Applicable LawsLaw, or (ii) being or having been before the Effective Time a member of an affiliated, consolidated, combined or unitary group, or a party to any agreement or arrangement, as a result of which liability of the Company or any of its Subsidiaries is determined or taken into account with reference to the activities of any other Person.

Tax Return” means any report, return, document, claim for refund, information return, declaration or statement or filing with respect to Taxes (and any amendments thereof), including any schedules or documents with respect thereto.

Tax Sharing Agreement” means any agreement or arrangement binding the Company or any of its Subsidiaries that provides for the allocation, apportionment, sharing, indemnification or assignment of any Tax liability or benefit, or the transfer or assignment of income, revenues, receipts, or gains for the purpose of determining any Person’s Tax liability (other than customary Tax sharing or indemnification provisions contained in an agreement entered into in the ordinary course of business the primary subject matter of which does not relate to Taxes).

Termination Fee” means the Company Termination Fee or the Parent Pipeline Termination Fee, as applicable.

Third Party” means any Person other than Parent or any of its Subsidiaries.

Title IV Plan” means any Employee Plan that is subject to Title IV of ERISA.

Trade Secrets” means trade secrets and other confidential know-how and confidential information and rights in any jurisdiction, including formulae, concepts, methods, techniques, procedures, processes (including manufacturing and production processes), algorithms, schematics, prototypes, models, designs, and business information (including customer lists and supplier lists, financial and marketing plans, and pricing and cost information).

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Units” means all pooled, communitized or unitized acreage that includes all or a part of any Oil and Gas Lease.

U.S. Plan” means any Employee Plan that covers Service Providers located primarily in the United States.

WARN” means the Worker Adjustment and Retraining Notification Act and any similar, applicable foreign, state or local law.

Warrant Agreements” means (i) the Series A Warrant Agreement, dated as of September 18, 2020, by and between the Company and Broadridge Corporate Issuer Solutions, Inc., and (ii) the Series B Warrant Agreement, dated as of September 18, 2020, by and between the Company and Broadridge Corporate Issuer Solutions, Inc.

“Warrants” means the Warrants, as defined in the Warrant Agreements.

Wells” means all oil or gas wells, whether producing, operating, shut-in or temporarily abandoned, located on an Oil and Gas Lease or any Unit that includes all or a part of such Oil and Gas Lease or otherwise associated with an Oil and Gas Property of the applicable Person or any of its Subsidiaries, together with all Hydrocarbon production from such well.

(b) Each of the following terms is defined in the Section set forth opposite such term:

Term

Section

Adverse Recommendation Change

6.03

Agreement

Preamble

Applicable Date

4.07

Burdensome Condition

8.01(c)

Certificates

2.03

Closing

2.01(b)

Closing Date

2.01(b)

Company

Preamble

Company 401(k) Plan

7.04(d)

Company Activities

8.01(c)

Company Board

4.02(b)

Company Board Recommendation

4.02(b)

Company DSU Consideration

2.04(b)

Company Equity Award Consideration

2.04(d)

Company Indebtedness Payoff Amount

8.11

Company Independent Petroleum Engineers

4.21

Company Independent Reserve Reports

4.21

Company Meeting

4.09

Company Preferred Stock

4.05

Company Restricted Stock Consideration

2.04(d)

Company RSU Consideration

2.04(a)

Company SEC Documents

4.07

Company Securities

4.05(b)

Company Shares

2.02

Company Subsidiary Securities

4.06

Company Termination Fee

11.04(b)(i)

Company TSR Performance Award Consideration

2.04(c)

Confidentiality Agreement

6.02

Continuation Period

7.04(b)

Continuing Employee

7.04(b)

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Data Breach

4.16

Davis Polk

8.10

Defensible Title

4.21

D&O Insurance

7.03(c)

Effective Time

2.01

Electronic Delivery

11.10

email

11.01

End Date

10.01

Exchange Agent

2.03

Indemnified Person

7.03(a)

Intervening Event

6.03(c)

IRS

4.18(a)

JPM

4.24

Lease

4.15

Material Contract

4.22(b)

Measurement Date

4.05(a)

Merger

2.01

Merger Consideration

2.02

Merger Sub

Preamble

Parent

Preamble

Parent 401(k) plan

7.04(d)

Parent Pipeline Termination Fee

11.04(c)

Parent Preferred Stock

5.05

Parent SEC Documents

5.07

Parent Securities

5.05

Parent Shares

2.02

Parent Subsidiary Securities

5.06

PJT

4.24

Proxy Statement/Prospectus

4.09

PWP

4.24

Registered IP

4.16

Registration Statement

4.09

Requisite Company Vote

4.02(a)

Rights-of-Way

4.15(c)

Sanctions

4.12(c)

Significant Subsidiaries

5.06

Superior Proposal

6.03(f)

Surviving Corporation

2.01

Transfer Taxes

2.03(c)

Treasury Regulations

Recitals

Uncertificated Shares

2.03

V&E

8.10

Section 1.02. Other Definitional and Interpretative Provisions. The words “hereof,” “herein” and “hereunder” and words of like import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation hereof. References to Articles, Sections, Exhibits and Schedules are to Articles, Sections, Exhibits and Schedules of this Agreement unless otherwise specified. All Exhibits and Schedules (including the Company Disclosure Schedule and the Parent Disclosure Schedule) annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Any capitalized terms used in any Exhibit or Schedule but not otherwise defined therein, shall have the meaning as defined in this Agreement. Any singular term in this Agreement shall be deemed to include the

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plural, and any plural term the singular. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation,” whether or not they are in fact followed by those words or words of like import. “Writing,” “written” and comparable terms refer to printing, typing and other means of reproducing words (including electronic media) in a visible form. References to any statute shall be deemed to refer to such statute as amended from time to time and, if applicable, to any rules, regulations or interpretations promulgated thereunder. References to any agreement or contract are to that agreement or contract as amended, modified, supplemented, extended or renewed from time to time in accordance with the terms hereof and thereof; provided that with respect to any agreement or contract listed on any schedule hereto (including the Company Disclosure Schedule and the Parent Disclosure Schedule), all such amendments, modifications, supplements, extensions or renewals must also be listed in the appropriate schedule. References to any Person include the successors and permitted assigns of that Person. References to a “party” or the “parties” means a party or the parties to this Agreement unless the context otherwise requires. References from or through any date mean, unless otherwise specified, from and including or through and including, respectively. The parties hereto have participated jointly in the negotiation and drafting of this Agreement and each has been represented by counsel of its choosing and, in the event of an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by such parties and no presumption or burden of proof will arise favoring or disfavoring any party due to the authorship of any provision of this Agreement. Unless otherwise specifically indicated, all references to “dollars” and “$” will be deemed references to the lawful money of the United States of America.

ARTICLE 2

THE MERGER

Section 2.01. The Merger. (a) Upon the terms and subject to the conditions set forth in this Agreement, at the Effective Time, Merger Sub shall merge (the “Merger”) with and into the Company in accordance with the DGCL, whereupon the separate existence of Merger Sub shall cease and the Company shall be the surviving corporation as a wholly owned Subsidiary of Parent (the “Surviving Corporation”).

(b) Subject to the provisions of Article 9, the closing of the Merger (the “Closing”) shall take place in New York City at the offices of Davis Polk & Wardwell LLP, 450 Lexington Avenue, New York, New York, 10017 as soon as possible, but in any event no later than four Business Days after the date the conditions set forth in Article 9 (other than conditions that by their nature are to be satisfied at the Closing, but subject to the satisfaction or, to the extent permissible, waiver of such conditions at the Closing) have been satisfied or, to the extent permissible, waived by the party or parties entitled to the benefit of such conditions, or at such other place (or by means of remote communication), at such other time or on such other date as Parent and the Company may mutually agree (the date on which the Closing occurs, the “Closing Date”).

(c) At the Closing, the Company and Merger Sub shall file a certificate of merger with the Delaware Secretary of State and make all other filings or recordings required by the DGCL in connection with the Merger. The Merger shall become effective at such time (the “Effective Time”) as the certificate of merger is duly filed with the Delaware Secretary of State (or at such later time as may be specified in the certificate of merger).

(d) From and after the Effective Time, the Surviving Corporation shall possess all the rights, powers, privileges and franchises and be subject to all of the obligations, liabilities, restrictions and disabilities of the Company and Merger Sub, all as provided under the DGCL.

Section 2.02. Conversion of Shares. At the Effective Time, by virtue of the Merger and without any action on the part of any holder of Company Shares or any holder of shares of common stock of Merger Sub:

(a) Except as otherwise provided in Section 2.02(b) or Section 2.02(d), each share of common stock of the Company, par value $0.001 per share (each a “Company Share” and collectively, the “Company Shares”),

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outstanding immediately prior to the Effective Time (including the Company Restricted Stock which shall also be governed by Section 2.04(d) below) shall be converted into the right to receive 0.840 shares of common stock of Parent, each without par value (each a “Parent Share” and collectively, the “Parent Shares”) (together with any cash in lieu of fractional Parent Shares as specified below, the “Merger Consideration”). As of the Effective Time, all such Company Shares shall no longer be outstanding and shall automatically be canceled and retired and shall cease to exist, and shall thereafter represent only the right to receive the Merger Consideration and the right to receive any dividends or other distributions pursuant to Section 2.03(f), in each case, to be issued or paid in accordance with Section 2.03, without interest and subject to any withholding of Taxes required by Applicable Law.

(b) Each Company Share held by the Company as treasury stock (other than Company Shares subject to or issuable in connection with an Employee Plan of the Company) or owned by Parent or Merger Sub immediately prior to the Effective Time shall be canceled, and no payment shall be made with respect thereto.

(c) Each share of common stock of Merger Sub outstanding immediately prior to the Effective Time shall be converted into and become one share of common stock of the Surviving Corporation with the same rights, powers and privileges as the shares so converted and shall constitute the only outstanding shares of capital stock of the Surviving Corporation.

(d) Each Company Share held by any Subsidiary of either the Company or Parent (other than the Merger Sub) immediately prior to the Effective Time shall be converted into such number of shares of stock of the Surviving Corporation such that each such Subsidiary owns the same percentage of the outstanding capital stock of the Surviving Corporation immediately following the Effective Time as such Subsidiary owned in the Company immediately prior to the Effective Time.

Section 2.03. Surrender and Payment. (a) Prior to the Effective Time, Parent shall appoint a nationally recognized financial institution reasonably acceptable to Parent and the Company (the “Exchange Agent”) for the purpose of exchanging for the Merger Consideration (i) certificates representing Company Shares (the “Certificates”) or (ii) uncertificated Company Shares (the “Uncertificated Shares”). The Exchange Agent agreement pursuant to which Parent shall appoint the Exchange Agent shall be in form and substance reasonably acceptable to the Company and Parent. At or prior to the Effective Time, Parent shall deposit with or otherwise make available to the Exchange Agent, the Merger Consideration to be paid in respect of the Certificates and the Uncertificated Shares (other than the Company Restricted Stock) and the Company Equity Award Consideration in respect of the Non-Employee Holders (and, if determined by Parent pursuant to Section 2.04(e), all or a portion of the Company Equity Award Consideration to all or a portion of the Employee Holders). Parent agrees to make available to the Exchange Agent, from time to time as needed, any dividends or distributions to which such holder is entitled pursuant to Section 2.03(f). Promptly after the Effective Time (and in any event within five Business Days thereafter), Parent shall send, or shall cause the Exchange Agent to send, to each holder of Company Shares at the Effective Time (other than the Company Restricted Stock), a letter of transmittal and instructions in customary form and reasonably acceptable to the Company (which shall specify that the delivery shall be effected, and risk of loss and title shall pass, only upon proper delivery of the Certificates (or affidavits of loss in lieu thereof) or transfer of the Uncertificated Shares to the Exchange Agent and shall include customary provisions with respect to delivery of an “agent’s message” regarding book-entry transfer of Uncertificated Shares) for use in such exchange. Such letter of transmittal shall be in the form and have such provisions as Parent and the Company may reasonably agree.

(b) Each holder of Company Shares that have been converted into the right to receive the Merger Consideration (other than the Company Restricted Stock) shall be entitled to receive, upon (i) surrender to the Exchange Agent of a Certificate, together with a properly completed letter of transmittal, or (ii) receipt of an “agent’s message” by the Exchange Agent (or such other evidence, if any, of transfer as the Exchange Agent may reasonably request) in the case of a book-entry transfer of Uncertificated Shares, the Merger Consideration payable for each such Company Share represented by such Certificate or for each such Uncertificated Share. The

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Parent Shares constituting part of such Merger Consideration, at Parent’s option, shall be in uncertificated book-entry form, unless a physical certificate is required under Applicable Law. Until so surrendered or transferred, as the case may be, each such Certificate or Uncertificated Share shall represent after the Effective Time for all purposes only the right to receive the Merger Consideration and the right to receive any dividends or other distributions pursuant to Section 2.03(f). At the time set forth in Section 2.04(e), each Non-Employee Holder shall be entitled to receive such Non-Employee Holder’s Company Equity Award Consideration and, if determined by Parent pursuant to Section 2.04(e), all or a portion of the Company Equity Award Consideration payable to all or a portion of the Employee Holders shall be paid pursuant to this Section 2.03. No interest shall be paid or shall accrue on any cash payable upon surrender of any Company Shares or upon the Company Equity Award Consideration.

(c) If any portion of the Merger Consideration (other than in respect of the Company Restricted Stock) is to be paid to a Person other than the Person in whose name the surrendered Certificate or the transferred Uncertificated Share is registered, it shall be a condition to such payment that (i) either such Certificate shall be properly endorsed or shall otherwise be in proper form for transfer or such Uncertificated Share shall be properly transferred and (ii) the Person requesting such payment shall pay to the Exchange Agent any Transfer Taxes required as a result of such payment to a Person other than the registered holder of such Certificate or Uncertificated Share or establish to the satisfaction of the Exchange Agent and Parent that such Transfer Tax has been paid or is not payable. The payment of any transfer, documentary, sales, use, stamp, registration, value-added and other Taxes and fees (including any penalties and interest) (“Transfer Taxes”) incurred solely by a holder of Company Shares in connection with the Merger and any other transactions contemplated hereby, and the filing of any related Tax Returns, shall be the sole responsibility of such holder.

(d) After the Effective Time, there shall be no further registration of transfers of Company Shares. If, after the Effective Time, Certificates or Uncertificated Shares are presented to hydraulic fracturingParent, the Surviving Corporation or the Exchange Agent, they shall be canceled and exchanged for the Merger Consideration provided for, and in accordance with the procedures set forth, in this Article 2.

(e) Any portion of the Merger Consideration made available to the Exchange Agent pursuant to Section 2.03(a) (and any interest or other income earned thereon) that remains unclaimed by the holders of Company Shares that have been converted into the right to receive the Merger Consideration nine months after the Effective Time shall be returned to Parent, upon demand, and any such holder who has not exchanged such Company Shares for the Merger Consideration in accordance with this Section 2.03 prior to that time shall thereafter look only to Parent for, and Parent shall remain liable for, payment of the Merger Consideration, and any dividends and distributions with respect thereto pursuant to Section 2.03(f), in respect of such Company Shares without any interest thereon and subject to any withholding of Taxes required by Applicable Law in accordance with this Section 2.03(e). Notwithstanding the foregoing, Parent shall not be liable to any holder of Company Shares for any amount paid to a public official pursuant to applicable abandoned property, escheat or similar processeslaws. Any amounts remaining unclaimed by holders of Company Shares that have been converted into the right to receive the Merger Consideration two years after the Effective Time (or such earlier date immediately prior to such time when the amounts would otherwise escheat to or become property of any Governmental Authority) shall become, to the extent permitted by Applicable Law, the property of Parent free and clear of any claims or interest of any Person previously entitled thereto.

(f) No dividends or other distributions with respect to securities of Parent constituting part of the Merger Consideration, and no cash payment in lieu of fractional shares as provided in Section 2.06, shall be paid to the holder of any Certificates not surrendered or of any Uncertificated Shares not transferred until such Certificates or Uncertificated Shares are surrendered or transferred, as the case may be, as provided in this Section 2.03. Following such surrender or transfer, there shall be paid, without interest, to the Person in whose name the securities of Parent have been registered, at the time of such surrender or transfer, the amount of any cash payable in lieu of fractional shares to which such Person is entitled pursuant to Section 2.06 and the amount of all dividends or other distributions with a record date after the Effective Time previously paid or payable on the date of such surrender or transfer with respect to such securities.

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Section 2.04. Treatment of Company Equity Awards and ESPP. (a) At or immediately prior to the Effective Time, except as otherwise agreed in writing by Parent and the holder thereof or as set forth on Section 6.01(m) of the Company Disclosure Schedule, each Company RSU outstanding as of immediately prior to the Effective Time, whether vested or unvested, shall, without any action on the part of Parent, Merger Sub, the Company or the holder thereof, be canceled and converted into the right to receive, the Merger Consideration in respect of the total number of Company Shares subject to such Company RSU (the “Company RSU Consideration”). The payment of the Company RSU Consideration shall be subject to withholding for all Taxes required by Applicable Law.

(b) At or immediately prior to the Effective Time, each Company DSU outstanding as of immediately prior to the Effective Time, whether vested or unvested, shall, without any action on the part of Parent, Merger Sub, the Company or the holder thereof, be canceled and converted into the right to receive, the Merger Consideration in respect of the total number of Company Shares subject to such Company DSU (the “Company DSU Consideration”). The payment of the Company DSU Consideration shall be subject to withholding for all Taxes required by Applicable Law.

(c) At or immediately prior to the Effective Time, except as otherwise agreed in writing by Parent and the holder thereof, each Company TSR Performance Award outstanding as of immediately prior to the Effective Time, shall, without any action on the part of Parent, Merger Sub, the Company or the holder thereof, be deemed to vest at actual performance levels (as determined by the Company Board (or a duly authorized committee thereof) reasonably and in good faith in accordance with the terms of the applicable Company TSR Performance Award, as in effect on the date of this Agreement, and after reasonable consultation with Parent) with respect to the applicable performance-based vesting conditions relating to such Company TSR Performance Awards and such vested number of Company TSR Performance Awards (if any) shall be canceled and converted into the right to receive, the Merger Consideration in respect of the total number of Company Shares subject to such Company TSR Performance Awards that are deemed vested in accordance with the foregoing based on actual performance achieved as of the Effective Time with respect to applicable performance-based vesting conditions (the “Company TSR Performance Award Consideration”). The payment of the Company TSR Performance Award Consideration shall be subject to withholding for all required Taxes.

(d) At or immediately prior to the Effective Time, except as otherwise agreed by in writing by Parent and the holder thereof or as set forth on Section 6.01(m) of the Company Disclosure Schedule, each Company Restricted Stock outstanding as of immediately prior to the Effective Time shall, without any action on the part of Parent, Merger Sub, the Company or the holder thereof, become a fully vested Company Share and be converted into the right to receive the Merger Consideration in accordance with Section 2.02(a) (the “Company Restricted Stock Consideration” and, together with the Company RSU Consideration, Company DSU Consideration and Company TSR Performance Award Consideration, the “Company Equity Award Consideration). The payment of the Company Restricted Stock Consideration shall be subject to withholding for all required Taxes.

(e) As promptly as practicable and, in any event, no later than thirty (30) days following the Effective Time (or, with respect to any Company RSUs, Company DSUs and/or Company TSR Performance Awards that constitute nonqualified deferred compensation subject to (and within the meaning of) Section 409A of the Code, at the earliest practicable time permitted under the applicable Employee Plan or Section 409A of the Code that will not trigger a Tax or penalty under Section 409A of the Code), the Parent shall pay or cause to be paid to the applicable holders of Company RSUs, Company DSUs, Company TSR Performance Awards and/or Company Restricted Stock all Company Equity Award Consideration. Notwithstanding the foregoing, in the case of any payment owed to a Non-Employee Holder, the applicable payments shall be made through the Exchange Agent pursuant to Section 2.03, and Parent, in its sole discretion, shall be permitted to determine to pay all or any portion of the Company Equity Award Consideration to all or a portion of the Employee Holders through the Exchange Agent pursuant to Section 2.03.

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(f) As soon as practicable following the date of this Agreement and in any event, at least five days prior to the Effective Time, the Company Board shall adopt resolutions or take all other actions as may be required to provide that: (i) no new participants will commence participation in the ESPP after the date of this Agreement; (ii) no participant in the ESPP shall be allowed to increase his or her payroll contribution rate in effect as of the date of this Agreement or make separate non-payroll contributions following the date of this Agreement; and (iii) no new Offering Period (as defined in the ESPP) shall commence or be extended pursuant to the ESPP, in each case, after the date of this Agreement. With respect to each Offering Period that would otherwise be in effect on the Closing Date, the Company shall take action to provide that such Offering Period shall terminate on the date immediately preceding the Closing Date, and the Company shall apply the funds credited as of such date under the ESPP to each participant’s payroll withholding account under the ESPP to the purchase of whole Company Shares in accordance with the terms of the ESPP, which Company Shares shall be converted into the right to receive the Merger Consideration in accordance with Section 2.02(a) and shall be paid through the Exchange Agent pursuant to Section 2.03. The Company shall take all action to terminate the ESPP no later than immediately prior to and effective as of the Effective Time (but subject to the consummation of the Merger).

(g) In exchange for the payment of the consideration provided for under this Section 2.04, except as otherwise agreed in writing by Parent and the holder thereof or as set forth on Section 6.01(m) of the Company Disclosure Schedule, the Company shall terminate all Company RSUs, Company DSUs, Company TSR Performance Awards, the Equity Plan and the ESPP and shall cancel the Company Shares of Company Restricted Stock in accordance with Section 2.02(a), as of the Effective Time, and terminate the provisions in any other Employee Plan, Contract or arrangement providing for the issuance of grant or vesting of any other interest in respect of the capital stock of the Company or any of its Subsidiaries as of the Effective Time (but subject to the consummation of the Merger) without any liability to Parent, the Company and Merger Sub. The Company shall ensure that, following the Effective Time, no participant in any Equity Plan or other Employee Plan shall have any right thereunder to acquire any equity securities of Parent, the Company, the Surviving Corporation or any of their respective Subsidiaries, except for the Merger Consideration or as otherwise agreed in writing by Parent and the holder thereof or as set forth on Section 6.01(m) of the Company Disclosure Schedule.

Section 2.05. Adjustments. If, during the period between the date of this Agreement and the Effective Time, the outstanding capital stock of the Company or Parent shall have been changed into a different number of shares or a different class by reason of any reclassification, recapitalization, stock split or combination, exchange or readjustment of shares, respectively, or any stock dividend thereon with a record date during such period, or any other similar event, but excluding any change that results from (a) the exercise of Warrants, stock options or other equity awards to purchase Company Shares or Parent Shares (as set forth in Section 4.05 and Section 5.05, respectively), (b) the settlement of any other equity awards to purchase or otherwise acquire Company Shares or Parent Shares or (c) the grant of stock based compensation to directors or employees of Parent or (other than any such grants not made in accordance with the terms of this Agreement) the Company under Parent’s or the Company’s, as applicable, stock option or compensation plans or arrangements, the Merger Consideration and any other amounts payable pursuant to this Agreement, as applicable, shall be appropriately and proportionately adjusted. Nothing in this Section 2.05 shall be construed to permit any party to take any action that is otherwise prohibited or restricted by any other provision of this Agreement.

Section 2.06. Fractional Shares. No fractional Parent Shares shall be issued in the Merger. All fractional Parent Shares that a holder of Company Shares would otherwise be entitled to receive as a result of the Merger shall be aggregated and if a fractional share results from such aggregation, such holder shall be entitled to receive, in lieu thereof, an amount in cash without interest determined by multiplying the closing sale price of a Parent Share on the NYSE on the trading day immediately preceding the Effective Time by the fraction of a Parent Share to which such holder would otherwise have been entitled.

Section 2.07. Withholding Rights. Notwithstanding any provision contained herein to the contrary, each of the Exchange Agent, Parent, the Company, Merger Sub and the Surviving Corporation shall be entitled to deduct and withhold from the consideration otherwise payable to any Person pursuant to this Agreement such amounts

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as it reasonably concludes it is required to deduct and withhold with respect to the making of such payment under the Code, under any Tax law or pursuant to any other Applicable Law. If the Exchange Agent, Parent, the Company, Merger Sub or the Surviving Corporation, as the case may be, so deducts or withholds amounts, such amounts shall be treated for all purposes of this Agreement as having been paid to such Person in respect of which such deduction and withholding was made.

Section 2.08. Lost Certificates. If any Certificate shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the Person claiming such Certificate to be lost, stolen or destroyed and, if required by the Surviving Corporation, the posting by such Person of a bond, in such reasonable amount as the Surviving Corporation may direct, as indemnity against any claim that may be made against it with respect to such Certificate, the Exchange Agent shall pay, in exchange for such lost, stolen or destroyed Certificate, the Merger Consideration to be paid in respect of the Company Shares represented by such Certificate and any dividends or distributions with respect thereto pursuant to Section 2.03(f), as contemplated by this Article 2.

ARTICLE 3

THE SURVIVING CORPORATION

Section 3.01. Certificate of Incorporation. At the Effective Time, the certificate of incorporation of the Surviving Corporation shall be amended and restated as set forth in Exhibit A and, as so amended and restated, shall be the certificate of incorporation of the Surviving Corporation until further amended in accordance with Applicable Law.

Section 3.02. Bylaws. The bylaws of Merger Sub in effect at the Effective Time shall be the bylaws of the Surviving Corporation (except that references to the name of Merger Sub shall be replaced by reference to the name of the Surviving Corporation) until thereafter amended in accordance with Applicable Law.

Section 3.03. Directors and Officers. From and after the Effective Time, until successors are duly elected or appointed and qualified in accordance with Applicable Law, (a) the directors of Merger Sub at the Effective Time shall be the directors of the Surviving Corporation and (b) the officers of Merger Sub at the Effective Time shall be the officers of the Surviving Corporation.

ARTICLE 4

REPRESENTATIONSAND WARRANTIESOFTHE COMPANY

Subject to Section 11.05, except (x) as disclosed in any Company SEC Document filed with or furnished to the SEC and publicly available since January 1, 2022 through the Business Day prior to the date of this Agreement (but excluding any general cautionary or forward-looking statements contained in the “Risk Factors” section or “Forward-Looking Statements” and any other statements that are similarly cautionary, predictive or forward-looking in nature, in each case other than any description of historical facts or events included therein); provided that this clause (x) shall not apply to the representations and warranties set forth in Sections 4.05 or 4.06(b), or (y) as set forth in the Company Disclosure Schedule, the Company represents and warrants to Parent and Merger Sub that:

Section 4.01. Corporate Existence and Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has all corporate powers required to carry on its business as now conducted, other than as would not reasonably be expected to have, individually or in the effect of making illegal or commercially impracticable such hydraulic fracturing or similar processes (which changes may be taken into account in determining whether there has beenaggregate, a Company Material Adverse Effect),Effect. The Company is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction where the conduct of its business in such jurisdiction as currently conducted requires such qualification is necessary, except for those jurisdictions where failure to be so qualified or in good standing has not had and would not reasonably be expected to have, individually or in the

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aggregate, a Company Material Adverse Effect. The Company has made available to Parent (or included as an exhibit to the Company SEC Documents made available to Parent) complete and correct copies of the organizational documents of the Company and each Subsidiary of the Company, and each as so made available is in full force and effect. The Company and each of its Subsidiaries is not in breach of any changeof its organizational documents in any material respect.

Section 4.02. Corporate Authorization. (a) The Company has all requisite corporate power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the Merger, except for the required approval of the holders of at least a majority of the outstanding Company Shares entitled to vote in connection with the adoption and approval of this Agreement and the transactions contemplated hereby, including the Merger, in accordance with Applicable Law and the Company’s certificate of incorporation (the “Requisite Company Vote”). The Requisite Company Vote is the only vote of the holders of any of the capital stock of the Company or the interpretation thereofcapital stock of any of its Subsidiaries (including any Company Securities or GAAP orCompany Subsidiary Securities) necessary in connection with consummation of the interpretation thereof, (D)Merger. The execution, delivery and performance by the negotiation, execution, announcement orCompany of this Agreement and the consummation by the Company of the transactions contemplated hereby, subject to obtaining the Requisite Company Vote at the Company Meeting, are within the Company’s corporate powers and have been duly authorized by all necessary corporate action on the part of the Company. The Company has duly executed and delivered this Agreement, and, assuming due authorization, execution and delivery by each of Parent and Merger Sub, this Agreement constitutes a valid and binding agreement of the Company enforceable against the Company in accordance with its terms (subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Applicable Laws affecting creditors’ rights generally and general principles of equity).

(b) At a meeting duly called and held, the board of directors of the Company (the “Company Board”) has unanimously (i) determined that this Agreement and the transactions contemplated hereby, including the Merger, are fair to and in the best interests of the Company and its stockholders, (ii) approved, adopted and declared advisable this Agreement and the transactions contemplated hereby, including the Merger, in accordance with the requirements of the DGCL and (iii) resolved, subject to Section 6.03(c), to recommend approval and adoption of this Agreement by the stockholders of the Company (such recommendation, the “Company Board Recommendation”). As of the date of this Agreement, the foregoing determinations and resolutions have not been rescinded, modified or withdrawn in any adverseway.

Section 4.03. Governmental Authorization. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby require no action by or in respect of, or filing by or on behalf of the Company with, any Governmental Authority, other than (a) the filing of a certificate of merger with respect to the Merger with the Delaware Secretary of State and appropriate documents with the relevant authorities of other states in which the Company is qualified to do business, (b) compliance with any applicable requirements of the HSR Act, (c) compliance with any applicable requirements of the NYSE, 1933 Act, the 1934 Act and any other applicable state or federal securities laws, including the filing with the SEC of the Proxy Statement/Prospectus relating to the matters to be submitted to the stockholders of the Company at the Company Meeting, (d) any of the actions or filings set forth on Section 4.03 of the Company Disclosure Schedule and (e) any actions or filings the absence of which has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

Section 4.04. Non-contravention. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby do not and will not (a) contravene, conflict with, or result in any violation or breach of any provision of the certificate of incorporation or bylaws of the Company or any of its Subsidiaries, (b) assuming compliance with the matters referred to in Section 4.03, contravene, conflict with or result in a violation or breach of any provision of any Applicable Law, (c) assuming termination of the Company Credit Agreement and satisfaction in full of all obligations outstanding thereunder and compliance with the matters referred to in Section 4.03, require payment or notice to, or any consent or other action by any Person under, constitute a breach or default, or an event that,

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with or without notice or lapse of time or both, would constitute a violation or breach of, or give rise to any right of termination, suspension, cancellation, acceleration, payment or any other change of any rights or obligations of the Company or any of its Subsidiaries or the loss of any benefit to which the Company or any of its Subsidiaries is entitled under any provision of any Contract binding on the Company or any of its Subsidiaries or any Permit affecting, or relating to, the assets or business of the Company or its Subsidiaries or (d) result in customer, distributor, supplierthe creation or imposition of any Lien on any asset of the Company or any of its Subsidiaries except, in the case of each of clauses (b) through (d), as have not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

Section 4.05. Capitalization. (a) The authorized capital stock of the Company consists of 250,000,000 Company Shares and 50,000,000 shares of preferred stock, par value $0.001 per share (the “CompanyPreferred Stock”). As of July 10, 2023 (the “Measurement Date”), there were outstanding (i) 50,473,057 Company Shares, of which 340,102 Company Shares constitute Company Restricted Stock, (ii) Warrants exercisable for 2,581,409 Company Shares and (iii) no shares of Company Preferred Stock. As of the Measurement Date, there were 5,679,352 Company Shares reserved and still available for issuance under the Equity Plan, of which there were outstanding awards with respect to 1,950,053 Company Shares subject to issuance upon vesting of Company RSUs, 230,096 Company Shares subject to issuance upon vesting of Company DSUs and 221,729 Company Shares subject to issuance upon vesting of Company TSR Performance Awards (assuming achievement of applicable performance objectives at target levels). As of the Measurement Date, 1,981,281 Company Shares are subject to outstanding purchase rights under the ESPP. All outstanding shares of capital stock of the Company have been, and all shares that may be issued pursuant to any employee stock option or other compensation plan or arrangement will be, when issued in accordance with the respective terms thereof, duly authorized and validly issued, fully paid and nonassessable, and free of preemptive rights. Section 4.05(a) of the Company Disclosure Schedule sets forth, for each equity award, the holder, type of award, grant date, number of shares, vesting schedule (including any acceleration provisions) and, if applicable, exercise price and expiration date.

(b) There are no outstanding bonds, debentures, notes or other Indebtedness of the Company having the right to vote (or convertible into, or exchangeable or exercisable for, securities having the right to vote) on any matters on which stockholders of the Company may vote. Except as set forth in Section 4.05(a) of the Company Disclosure Schedule and for changes since the Measurement Date resulting from the issuance of Company Shares pursuant to the settlement of Company RSUs, Company DSUs and Company TSR Performance Awards or the exercise of Warrants, in each case outstanding on such date in accordance with the terms thereof on such date, there are no issued, reserved for issuance or outstanding (i) shares of capital stock or other voting securities of or ownership interests in the Company, (ii) securities of the Company convertible into or exchangeable or exercisable for shares of capital stock or other voting securities of or ownership interests in the Company, (iii) warrants (other than Warrants), calls, options, subscriptions, commitments, Contracts or other rights to acquire from the Company, or other obligation of the Company to issue, any capital stock or other voting securities of, or ownership interests in, or any securities convertible into or exchangeable or exercisable for capital stock or other voting securities of or ownership interests in, the Company or (iv) restricted shares, restricted stock units, stock appreciation rights, performance units, contingent value rights, “phantom” stock or similar relationships resulting therefrom, (E) actssecurities or rights that are derivative of, war, terrorism, earthquakes, hurricanes, tornadosor provide economic benefits based, directly or indirectly, on the value or price of, any capital stock or voting securities of, or ownership interests in, the Company (the items in clauses (i) through (iv), including, for the avoidance of doubt, the Company Shares, being referred to collectively as the “Company Securities”). There are no outstanding obligations of the Company or any of its Subsidiaries to repurchase, redeem or otherwise acquire any of the Company Securities. Neither the Company nor any of its Subsidiaries is a party to any voting agreement with respect to the voting, registration or transfer of any Company Securities. Since the Company Balance Sheet Date, neither the Company nor any of its Subsidiaries has declared, set aside or paid any dividends on, or made any other distributions (whether in cash, stock, property or otherwise) in respect of, any capital stock of such Person (other than cash dividends and distributions by a direct or indirect wholly owned Subsidiary of the Company to its parent).

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(c) None of (i) the Company Shares or (ii) any Company Securities are owned by any Subsidiary of the Company.

Section 4.06. Subsidiaries. (a) Each Subsidiary of the Company has been duly organized, is validly existing and (where applicable) in good standing under the laws of its jurisdiction of organization, has all organizational powers and all governmental licenses, authorizations, permits, consents and approvals required to carry on its business as now conducted, other than where the failure to be so organized or to have such power, authority or standing would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Each such Subsidiary is duly qualified to do business as a foreign entity and is in good standing in each jurisdiction where such qualification is necessary, except for those jurisdictions where failure to be so qualified has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as set forth in Section 4.06(a) of the Company Disclosure Schedule, all Subsidiaries of the Company as of the date hereof and their respective jurisdictions of organization are identified in the Company 10-K.

(b) All of the outstanding capital stock or other natural disasters, (F)voting securities of, or ownership interests in, each Subsidiary of the Company have been duly authorized and validly issued and are fully paid and nonassessable and not subject to any failurepreemptive rights and are owned by the Company, directly or indirectly, free and clear of any Lien and free of any other limitation or restriction (including any restriction on the right to vote, sell or otherwise dispose of such capital stock or other voting securities or ownership interests). There are no issued, reserved for issuance or outstanding (i) securities of the Company or any of its Subsidiaries convertible into, or exchangeable or exercisable for, shares of capital stock or other voting securities of, or ownership interests in, any Subsidiary of the Company, (ii) warrants, calls, options, subscriptions, commitments, Contracts or other rights to acquire from the Company or any of its Subsidiaries, or other obligations of the Company or any of its Subsidiaries to issue, any capital stock or other voting securities of, or ownership interests in, or any securities convertible into, or exchangeable or exercisable for, any capital stock or other voting securities of, or ownership interests in, any Subsidiary of the Company or (iii) restricted shares, restricted stock units, stock appreciation rights, performance units, contingent value rights, “phantom” stock or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the value or price of, any capital stock or other voting securities of, or ownership interests in, any Subsidiary of the Company (the items in clauses (i) through (iii) being referred to collectively as the “Company Subsidiary Securities”). There are no outstanding obligations of the Company or any of its Subsidiaries to repurchase, redeem or otherwise acquire any of the Company Subsidiary Securities. Except for ownership interests in its Subsidiaries, the Company does not own, directly or indirectly, any capital stock or other voting securities of, or ownership interests in, any Person. The Company and its Subsidiaries have no obligation to acquire equity securities of, or make any capital contribution or investment in, any other Person, other than as set forth in Section 4.06(b) of the Company Disclosure Schedule.

Section 4.07. SEC Filings and the Sarbanes-Oxley Act. (a) Since January 1, 2021 (the “Applicable Date”), the Company has timely filed with or furnished to the SEC, all reports, schedules, forms, statements, prospectuses, registration statements and other documents required to be filed with or furnished to the SEC by the Company (such reports, schedules, forms, statements, prospectuses, registration statements and other documents so filed or furnished since the Applicable Date, collectively, together with any exhibits and schedules thereto and other information incorporated therein, the “Company SEC Documents”). No Subsidiary of the Company is, and since the Applicable Date, no Subsidiary of the Company has been, required to file any reports, schedules, forms, statements or other documents with the SEC. As of the date of this Agreement, (i) there are no outstanding or unresolved written comments from the SEC with respect to the Company SEC Documents and (ii) to the Company’s Knowledge, none of the Company SEC Documents filed on or prior to the date hereof is the subject of ongoing SEC review.

(b) As of its filing date (or, if amended by a filing prior to the date hereof, on the date of any such filing), each Company SEC Document complied, and each Company SEC Document filed subsequent to the date hereof

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will comply, as to form in all material respects with the applicable requirements of the NYSE, the 1933 Act, the 1934 Act, the Sarbanes-Oxley Act and the rules and regulations of the SEC promulgated under the 1933 Act, the 1934 Act and the Sarbanes-Oxley Act, as the case may be.

(c) As of its filing date (or, if amended by a filing prior to the date hereof, on the date of such filing), each Company SEC Document filed pursuant to the 1934 Act did not, and each Company SEC Document filed subsequent to the date hereof will not, contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.

(d) Each Company SEC Document that is a registration statement, as amended or supplemented, if applicable, filed pursuant to the 1933 Act, as of the date such registration statement or amendment became effective, did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading.

(e) The Company has established and maintained disclosure controls and procedures and internal control over financial reporting (as such terms are defined in paragraphs (e) and (f), respectively, of Rule 13a-15 under the 1934 Act) as required by Rule 13a-15 or 15d-15, as applicable, under the 1934 Act. The Company’s disclosure controls and procedures are designed to ensure that all material information required to be disclosed by the Company in the reports that it files or furnishes under the 1934 Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and that all such material information is accumulated and communicated to the Company’s management as appropriate to allow timely decisions regarding required disclosure and to make the certifications required pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act. The Company’s internal control over financial reporting is in compliance with the applicable requirements of Section 404 of the Sarbanes-Oxley Act, and the Company’s internal control over financial reporting is effective. Except as set forth on Section 4.07(e) of the Company Disclosure Schedule, since September 18, 2020, neither the Company nor, to the Knowledge of the Company, the Company’s independent registered accountant has identified or been made aware of (i) any significant deficiencies or material weaknesses in the design or operation of the Company’s internal control over financial reporting that are reasonably expected to adversely affect the Company’s ability to record, process, summarize or report financial information or (ii) any fraud, whether or not material, that involves the management or other employees of the Company who have a significant role in the Company’s internal control over financial reporting.

(f) There are no outstanding loans or other extensions of credit made by the Company or any of its Subsidiaries to meet any internalexecutive officer (as defined in Rule 3b-7 under the 1934 Act) or published industry analyst projections or forecasts or estimatesdirector of revenues or earnings for any period (it being understoodthe Company.

(g) Since the Applicable Date, each of the principal executive officer and agreed that the facts and circumstances that may have given rise or contributed to such failure that are not otherwise excluded from the definition of a

Company Material Adverse Effect may be taken into account in determining whether there has been a Company Material Adverse Effect), (G) any change in the priceprincipal financial officer of the Company Stock(or each former principal executive officer and principal financial officer of the Company, as applicable) has made all certifications required by Rule 13a-14 and 15d-14 under the 1934 Act and Sections 302 and 906 of the Sarbanes-Oxley Act and any related rules and regulations promulgated by the SEC and the NYSE, and the statements contained in any such certifications are complete and correct as of their respective dates.

Section 4.08. Financial Statements. The audited consolidated financial statements and unaudited consolidated interim financial statements of the Company included or incorporated by reference in the Company SEC Documents (a) as of their respective dates of filing with the SEC complied as to form in all material respects with the published rules and regulations of the SEC with respect thereto and (b) fairly present in all material respects, in conformity with GAAP applied on a consistent basis (except as may be indicated in the notes thereto), the consolidated financial position of the Company and its consolidated Subsidiaries as of the dates thereof and their consolidated results of operations and cash flows for the periods then ended (subject to normal year-end audit adjustments and the absence of footnotes in the case of any unaudited interim financial statements).

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Section 4.09. Disclosure Documents. (a) The information supplied by the Company for inclusion or incorporation by reference in the registration statement on Form S-4 or any amendment or supplement thereto pursuant to which Parent Shares issuable as part of the Merger Consideration will be registered with the SEC (the “Registration Statement”) shall not at the time the Registration Statement is declared effective by the SEC (or, with respect to any post-effective amendment or supplement, at the time such post-effective amendment or supplement becomes effective) contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The information supplied by the Company for inclusion in the proxy statement/prospectus, or any amendment or supplement thereto, to be sent to the Company stockholders in connection with the Merger and the other transactions contemplated by this Agreement (the “Proxy Statement/Prospectus”) shall not, on the NYSE (it being understooddate the Proxy Statement/Prospectus, and agreed thatany amendments or supplements thereto, is first mailed to the factsstockholders of the Company or at the time of a meeting of such stockholders for purpose of adopting this Agreement and approving the Merger (including any adjournment or postponement thereof, the “Company Meeting”) or Requisite Company Vote contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances that may have given riseunder which they were made, not misleading.

(b) The representations and warranties contained in this Section 4.09 will not apply to statements or contributed to such change (but in no event changesomissions included or incorporated by reference in the trading priceRegistration Statement or Proxy Statement/Prospectus based upon information supplied in writing by Parent, Merger Sub or any of Parent Stock)their representatives or advisors specifically for use or incorporation by reference therein.

Section 4.10. Absence of Certain Changes. Since the Company Balance Sheet Date through the date of this Agreement, (a) the business of the Company and its Subsidiaries has been conducted in the ordinary course of business in all material respects, (b) there has not been any event, change, occurrence, development or state of circumstances or facts that are not otherwise excluded fromhas had or would reasonably be expected to have, individually or in the definition ofaggregate, a Company Material Adverse Effect mayand (c) none of the Company or any of its Subsidiaries has taken or agreed or omitted to take any action that, if taken or omitted during the period from the date of this Agreement through the Effective Time without Parent’s consent, would constitute a breach of Section 6.01(a), Section 6.01(b), Section 6.01(c), Section 6.01(d), Section 6.01(g), Section 6.01(j), Section 6.01(k), Section 6.01(m), Section 6.01(n), Section 6.01(o), Section 6.01(p) or, as it relates to the foregoing, Section 6.01(s).

Section 4.11. No Undisclosed Material Liabilities. There are no liabilities or obligations of the Company or any of its Subsidiaries of any kind whatsoever, whether accrued, contingent, absolute, known or unknown, determined, determinable, due or to become due or otherwise, and there is no existing condition, situation or set of circumstances that could reasonably be taken into accountexpected to result in determining whether there has beensuch a liability or obligation, other than: (a) liabilities or obligations disclosed and provided for in the Company Balance Sheet or in the notes thereto; (b) liabilities or obligations incurred in the ordinary course of business since the Company Balance Sheet Date (but excluding violations of law or regulation, compliance matters, internal investigations, major spills or pipeline damage, breaches of Contracts or Permits, torts or infringement); (c) liabilities incurred in connection with the Merger; and (d) liabilities or obligations that have not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect);Effect.

Section 4.12. Compliance with Laws, Permits and (H)Court Orders. (a) The Company and each of its Subsidiaries is, and since the Applicable Date, has been, in compliance with, is not, to the termsKnowledge of the Company, under investigation with respect to, nor has been threatened in writing, to be charged with or the takinggiven notice of any action required by, this Agreement;violation of, any Applicable Law, except for failures to the extent such effectscomply or violations that have not had and would not reasonably be expected to have, individually or in the casesaggregate, a Company Material Adverse Effect. There is no judgment, decree, injunction, rule or order of clauses (A), (B), (C) and (E) above materially and disproportionately effectany arbitrator or Governmental Authority outstanding against the Company or any of its Subsidiaries: (i) that is or would reasonably be expected to be, individually or in the aggregate, material to the Company and its Subsidiaries, relativetaken as a whole; or (ii) that is outstanding as of the date hereof and that in any manner seeks to prevent, enjoin, alter or materially delay the Merger or any of the other participantstransactions contemplated hereby.

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(b) Except as has not had and would not reasonably be expected to have, individually or in the industryaggregate, a Company Material Adverse Effect, (i) the Company and each of its Subsidiaries has all Permits necessary to own, lease and operate its properties and assets and to carry on its business as now conducted, (ii) the Company and each of its Subsidiaries is in compliance with the terms and requirements of such Permits, (iii) such Permits are in full force and effect and are not subject to any pending or industriesthreatened Action by any Governmental Authority to suspend, cancel, modify, terminate or revoke any such Permit and (iv) since the Applicable Date, there has occurred no violation by the Company or any of its Subsidiaries of, or default (with or without notice or lapse of time, or both) that would reasonably be expected to result in whichany suspension, cancellation, modification, termination or revocation of any such Permit.

(c) The Company, each of its Subsidiaries, and each of their respective directors, officers and, to the Knowledge of the Company, employees (in connection with their activities on behalf of the Company or any of its Subsidiaries) are, and since the Applicable Date have been, in compliance in all material respects with (i) the Foreign Corrupt Practices Act of 1977 and all other applicable anti-corruption laws, (ii) all economic sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control or the U.S. Department of State (collectively, “Sanctions”) and (iii) all applicable export controls laws.

(d) None of the Company or any of its Subsidiaries, or any director or officer, or, to the Company’s Knowledge, any Affiliate or representative of the Company or any of its Subsidiaries, is a Person that is, or is owned or controlled by Persons that are: (i) the subject of any Sanctions or (ii) located, organized or resident in a country or region that is the subject of Sanctions.

Section 4.13. Insurance. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (a) all insurance policies of the Company and its Subsidiaries operate (inrelating to the business, assets and operations of the Company and its Subsidiaries in effect as of the date of this Agreement are in full force and effect and (b) no notice of cancellation or modification has been received by the Company relating to any material insurance policy of the Company, and there is no existing default or event which, eventwith the extentgiving of notice or lapse of time or both, would constitute a default by any insured under such insurance policies. Section 4.13 of the Company Disclosure Schedule sets forth all material insurance policies held by the Company and disproportionate effectits Subsidiaries as of the date hereof.

Section 4.14. Litigation. There is no Action pending against, threatened in writing against or, to the Knowledge of the Company, otherwise threatened against, the Company, any of its Subsidiaries, any present or former officer, director or employee of the Company or any of its Subsidiaries or any Person for whom the Company or any of its Subsidiaries may be taken into accountliable or any of their respective properties before (or, in determining whetherthe case of threatened Actions, would be before) or by any Governmental Authority or arbitrator, that would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Since the Applicable Date through the date hereof, there has not been any internal investigation conducted by the Company or the Company Board (or any committee thereof) concerning any material allegations of fraud or malfeasance. Since the Applicable Date, there has been no material allegation of fraud or malfeasance involving the Company any of its Subsidiaries or any their respective assets.

Section 4.15. Properties. (a) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the Company and its Subsidiaries have good title to, or valid leasehold interests in, all property and assets reflected on the Company Balance Sheet or acquired after the Company Balance Sheet Date, except as have been disposed of since the Company Balance Sheet Date in the ordinary course of business.

(b) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) each lease, sublease or license (each, a “Lease”) under which the Company or any of its Subsidiaries leases, subleases or licenses any material real property is valid and in full force and effect (subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Applicable Laws

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affecting creditors’ rights generally and general principles of equity), free and clear of all Liens other than Permitted Liens and (ii) neither the Company nor any of its Subsidiaries, nor to the Company’s Knowledge any other party to a Lease, has occurred)violated any provision of, or taken or failed to take any act which, with or without notice, lapse of time, or both, would constitute a default under the provisions of such Lease, and neither the Company nor any of its Subsidiaries has received notice that it has breached, violated or defaulted under any Lease.

(c) Each of the Company and its Subsidiaries has such consents, easements, rights-of-way, fee assets, permits, servitudes and licenses (including rights to use the surface or subsurface under an Oil and Gas Lease) from each Person (collectively, “Rights-of-Way”) as are sufficient to conduct its business as it is presently conducted, except for such Rights-of-Way the absence of which would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. No event has occurred that allows, or after notice or lapse of time would allow, revocation or termination thereof or would result in any impairment of the rights of the holder of any such Rights-of-Way, except for such revocations, terminations and impairments that would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. All Pipelines owned or operated by the Company and any of its Subsidiaries are subject to Rights-of-Way or are located on real property owned or leased by the Company or its Subsidiaries, and there are no gaps (including any gap arising as a result of any violation, breach or default by the Company or any of its Subsidiaries of the terms of any Rights-of-Way) in the Rights-of-Way other than gaps that would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, no Right-of-Way contains a requirement that the holder thereof make royalty or other payments based, directly or indirectly, on the throughput of Hydrocarbons on or across such Right-of-Way (other than customary royalties under Oil and Gas Leases based solely on Hydrocarbons produced from such Oil and Gas Lease).

Section 4.16. Intellectual Property; IT Assets; Data Privacy and Security. (a) Section 4.16(a)of the Company Disclosure Schedule sets forth a complete and correct list as of the date hereof of all registrations, issuances and applications for registration or issuance of Company IP comprising trademarks, patents, copyrights and domain names (“Registered IP”). Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) the Company and its Subsidiaries solely and exclusively own all of the Company IP, and, to the Knowledge of the Company, hold their rights in the Licensed IP, in each case, free and clear of any Liens (other than Permitted Liens), (ii) the Company and each of its Subsidiaries own or have a valid and, to the Knowledge of the Company, enforceable license or other right to use all Intellectual Property used or held for use in, or necessary for, the conduct of its business as currently conducted, (iii) all Registered IP is subsisting and valid and, to the Knowledge of the Company, is enforceable, (iv) neither the Company nor its Subsidiaries, nor the conduct of their respective businesses, has infringed, misappropriated, diluted or otherwise violated, or is infringing, misappropriating, diluting or otherwise violating, the Intellectual Property rights of any Person, (v) to the Knowledge of the Company, no Person has challenged, infringed, misappropriated, diluted, tarnished or otherwise violated any Company IP or any rights of the Company or any of its Subsidiaries in any Licensed IP, (vi) neither the Company nor any of its Subsidiaries is subject to any Action, nor, to the Knowledge of the Company, is any Action threatened against the Company or any of its Subsidiaries, with respect to any Intellectual Property owned, used or held for use by the Company or any of its Subsidiaries or alleging that any services provided, processes used or products manufactured, used, imported, offered for sale or sold by the Company or any of its Subsidiaries infringes, misappropriates, dilutes or otherwise violates any Intellectual Property rights of any Person, (vii) the Company and its Subsidiaries have taken commercially reasonable actions to maintain, enforce and protect all Company IP and none of the Company IP has been adjudged invalid or unenforceable in whole or in part, (viii) the Company and its Subsidiaries have taken commercially reasonable steps designed to maintain the confidentiality of all Trade Secrets owned, used or held for use by the Company or any of its Subsidiaries, and none of such Trade Secrets has been disclosed other than to employees, contractors, consultants, representatives and agents of the Company or any of its Subsidiaries under appropriate written confidentiality agreements or comparable professional obligations of confidentiality, (ix) the Company and each of its Subsidiaries have either entered into binding, written agreements with their

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respective current and former employees and independent contractors who have participated in the development of any material Intellectual Property for or on behalf of the Company or such Subsidiary, as applicable, whereby such employees and independent contractors presently assign to the Company or such Subsidiary, as applicable, any ownership interest and right they may have in all such Intellectual Property, or have had such current and former employees and independent contractors assign to the Company or such Subsidiary, as applicable, any ownership interest and rights they may have in all such Intellectual Property by operation of law, (x) the consummation of the transactions contemplated by this Agreement will not (A) materially alter, encumber, extinguish or impair the Company IP or the Company’s or its Subsidiaries’ right to use any Licensed IP or (B) to the Knowledge of the Company, encumber any of the Intellectual Property owned or licensed by Parent or any of its Affiliates, and (xi) there exist no restrictions on the disclosure, use, license or transfer of the Company IP.

(b) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) the IT Assets operate and perform in a manner that permits the Company and its Subsidiaries to conduct their respective businesses as currently conducted, (ii) the Company and its Subsidiaries have taken commercially reasonable actions, consistent with current industry standards and Applicable Data Protection Requirements, designed to protect the confidentiality, integrity and security of the IT Assets (and all information and transactions stored or contained therein or transmitted thereby) against any unauthorized use, access, interruption, modification or corruption, including the implementation of commercially reasonable data backup, disaster avoidance and recovery procedures, business continuity procedures, multi-factor authentication procedures and encryption and other security protocol technology, and (iii) there has been no breach, or unauthorized use, access, interruption, modification or corruption, of any IT Assets (or any information or transactions stored or contained therein or transmitted thereby).

(c) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) the Company and its Subsidiaries have at all times complied, and are currently in compliance, with all Applicable Data Protection Requirements, (ii) no Actions are pending or, to the Knowledge of the Company, threatened against the Company or any of its Subsidiaries by any Person alleging a violation of any Applicable Data Protection Requirement or such Person’s privacy, personal or confidentiality rights, nor, to the Knowledge of the Company, are any investigations by any Governmental Authorities pending against the Company or any of its Subsidiaries relating to any Applicable Data Protection Requirements, (iii) the Company and its Subsidiaries have implemented and maintained commercially reasonable physical, technical, and organizational measures designed to protect all IT Assets and Personal Information in their possession or control against a breach, or unauthorized use, access, exfiltration, destruction, alteration, disclosure, loss, theft, interruption, modification or corruption, thereof (“Data Breach”), including procedures with respect to notification of any Data Breach that are required under any Applicable Data Protection Requirements, and (iv) there has been no Data Breach with respect to any such Personal Information, and the Company and its Subsidiaries have not been required under any Applicable Data Protection Requirement to provide any notice to any Governmental Authority or Person in connection with any Data Breach.

Section 4.17. Taxes.

(a) All material Tax Returns required to be filed by Applicable Law by, or on behalf of, the Company or any of its Subsidiaries have been timely filed (taking into account valid extensions of time to file), and all such Tax Returns are true, complete and correct in all material respects. Each of the Company and each of its Subsidiaries has timely paid (or has had paid on its behalf) in full to the appropriate Governmental Authority all material Taxes due and payable by it, whether or not shown as due on any Tax Returns.

(b) Each of the Company and each of its Subsidiaries has properly and timely withheld or collected and timely paid, or is properly holding for timely payment, all material Taxes required to be withheld, collected and paid over by it under Applicable Law, and each of the Company and each of its Subsidiaries has complied in all material respects with all related information reporting, withholding and record retention requirements.

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(c) There is no Action in respect of a material amount of Taxes of the Company and its Subsidiaries that is currently being conducted or, to the Knowledge of the Company, threatened in writing by a Governmental Authority. There are no outstanding requests for filings or determinations in respect of any material Tax or Tax asset between the Company or any of its Subsidiaries and any Governmental Authority.

(d) No material Tax deficiency has been asserted in writing against the Company or any of its Subsidiaries that has not been resolved or paid in full. Within the past six years, no material written claim has been made by any Governmental Authority in a jurisdiction where the Company or a Subsidiary of the Company does not file a particular type of Tax Return or pay a particular type of Tax that the Company or a Subsidiary of the Company is or may be required to file such Tax Return or pay such Tax.

(e) There are no Liens on any of the assets of the Company or any of its Subsidiaries attributable to a material amount of Taxes other than Permitted Liens.

(f) Neither the Company nor any of its Subsidiaries has waived any statute of limitation in respect of Taxes or agreed to any extension of time with respect to an assessment or deficiency for any material amount of Taxes, which waiver or extension is currently in effect (other than pursuant to extensions of time to file Tax Returns obtained in the ordinary course of business for no more than six months).

(g) Neither the Company nor any Subsidiary of the Company (i) is, or has been, a member of any affiliated, consolidated, combined or unitary Tax group, other than a group the common parent of which is the Company or any Subsidiary of the Company, or (ii) has any liability for any material amount of Taxes of any Person (other than the Company or current or former Subsidiary of the Company) arising from the application of Treasury Regulations Section 1.1502-6 (or any analogous provision of U.S. state or local or non-U.S. Tax law) or as a transferee or successor.

(h) Neither the Company nor any of its Subsidiaries has entered into, or participated in, any “listed transaction” within the meaning of Treasury Regulations Section 1.6011-4(b)(2).

(i) Neither the Company nor any of its Subsidiaries has taken or agreed to take any action, or has knowledge of any fact or circumstance, that could reasonably be expected to prevent or impede the Merger from qualifying as a “reorganization” within the meaning of Section 368(a) of the Code.

(j) Neither the Company nor any of its Subsidiaries has been a “distributing” corporation or a “controlled corporation” (each within the meaning of Section 355(a)(1)(A) of the Code) in any distribution of stock during the two-year period ending on the date of this Agreement that was purported or intended to be governed by Section 355 of the Code (or so much of Section 356 of the Code as relates to Section 355 of the Code).

(k) Neither the Company nor any Subsidiary of the Company is a party to, or is bound by or has any obligation under any material Tax Sharing Agreement (other than agreements solely by and among the Company and its Subsidiaries).

Section 4.18. Employee Benefit Plans. (a) Section 4.18(a) of the Company Disclosure Schedule contains a correct and complete list of each material Employee Plan. With respect to each material Employee Plan, the Company has made available to Parent true, correct and complete copies of, to the extent applicable, (i) such Employee Plan, including any amendment thereto (or, in the case of any unwritten Employee Plan, a written description thereof), (ii) each trust, insurance, annuity or other funding arrangement or amendment related thereto, (iii) the most recent summary plan description and any summary of material modifications prepared, (iv) the three most recent financial statements and actuarial or other valuation reports prepared with respect thereto, (v) the most recent determination or opinion letter from the Internal Revenue Service (the “IRS”) and (vi) the three most recent annual reports on Form 5500 (or comparable form).

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(b) Neither the Company nor any of its ERISA Affiliates (nor any predecessor of any such entity) sponsors, maintains, administers or contributes to (or has any obligation to contribute to), or has in the past six years sponsored, maintained, administered or contributed to (or had any obligation to contribute to), or has or is reasonably expected to have any direct or indirect liability with respect to, any Title IV Plan (including any liability on account of a “complete withdrawal” or a “partial withdrawal” (within the meaning of Sections 4203 and 4205 of ERISA, respectively) from any Multiemployer Plan) or any International Plan.

(c) Each Employee Plan that is intended to be qualified under Section 401(a) of the Code has received a favorable determination or opinion letter, or has pending or has time remaining in which to file, an application for such determination from the IRS, and the Company is not aware of any reason why any such determination letter should be revoked or not be issued or reissued.

(d) Each Employee Plan, and any award thereunder, that is or forms part of a “nonqualified deferred compensation plan” within the meaning of Section 409A of the Code has been timely amended (if applicable) to comply and has been operated in compliance with, and the Company and its Subsidiaries have complied in practice and operation with, all applicable requirements of Section 409A of the Code.

(e) Except as set forth on Section 4.18(e) of the Company Disclosure Schedule, neither the execution of this Agreement nor the consummation of the transactions contemplated hereby (either alone or together with any other event) will (i) entitle any current or former Service Provider to any payment or benefit, including any bonus, retention, severance, retirement or job security payment or benefit, (ii) accelerate the time of payment or vesting or trigger any payment or funding (through a grantor trust or otherwise) of compensation or benefits under, or increase the amount payable or trigger any other obligation under, any Employee Plan, (iii) limit or restrict the right of the Company or any of its Subsidiaries or, after the Closing, Parent, to merge, amend or terminate any Employee Plan or (iv) result in the payment of any amount that would not be deductible by reason of Section 280G of the Code or would be expected to be subject to an excise Tax under Section 4999 of the Code.

(f) Neither the Company nor any of its Subsidiaries has any obligation to gross-up, indemnify or otherwise reimburse any current or former Service Provider for any Tax incurred by such Service Provider, including under Section 409A or 4999 of the Code.

(g) Neither the Company nor any of its Subsidiaries has any current or projected liability for, and no Employee Plan provides or promises, any post-employment or post-retirement medical, dental, disability, hospitalization, life or similar benefits (whether insured or self-insured) to any current or former Service Provider (other than coverage mandated by Applicable Law, including COBRA).

(h) Each Employee Plan and its related trust, insurance contract or other funding vehicle has been maintained in compliance with its terms and all Applicable Law, including ERISA and the Code, except for failures to comply that would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. No action, suit, investigation, audit, proceeding or claim (other than routine claims for benefits) is pending against or involves or, to the Company’s Knowledge, is threatened against or threatened to involve, any Employee Plan before any arbitrator or any Governmental Authority, including the IRS, the Department of Labor or the PBGC, which, individually or in the aggregate, if determined or resolved adversely in accordance with the plaintiff’s demands, could reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

(i) There has been no amendment to, written interpretation or announcement (whether or not written) by the Company or any of its Affiliates relating to, or change in employee participation or coverage under, an Employee Plan which would increase materially the expense of maintaining such Employee Plan above the level of the expense incurred in respect thereof for the fiscal year ended prior to the date hereof.

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(j) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, all contributions, premiums and payments that are due have been made for each Employee Plan within the time periods prescribed by the terms of such plan and Applicable Law, and all contributions, premiums and payments for any period ending on or before the Closing Date that are not due are properly accrued to the extent required to be accrued under applicable accounting principles and have been properly reflected on the Company Balance Sheet or disclosed in the notes thereto.

Section 4.19. Labor Matters. (a) Neither the Company nor any of its Subsidiaries is a party to or otherwise bound by any Collective Bargaining Agreement or any other Contract with a labor union or similar labor organization, and, to the Company’s Knowledge, no Person has applied to the National Labor Relations Board to be certified as the bargaining agent of any Company Employee with respect to such employee’s employment with the Company and its Subsidiaries.

(b) There are no unfair labor practice complaints pending or, to the Company’s Knowledge, threatened against the Company or any of its Subsidiaries before the National Labor Relations Board or any other Governmental Authority or any current union representation questions involving Company Employees. There is no, and there has not been since the Applicable Date, labor strike, slowdown, stoppage, picketing, interruption of work or lockout pending or, to the Company’s Knowledge, threatened against the Company or any of its Subsidiaries.

(c) Neither the Company nor any of its Subsidiaries currently employs or engages any Service Provider outside of the U.S.

(d) The Company and its Subsidiaries are, and have been since the Applicable Date, in compliance with all Applicable Laws relating to labor and employment, including those relating to labor management relations, wages, hours, overtime, employee classification, discrimination, civil rights, affirmative action, work authorization, immigration, safety and health, information privacy and security, workers compensation, continuation coverage under group health plans, wage payment, and the payment and withholding of Taxes, except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

(e) Since the Applicable Date, except as has not had and would not reasonably be expected to, individually or in the aggregate, material to the Company and its Subsidiaries, taken as a whole, (i) no allegations of sexual harassment, sexual abuse, or other sexual misconduct have been made against any Service Provider of the Company or any of its Subsidiaries with respect to actions taken in the course of employment or engagement with the Company or its Subsidiaries and (ii) there are no proceedings pending or, to the Knowledge of the Company, threatened related to allegations of sexual harassment, sexual abuse or other sexual misconduct by any Service Provider of the Company or any of its Subsidiaries. Since the Applicable Date, except as has not had and would not reasonably be expected to result in material liability to the Company and its Subsidiaries, taken as a whole, neither the Company nor any of its Subsidiaries has entered into any settlement agreements related to allegations of sexual harassment, sexual abuse or other sexual misconduct by any Service Provider of the Company or any of its Subsidiaries.

(f) Since the Applicable Date, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the Company and its Subsidiaries are in compliance with WARN and has no liabilities thereunder and have not taken any action during the 90-day period prior to the date hereof, or will take any action, that would reasonably be expected to cause Parent or any of its Affiliates or the Surviving Corporation or any of its successors or assigns to have any liability following the Closing Date under WARN.

Section 4.20. Environmental Matters. (a) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect: (i) no notice, notification, demand, request for

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information, citation, summons or order has been received, no complaint has been filed, no penalty has been assessed, and no Action is pending or, to the Knowledge of the Company, threatened by any Person relating to the Company or any of its Subsidiaries under or relating to any Environmental Law, Hazardous Substance or Environmental Permit; (ii) the Company and its Subsidiaries are and for the past three years have been in compliance with all Environmental Laws, and such compliance includes obtaining, maintaining, timely renewing, and complying with, all Environmental Permits; (iii) there has been no Release of any Hazardous Substance at, from, in, on, under, to or about (A) any property currently or, to the Knowledge of the Company, formerly owned, leased or operated by, or (B) to the Knowledge of the Company, any property or facility to which any Hazardous Substance has been transported for disposal, recycling or treatment by or on behalf of, in each case the Company or any of its Subsidiaries (or any of their respective predecessors); and (iv) the Company has made available to Parent complete and accurate copies of all environmental assessment and audit reports and studies that relate to the Company or its Subsidiaries (or any of their respective predecessors), in each case that are in the Company’s possession, custody or control.

(b) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the consummation of the transactions contemplated hereby requires no filings or notifications to be made or actions to be taken pursuant to any financial assurance, bond, letter of credit or similar instrument required for the operations of the Company or its Subsidiaries under any Environmental Law or Environmental Permit.

(c) The consummation of the transactions contemplated herein does not subject any Company owned or leased real property interest to the New Jersey Industrial Site Recovery Act (N.J.A.C. 7:26B) or the Connecticut Property Transfer Law (Conn. Gen. Stat. § 22a-134,et seq. as amended by Public Act 01-204).

Section 4.21. Oil and Gas Matters. (a) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, and except for property (i) sold, leased or otherwise disposed of in the ordinary course of business since the dates of the reserve reports prepared by DeGolyer and MacNaughton (collectively, the Company StockIndependent Petroleum Engineersmeansand such reserve reports, the common stock, $0.01 par value,Company Independent Reserve Reports”) relating to the Company’s and its Subsidiaries’ interests referred to therein as of December 31, 2022, (ii) reflected in the Company Independent Reserve Report or in the Company SEC Documents as having been sold, leased or otherwise disposed of prior to the date hereof, or (iii) sold, leased or otherwise disposed of as permitted under Section 6.01, the Company and its Subsidiaries have Defensible Title to all Oil and Gas Properties forming the basis for the reserves reflected in the Company Independent Reserve Report and in each case as attributable to interests owned by the Company and its Subsidiaries. For purposes of the Company.

foregoing sentence, Company 10-KDefensible Title” means the Company’s or one or more of its Subsidiaries’, as applicable, title (as of the date hereof and as of the Closing) to each of the Oil and Gas Properties held or owned by them (or purported to be held or owned by them) that (A) entitles the Company (or one or more of its Subsidiaries, as applicable) to receive (after satisfaction of all Production Burdens applicable thereto), not less than the net revenue interest share shown in the Company Independent Reserve Report of all Hydrocarbons produced from or allocated to such Oil and Gas Properties throughout the life of such Oil and Gas Properties and (B) is free and clear of all Liens (other than Permitted Liens).

(b) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the factual, non-interpretive data supplied by the Company to the Company Independent Petroleum Engineers relating to the Oil and Gas Properties referred to in the Company Independent Reserve Reports that was material to such firm’s estimates of proved oil and gas reserves attributable to the Oil and Gas Properties of the Company and its Subsidiaries in connection with the preparation of the Company Independent Reserve Reports was, as of the time provided, accurate in all respects. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the oil and gas reserve estimates of the Company set forth in the Company Independent Reserve Reports are derived from reports that have been prepared by the Company Independent Petroleum Engineers, and such reserve estimates fairly reflect, in all respects, the oil and gas reserves of the Company and its Subsidiaries at the dates indicated

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therein and are in accordance with SEC guidelines applicable thereto applied on a consistent basis throughout the periods involved. Except for changes generally affecting the oil and gas exploration, development and production industry (including changes in commodity prices) and normal depletion by production, there has been no change in respect of the matters addressed in the Company Independent Reserve Reports that would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

(c) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) all rentals, shut-ins and similar payments owed to any Person under (or otherwise with respect to) any Oil and Gas Leases owned or held by the Company or any of its Subsidiaries have been properly and timely paid or contested in good faith in the ordinary course of business, as to which reserves have been taken in accordance with GAAP, (ii) all royalties, minimum royalties, overriding royalties and other Production Burdens with respect to any Oil and Gas Properties owned or held by the Company or any of its Subsidiaries have been timely and properly paid or contested in good faith in the ordinary course of business, as to which reserves have been taken in accordance with GAAP and (iii) none of the Company or any of its Subsidiaries (and, to the Company’s Knowledge, no third-party operator) has violated any provision of, or taken or failed to take any act that, with or without notice, lapse of time, or both, would constitute a default under the provisions of any Oil and Gas Lease (or entitle the lessor thereunder to cancel or terminate such Oil and Gas Lease) included in the Oil and Gas Properties owned or held by the Company or any of its Subsidiaries.

(d) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, all proceeds from the sale of Hydrocarbons produced from the Oil and Gas Properties of the Company and its Subsidiaries are being received by them in a timely manner (other than those being contested in good faith in the ordinary course of business, as to which reserves have been taken in accordance with GAAP) and are not being held in suspense (by the Company, any of its Subsidiaries, any third-party operator thereof or any other Person) for any reason other than awaiting preparation and approval of division order title opinions and the receipt of division orders for execution for recently drilled Wells. Neither the Company nor any of its Subsidiaries is obligated by virtue of a take-or-pay payment, advance payment, or similar payment (other than royalties, overriding royalties, deliveries required to resolve imbalances and similar arrangements established in the Oil and Gas Leases owned or held by the Company or its Subsidiaries) to deliver Hydrocarbons or proceeds from the sale thereof, attributable to such Person’s interest in the Oil and Gas Properties at some future time without receiving payment therefor at the time of delivery, except, in each case, as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

(e) All of the Wells and all water, carbon dioxide, injection or other wells (i) located on the Oil and Gas Properties of the Company and its Subsidiaries or on the Units included in the Oil and Gas Properties owned or held by the Company or its Subsidiaries or (ii) otherwise associated with an Oil and Gas Property of the Company or its Subsidiaries, have been drilled, completed and operated within the limits permitted by the applicable Contracts and Oil and Gas Leases entered into by the Company or any of its Subsidiaries (or their respective predecessor in interest) related to such wells and in compliance with Applicable Law, and all drilling and completion (and plugging and abandonment, if applicable) of such wells and all related development, production and other operations with respect to such wells have been conducted in compliance with all Applicable Law except, in each case, as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

(f) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, none of the Oil and Gas Properties of the Company or its Subsidiaries is subject to any preferential purchase, consent or similar right that would become operative as a result of the Merger and the other transactions contemplated by this Agreement.

(g) All Oil and Gas Properties operated by the Company and its Subsidiaries have been operated in accordance with reasonable, prudent oil and gas field practices, except where the failure to so operate would not reasonably have, individually or in the aggregate, a Company Material Adverse Effect.

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Section 4.22. Material Contracts. (a) Except as set forth in Section 4.22(a) of the Company Disclosure Schedule, as of the date hereof, neither the Company nor any of its Subsidiaries is party to or bound by any Contract:

(i) that would be required to be filed by the Company as a “material contract” pursuant to Item 601(b)(10) of Regulation S-K under the 1933 Act;

(ii) that are employment, independent contractor, consulting, severance or similar agreements with any individual (or such individual’s alter ego entity) under which the Company or any of its Subsidiaries is or could become obligated to provide a base salary or annual consulting fees in excess of $500,000;

(iii) that (or, together with additional related Contracts with the same Person or its Affiliates) (A) involves the payment or receipt of amounts by the Company or any of its Subsidiaries of more than $35,000,000 in the calendar year ended December 31, 2022 or any subsequent calendar year or (B) is material to the CCUS Business and cannot be cancelled at any time by the Company or its applicable Subsidiary without penalty or further payment on no more than ninety (90) days’ notice;

(iv) that are partnership, strategic alliance or joint venture agreements (A) if the interest of the Company or any of its Subsidiaries therein has an aggregate book value in excess of $35,000,000 or (B) that are material to the CCUS Business;

(v) that provides for the acquisition or disposition, directly or indirectly (by merger or otherwise) of assets (including properties) or capital stock (other than acquisitions or dispositions of Hydrocarbons or inventory and raw materials and supplies in the ordinary course of business) (A) for aggregate consideration under such Contract in excess of $25,000,000 or (B) pursuant to which the Company or its Subsidiaries has continuing material “earn-out” or other contingent payment obligations;

(vi) providing for material indemnification by the Company or any its Subsidiaries, other than indemnification obligations in (A) customary joint operating agreements and (B) commercial agreements, in each case, in the ordinary course of business relating to the EOR Business;

(vii) that contains any “most favored nation” or most favored customer provision, preferential right or rights of first or last offer, negotiation or refusal (other than customary preferential rights in customary joint operating agreements entered into relating to the EOR Business in the ordinary course of business);

(viii) that contains a put, call or similar right pursuant to which the Company or any of its Subsidiaries could be required to purchase or sell, as applicable, any assets or any equity interests of any Person (excluding, in respect of the foregoing, agreements between the Company and its wholly-owned Subsidiaries);

(ix) that materially restricts or purports to materially restrict the ability of the Company or any of its Affiliates to compete with, or to provide services in any line of business or with any Person or in any geographic area or market segment, in each case that would be applicable to the Surviving Corporation or any of its Subsidiaries or the Parent or any of its Subsidiaries following the Effective Time;

(x) that is a Collective Bargaining Agreement;

(xi) containing any swap, cap, floor, collar, futures contract, forward contract, option and any other derivative financial instrument, contract or arrangement, based on any commodity, security, instrument, asset, rate or index of any kind or nature whatsoever (other than hedges or forward Contracts entered into in the ordinary course of business);

(xii) (A) with (1) any beneficial owner (as defined in Rule 13d-3 under the 1934 Act) of 5% or more of any class of securities of the Company or any of its Subsidiaries who has filed a Schedule 13D or Schedule 13G

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under the 1934 Act (or, to the Company’s Knowledge, is required to make such a filing), or (2) any director or officer of the Company or any of its Subsidiaries or (B) that is required to be disclosed under Item 404 of Regulation S-K promulgated under the 1933 Act;

(xiii) that (A) evidences Indebtedness for borrowed money of the Company or any Subsidiary of the Company (committed or outstanding) in excess of $15,000,000, (B) evidences a capitalized lease obligation in excess of $15,000,000 that is required to be classified as a balance sheet liability of the Company in accordance with GAAP or (C) restricts the payment of dividends or other distribution of assets by any of the Company or its Subsidiaries;

(xiv) that would be required to be scheduled against Section 4.04 if in existence as of the date hereof;

(xv) requiring future capital expenditures by the Company or any of its Subsidiaries other than any capital expenditure contemplated by Section 6.01(e) of the Company Disclosure Schedule;

(xvi) under which the Company or any of its Subsidiaries (A) grants any right, license or covenant not to sue with respect to any Intellectual Property (other than non-exclusive licenses granted to customers or vendors in the ordinary course of business) or (B) obtains any right, license or covenant not to be sued with respect to any Intellectual Property owned by any third party (other than licenses for commercial off-the-shelf software which are generally available on non-discriminatory pricing terms); or

(xvii) that is the subject of any Action individually in excess of $5,000,000 and under which there are outstanding obligations (including settlement agreements) of the Company or any of its Subsidiaries.

(b) The Company has made available to Parent a true and complete copy of each Contract listed or required to be listed in Section 4.22(a) of the Company Disclosure Schedule (such Contracts, together with any Contract to which the Company or any of its Subsidiaries becomes a party or by which it becomes bound after the date hereof that would be required to be listed in Section 4.22(a) of the Company Disclosure Schedule if in effect as of the date hereof, the “Material Contracts” and each, a “Material Contract”). Except for breaches, violations or defaults which would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) each of the Material Contracts is valid, binding obligation of the Company, and to the Knowledge of the Company, each other party thereto, and in full force and effect, in each case subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles (whether considered in a proceeding in equity or at law), and (ii) since the Applicable Date, neither the Company nor any of its Subsidiaries, nor to the Knowledge of the Company any other party to a Material Contract, has breached or violated any provision of, or taken or failed to take any act which, with or without notice, lapse of time, or both, would constitute a breach or default under the provisions of such Material Contract, and neither the Company nor any of its Subsidiaries has received notice that it has breached, violated or defaulted under any Material Contract.

Section 4.23. Affiliate Transactions. Neither the Company nor any Subsidiary of the Company is a party to any Contract or other transaction, agreement or binding arrangement or understanding between the Company or its Subsidiaries, on the one hand, and any Affiliates thereof (other than wholly owned Subsidiaries of such Person) on the other hand.

Section 4.24. Finders Fees. Except for J.P. Morgan Securities LLC (“JPM”), Perella Weinberg Partners L.P. (“PWP”) and PJT Partners LP (“PJT”),there is no financial advisor, investment banker, broker, finder or other intermediary that has been retained by or is authorized to act on behalf of the Company or any of its Subsidiaries who might be entitled to any fee or commission from the Company or any of its Affiliates in connection with the transactions contemplated by this Agreement.

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Section 4.25. Opinion of Financial Advisors.

(a) The Company Board has received an opinion of JPM, to the effect that, as of the date of such opinion, the Merger Consideration to be paid to the holders of the Company Shares in the Merger is fair, from a financial point of view, to such holders. A written copy of such opinion will be delivered promptly after the date hereof to Parent for informational purposes only.

(b) The Company Board has received an opinion of PWP, to the effect that, as of the date of such opinion, the Merger Consideration to be received by holders of outstanding Company Shares (other than Parent and its affiliates) in the proposed Merger pursuant to this Agreement is fair, from a financial point of view, to such holders. A written copy of such opinion will be delivered promptly after the date hereof to Parent for informational purposes only.

(c) The Company Board has received an opinion of PJT, to the effect that, as of the date of such opinion, the Merger Consideration to be received by the holders of the Company Shares in the Merger is fair to such holders from a financial point of view. A written copy of such opinion will be delivered promptly after the date hereof to Parent for informational purposes only.

Section 4.26. Antitakeover Statutes. The restrictions applicable to business combinations contained in Section 203 of the DGCL (or any other antitakeover or similar statute or regulation) are inapplicable to the execution, delivery and performance of this Agreement and the consummation of the Merger and the other transactions contemplated hereby. No other “control share acquisition,” “fair price,” “moratorium” or other antitakeover laws enacted under U.S. state or federal laws apply to this Agreement or any of the transactions contemplated hereby. There is no rights agreement, stockholder rights plan, tax preservation plan, net operating loss preservation plan or “poison pill” antitakeover plan in effect to which the Company or any of its Subsidiaries is subject, party to or otherwise bound.

Section 4.27. No Other Representations or Warranties.

(a) Except for the representations and warranties made in this Article 4, as qualified by the Company Disclosure Schedule, or any certificate delivered pursuant to this Agreement, neither the Company nor any other Person makes any express or implied representation or warranty with respect to the Company or its Subsidiaries or their respective businesses, operations, assets, liabilities or conditions (financial or otherwise) in connection with this Agreement, the Merger or the transactions contemplated hereby, and the Company hereby disclaims any such other representations or warranties. In particular, without limiting the foregoing disclaimer, except as expressly provided in this Article 4, as qualified by the Company Disclosure Schedule, or any certificate delivered pursuant to this Agreement, neither the Company nor any other Person makes or has made any representation or warranty to Parent or any of its Affiliates or Representatives with respect to (i) any financial projection, forecast, estimate, budget or prospect information relating to the Company or any of its Subsidiaries or their respective business; or (ii) any oral or written information presented to Parent or any of its Affiliates or Representatives in the course of their due diligence investigation of the Company, the negotiation of this Agreement or in the course of the Merger or the transactions contemplated hereby.

(b) The Company acknowledges and agrees that the representations and warranties by Parent and Merger Sub set forth in this Agreement constitute the sole and exclusive representations and warranties of such parties in connection with the transactions contemplated hereby, and the Company understands, acknowledges and agrees that all other representations and warranties of any kind or nature whether express, implied or statutory are specifically disclaimed by Parent and Merger Sub.

ARTICLE 5

REPRESENTATIONSAND WARRANTIESOF PARENT

Subject to Section 11.05, except (x) as disclosed in any Parent SEC Document filed with or furnished to the SEC and publicly available since January 1, 2022 through the Business Day prior to the date of this Agreement

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(but excluding any general cautionary or forward-looking statements contained in the “Risk Factors” section or “Forward-Looking Statements” and any other statements that are similarly cautionary, predictive or forward-looking in nature, in each case other than any description of historical facts or events included therein); provided that this clause (x) shall not apply to the representations and warranties set forth in Sections 5.05 or 5.06(b), or (y) as set forth in the Parent Disclosure Schedule, Parent represents and warrants to the Company that:

Section 5.01. Corporate Existence and Power. Each of Parent and Merger Sub is a corporation duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation and has all corporate powers and all governmental licenses, authorizations, permits, consents and approvals required to carry on its business as now conducted, except for those licenses, authorizations, permits, consents and approvals the absence of which have not had and would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect. Since the date of its incorporation, Merger Sub has not engaged in any activities other than in connection with or as contemplated by this Agreement.

Section 5.02. Corporate Authorization. Each of Parent and Merger Sub has all requisite corporate power and authority, as applicable, to perform its obligations hereunder and consummate the Merger. The execution, delivery and performance by Parent and Merger Sub of this Agreement and the consummation by Parent and Merger Sub of the transactions contemplated hereby are within the corporate powers of Parent and Merger Sub and have been duly authorized by all necessary corporate action on the part of Parent and Merger Sub, except for the adoption of this Agreement by the sole stockholder of Merger Sub. Each of Parent and Merger Sub has duly executed and delivered this Agreement, and, assuming due authorization, execution and delivery by the Company, this Agreement constitutes a valid and binding agreement of each of Parent and Merger Sub, enforceable against Parent and Merger Sub in accordance with its terms (subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other similar Applicable Laws affecting creditors’ rights generally and general principles of equity).

Section 5.03. Governmental Authorization. The execution, delivery and performance by Parent and Merger Sub of this Agreement and the consummation by Parent and Merger Sub of the transactions contemplated hereby require no action by or in respect of, or filing by or with respect to Parent or Merger Sub with, any Governmental Authority, other than (a) the filing of a certificate of merger with respect to the Merger with the Delaware Secretary of State and appropriate documents with the relevant authorities of other states in which Parent is qualified to do business, (b) compliance with any applicable requirements of the HSR Act, (c) compliance with any applicable requirements of the NYSE, 1933 Act, the 1934 Act and any other state or federal securities laws, (d) any of the actions or filings set forth on Section 5.03 of the Parent Disclosure Schedule and (e) any actions or filings the absence of which would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect.

Section 5.04. Non-contravention. The execution, delivery and performance by Parent and Merger Sub of this Agreement and the consummation by Parent and Merger Sub of the transactions contemplated hereby do not and will not (a) contravene, conflict with, or result in any violation or breach of any provision of the certificate of incorporation or bylaws of Parent or Merger Sub, (b) assuming compliance with the matters referred to in Section 5.03, contravene, conflict with, or result in a violation or breach of any provision of any Applicable Law or (c) assuming compliance with the matters referred to in Section 5.03, require payment or notice to, or any consent or other action by any Person under, constitute a breach or default, or an event that, with or without notice or lapse of time or both, would constitute a violation or breach of, or give rise to any right of termination, suspension, cancellation, acceleration, payment or any other change of any rights or obligations of Parent or any of its Subsidiaries, or the loss of any benefit to which Parent or any of its Subsidiaries is entitled under any provision of any Contract binding on Parent or any of its Subsidiaries or any Permit affecting, or relating to, the assets or business of Parent and its Subsidiaries or (d) result in the creation or imposition of any Lien on any asset of Parent or any of its Subsidiaries, except, in the case of each of clauses (b) through (d), as have not had and would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect.

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Section 5.05. Capitalization. (a) The authorized capital stock of Parent consists of (i) 9,000,000,000 Parent Shares and (ii) 200,000,000 shares of preferred stock, without par value (the “ParentPreferred Stock”). As of March 31, 2023, (A) 4,042,984,946 Parent Shares were issued and outstanding, (B) 38,353,868 Parent Shares were subject to awards made in the form of restricted common stock or restricted common stock units and (C) no shares of Parent Preferred Stock were issued or outstanding. All outstanding shares of capital stock of Parent have been duly authorized and validly issued, fully paid and nonassessable and free of preemptive rights.

(b) There are no outstanding bonds, debentures, notes or other Indebtedness of Parent having the right to vote (or convertible into, or exchangeable or exercisable for, securities having the right to vote) on any matters on which stockholders of the Parent may vote. As of March 31, 2023, except as set forth in this Section 5.05, there were no outstanding (i) shares of capital stock or other voting securities of or ownership interests in Parent, (ii) securities of Parent convertible into or exchangeable or exercisable for shares of capital stock or other voting securities of or ownership interests in Parent, (iii) warrants, calls, options, subscriptions, commitments, Contracts or other rights to acquire from Parent, or other obligation of Parent to issue, any capital stock or other voting securities of, or ownership interests in, or any securities convertible into or exchangeable or exercisable for capital stock or other voting securities of or ownership interests in, Parent or (iv) restricted shares, stock appreciation rights, performance shares or units, contingent value rights, “phantom” stock or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the value or price of, any capital stock or voting securities of, or ownership interests in, Parent (the items in clauses (i) through (iv), including, for the avoidance of doubt, the Parent Shares, being referred to collectively as the “Parent Securities”). Neither Parent nor any of its Subsidiaries is a party to any voting agreement with respect to the voting, registration or transfer of any Parent Securities.

(c) The Parent Shares to be issued as part of the Merger Consideration have been duly authorized and, when issued and delivered in accordance with the terms of this Agreement, will have been validly issued and will be fully paid and nonassessable and the issuance thereof is not subject to any preemptive or other similar right.

Section 5.06. Subsidiaries. (a) Each Subsidiary of Parent is an entity duly incorporated or otherwise duly organized, validly existing and (where applicable) in good standing under the laws of its jurisdiction of incorporation or organization, has all corporate, limited liability company or comparable powers and all governmental licenses, authorizations, permits, consents and approvals required to carry on its business as now conducted, except for those licenses, authorizations, permits, consents and approvals the absence of which would not, individually or in the aggregate, reasonably be expected to have a Parent Material Adverse Effect. Each such Subsidiary is duly qualified to do business as a foreign entity and is in good standing (with respect to jurisdictions that recognize such concept) in each jurisdiction where such qualification is necessary, except for those jurisdictions where failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Parent Material Adverse Effect. Parent’s annual report on Form 10-K for the fiscal year ended December 31, 2008.2022 identifies, as of its filing date, all “significant subsidiaries” (as defined under Rule 1-02(w) of Regulation S-X promulgated pursuant to the 1934 Act) (each, a “Significant Subsidiary”) of Parent and their respective jurisdictions of organization.

(b) As of the date hereof, there were no issued, reserved for issuance or outstanding (i) securities of Parent or any of its Significant Subsidiaries convertible into, or exchangeable for, shares of capital stock or other voting securities of, or ownership interests in, any of its Significant Subsidiaries, (ii) warrants, calls, options or other rights to acquire from Parent or any of its Significant Subsidiaries, or other obligations of Parent or any of its Significant Subsidiaries to issue, any capital stock or other voting securities of, or ownership interests in, or any securities convertible into, or exchangeable for, any capital stock or other voting securities of, or ownership interests in, any Significant Subsidiary of Parent or (iii) restricted shares, stock appreciation rights, performance units, contingent value rights, “phantom” stock or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the value or price of, any capital stock or other voting securities of, or ownership interests in, any Significant Subsidiary of Parent (the items in clauses (i) through (iii) being referred to collectively as the Parent Subsidiary Securities”). As of the date hereof, there are no

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outstanding obligations of Parent or any of its Significant Subsidiaries to repurchase, redeem or otherwise acquire any of the Parent Subsidiary Securities.

(c) The authorized capital stock of Merger Sub consists of 1,000 shares of common stock, par value $1.00 per share, all which are validly issued and outstanding. All of the issued and outstanding capital stock of Merger Sub is, and at the Effective Time will be, owned by Parent. Merger Sub was formed solely for the purpose of engaging in the transactions contemplated by this Agreement and, prior to the Effective Time, Merger Sub will have engaged in no business and have no liabilities or obligations other than in connection with such transactions. Merger Sub has no Subsidiaries.

Section 5.07. SEC Filings and the Sarbanes-Oxley Act. (a) Since the Applicable Date, Parent has timely filed with or furnished to the SEC all reports, schedules, forms, statements, prospectuses, registration statements and other documents required to be filed or furnished by Parent (collectively, together with any exhibits and schedules thereto and other information incorporated therein, as they may have been supplemented, modified or amended since the date of filing, the “Parent SEC Documents”).

(b) As of its filing date (or, if amended or superseded by a filing, on the date of such filing), each Parent SEC Document complied as to form in all material respects with the applicable requirements of the 1933 Act and the 1934 Act and the Sarbanes-Oxley Act, as the case may be.

(c) As of its filing date (or, if amended or superseded by a filing, on the date of such filing), each Parent SEC Document filed pursuant to the 1934 Act did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

(d) Each Parent SEC Document that is a registration statement, as amended or supplemented, if applicable, filed pursuant to the 1933 Act, as of the date such registration statement or amendment became effective, did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading.

(e) Since the Applicable Date, Parent has established and maintains disclosure controls and procedures (as defined in Rules 13a-15 and 15d-15 under the 1934 Act). Such disclosure controls and procedures are reasonably designed to ensure that material information relating to Parent, including its consolidated Subsidiaries, required to be included in Parent’s periodic and current reports under the 1934 Act, is made known to Parent’s principal executive officer and its principal financial officer by others within those entities. Such disclosure controls and procedures are effective in timely alerting Parent’s principal executive officer and principal financial officer to material information required to be included in Parent’s periodic and current reports required under the 1934 Act.

(f) Since the Applicable Date, Parent and its Subsidiaries have established and maintained a system of internal controls over financial reporting (as defined in Rule 13a-15 under the 1934 Act) sufficient to provide reasonable assurance regarding the reliability of Parent’s financial reporting and the preparation of Parent financial statements for external purposes in accordance with GAAP. Parent has disclosed, based on its most recent evaluation of internal controls prior to the date hereof, to Parent’s auditors and audit committee (i) any significant deficiencies and material weaknesses in the design or operation of internal controls which are reasonably likely to adversely affect Parent’s ability to record, process, summarize and report financial information and (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in internal controls. There has not been any such disclosure made by management to Parent’s auditors and audit committee since the Applicable Date.

(g) Neither Parent nor any of its Subsidiaries has extended or maintained credit, arranged for the extension of credit, or renewed an extension of credit, in the form of a personal loan to or for any executive officer (as defined in Rule 3b-7 under the 1934 Act) or director of Parent in violation of Section 402 of the Sarbanes-Oxley Act.

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(h) Parent is in compliance with, and since the Applicable Date has complied, in each case in all material respects with (i) the applicable provisions of the Sarbanes-Oxley Act and (ii) the applicable listing and corporate governance rules and regulations of the NYSE.

(i) Each of the principal executive officer and principal financial officer of Parent (or each former principal executive officer and principal financial officer of Parent, as applicable) have made all certifications required by Rules 13a-14 and 15d-14 under the 1934 Act and Sections 302 and 906 of the Sarbanes-Oxley Act and any related rules and regulations promulgated by the SEC and the NYSE, and the statements contained in any such certifications are complete and correct.

Section 5.08. Financial Statements. The audited consolidated financial statements and unaudited consolidated interim financial statements of Parent included or incorporated by reference in the Parent SEC Documents (including all related notes and schedules thereto) fairly present in all material respects, in conformity with GAAP (except, in the case of unaudited consolidated interim financial statements, as permitted by Form 10-Q of the SEC) applied on a consistent basis (except as may be indicated therein or in the notes thereto), the consolidated financial position of Parent and its consolidated Subsidiaries as of the dates thereof and their consolidated results of operations and cash flows for the periods then ended (subject to normal year-end audit adjustments in the case of any unaudited interim financial statements).

Section 5.09. Disclosure Documents. The Registration Statement, and any amendments or supplements thereto, when filed, will comply as to form in all material respects with the applicable requirements of the 1933 Act. At the time the Registration Statement or any amendment or supplement thereto becomes effective, the Registration Statement, as amended or supplemented, will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The information supplied by Parent in writing for inclusion or incorporation by reference in the Proxy Statement/Prospectus or any amendment or supplement thereto shall not, at the time the Proxy Statement/Prospectus or any amendment or supplement thereto is first mailed to stockholders of the Company 10-Q” meansand at the time of the Requisite Company Vote, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. The representations and warranties contained in this Section 5.09 will not apply to statements or omissions included or incorporated by reference in the Registration Statement or Proxy Statement/Prospectus or any amendment or supplement thereto based upon information furnished by the Company or any of its representatives or advisors in writing specifically for use or incorporation by reference therein.

Section 5.10. Tax Treatment. Neither Parent nor any of its Subsidiaries has taken or agreed to take any action, or has knowledge of any fact or circumstance, that could reasonably be expected to prevent or impede the Merger from qualifying as a “reorganization” within the meaning of Section 368(a) of the Code.

Section 5.11. Absence of Certain Changes. Since the Parent Balance Sheet Date through the date of this Agreement, there has not been any event, change, occurrence, development or state of circumstances or facts that has had or would reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect.

Section 5.12. Ownership of Company Shares. Neither Parent nor any of its Subsidiaries (including Merger Sub but excluding any pension or benefit plan managed or advised by Parent, its Subsidiaries or their respective employees) owns or has owned at any time in the three years preceding the date of this Agreement any Company Shares beneficially or of record.

Section 5.13. No Other Representations or Warranties.

(a) Except for the representations and warranties made in this Article 5, as qualified by the Parent Disclosure Schedule, or any certificate delivered pursuant to this Agreement, neither Parent, Merger Sub nor any

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other Person makes any express or implied representation or warranty with respect to Parent or its Subsidiaries or their respective businesses, operations, assets, liabilities or conditions (financial or otherwise) in connection with this Agreement, the Merger or the transactions contemplated hereby, and Parent hereby disclaims any such other representations or warranties. In particular, without limiting the foregoing disclaimer, except as expressly provided in this Article 5, as qualified by the Parent Disclosure Schedule, or any certificate delivered pursuant to this Agreement, neither Parent, Merger Sub nor any other Person makes or has made any representation or warranty to Company or any of its Affiliates or Representatives with respect to (i) any financial projection, forecast, estimate, budget or prospect information relating to Parent or any of its Subsidiaries or their respective businesses; or (ii) any oral or written information presented to Company or any of its Affiliates or Representatives in the course of the negotiation of this Agreement or in the course of the Merger or the transactions contemplated hereby.

(b) Parent acknowledges and agrees that the representations and warranties by the Company set forth in this Agreement constitute the sole and exclusive representations and warranties of the Company in connection with the transactions contemplated hereby, and each of Parent and Merger Sub understands, acknowledges and agrees that all other representations and warranties of any kind or nature whether express, implied or statutory are specifically disclaimed by the Company. In connection with their due diligence investigation of the Company, Parent and Merger Sub have received and may continue to receive after the date hereof from the Company certain estimates, projections, forecasts and other forward-looking information regarding the Company and its businesses and operations. Parent and Merger Sub acknowledge that there are uncertainties inherent in attempting to make such estimates, projections, forecasts and other forward-looking statements and that Parent and Merger Sub will have no claim against the Company with respect thereto unless any such information is expressly included in a representation or warranty contained in this Agreement.

ARTICLE 6

COVENANTSOFTHE COMPANY

The Company agrees that:

Section 6.01. Conduct of the Company. During the period from the date hereof until the Effective Time, except (i) with the prior written consent of Parent in each instance (which consent shall not be unreasonably withheld, delayed or conditioned); provided, that Parent’s consent will be deemed obtained if Parent has not expressly denied its consent with respect to a given action within five Business Days following the Company’s quarterly reportrequest for Parent’s consent, (ii) as required by Applicable Law, (iii) as otherwise expressly contemplated or permitted by this Agreement or (iv) as set forth in Section 6.01 of the Company Disclosure Schedule, (A) the Company shall, and shall cause each of its Subsidiaries to use commercially reasonable efforts to (1) conduct its business in the ordinary course of business, (2) preserve intact its present business organization, (3) comply with Applicable Laws and its Contracts, and maintain in effect all necessary Permits, (4) keep available the services of its directors, officers and key employees on Form 10-Qcommercially reasonable terms and (5) preserve satisfactory business relationships with its customers, lenders, suppliers and others having material business relationships with it; provided that no COVID-19 Response shall be deemed to be a breach of this Section 6.01 provided that, prior to taking any COVID-19 Response, the Company shall provide advance notice to and consult with Parent in good faith with respect thereto, and (B) the Company shall not, nor shall it permit any of its Subsidiaries to:

(a) amend its certificate of incorporation, bylaws or other similar organizational documents (whether by merger, consolidation or otherwise);

(b) enter into any new line of business outside of the CCUS Business, the EOR Business and the existing other businesses of the Company and its Subsidiaries as of the date of this Agreement;

(c) (i) adjust, split, combine, subdivide or reclassify any shares of its capital stock (other than such transactions by a wholly owned Subsidiary of the Company), (ii) declare, authorize, establish a record date for,

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set aside or pay any dividend or other distribution (whether in cash, stock or property or any combination thereof) in respect of its capital stock (including any Company Shares), except for dividends by any of its wholly-owned Subsidiaries or (iii) redeem, repurchase or otherwise acquire or offer to redeem, repurchase, or otherwise acquire any shares of its capital stock (including any Company Shares), Company Securities or any Company Subsidiary Securities, other than (A) the quarterly period ended September 30, 2009.withholding of equity securities to satisfy tax obligations with respect to awards granted pursuant to any Equity Plan existing as of the date of this Agreement or (B) the acquisition by the Company of awards granted pursuant to any Equity Plan prior to the date hereof or otherwise in accordance with this Agreement in connection with the forfeiture of such awards;

Competition Laws” means statutes, rules, regulations, orders, decrees, administrative and judicial doctrines, and(d) (i) issue, deliver, sell, dispose, encumber, grant, confer, award or authorize the issuance, delivery, sale, disposal, encumbrance, grant, conferral or award of, any Company Securities or Company Subsidiary Securities, other lawsthan the issuance (A) of any Company Shares upon settlement of Company RSUs, Company DSUs or Company TSR Performance Awards that are designed or intended to prohibit, restrict or regulate actions havingoutstanding on the purpose or effectdate of monopolization, lesseningthis Agreement in accordance with the terms of competition or restraintthose equity-based awards on the date of trade.

Delaware Law” meansthis Agreement, (B) of any Company Shares upon the General Corporation Lawexercise of Warrants that are outstanding on the date of this Agreement in accordance with the terms of the StateWarrants on the date of Delaware.

Environmental Laws” meansthis Agreement, (C) of any Applicable LawsCompany Subsidiary Securities to the Company or any other wholly owned Subsidiary of the Company, (D) of Company Shares under the ESPP in accordance with Section 2.04(f) and (E) of any equity or equity-based awards to the extent permitted by Section 6.01(m) or (ii) amend or otherwise change any term of any Company Security or any Company Subsidiary Security (in each case, whether by merger, consolidation or otherwise);

(e) incur any capital expenditures or any obligations or liabilities in respect thereof, except as contemplated by Section 6.01(e) of the Company Disclosure Schedule;

(f) acquire (by merger, consolidation, acquisition of stock or assets or otherwise), directly or indirectly, any assets, securities, properties, interests or businesses, other than (i) pursuant to an agreement of the Company or any of its Subsidiaries in effect on the date of this Agreement that is made available to Parent, (ii) acquisitions for which the consideration is less than $35,000,000 individually or $70,000,000 in the aggregate or (iii) acquisitions and licenses in the ordinary course of business;

(g) adopt a plan of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization, other than such transactions among wholly owned Subsidiaries of the Company;

(h) sell, lease, license or otherwise transfer, or dispose of, mortgage, sell and lease back or otherwise, or create or incur any Lien on, any of the Company’s or its Subsidiaries’ assets, securities, properties, interests or businesses or other interests therein whether tangible or intangible (including securitizations) (other than Intellectual Property), other than (i) sales of inventory and equipment, or sales of Hydrocarbons, in each case in the ordinary course of business, or sales of or disposals of obsolete or worthless assets at the end of their scheduled retirement, (ii) pursuant to Contracts in effect on the date hereof that are made available to Parent, (iii) Permitted Liens, (iv) transfers among the Company and its wholly owned Subsidiaries, or among the wholly owned Subsidiaries of the Company and (v) sales, leases or dispositions for which the consideration is less than $35,000,000 individually or $70,000,000 in the aggregate;

(i) sell, assign, license, sublicense, transfer, convey, abandon, or incur any Lien other than Permitted Liens on or otherwise dispose of or fail to maintain, enforce or protect any material Intellectual Property owned, used or held for use by the Company or any of its Subsidiaries (except for non-exclusive licenses or sublicenses of Intellectual Property granted by the Company or any of its Subsidiaries in the ordinary course of business);

(j) make any loans, advances or capital contributions to, or investments in, any other Person, other than in the ordinary course of business;

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(k) create, incur, assume, refinance or otherwise become liable with respect to any Governmental Authority,Indebtedness for borrowed money or guarantees thereof, other than (i) as required by its terms, (ii) additional borrowings under the Company Credit Agreement as in effect as of the date hereof, (iii) additional Indebtedness for borrowed money to fund the capital expenditures contemplated by Section 6.01(e) of the Company Disclosure Schedule if such Indebtedness may be repaid at Closing without penalty, or (iv) Indebtedness for borrowed money among the Company and its Subsidiaries or among Subsidiaries of the Company, or guarantees thereof;

(l) enter into, amend or modify in any material respect or terminate any Material Contract or any Contract that would constitute a Material Contract if it were in effect on the date of this Agreement or otherwise waive, release or assign any material rights, claims or benefits of the Company or any of its Subsidiaries, except in the ordinary course of business consistent with past practice and, in the case of Contracts relating to the protectionCCUS Business, subject to Section 6.01(r);

(m) (i) with respect to any current or former Service Provider (A) grant or increase any compensation, bonus, severance, retention, change in control, termination pay, welfare or other benefits, except for (x) increases in base compensation or wages (and corresponding increases in target annual bonus opportunities) of human health,not more than 6% per Company Employee for Company Employees with base compensation of less than $500,000 and (y) (i) payment of annual bonuses to the environmentextent earned for the fiscal year ending December 31, 2023 pursuant to the applicable Employee Plan and (ii) grants of annual bonus opportunities in respect of any fiscal year that commences after the date of this Agreement and prior to the Effective Time with target amounts consistent with the preceding clause (x) and with performance goals that are consistent with the budget for the applicable fiscal year, in the case of each of clauses (x) and (y), in the ordinary course of business consistent with past practice, (B) grant any equity or equity-based awards to, pollutants, contaminants or hazardousdiscretionarily accelerate the vesting or toxic substances, materialspayment of any equity or wastes.equity-based awards held by, any current or former Service Provider except as set forth in Section 6.01(m)(i)(B) of the Company Disclosure Schedule, (C) take any action to accelerate the vesting or payment of, or otherwise fund or secure the payment of, any compensation or benefits under any Employee Plan or (D) enter into or amend any employment, consulting, severance, retention, change in control, termination pay, retirement, deferred compensation, transaction bonus or similar agreement or arrangement other than Contracts entered into or amended in the ordinary course of business consistent with past practice that are immaterial to the Company in both cost and significance, (ii) establish, terminate, adopt, enter into or amend any Employee Plan, (iii) establish, adopt or enter into any Collective Bargaining Agreement or recognize any new union, works council or similar employee representative with respect to any current or former Company Employee, (iv) hire any employees with base compensation of $200,000 or more (unless necessary to replace an employee (other than an officer of the Company or any of its Subsidiaries) whose employment has ended, in which case such replacement employee shall be hired on comparable terms as the employee being replaced), or (v) terminate the employment of any Company Employee with base compensation of $200,000 or more, other than for cause;

Environmental Permits” means all permits, licenses, franchises, certificates, approvals and other similar authorizations(n) change in any respect the Company’s methods of Governmental Authoritiesaccounting, except as required by Environmental Laws and affecting,changes in GAAP or in Regulation S-X of the 1934 Act, as agreed to by its independent public accountants;

(o) settle, release, waive, discharge or compromise, or offer or propose to settle, release, waive, discharge or compromise, (i) any Action or threatened Action (excluding any Action or threatened Action relating to Taxes, which shall be subject to Section 6.01(p)) involving or against the Company or any of its Subsidiaries that results in a payment obligation (net of insurance proceeds) of the Company or any of its Subsidiaries in excess of $5,000,000 individually or $15,000,000 in the aggregate, or that imposes any material restrictions or limitations upon the assets, operations or business of the Company or any of its Subsidiaries or equitable or injunctive remedies or the admission of any criminal wrongdoing or (ii) any Action or threatened Action (excluding any Action or threatened Action relating to Taxes, which shall be subject to Section 6.01(p)) that relates to the transactions contemplated hereby;

(p) (i) make, change or revoke any material election with respect to Taxes, other than in the ordinary course of business, (ii) file any amended material Tax Return, (iii) settle or compromise any material Tax claim, audit or

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assessment, (iv) prepare and file any material Tax Return in a manner materially inconsistent with past practice, (v) adopt or change any material Tax accounting method, (vi) change any Tax accounting period, (vii) enter into any closing agreement with respect to any material Tax or surrender any right to claim a material Tax refund, offset or reduction in Tax, or (viii) consent to any extension or waiver of the limitations period applicable to any material Tax claim or assessment (other than any such extensions or waivers automatically granted);

(q) fail to use reasonable best efforts to maintain in full force and effect existing material insurance policies (or substantially similar replacements thereto); provided that in the event of a termination, cancellation or lapse of any material insurance policy, the Company shall use commercially reasonable efforts to promptly obtain replacement policies providing substantially comparable insurance coverage with respect to the material assets, operations and activities of the Company and its Subsidiaries as currently conducted.

ERISA” means the Employee Retirement Income Security Act of 1974.

ERISA Affiliate” of any entity means any other entity that, together with such entity, would be treatedin effect as a single employer under Section 414(b), (c), (m) or (o) of the Code.date hereof;

GAAP” means generally accepted accounting principles in(r) enter into, amend or modify any Contract that materially commits, restricts or encumbers the United States.

Governmental Authority” meansassets, capacities or volumes of either the Green Pipeline or the NEJD Pipeline following the Closing that cannot be cancelled at any transnational, domestic or foreign federal, state or local governmental, regulatory or administrative authority, department, court, agency, commission or official, including any political subdivision thereof.

Hazardous Substance” means any substance defined as or regulated as a “pollutant,” a “contaminant,” a “hazardous substance,” a “hazardous material,” a “toxic chemical” or a “hazardous waste” under any Environmental Law or any substance that has the characteristics of being a toxic, hazardous, radioactive, ignitable, corrosive or reactive substance, waste or material, as defined by or regulated under any Environmental Law.

HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Intellectual Property” means (i) trademarks, service marks, brand names, certification marks, trade dress, domain names and other indications of origin, the goodwill associated with the foregoing and registrations in any

jurisdiction of, and applications in any jurisdiction to register, the foregoing, including any extension, modification or renewal of any such registration or application, (ii) inventions and discoveries, whether patentable or not, in any jurisdiction, patents, applications for patents (including divisions, continuations, continuations in part and renewal applications), and any renewals, extensions or reissues thereof, in any jurisdiction, (iii) Trade Secrets, (iv) in any jurisdiction, any and all copyright rights, whether registered or not, and registrations or applications for registration of copyrights in any jurisdiction, and any renewals or extensions thereof, (v) moral rights, database rights, design rights, industrial property rights, publicity rights and privacy rights and (vi) any similar intellectual property or proprietary rights.

IT Assets” means computers, computer software, firmware, middleware, servers, workstations, routers, hubs, switches, data communications lines and all other information technology equipment, and all associated documentation ownedtime by the Company or its applicable Subsidiary without penalty or further payment on no more than ninety (90) days’ notice; or

(s) agree, resolve or commit to do any of the foregoing.

Section 6.02. Access to Information. From the date hereof until the Effective Time and subject to Applicable Law and the Confidentiality Agreement dated as of May 10, 2021 between the Company and Parent (the “Confidentiality Agreement”), the Company shall (and shall cause its Subsidiaries to) (a) provide Parent or licensedits Representatives reasonable access to the Representatives and offices, properties, books and records, work papers and other documents of the Company and its Subsidiaries (including existing financial and operating data relating to the Company and its Subsidiaries) and to Service Providers in accordance with Section 6.02 of the Company Disclosure Schedule and (b) furnish to Parent and its Representatives such existing information as such Persons may reasonably request within a reasonable time of such request, including copies of such existing information. Any investigation pursuant to this Section 6.02 shall be conducted in such manner as not to interfere unreasonably with the conduct of the business of the Company and its Subsidiaries and Parent shall only have the right to perform a visual site assessments of the Company properties. Notwithstanding anything to the contrary herein, (a) the Company shall not be required to, or leasedto cause any of its Subsidiaries to, grant access or furnish information to Parent or any of its Representatives to the extent that such information is subject to an attorney/client privilege or the attorney work product doctrine or that such access or the furnishing of such information is prohibited by Applicable Law or an existing Contract or agreement, but the Company will institute an alternate arrangement reasonably acceptable to Parent that enables Parent to gain access to the relevant information; (b) Parent shall not have access to personnel records of the Company or any of its Subsidiaries relating to individual performance or evaluation records, medical histories or other information that in the Company’s good faith opinion the disclosure of which could subject the Company or any of its Subsidiaries to risk of liability; (c) Parent and its Representatives shall not be permitted to conduct any sampling or analysis of any environmental media or building materials at any facility of the Company or its Subsidiaries without the prior written consent of the Company, which may be granted or withheld in the Company’s sole discretion; and (d) to the extent the Company is obligated to provide Parent or its Representatives with physical access to the officers, key employees, agents, properties, offices and other facilities of the Company and its Subsidiaries and to their books, records, contracts and documents pursuant to this Section 6.02, the Company may instead provide such access by electronic means if physical access would not be permitted under Applicable Law (including any COVID-19 Measures). Parent agrees that it will not, and will cause its Representatives not to, use any information obtained pursuant to this Section 6.02 for any purpose unrelated to the consummation of the transactions contemplated by this Agreement. No information or knowledge obtained by Parent in any investigation pursuant to this Section shall affect or be deemed to modify any representation or warranty made by the Company hereunder or to operate as a non-compete obligation against Parent and its Subsidiaries.

Section 6.03. No Solicitation; Other Offers. (a) From the date hereof until the Effective Time, the Company shall not and shall cause its Subsidiaries and its and their directors and officers not to, and shall use reasonable

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best efforts to cause its and their Representatives not to, directly or indirectly, (i) solicit, initiate or knowingly facilitate or knowingly encourage the submission by a Third Party of any Acquisition Proposal, (ii) enter into, engage in or participate in any discussions or negotiations with, furnish any information relating to the Company or any of its Subsidiaries or afford access to the business, properties, assets, books, records, work papers and other documents related to the Company or any of its Subsidiaries to, otherwise knowingly cooperate in any way with, or knowingly assist, facilitate or encourage any effort by any Third Party, in each case, in connection with or in response to an Acquisition Proposal, or any inquiry that would reasonably be expected to lead an Acquisition Proposal, or (iii) enter into any oral or written or binding or non-bindingagreement (excludingin principle, letter of intent, indication of interest, term sheet, merger agreement, acquisition agreement, option agreement or other similar instrument contemplating an Acquisition Proposal; provided that notwithstanding anything to the contrary in this Agreement, the Company or any public networks).

knowledge” means (i)of its Representatives may, (A) in response to an unsolicited inquiry or proposal, seek to clarify the terms and conditions of such inquiry or proposal and (B) in response to an inquiry or proposal from a Third Party, inform a Third Party or its Representative of the restrictions imposed by the provisions of this Section 6.03. The Company agrees not to release or permit the release of any Person from, or to waive or permit the waiver of, any standstill or similar agreement with respect to the Company, the actual knowledgeany class of the individuals listed in Section 1.01(a)equity securities of the Company Disclosure Letteror any of its Subsidiaries, and will enforce or cause to be enforced each such agreement in accordance with its terms at the request of Parent; provided, however, that the Company may waive or fail to enforce any provision of such standstill or similar agreement of any Person if the Company Board determines in good faith, after reasonable inquiry and (ii)consultation with respectoutside legal counsel, that the failure to take such action would be reasonably likely to be inconsistent with its fiduciary duties to the Company’s stockholders under Applicable Law. It is agreed that any violation of the restrictions on the Company set forth in this Section by any Subsidiary of the Company or by any Representative of the Company or any of its Subsidiaries shall be a breach of this Section 6.03(a) by the Company.

(b) Except as permitted by Section 6.03(c), the Company Board, including any committee thereof, agrees it will not (i) qualify, withdraw or modify in a manner adverse to Parent or Merger Subsidiary,Sub, or propose publicly to qualify, withdraw or modify in a manner adverse to Parent or Merger Sub, the actual knowledgeCompany Board Recommendation, (ii) adopt, endorse, approve or recommend, or propose publicly to adopt, endorse, approve or recommend, any Acquisition Proposal, or resolve to take any such action, (iii) publicly make any recommendation in connection with a tender offer or exchange offer by a Third Party other than a recommendation against such offer or a temporary “stop, look and listen” communication by the Company Board of the individuals listed in Section 1.01(a) oftype contemplated by Rule 14d-9(f) under the Parent Disclosure Letter after reasonable inquiry.

Lien” means,1934 Act, (iv) other than with respect to a tender or exchange offer described in clause (iii), following the date any propertyAcquisition Proposal or asset, any mortgage, lien, pledge, charge, security interest, encumbrancematerial modification thereto is first publicly announced, fail to issue a press release reaffirming the Company Board Recommendation within ten Business Days after a request by Parent to do so or other adverse claim of any kind(v) fail to include the Company Board Recommendation in respect of such property or asset. For purposes of this Agreement, a Person shall be deemed to own subject to a Lien any property or asset that it has acquired or holds subjectthe Proxy Statement/Prospectus when disseminated to the interestCompany’s stockholders (any of a vendor or lessor under any conditional sale agreement, capital lease or other title retention agreement relating to such property or asset.

1933 Act” means the Securities Act of 1933.

1934 Act” means the Securities Exchange Act of 1934.

Parent Balance Sheet” means the unaudited consolidated interim balance sheet of Parent as of September 30, 2009 and the footnotes therein set forthforegoing in the Parent 10-Q.

these clauses (i) through (v), an Parent Balance Sheet Date” means September 30, 2009.March 31, 2023.

Parent Board” means the board of directors of Parent.

Parent Disclosure LetterSchedule” means the disclosure letterschedule dated the date hereof regarding this Agreement that has been provided by Parent and Merger Sub to the Company.

Parent Material Adverse Effect” means a materialany event, circumstance, development, occurrence, fact, condition, effect or change that is, or would reasonably be expected to become, individually or in the aggregate, materially adverse effect onto (i) the financial condition (financial or otherwise), business, assets, or results of operations of Parent and its Subsidiaries, taken as a whole, excluding any event, change, circumstance, effect, occurrence, condition, state of facts or development to the extent arising or resulting from arising out of or relating to (A) changes, developments or conditions after the date hereof in the financial or securities markets or general economic or political conditions in the United States, or elsewhereincluding in the world,financial, debt, credit, capital or securities markets, including changes in interest rates, (B) changes generally affecting the industries in which Parent and its Subsidiaries operate, (C) changes or proposed changes in Applicable Law or interpretations thereof or regulatory conditions or any changes in the enforcement thereof, including changes in tax law, interpretations and regulations after the date hereof, (D) changes or proposed changes in GAAP or other than with respect toaccounting standards or interpretations thereof, (E) changes to Applicable Laws related to hydraulic fracturingin commodity prices, including the prices of natural gas, crude oil, refined petroleum products, other hydrocarbon products, natural gas liquids, carbon dioxide, methane, nitrous oxide, fluorinated and other “greenhouse” gases, and other commodities, (F) acts of war (whether or similar processesnot declared), hostilities, military actions or acts of terrorism, or any escalation or worsening of the foregoing, (G) weather conditions or acts of God (including storms, earthquakes, tsunamis, tornados, hurricanes, floods or other natural disasters or other comparable events), (H) pandemic (including the COVID-19 pandemic), (I) any change, in and of itself, in the market price or trading volume of Parent’s securities; provided that the exception in this clause shall not prevent or otherwise affect a determination that any underlying event, circumstance, development, occurrence, fact, condition, effect or change that is the cause of such change has resulted in, or would reasonably be expected to haveresult in, a Parent Material Adverse Effect to the effectextent not otherwise falling within any of making illegalthe other exceptions set forth in clauses (A) through (M) hereof, (J) the negotiation, execution, announcement or commercially impracticableperformance of this Agreement or the consummation of the Merger or the other transactions contemplated hereby, including the impact thereof on the relationships, contractual or otherwise, with employees, labor unions, financing sources, customers, suppliers, distributors, regulators, partners or other Persons, or any action or claim made or brought by any of the current or former stockholders of Parent (or on their behalf or on behalf of Parent) against Parent or any of its directors, officers or employees arising out of this Agreement or the Merger or the other transactions contemplated hereby (it being understood that this clause (J) shall not apply to a breach of any representation or warranty related to the announcement or consummation of the transactions contemplated hereby), (K) any failure of any of Parent or any of its Subsidiaries to meet, with respect to any period or periods, any internal or published projections, forecasts, estimates of earnings or revenues or business plans (but not the underlying facts or basis for such hydraulic fracturingfailure to meet projections, forecasts, estimates of earnings or similar processes (which changesrevenues or business plans, which may be taken into account in determining whether there has been a Parent Material Adverse Effect), changes or conditions generally affecting the oil and gas industry or industries (including changes in oil, gas or other commodity prices), (C) other than with respect to changes to Applicable Laws related to hydraulic fracturing or similar processes that would reasonably be expected to havebe a Parent Material Adverse Effect to the extent not otherwise falling within any of the other exceptions set forth in clauses (A) through (M) hereof), (L) any action taken by Parent or any of its Subsidiaries that is expressly required by this Agreement or (M) any Antitrust Actions; provided, however, that if any event, change, circumstance, effect, occurrence, condition, state of making illegalfacts or commercially impracticabledevelopment described in any of clauses (A) through (H) has a disproportionate effect on Parent and its Subsidiaries, taken as a whole, relative to other participants in the industries in which Parent and its Subsidiaries operate, such hydraulic fracturing or similar processes (which changes maydisproportionate effect shall be taken into account in determining whether there has

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been, or would reasonably be expected to be, a Parent Material Adverse Effect),Effect, or (ii) the ability of Parent or Merger Sub to perform any change in Applicable Lawof its obligations under, or the interpretation thereof or GAAP or the interpretation thereof, (D) the negotiation, execution, announcement or consummation ofto consummate the transactions contemplated by, this Agreement, including any adverse changeAgreement.

Parent Tax Representation Letter” means a tax representation letter in customer, distributor, supplier or similar relationships resulting therefrom, (E) acts of war, terrorism, earthquakes,

hurricanes, tornados or other natural disasters, (F) any failurethe form to be agreed upon by the Company and Parent and executed by Parent or any of its Subsidiariespursuant to meet any internal or published industry analyst projections or forecasts or estimates of revenues or earnings for any period (it being understood and agreed that the facts and circumstances that may have given rise or contributed to such failure that are not otherwise excluded from the definition of a Parent Material Adverse Effect may be taken into account in determining whether there has been a Parent Material Adverse Effect), (G) any change in the price of the Parent Stock on the NYSE (it being understood and agreed that the facts and circumstances that may have given rise or contributed to such change (but in no event changes in the trading price of Company Stock) that are not otherwise excluded from the definition of a Parent Material Adverse Effect may be taken into account in determining whether there has been a Parent Material Adverse Effect) and (H) compliance with the terms of, or the taking of any action required by, this Agreement; except to the extent such effects in the cases of clauses (A), (B), (C) and (E) above materially and disproportionately effect Parent and its Subsidiaries relative to other participants in the industry or industries in which Parent and its Subsidiaries operate (in which event the extent of such material and disproportionate effect may be taken into account in determining whether a Parent Material Adverse Effect has occurred)Section 8.10(a).

Parent StockPBGC” means the common stock, without par value, of Parent.Pension Benefit Guaranty Corporation.

Parent 10-QPermits” means Parent’s quarterly report on Form 10-Q for the quarterly period ended September 30, 2009.each grant, license, franchise, permit, easement, variance, exception, exemption, waiver, consent, certificate, certification, registration, accreditation, approval, order, qualification or other similar authorization of any Governmental Authority.

Permitted Liens” means (i) carriers’, warehousemen’s, mechanics’, materialmen’s, landlords’, laborers’, suppliers’ and vendors’ liens and other similar Liens, if any, arising or incurred in the ordinary course of business that do not, individually or in the aggregate, materially impair or interfere with the use of the subject assets or otherwise materially impair business operations as presently conducted; (ii) Liens for Taxes not yet due and payabledelinquent or, if delinquent, that are being contested in good faith by appropriate proceedingsactions and that are adequately reserved for as of the date hereof in the applicable financial statements of the Company in accordance with GAAP; (iii) applicable zoning, planning, entitlement, conservation restrictions, land use restrictions, building codes and other governmental rules and regulations imposed by a Governmental Authority having jurisdiction over the real property, none of which adequate accruals or reserveswould reasonably be expected to have been established, (ii) Liens in favoran adverse impact on the Company’s conduct of vendors, carriers, warehousemen, repairmen, mechanics, workmen, materialmen, construction or similar Liensits business; (iv) the terms and conditions of the leases, subleases, licenses, sublicenses or other encumbrances arising by operationoccupancy agreements pursuant to which the Company or any of Applicable Law, (iii) Liens affecting the interest of the grantor ofits Subsidiaries is a tenant, subtenant or occupant (other than in connection with any easements benefiting owned real propertybreach thereof) that do not, and Liens of record attaching to real property, fixtures or leasehold improvements, which would not be reasonably expected to, materially impair or interfere with the use of the real propertysubject assets or otherwise materially impair business operations as presently conducted; (v) non-exclusive licenses to Intellectual Property granted in the ordinary course of business; (vi) to the extent not applicable to the transactions contemplated by this Agreement or otherwise waived prior to the Effective Time, preferential purchase rights, rights of first refusal, purchase options and similar rights granted pursuant to any Contracts that have been made available to Parent prior to the date hereof and would not be reasonably expected to materially affect the value, use or operation of the business thereon orproperty encumbered thereby, including joint operating agreements, joint ownership agreements, participation agreements, development agreements, stockholders agreements, consents, and other similar agreements and documents; (vii) Production Burdens payable to third parties that are deducted in the valuecalculation of such real property, (iv) Liens reflecteddiscounted present value in the Company Balance Sheet or Parent Balance Sheet, as applicable, (v)Independent Reserve Reports and any Production Burdens payable to third parties affecting any Oil and Gas Property that was acquired subsequent to the date of the Company Independent Reserve Reports; (viii) Liens arising in the caseordinary course of business under operating agreements, joint venture agreements, partnership agreements, Oil and Gas Leases, farm-out agreements, division orders, Contracts for the sale, purchase, transportation, processing or exchange of oil, gas or other Hydrocarbons, unitization and pooling declarations and agreements, area of mutual interest agreements, development agreements, joint ownership arrangements and other agreements that are customary in the oil and gas leases,business, provided, however, that, in each case, such Lien (a) secures obligations that are not Indebtedness or a deferred purchase price and are not delinquent and (b) would not be reasonably expected to materially affect the lessor’s Production Burdensvalue, use or operation of the property encumbered thereby; (ix) any Liens discharged at or prior to the Effective Time; (x) any Liens arising under the Company Credit Agreement; and (vi)(xi) Liens, exceptions, defects or irregularities in title, easements, imperfections of title, claims, charges, security interests, rights-of-way,rights of way, covenants, restrictions and other similar matters that (a) would be accepted by a reasonably prudent purchaser of oil and gas interests in the geographic area where such oil and gas interests are located, (b) would not, individually or in the aggregate, reduce the net revenue interest share of the Company and its Subsidiaries in any Oil and Gas Lease below the net revenue interest share shown in the Company Independent Reserve Reports with respect to such Oil and Gas Lease, or increase the working interest of the Company and its Subsidiaries (without at least a proportionate increase in net revenue interest) in any Oil and Gas Lease above the working interest shown on the Company Independent

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Reserve Reports with respect to such Oil and Gas Lease and (c) would not be reasonably be expected to materially impairaffect the continuedvalue, use andor operation of the assets to which they relate in the business of such entity and its Subsidiaries as presently conducted or the value of such assets.property encumbered thereby.

Person” means an individual, corporation, partnership, limited liability company, association, trust or other entity or organization, including a governmentGovernmental Authority or political subdivisionany “group” within the meaning of Section 13(d) of the 1934 Act.

Personal Information” means “personal information,” “personally identifiable information,” “personal data,” and any terms of similar import, including, but not limited to, information that relates to a person’s name, health, finances, education, business, use or an agencyreceipt of governmental services or instrumentality thereof.other activities, addresses, telephone numbers, social security numbers, driver license numbers, other identifying numbers, and any financial identifiers.

Pipeline” means all parts of those physical facilities through which gas, hazardous liquid, or carbon dioxide moves in transportation and includes, but is not limited to, line pipe, valves and other appurtenances attached to the pipe, pumping/compressor units and associated fabricated units, metering, regulating, and delivery stations, and holders and fabricated assemblies located therein and breakout tanks.

Production Burdens” means any royalties (including lessor’s royalties), overriding royalties, production payments, net profit interests or other burdens upon, measured by or payable out of oil, gas or mineral production.

Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing into the environment.

Representative” means, with respect to any Person, the officers, directors, employees, investment bankers, accountants, consultants, agents, legal counsel, financial advisors and other representatives of such Person.

Sarbanes-Oxley Act” means the Sarbanes-Oxley Act of 2002.

SEC” means the U.S. Securities and Exchange Commission.

Service Provider” means any director, officer or employee of the Company or any of its Subsidiaries or any individual directly (or through an alter ego entity) engaged by the Company or any of its Subsidiaries as an independent contractor.

Specified Pipeline Event” means any event, circumstance, development, occurrence, fact, condition, effect or change that, individually or in the aggregate, has resulted in, or would reasonably be expected to result in, a material detriment in the ability of the Company or its Subsidiaries (or after the Closing, Parent and its Subsidiaries) to realize the benefits or have the use of the Green Pipeline or the NEJD Pipeline, excluding any event, change, circumstance, effect, occurrence, condition, state of facts or development to the extent arising or resulting from (A) changes, developments or conditions after the date hereof in the general economic conditions in the United States, including in the financial, debt, credit, capital or securities markets, including changes in interest rates, (B) changes in GAAP or other accounting standards or interpretations thereof, (C) changes in commodity prices, including the prices of natural gas, crude oil, refined petroleum products, other hydrocarbon products, natural gas liquids, carbon dioxide, methane, nitrous oxide, fluorinated and other “greenhouse” gases, and other commodities, (D) the negotiation, execution, announcement or performance of this Agreement or the consummation of the Merger or the other transactions contemplated hereby, including the impact thereof on the relationships, contractual or otherwise, with employees, labor unions, financing sources, customers, suppliers, distributors, partners or other Persons (but, subject to clause (E), excluding Governmental Authorities), or any action or claim made or brought by any of the current or former stockholders of the Company (or on their behalf or on behalf of the Company) against the Company or any of its directors, officers or employees arising out of

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this Agreement or the Merger or the other transactions contemplated hereby (it being understood that this clause (D) shall not apply to a breach of any representation or warranty related to the announcement or consummation of the transactions contemplated hereby), (E) any Antitrust Actions or (F) any failure of any of the Company or any of its Subsidiaries to meet, with respect to any period or periods, any internal or published projections, forecasts, estimates of earnings or revenues or business plans relating to either of the Green Pipeline or the NEJD Pipeline (but not the underlying facts or basis for such failure to meet projections, forecasts, estimates of earnings or revenues or business plans, which may be taken into account in determining whether there has been a Specified Pipeline Event to the extent not otherwise falling within any of the other exceptions set forth in clauses (A) through (E) hereof).

Subsidiary” means, with respect to any Person, any entityPerson of which securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other personsPersons performing similar functions are at any time directly or indirectly owned or controlled by such Person.

Tax(and, with correlative meaning, “Taxes”) means any (i) tax, governmental feeall U.S. federal, state, local or non-U.S. taxes (including assessments, duties, levies, imposts or other like assessmentsimilar charges in the nature of a tax) imposed by a Governmental Authority (whether payable directly or chargeby withholding and whether or not requiring the filing of a Tax Return), including income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise profits, withholding (including backup withholding), social security, unemployment, disability, real property, personal property, sales, use, transfer, registration, ad valorem, value added, alternative or add-on minimum or estimated tax or any other tax of any kind whatsoever, (including withholding on amounts paid to or by any Person), together with any interest, penalty, addition to tax or additional amount, imposed by any Governmental Authority (a “Taxing Authority”) responsible for the imposition of any such tax (domesticwhether disputed or foreign),not, and any liability for any of the foregoing asby reason of (i) assumption, transferee (ii)or successor liability for the paymentor operation of any amount of the type described in clause (i) as a result ofApplicable Law, or (ii) being or having been before the Effective Time a member of an affiliated, consolidated, combined or unitary group, or a party to any agreement or arrangement, as a result of which liability to a Taxing Authorityof the Company or any of its Subsidiaries is determined or taken into account with reference to the activities of any other Person, and (iii) liability for the payment of any amount as a result of being party to any

Person.

Tax Sharing Agreement or with respect to the payment of any amount imposed on any Person of the type described in (i) or (ii) as a result of any existing express or implied agreement or arrangement (including an indemnification agreement or arrangement).

Tax Representation Letters” means the letters delivered to Davis Polk & Wardwell LLP, tax counsel to Parent, and Skadden, Arps, Slate, Meagher & Flom LLP, tax counsel to the Company, pursuant to Section 8.06(b), substantially in the form of Exhibits A and B hereto, which shall contain customary representations of Parent or the Company, respectively, dated as of the Closing Date and signed by an officer of Parent or the Company, respectively, in each case as shall be reasonably necessary or appropriate to enable Davis Polk & Wardwell LLP and Skadden, Arps, Slate, Meagher & Flom LLP to render the opinions described in Sections 9.02(d) and 9.03(b) hereof, respectively.

Tax Return” means any report, return, document, claim for refund, information return, declaration or other informationstatement or filing required to be supplied to any Taxing Authority with respect to Taxes (and any amendments thereof), including information returns, any schedules or documents with respect to or accompanying payments of estimated Taxes, or with respect to or accompanying requests for the extension of time in which to file any such report, return, document, declaration or other information.thereto.

Tax Sharing AgreementsAgreement” means all existing agreementsany agreement or arrangements (whether or not written)arrangement binding a partythe Company or any of its Subsidiaries that provideprovides for the allocation, apportionment, sharing, indemnification or assignment of any Tax liability or benefit, or the transfer or assignment of income, revenues, receipts, or gains for the purpose of determining any Person’s Tax liability (excluding any(other than customary Tax sharing or indemnification provisions contained in an agreement entered into in the ordinary course of business the primary subject matter of which does not relate to Taxes).

Termination Fee” means the Company Termination Fee or arrangement pertaining to the sale or lease of assets or subsidiaries).Parent Pipeline Termination Fee, as applicable.

Third Party” means any Person including as defined in Section 13(d) of the 1934 Act, other than Parent or any of its Affiliates.Subsidiaries.

Title IV Plan” means any Employee Plan that is subject to Title IV of ERISA.

Trade Secrets” means trade secrets and other confidential know-how and confidential information and rights in any jurisdiction, to limitincluding formulae, concepts, methods, techniques, procedures, processes (including manufacturing and production processes), algorithms, schematics, prototypes, models, designs, and business information (including customer lists and supplier lists, financial and marketing plans, and pricing and cost information).

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Units” means all pooled, communitized or unitized acreage that includes all or a part of any Oil and Gas Lease.

U.S. Plan” means any Employee Plan that covers Service Providers located primarily in the use or disclosure thereof by any Person.United States.

Treasury RegulationsWARN” means the regulations promulgated underWorker Adjustment and Retraining Notification Act and any similar, applicable foreign, state or local law.

Warrant Agreements” means (i) the Code.Series A Warrant Agreement, dated as of September 18, 2020, by and between the Company and Broadridge Corporate Issuer Solutions, Inc., and (ii) the Series B Warrant Agreement, dated as of September 18, 2020, by and between the Company and Broadridge Corporate Issuer Solutions, Inc.

“Warrants” means the Warrants, as defined in the Warrant Agreements.

Wells” means all oil or gas wells, whether producing, operating, shut-in or temporarily abandoned, located on an Oil and Gas Lease or any Unit that includes all or a part of such Oil and Gas Lease or otherwise associated with an Oil and Gas Property of the applicable Person or any of its Subsidiaries, together with all Hydrocarbon production from such well.

(b) Each of the following terms is defined in the Section set forth opposite such term:

 

Term

  

Section

368 ReorganizationAdverse Recommendation Change

  4.23

Adjusted Option

2.04(a)6.03

Agreement

  Preamble

Applicable Date

4.07

Burdensome Condition

8.01(c)

Certificates

  2.03(a)2.03

Closing

2.01(b)

Closing Date

  2.01(b)

Company

  Preamble

Company 401(k) Plan

7.04(d)

Company Activities

8.01(c)

Company Board

4.02(b)

Company Board Recommendation

  4.02(b)

Company Payment EventDSU Consideration

  11.04(b)2.04(b)

Company PlansEquity Award Consideration

  4.20(a)2.04(d)

Company Reserve ReportIndebtedness Payoff Amount

  4.158.11

Company Independent Petroleum Engineers

4.21

Company Independent Reserve Reports

4.21

Company Meeting

4.09

Company Preferred Stock

4.05

Company Restricted Stock Consideration

2.04(d)

Company RSU Consideration

2.04(a)

Company SEC Documents

  4.07(a)4.07

Company Securities

  4.05(b)

Company Stock AwardShares

  2.04(b)

Company Stock Option

2.04(a)

Company Stockholder Approval

4.02(a)

Company Stockholder Meeting

6.022.02

Company Subsidiary Securities

  4.06(b)4.06

Company WarrantTermination Fee

  2.05

11.04(b)(i)

TermCompany TSR Performance Award Consideration

  Section2.04(c)

Confidentiality Agreement

  6.03(b)(i)6.02

Continuing EmployeesContinuation Period

  7.07(a)7.04(b)

Continuing Employee Plans

  5.187.04(b)

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Converted Warrant

2.05

Covered Individual

6.01(o)

DerivativeData Breach

  4.16

Director OptionDavis Polk

  4.05(a)8.10

Defensible Title

4.21

D&O Insurance

7.03(c)

Effective Time

  2.01(c)2.01

Electronic Delivery

11.10

email

11.01

End Date

  10.01(b)(i)10.01

Exchange Agent

  2.03(a)

FERC

4.14

Filed Company SEC Documents

4.01

Filed Parent SEC Documents

5.01

good and defensible title

4.17(b)

Hydrocarbons

4.152.03

Indemnified Person

  7.05(a)

internal controls

4.07(f)

Lease

4.17(d)7.03(a)

Intervening Event

  6.03(b)6.03(c)

IRS

4.18(a)

JPM

4.24

Lease

4.15

Material Contract

  4.22(a)4.22(b)

Measurement Date

4.05(a)

Merger

  2.01(a)2.01

Merger Consideration

  2.02(a)2.02

Merger SubsidiarySub

  Preamble

New Hire

6.01(o)

NYSE

4.03

Oil and Gas Interests

4.15

Parent

  Preamble

Parent Plans401(k) plan

  5.187.04(d)

Parent Pipeline Termination Fee

11.04(c)

Parent Preferred Stock

5.05

Parent SEC Documents

  5.07(a)5.07

Parent Securities

  5.05(b)5.05

Parent Shares

2.02

Parent Subsidiary Securities

  5.06(b)5.06

Per Share ConsiderationPJT

  2.02(a)

Production Burdens

4.17(c)4.24

Proxy StatementStatement/Prospectus

  4.09

PWP

4.24

Registered IP

4.16

Registration Statement

  4.09

Report PreparerRequisite Company Vote

  4.154.02(a)

RepresentativesRights-of-Way

  6.034.15(c)

Sanctions

4.12(c)

Significant SubsidiarySubsidiaries

  5.06(a)

Stock Vesting Targets

2.04(b)5.06

Superior Proposal

  6.03(e)6.03(f)

Surviving Corporation

  2.01(a)2.01

Taxing AuthorityTransfer Taxes

  1.01(a)2.03(c)

368 ReorganizationTreasury Regulations

  4.23Recitals

Uncertificated Shares

  2.03(a)2.03

WARNV&E

  4.20(l)8.10

Section 1.021.02. . Other Definitional and Interpretative Provisions.The words “hereof”,“hereof,” “herein” and “hereunder” and words of like import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The headings and captions herein are included for convenience of reference only and shall not affectbe ignored in any way the meaning, construction or interpretation hereof. References to Articles, Sections, Exhibits and Schedules are to Articles, Sections, Exhibits and Schedules of this Agreement

unless otherwise specified. All Exhibits and Schedules (including the Company Disclosure Schedule and the Parent Disclosure Schedule) annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Any capitalized terms used in any Exhibit or Schedule but not otherwise defined therein, shall have the meaning as defined in this Agreement. Any singular term in this Agreement shall be deemed to include the

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plural, and any plural term the singular. Whenever the words “include”,“include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation”,limitation,” whether or not they are in fact followed by those words or words of like import. “Writing”,“Writing,” “written” and comparable terms refer to printing, typing and other means of reproducing words (including electronic media) in a visible form. References to any statute shall be deemed to refer to such statute as amended from time to time and, if applicable, to any rules, regulations or regulationsinterpretations promulgated thereunder (provided, that for purposes of any representations and warranties contained in Articles 3 and 4 of this Agreement that are made as of a specific date, references to any statute shall be deemed to refer to such statute, as amended, and to any rules or regulations promulgated thereunder, as of such date).thereunder. References to any agreement or contract are to that agreement or contract as amended, modified, supplemented, extended or supplementedrenewed from time to time in accordance with the terms hereof and thereof;provided that with respect to any agreement or contract listed on any schedulesschedule hereto (including the Company Disclosure Schedule and the Parent Disclosure Schedule), all such material amendments, modifications, supplements, extensions or supplementsrenewals must also be listed in the appropriate schedule. References to any Person include the successors and permitted assigns of that Person. References to a “party” or the “parties” means a party or the parties to this Agreement unless the context otherwise requires. References from or through any date mean, unless otherwise specified, from and including or through and including, respectively. ReferencesThe parties hereto have participated jointly in the negotiation and drafting of this Agreement and each has been represented by counsel of its choosing and, in the event of an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by such parties and no presumption or burden of proof will arise favoring or disfavoring any party due to “law” or “laws” shallthe authorship of any provision of this Agreement. Unless otherwise specifically indicated, all references to “dollars” and “$” will be deemed alsoreferences to include any Applicable Law.the lawful money of the United States of America.

ARTICLE 2

THE MERGER

Section 2.012.01. The Merger. The Merger.(a) AtUpon the terms and subject to the conditions set forth in this Agreement, at the Effective Time, Merger SubsidiarySub shall be mergedmerge (the “Merger”) with and into the Company in accordance with Delaware Law,the DGCL, whereupon the separate existence of Merger SubsidiarySub shall cease and the Company shall be the surviving corporation as a wholly owned Subsidiary of Parent (the “Surviving Corporation”) and a wholly-owned subsidiary.

(b) Subject to the provisions of Parent.

(b) TheArticle 9, the closing of the Merger (the “Closing”) shall take place in New York City at the offices of Davis Polk & Wardwell LLP, 450 Lexington Avenue, New York, New York, 10017 as soon as possible, but in any event no later than twofour Business Days after the date the conditions set forth in Article 9 (other than conditions that by their nature are to be satisfied at the Closing, but subject to the satisfaction or, to the extent permissible, waiver of thosesuch conditions at the Closing) have been satisfied or, to the extent permissible, waived by the party or parties entitled to the benefit of such conditions, or at such other place (or by means of remote communication), at such other time or on such other date as Parent and the Company may mutually agree.agree (the date on which the Closing occurs, the “Closing Date”).

(c) At the Closing, the Company and Merger SubsidiarySub shall file a certificate of merger with the Delaware Secretary of State and make all other filings or recordings required by Delaware Lawthe DGCL in connection with the Merger. The Merger shall become effective at such time (the “Effective Time”) as the certificate of merger is duly filed with the Delaware Secretary of State (or at such later time as may be agreed to by the parties and specified in the certificate of merger).

(d) From and after the Effective Time, the Surviving Corporation shall possess all the rights, powers, privileges and franchises and be subject to all of the obligations, liabilities, restrictions and disabilities of the Company and Merger Subsidiary,Sub, all as provided under Delaware Law.the DGCL.

Section 2.02.Conversion of Shares.Shares. At the Effective Time, by virtue of the Merger and without any action on the part of any holder of shares of Company StockShares or any holder of shares of common stock of Merger Subsidiary:Sub:

(a) Except as otherwise provided in Section 2.02(c)2.02(b) or Section 2.02(d), each share of common stock of the Company, Stock par value $0.001 per share (each a “Company Share” and collectively, the “Company Shares”),

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outstanding immediately prior to the Effective Time (other than any shares of(including the Company Restricted Stock relating to each restricted stock award or

performance share award outstanding under the Company’s equity compensation plans immediately prior to the Effective Time)which shall also be governed by Section 2.04(d) below) shall be converted into the right to receive 0.70980.840 shares of common stock of Parent, Stock (theeach without par value (each aPerParent Share Consideration” and togethercollectively, the “Parent Shares”) (together with theany cash in lieu of fractional shares of Parent StockShares as specified below, the “Merger Consideration”). As of the Effective Time, all such shares of Company StockShares shall no longer be outstanding and shall automatically be canceled and retired and shall cease to exist, and shall thereafter represent only the right to receive the Merger Consideration and the right to receive any dividends or other distributions pursuant to Section 2.03(f), in each case, to be issued or paid in accordance with Section 2.03, without interest.interest and subject to any withholding of Taxes required by Applicable Law.

(b) Each Company Share held by the Company as treasury stock (other than Company Shares subject to or issuable in connection with an Employee Plan of the Company) or owned by Parent or Merger Sub immediately prior to the Effective Time shall be canceled, and no payment shall be made with respect thereto.

(c) Each share of common stock of Merger SubsidiarySub outstanding immediately prior to the Effective Time shall be converted into and become one share of common stock of the Surviving Corporation with the same rights, powers and privileges as the shares so converted and shall constitute the only outstanding shares of capital stock of the Surviving Corporation.

(c)(d) Each share of Company StockShare held by any Subsidiary of either the Company as treasury stock or owned by Parent (other than the Merger Sub) immediately prior to the Effective Time shall be canceled, and no payment shall be made with respect thereto.converted into such number of shares of stock of the Surviving Corporation such that each such Subsidiary owns the same percentage of the outstanding capital stock of the Surviving Corporation immediately following the Effective Time as such Subsidiary owned in the Company immediately prior to the Effective Time.

Section 2.032.03. . Surrender and Payment.Payment. (a) Prior to the Effective Time, Parent shall appoint an agenta nationally recognized financial institution reasonably acceptable to Parent and the Company (the “Exchange Agent”) for the purpose of exchanging for the Merger Consideration (i) certificates representing shares of Company StockShares (the “Certificates”) andor (ii) uncertificated shares of Company StockShares (the “Uncertificated Shares”). The Exchange Agent agreement pursuant to which Parent shall appoint the Exchange Agent shall be in form and substance reasonably acceptable to the Company and Parent. At or prior to the Effective Time, Parent shall deposit with or otherwise make available to the Exchange Agent, in trust for the benefit of holders of shares of Company Stock, the Merger Consideration to be paid in respect of the Certificates and the Uncertificated Shares.Shares (other than the Company Restricted Stock) and the Company Equity Award Consideration in respect of the Non-Employee Holders (and, if determined by Parent pursuant to Section 2.04(e), all or a portion of the Company Equity Award Consideration to all or a portion of the Employee Holders). Parent agrees to make available to the Exchange Agent, from time to time as needed, any dividends or distributions to which such holder is entitled pursuant to Section 2.03(f) of this Agreement.. Promptly after the Effective Time and(and in any event no later than the 10thwithin five Business Day following the Effective Time,Days thereafter), Parent shall send, or shall cause the Exchange Agent to send, to each holder of record of shares of Company StockShares at the Effective Time (other than the Company Restricted Stock), a letter of transmittal and instructions in customary form and reasonably acceptable to the Company (which shall specify that the delivery shall be effected, and risk of loss and title shall pass, only upon proper delivery of the Certificates (or affidavits of loss in lieu thereof) or transfer of the Uncertificated Shares to the Exchange Agent and which shall otherwise be in customary form and shall include customary provisions with respect to delivery of an “agent’s message” regarding the book-entry transfer of Uncertificated Shares) for use in such exchange. Such letter of transmittal shall be in the form and have such provisions as Parent and the Company may reasonably agree.

(b) Each holder of shares of Company StockShares that have been converted into the right to receive the Merger Consideration (other than the Company Restricted Stock) shall be entitled to receive, upon (i) surrender to the Exchange Agent of a Certificate, together with a properly completed letter of transmittal, or (ii) receipt of an “agent’s message” by the Exchange Agent (or such other evidence, if any, of transfer as the Exchange Agent may reasonably request) in the case of a book-entry transfer of Uncertificated Shares, the Merger Consideration in respect of thepayable for each such Company StockShare represented by asuch Certificate or for each such Uncertificated Share. The shares of

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Parent StockShares constituting part of such Merger Consideration, at Parent’s option, shall be in uncertificated book-entry form, unless a physical certificate is requested by a holder of shares of Company Stock or is otherwise required under Applicable Law. Until so surrendered or transferred, as the case may be, each such Certificate or Uncertificated Share shall represent after the Effective Time for all purposes only the right to receive suchthe Merger Consideration and the right to receive any dividends or other distributions pursuant to Section 2.03(f). At the time set forth in Section 2.04(e), each Non-Employee Holder shall be entitled to receive such Non-Employee Holder’s Company Equity Award Consideration and, if determined by Parent pursuant to Section 2.04(e), all or a portion of the Company Equity Award Consideration payable to all or a portion of the Employee Holders shall be paid pursuant to this Section 2.03. No interest shall be paid or shall accrue on any cash payable upon surrender of any Company Shares or upon the Company Equity Award Consideration.

(c) If any portion of the Merger Consideration (other than in respect of the Company Restricted Stock) is to be paid to a Person other than the Person in whose name the surrendered Certificate or the transferred Uncertificated Share is registered, it shall be a condition to such payment that (i) either such Certificate shall be properly endorsed or shall otherwise be in proper form for transfer or such Uncertificated Share shall be properly transferred and (ii) the Person requesting such payment shall pay to the Exchange Agent any transfer or other taxesTransfer Taxes required as a result of such payment to a Person other than the registered holder of such Certificate or Uncertificated Share or establish to the satisfaction of the Exchange Agent and Parent that such taxTransfer Tax has been paid or is not payable. The payment of any transfer, documentary, sales, use, stamp, registration, value-added and other Taxes and fees (including any penalties and interest) (“Transfer Taxes”) incurred solely by a holder of Company Shares in connection with the Merger and any other transactions contemplated hereby, and the filing of any related Tax Returns, shall be the sole responsibility of such holder.

(d) After the Effective Time, there shall be no further registration of transfers of shares of Company Stock.Shares. If, after the Effective Time, Certificates or Uncertificated Shares are presented to Parent, the Surviving Corporation or the Exchange Agent, they shall be canceled and exchanged for the Merger Consideration provided for, and in accordance with the procedures set forth, in this Article 2.

(e) Any portion of the Merger Consideration deposited with or otherwise made available to the Exchange Agent pursuant to Section 2.03(a) (and any interest or other income earned thereon) that remains unclaimed by the holders of shares of Company StockShares that have been converted into the right to receive the Merger Consideration nine months after the Effective Time shall be returned to Parent, upon demand, and any such holder who has not exchanged shares ofsuch Company StockShares for the Merger Consideration in accordance with this Section 2.03 prior to that time shall thereafter look only to Parent for, and Parent shall remain liable for, payment of the Merger Consideration, and any dividends and distributions with respect thereto pursuant to Section 2.03(f), in respect of such sharesCompany Shares without any interest thereon.thereon and subject to any withholding of Taxes required by Applicable Law in accordance with this Section 2.03(e). Notwithstanding the foregoing, Parent shall not be liable to any holder of shares of Company StockShares for any amounts properlyamount paid to a public official pursuant to applicable abandoned property, escheat or similar laws. Any amounts remaining unclaimed by holders of shares of Company Stock fiveShares that have been converted into the right to receive the Merger Consideration two years after the Effective Time (or such earlier date immediately prior to such time when the amounts would otherwise escheat to or become property of any Governmental Authority) shall become, to the extent permitted by Applicable Law, the property of Parent free and clear of any claims or interest of any Person previously entitled thereto.

(f) No dividends or other distributions with respect to securities of Parent constituting part of the Merger Consideration, and no cash payment in lieu of fractional shares as provided in Section 2.07,2.06, shall be paid to the holder of any Certificates not surrendered or of any Uncertificated Shares not transferred until such Certificates or Uncertificated Shares are surrendered or transferred, as the case may be, as provided in this Section 2.03. Following such surrender or transfer, there shall be paid, without interest, to the Person in whose name the securities of Parent have been registered, (i) at the time of such surrender or transfer, the amount of any cash payable in lieu of fractional shares to which such Person is entitled pursuant to Section 2.072.06 and the amount of all dividends or other distributions with a record date after the Effective Time previously paid or payable on the date of such surrender with respect to such securities, and (ii) at the appropriate payment date, the amount of dividends or other distributions with a record date after the Effective Time and prior to surrender or transfer and with a payment date subsequent to surrender or transfer payable with respect to such securities.

(g) The payment of any transfer, documentary, sales, use, stamp, registration, value added and other such Taxes and fees (including any penalties and interest) incurred by a holder

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Section 2.04. Treatment of Company StockEquity Awards and ESPP. (a) At or immediately prior to the Effective Time, except as otherwise agreed in connection with the Merger,writing by Parent and the filing of any related Tax returns and other documentation with respect to such Taxes and fees, shall be the sole responsibility of such holder.

Section 2.04.Equity-Based Awards.(a) Exceptholder thereof or as set forth inon Section 2.04(a)6.01(m) of the Company Disclosure Letter,Schedule, each Company RSU outstanding as of immediately prior to the termsEffective Time, whether vested or unvested, shall, without any action on the part of each outstanding optionParent, Merger Sub, the Company or the holder thereof, be canceled and converted into the right to purchase sharesreceive, the Merger Consideration in respect of the total number of Company Stock under any equity compensation planShares subject to such Company RSU (the “Company RSU Consideration”). The payment of the Company (a “Company Stock Option”), whether or not exercisable or vested,RSU Consideration shall be adjusted as necessarysubject to provide that, atwithholding for all Taxes required by Applicable Law.

(b) At or immediately prior to the Effective Time, each Company Stock OptionDSU outstanding as of immediately prior to the Effective Time, whether vested or unvested, shall, without any action on the part of Parent, Merger Sub, the Company or the holder thereof, be canceled and converted into the right to receive, the Merger Consideration in respect of the total number of Company Shares subject to such Company DSU (the “Company DSU Consideration”). The payment of the Company DSU Consideration shall be subject to withholding for all Taxes required by Applicable Law.

(c) At or immediately prior to the Effective Time, except as otherwise agreed in writing by Parent and the holder thereof, each Company TSR Performance Award outstanding as of immediately prior to the Effective Time, shall, without any action on the part of Parent, Merger Sub, the Company or the holder thereof, be deemed to vest at actual performance levels (as determined by the Company Board (or a duly authorized committee thereof) reasonably and in good faith in accordance with the terms of the applicable Company TSR Performance Award, as in effect on the date of this Agreement, and after reasonable consultation with Parent) with respect to the applicable performance-based vesting conditions relating to such Company TSR Performance Awards and such vested number of Company TSR Performance Awards (if any) shall be canceled and converted into an option (each, an “Adjusted Option”)the right to acquire, onreceive, the same terms and conditions as were applicable underMerger Consideration in respect of the total number of Company Shares subject to such Company Stock OptionTSR Performance Awards that are deemed vested in accordance with the foregoing based on actual performance achieved as of the Effective Time with respect to applicable performance-based vesting conditions (the “Company TSR Performance Award Consideration”). The payment of the Company TSR Performance Award Consideration shall be subject to withholding for all required Taxes.

(d) At or immediately prior to the Effective Time, except as otherwise agreed by in writing by Parent and the number of shares of Parent Stock equal to the product of (i) the number of shares of Company Stock subject to such Company Stock Option immediately prior to the Effective Timemultiplied by(ii) the Per Share Consideration, with any fractional shares rounded down to the next lower whole number of shares. The exercise price per share of Parent Stock subject to any such Adjusted Option will be an amount (rounded up to the nearest whole cent) equal to the quotient of (A) the exercise price per share of Company Stock subject to such Company Stock Option immediately prior to the Effective Timedivided by(B) the Per Share Consideration, with any fractional cents rounded up to the next higher number of whole cents. Notwithstanding the foregoing, if the conversion of a Company Stock Option in accordance with the preceding provisions of this Section 2.04(a) would cause the related Adjusted Option to be treated as the grant of new stock right for purposes of Section 409A of the Code, such Company Stock Option shall not be converted in accordance with the

preceding provisions but shall instead be converted in a manner that would not cause the related Adjusted Option to be treated as the grant of new stock right for purposes of Section 409A. Exceptholder thereof or as set forth inon Section 2.04(a)6.01(m) of the Company Disclosure Letter, noSchedule, each Company Restricted Stock Option shall be subject to accelerated vesting upon or in connection with the transactions contemplated herein.

(b) Each restricted stock award or performance share award outstanding immediately prior to the Effective Time under any equity compensation planas of the Company (each, a “Company Stock Award”) shall be adjusted as necessary to provide that, at the Effective Time, such Company Stock Award shall be converted into a restricted stock award or performance share award, as applicable, relating to the number of shares of Parent Stock equal to the product of (i) the number of shares of Company Stock relating to such Company Stock Award immediately prior to the Effective Timemultiplied by(ii) the Per Share Consideration, with any fractional shares rounded down to the next lower whole number of shares. Except as set forth in Section 2.04(b) of the Company Disclosure Letter, each converted Company Stock Award shall be subject to the same terms, conditions and restrictions as were applicable under such Company Stock Award immediately prior to the Effective Time. Notwithstanding the foregoing, any Company Stock Award vesting condition contingent on the achievement of specified Company stock targets (“Stock Vesting Targets”) shall be adjusted so that each Stock Vesting Target is equal to the quotient of: (A) the Stock Vesting Targetdivided by (B) the Per Share Consideration, with any fractional cents rounded up to the next higher number of whole cents. Except as set forth in Section 2.04(b) of the Company Disclosure Letter, no Company Stock Award shall be subject to accelerated vesting upon or in connection with the transactions contemplated herein.

(c) Parent shall take such actions as are necessary for the assumption of the Company Stock Options pursuant to this Section 2.04, including the reservation, issuance and listing of Parent Stock as is necessary to effectuate the transactions contemplated by this Section 2.04. Parent shall prepare and file with the SEC a registration statement on an appropriate form, or a post-effective amendment to a registration statement previously filed under the 1933 Act, with respect to the shares of Parent Stock subject to the Company Stock Options and, where applicable, shall use its reasonable best efforts to have such registration statement declared effective as soon as practicable following the Effective Time and to maintain the effectiveness of such registration statement covering such Company Stock Options (and to maintain the current status of the prospectus contained therein) for so long as any such Company Stock Options remain outstanding. With respect to those individuals, if any, who, subsequent to the Effective Time, will be subject to the reporting requirements under Section 16(a) of the 1934 Act, where applicable, Parent shall administer any equity compensation plan of the Company assumed pursuant to this Section 2.04 in a manner that complies with Rule 16b-3 promulgated under the 1934 Act to the extent such equity compensation plan of the Company complied with such rule prior to the Merger.

(d) Prior to the Effective Time, the Company shall, with respect to stock option or compensation plans or arrangements, use its reasonable efforts to give effect to the transactions contemplated by this Section 2.04.

Section 2.05. Treatment of Company Warrants.At the Effective Time, each warrant to purchase shares of Company Stock (each, a “Company Warrant”), which is outstanding immediately prior to the Effective Time shall, cease to representwithout any action on the part of Parent, Merger Sub, the Company or the holder thereof, become a fully vested Company Share and be converted into the right to acquire sharesreceive the Merger Consideration in accordance with Section 2.02(a) (the “Company Restricted Stock Consideration” and, together with the Company RSU Consideration, Company DSU Consideration and Company TSR Performance Award Consideration, the “Company Equity Award Consideration). The payment of the Company Restricted Stock andConsideration shall be converted, atsubject to withholding for all required Taxes.

(e) As promptly as practicable and, in any event, no later than thirty (30) days following the Effective Time into(or, with respect to any Company RSUs, Company DSUs and/or Company TSR Performance Awards that constitute nonqualified deferred compensation subject to (and within the meaning of) Section 409A of the Code, at the earliest practicable time permitted under the applicable Employee Plan or Section 409A of the Code that will not trigger a rightTax or penalty under Section 409A of the Code), the Parent shall pay or cause to acquire sharesbe paid to the applicable holders of Company RSUs, Company DSUs, Company TSR Performance Awards and/or Company Restricted Stock all Company Equity Award Consideration. Notwithstanding the foregoing, in the case of any payment owed to a Non-Employee Holder, the applicable payments shall be made through the Exchange Agent pursuant to Section 2.03, and Parent, Stock (a “Converted Warrant”), onin its sole discretion, shall be permitted to determine to pay all or any portion of the same contractual termsCompany Equity Award Consideration to all or a portion of the Employee Holders through the Exchange Agent pursuant to Section 2.03.

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(f) As soon as practicable following the date of this Agreement and conditions as were in effect immediatelyany event, at least five days prior to the Effective Time, the Company Board shall adopt resolutions or take all other actions as may be required to provide that: (i) no new participants will commence participation in the ESPP after the date of this Agreement; (ii) no participant in the ESPP shall be allowed to increase his or her payroll contribution rate in effect as of the date of this Agreement or make separate non-payroll contributions following the date of this Agreement; and (iii) no new Offering Period (as defined in the ESPP) shall commence or be extended pursuant to the ESPP, in each case, after the date of this Agreement. With respect to each Offering Period that would otherwise be in effect on the Closing Date, the Company shall take action to provide that such Offering Period shall terminate on the date immediately preceding the Closing Date, and the Company shall apply the funds credited as of such date under the ESPP to each participant’s payroll withholding account under the ESPP to the purchase of whole Company Shares in accordance with the terms of the ESPP, which Company Warrant or other related agreement or awardShares shall be converted into the right to receive the Merger Consideration in accordance with Section 2.02(a) and shall be paid through the Exchange Agent pursuant to which suchSection 2.03. The Company Warrant was granted. The number of shares of Parent Stock subjectshall take all action to each such Converted Warrant shall be equal to (a)terminate the number of shares of Company Stock subject to each such Company WarrantESPP no later than immediately prior to and effective as of the Effective Timemultiplied by(b) the Per Share Consideration, with any fractional shares rounded down (but subject to the next lower whole numberconsummation of shares,the Merger).

(g) In exchange for the payment of the consideration provided for under this Section 2.04, except as otherwise agreed in writing by Parent and such Converted Warrantthe holder thereof or as set forth on Section 6.01(m) of the Company Disclosure Schedule, the Company shall terminate all Company RSUs, Company DSUs, Company TSR Performance Awards, the Equity Plan and the ESPP and shall cancel the Company Shares of Company Restricted Stock in accordance with Section 2.02(a), as of the Effective Time, and terminate the provisions in any other Employee Plan, Contract or arrangement providing for the issuance of grant or vesting of any other interest in respect of the capital stock of the Company or any of its Subsidiaries as of the Effective Time (but subject to the consummation of the Merger) without any liability to Parent, the Company and Merger Sub. The Company shall ensure that, following the Effective Time, no participant in any Equity Plan or other Employee Plan shall have an exercise price per share (rounded upany right thereunder to acquire any equity securities of Parent, the nearest whole cent) equal toCompany, the quotientSurviving Corporation or any of (i)their respective Subsidiaries, except for the exercise price per shareMerger Consideration or as otherwise agreed in writing by Parent and the holder thereof or as set forth on Section 6.01(m) of the Company Stock subject to such Converted Warrant immediately prior to the Effective Timedivided by(ii) the Per Share Consideration, with any fractional cents rounded up to the next higher number of whole cents.

Disclosure Schedule.

Section 2.06.2.05. Adjustments.Adjustments. If, during the period between the date of this Agreement and the Effective Time, the outstanding shares of capital stock of the Company or Parent shall have been changed into a different number of shares or a different class by reason of any reclassification, recapitalization, stock split or combination, exchange or readjustment of shares, respectively, or any stock dividend thereon with a record date during such period, or any other similar event, but excluding any change that results from (a) the exercise of Company Warrants, stock options or other equity awards to purchase sharesCompany Shares or Parent Shares (as set forth in Section 4.05 and Section 5.05, respectively), (b) the settlement of any other equity awards to purchase or otherwise acquire Company Shares or Parent StockShares or Company Stock or (b)(c) the grant of stock based compensation to directors or employees of Parent or (other than any such grants not made in accordance with the terms of this Agreement) the Company under Parent’s or the Company’s, as applicable, stock option or compensation plans or arrangements, the Merger Consideration and any other amounts payable pursuant to this Agreement, as applicable, shall be appropriately and proportionately adjusted. Nothing in this Section 2.05 shall be construed to permit any party to take any action that is otherwise prohibited or restricted by any other provision of this Agreement.

Section 2.07.2.06. Fractional Shares.Shares. No fractional shares of Parent StockShares shall be issued in the Merger. All fractional shares of Parent StockShares that a holder of shares of Company StockShares would otherwise be entitled to receive as a result of the Merger shall be aggregated and if a fractional share results from such aggregation, such holder shall be entitled to receive, in lieu thereof, an amount in cash without interest determined by multiplying the closing sale price of a share of Parent StockShare on the NYSE on the trading day immediately preceding the Effective Time by the fraction of a share of Parent StockShare to which such holder would otherwise have been entitled.

Section 2.08.2.07. Withholding.Withholding Rights. Notwithstanding any provision contained herein to the contrary, each of the Exchange Agent, Parent, the Company, Merger Sub and the Surviving Corporation and Parent shall be entitled to deduct orand withhold from the consideration otherwise payable to any Person pursuant to this Article 2Agreement such amounts

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as it reasonably concludes it is required to deduct orand withhold with respect to the making of such payment under the Code, under any provision of federal, state, localTax law or foreign tax law. The Company shall, and shall cause its Affiliatespursuant to assist Parent in making such deductions and withholding as reasonably requested by Parent.any other Applicable Law. If the Exchange Agent, Parent, the Company, Merger Sub or the Surviving Corporation, or Parent, as the case may be, so deducts or withholds amounts, such amounts shall be treated for all purposes of this Agreement as having been paid to the holder of the shares of Company Stocksuch Person in respect of which the Exchange Agent, the Surviving Corporation or Parent, as the case may be, made such deduction and withholding.withholding was made.

Section 2.09.2.08. Lost Certificates. If any Certificate shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the Person claiming such Certificate to be lost, stolen or destroyed and, if required by the Surviving Corporation, the posting by such Person of a bond, in such reasonable amount as the Surviving Corporation may direct, as indemnity against any claim that may be made against it with respect to such Certificate, the Exchange Agent will issue,shall pay, in exchange for such lost, stolen or destroyed Certificate, the Merger Consideration to be paid in respect of the shares of Company StockShares represented by such Certificate and any dividends or distributions with respect thereto pursuant to Section 2.03(f), as contemplated by this Article 2.

ARTICLE 3

THE SURVIVING CORPORATION

Section 3.013.01. . Certificate of Incorporation.Incorporation. At the Effective Time, and by virtue of the Merger, the certificate of incorporation of the CompanySurviving Corporation shall be amended to be identical to the certificate of incorporation of Merger Subsidiaryand restated as set forth in effect immediately prior to the Effective Time, except (a) for Article FIRST, which shall read “The name of the corporation is XTO Energy Inc.”, (b) that the provisions of the certificate of incorporation of Merger Subsidiary relating to the incorporator of Merger Subsidiary shall be omitted and (c) as otherwise required by Section 7.05(b),Exhibit A and, as so amended and restated, shall be the amended and restated certificate of incorporation of the Surviving Corporation until thereafterfurther amended in accordance with DelawareApplicable Law.

Section 3.023.02. Bylaws. Bylaws.AtThe bylaws of Merger Sub in effect at the Effective Time the bylaws of the Company shall be amended to be identical to the bylaws of Merger Subsidiary in effect immediately prior to the Effective Time and as so amended shall be the bylaws of the Surviving Corporation (except that references to the name of Merger Sub shall be replaced by reference to the name of the Surviving Corporation) until thereafter amended in accordance with DelawareApplicable Law.

Section 3.033.03. . Directors and Officers.Officers. From and after the Effective Time, until successors are duly elected or appointed and qualified in accordance with Applicable Law, (i)(a) the directors of Merger SubsidiarySub at the

Effective Time shall be the directors of the Surviving Corporation and (ii)(b) the officers of the CompanyMerger Sub at the Effective Time shall be the officers of the Surviving Corporation.

ARTICLE 4

REPRESENTATIONSAND WARRANTIESOFTHE COMPANY

Subject to Section 11.05, except (a)(x) as disclosed in theany Company SEC DocumentsDocument filed with or furnished to the SEC and publicly available since January 1, 2009 but2022 through the Business Day prior to the date hereof (andof this Agreement (but excluding any supplement, modificationgeneral cautionary or amendment thereto made afterforward-looking statements contained in the date hereof) (collectively,“Risk Factors” section or “Forward-Looking Statements” and any other statements that are similarly cautionary, predictive or forward-looking in nature, in each case other than any description of historical facts or events included therein); provided that this clause (x) shall not apply to the Filed Company SEC Documents”)representations and warranties set forth in Sections 4.05 or (b)4.06(b), or (y) as set forth in the Company Disclosure Letter,Schedule, the Company represents and warrants to Parent and Merger Sub that:

Section 4.014.01. . Corporate Existence and Power.Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has all corporate powers and all governmental licenses, authorizations, permits, consents and approvals required to carry on its business as now conducted, except for those licenses, authorizations, permits, consents and approvals the absence of whichother than as would not reasonably be expected to have, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. The Company is duly qualified to do business as a foreign corporation and is in good standing (with respect to jurisdictions that recognize such concept) in each jurisdiction where the conduct of its business in such jurisdiction as currently conducted requires such qualification is necessary, except for those jurisdictions where failure to be so qualified or in good standing has not had and would not individually or in the aggregate, reasonably be expected to have, individually or in the

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aggregate, a Company Material Adverse Effect. Prior to the date hereof, theThe Company has delivered or made available to Parent true(or included as an exhibit to the Company SEC Documents made available to Parent) complete and completecorrect copies of the organizational documents of the Company and each Subsidiary of the Company, and each as so made available is in full force and effect. The Company and each of its Subsidiaries is not in breach of any of its organizational documents in any material respect.

Section 4.02. Corporate Authorization. (a) The Company has all requisite corporate power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the Merger, except for the required approval of the holders of at least a majority of the outstanding Company Shares entitled to vote in connection with the adoption and approval of this Agreement and the transactions contemplated hereby, including the Merger, in accordance with Applicable Law and the Company’s certificate of incorporation and bylaws(the “Requisite Company Vote”). The Requisite Company Vote is the only vote of the holders of any of the capital stock of the Company asor the capital stock of any of its Subsidiaries (including any Company Securities or Company Subsidiary Securities) necessary in effect onconnection with consummation of the date of this Agreement.

Section 4.02. Corporate Authorization.(a)Merger. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby, subject to obtaining the Requisite Company Vote at the Company Meeting, are within the Company’s corporate powers and except for the required approval of the Company’s stockholders in connection with the consummation of the Merger, have been duly authorized by all necessary corporate action on the part of the Company. The affirmative vote of the holders of a majority of the outstanding shares of Company Stock (the “Company Stockholder Approval”) is the only vote of the holders of any of the Company’s capital stock necessary in connection with the consummation of the Merger. Thishas duly executed and delivered this Agreement, and, assuming due authorization, execution and delivery by each of Parent and Merger Subsidiary,Sub, this Agreement constitutes a valid and binding agreement of the Company enforceable against the Company in accordance with its terms (subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other lawssimilar Applicable Laws affecting creditors’ rights generally and general principles of equity).

(b) At a meeting duly called and held, asthe board of directors of the date of this Agreement, the Company’sCompany (the “Company Board of Directors”) has unanimously (i) determined that this Agreement and the transactions contemplated hereby, including the Merger, are fair to and in the best interests of the Company’sCompany and its stockholders, (ii) approved, adopted and declared advisable this Agreement and the transactions contemplated hereby, including the Merger, in accordance with the requirements of the DGCL and (iii) resolved, subject to Section 6.03(b)6.03(c), to recommend approval and adoption of this Agreement by itsthe stockholders of the Company (such recommendation, the “Company Board Recommendation”). As of the date of this Agreement, the foregoing determinations and resolutions have not been rescinded, modified or withdrawn in any way.

Section 4.034.03. Governmental Authorization. Governmental Authorization.The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby require no authorizations, consentsaction by or approvalsin respect of, or filing by or on behalf of the Company with, any Governmental Authority, other than (a) the filing of a certificate of merger with respect to the Merger with the Delaware Secretary of State and appropriate documents with the relevant authorities of other states in which the Company is qualified to do business, (b) compliance with any applicable requirements of the HSR Act, and any other Competition Laws, (c) compliance with any applicable requirements of the NYSE, 1933 Act, the 1934 Act and any other applicable state or federal securities takeover and “blue sky” laws, (d) complianceincluding the filing with any applicable requirementsthe SEC of the New York Stock Exchange (the “NYSE”)Proxy Statement/Prospectus relating to the matters to be submitted to the stockholders of the Company at the Company Meeting, (d) any of the actions or filings set forth on Section 4.03 of the Company Disclosure Schedule and (e) any authorizations, consents or approvalsactions or filings the absence of which has not had and would not reasonably be expected to have, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect or prevent or materially impede, interfere with, hinder or delay the consummation of the Merger.

Effect.

Section 4.044.04. Non-contravention. Non-contravention.The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby do not and will not (a) contravene, conflict with, or result in any violation or breach of any provision of the certificate of incorporation or bylaws of the Company or any of its Subsidiaries, (b) assuming compliance with the matters referred to in Section 4.03, contravene, conflict with or result in a violation or breach of any provision of any Applicable Law, (c) assuming termination of the Company Credit Agreement and satisfaction in full of all obligations outstanding thereunder and compliance with the matters referred to in Section 4.03, require payment or notice to, or any consent or approvalother action by any Person under, constitute a breach or default, or an event that,

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with or without notice or lapse of time or both, would constitute a default, under,violation or causebreach of, or permit thegive rise to any right of termination, suspension, cancellation, acceleration, payment or any other adverse change of any rightrights or obligationobligations of the Company or any of its Subsidiaries or the loss of any benefit to which the Company or any of its Subsidiaries is entitled under any provision of any agreement or other instrumentContract binding uponon the Company or any of its Subsidiaries or any license, franchise, permit, certificate, approval or other similar authorizationPermit affecting, or relating in any way to, the assets or business of the Company andor its Subsidiaries or (d) result in the creation or imposition of any Lien other than Permitted Liens, on any asset of the Company or any of its Subsidiaries except, in the case of each of clauses (b) through (d), for such as have not had and would not reasonably be reasonably expected to have, individually or in the aggregate, a Company Material Adverse Effect or materially impair the ability of the Company to consummate the Merger.Effect.

Section 4.054.05. Capitalization. Capitalization.(a) The authorized capital stock of the Company consists of (i) 1,000,000,000 shares of250,000,000 Company StockShares and (ii) 25,000,00050,000,000 shares of preferred stock, par value $0.01, of the $0.001 per share (the “Company (including 70,000 shares of Series A Junior Participating Preferred Stock)Stock”). As of December 11, 2009,July 10, 2023 (the “Measurement Date”), there were outstanding (A) 580,408,780(i) 50,473,057 Company Shares, of which 340,102 Company Shares constitute Company Restricted Stock, (ii) Warrants exercisable for 2,581,409 Company Shares and (iii) no shares of Company Stock (including restricted sharesPreferred Stock. As of the Measurement Date, there were 5,679,352 Company Shares reserved and performance shares), (B)still available for issuance under the Equity Plan, of which there were outstanding awards with respect to 1,950,053 Company Stock OptionsShares subject to purchase an aggregate of 20,603,005 sharesissuance upon vesting of Company Stock at a weighted-average exercise price of $37.00 per shareRSUs, 230,096 Company Shares subject to issuance upon vesting of Company Stock (of which optionsDSUs and 221,729 Company Shares subject to purchase an aggregate of 16,584,852 sharesissuance upon vesting of Company Stock were exercisable), (C) Company Stock Options held by non-employee directors or former non-employee directorsTSR Performance Awards (assuming achievement of applicable performance objectives at target levels). As of the Measurement Date, 1,981,281 Company (each a “Director Option”)Shares are subject to outstanding purchase an aggregate of 608,053 shares of Company Stock at a weighted-average exercise price of $33.00 per share of Company Stock (of which options to purchase an aggregate of 608,053 shares of Company Stock were exercisable) and (D) Company Warrants to purchase 2,318,804 shares of Company Stock at an exercise price of $20.7766 per share of Company Stock. There are no shares of preferred stock (including any Series A Junior Participating Preferred Stock) outstanding.rights under the ESPP. All outstanding shares of capital stock of the Company have been, and all shares that may be issued pursuant to any employee stock option or other compensation plan or arrangement will be, when issued in accordance with the respective terms thereof, duly authorized and validly issued, fully paid and nonassessable, and free of preemptive rights. No Subsidiary or AffiliateSection 4.05(a) of the Company ownsDisclosure Schedule sets forth, for each equity award, the holder, type of award, grant date, number of shares, vesting schedule (including any shares of capital stock of the Company or any Company Securities.acceleration provisions) and, if applicable, exercise price and expiration date.

(b) There are no outstanding no bonds, debentures, notes or other indebtednessIndebtedness of the Company having the right to vote (or convertible into, or exchangeable or exercisable for, securities having the right to vote) on any matters on which stockholders of the Company may vote. Except as set forth in this Section 4.05, as permitted under Section 6.014.05(a) of the Company Disclosure Schedule and for changes since December 11, 2009the Measurement Date resulting from the issuance of Company Shares pursuant to the settlement of Company RSUs, Company DSUs and Company TSR Performance Awards or the exercise of Company Stock OptionsWarrants, in each case outstanding on such date andin accordance with the vesting of restricted shares and performance shares outstandingterms thereof on such date, there are no issued, reserved for issuance or outstanding (i) shares of capital stock or other voting securities of or other ownership interests in the Company, (ii) securities of the Company convertible into or exchangeable or exercisable for shares of capital stock or other voting securities of or other ownership interests in the Company, (iii) warrants (other than Warrants), calls, options, subscriptions, commitments, Contracts or other rights to acquire from the Company, or other obligation of the Company to issue, any capital stock or other voting securities of, or ownership interests in, or any securities convertible into or exchangeable or exercisable for capital stock or other voting securities of or other ownership interests in, the Company or (iv) restricted shares, restricted stock units, stock appreciation rights, performance shares or units, contingent value rights, “phantom” stock or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the value or price of, any capital stock of or other voting securities of, or other ownership interests in, the Company (the items in clauses (i) through (iv), including, for the avoidance of doubt, the Company Shares, being referred to collectively as the “Company Securities”). There are no outstanding obligations of the Company or any of its Subsidiaries to repurchase, redeem or otherwise acquire any of the Company Securities. A complete and correct list of each outstanding Company Stock Option and Director Option as of December 11, 2009, including the holder, date of grant, exercise price, vesting schedule and number of shares of Company

Stock subject thereto has been made available to Parent. Neither the Company nor any of its Subsidiaries is a party to any voting trust, proxy, voting agreement or other similar agreement with respect to the voting, registration or transfer of any Company Securities. Since the Company Balance Sheet Date, neither the Company nor any of its Subsidiaries has declared, set aside or paid any dividends on, or made any other distributions (whether in cash, stock, property or otherwise) in respect of, any capital stock of such Person (other than cash dividends and distributions by a direct or indirect wholly owned Subsidiary of the Company to its parent).

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(c) None of (i) the Company Shares or (ii) any Company Securities are owned by any Subsidiary of the Company.

Section 4.064.06. Subsidiaries. Subsidiaries.(a) Each Subsidiary of the Company is an entityhas been duly incorporated or otherwise duly organized, is validly existing and (where applicable) in good standing under the laws of its jurisdiction of incorporation or organization, has all corporate, limited liability company or comparableorganizational powers and all governmental licenses, authorizations, permits, consents and approvals required to carry on its business as now conducted, except for those licenses, authorizations, permits, consents and approvalsother than where the absence of whichfailure to be so organized or to have such power, authority or standing would not reasonably be expected to have, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Each such Subsidiary is duly qualified to do business as a foreign entity and is in good standing (with respect to jurisdictions that recognize such concept) in each jurisdiction where such qualification is necessary, except for those jurisdictions where failure to be so qualified or in good standinghas not had and would not reasonably be expected to have, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. AllExcept as set forth in Section 4.06(a) of the Company Disclosure Schedule, all Subsidiaries of the Company as of the date hereof and their respective jurisdictions of organization are identified in Section 4.06(a) of the Company Disclosure Letter.10-K.

(b) All of the outstanding capital stock or other voting securities of, or ownership interests in, each Subsidiary of the Company ishave been duly authorized and validly issued and are fully paid and nonassessable and not subject to any preemptive rights and are owned by the Company, directly or indirectly, free and clear of any Lien and free of any other limitation or restriction (including any restriction on the right to vote, sell or otherwise dispose of such capital stock or other voting securities or ownership interests, other than any such restriction imposed by Applicable Law)interests). There are no issued, reserved for issuance or outstanding (i) securities of the Company or any of its Subsidiaries convertible into, or exchangeable or exercisable for, shares of capital stock or other voting securities of, or ownership interests in, any Subsidiary of the Company, (ii) warrants, calls, options, subscriptions, commitments, Contracts or other rights to acquire from the Company or any of its Subsidiaries, or other obligations of the Company or any of its Subsidiaries to issue, any capital stock or other voting securities of, or ownership interests in, or any securities convertible into, or exchangeable or exercisable for, any capital stock or other voting securities of, or ownership interests in, any Subsidiary of the Company or (iii) restricted shares, restricted stock units, stock appreciation rights, performance units, contingent value rights, “phantom” stock or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the value or price of, any capital stock or other voting securities of, or ownership interests in, any Subsidiary of the Company (the items in clauses (i) through (iii) being referred to collectively as the “Production Burdens” means any royalties (including lessor’s royalties), overriding royalties, production payments, net profit interests or other burdens upon, measured by or payable out of oil, gas or mineral production.

Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing into the environment.

Representative” means, with respect to any Person, the officers, directors, employees, investment bankers, accountants, consultants, agents, legal counsel, financial advisors and other representatives of such Person.

Sarbanes-Oxley Act” means the Sarbanes-Oxley Act of 2002.

SEC” means the U.S. Securities and Exchange Commission.

Service Provider” means any director, officer or employee of the Company or any of its Subsidiaries or any individual directly (or through an alter ego entity) engaged by the Company or any of its Subsidiaries as an independent contractor.

Specified Pipeline Event” means any event, circumstance, development, occurrence, fact, condition, effect or change that, individually or in the aggregate, has resulted in, or would reasonably be expected to result in, a material detriment in the ability of the Company or its Subsidiaries (or after the Closing, Parent and its Subsidiaries) to realize the benefits or have the use of the Green Pipeline or the NEJD Pipeline, excluding any event, change, circumstance, effect, occurrence, condition, state of facts or development to the extent arising or resulting from (A) changes, developments or conditions after the date hereof in the general economic conditions in the United States, including in the financial, debt, credit, capital or securities markets, including changes in interest rates, (B) changes in GAAP or other accounting standards or interpretations thereof, (C) changes in commodity prices, including the prices of natural gas, crude oil, refined petroleum products, other hydrocarbon products, natural gas liquids, carbon dioxide, methane, nitrous oxide, fluorinated and other “greenhouse” gases, and other commodities, (D) the negotiation, execution, announcement or performance of this Agreement or the consummation of the Merger or the other transactions contemplated hereby, including the impact thereof on the relationships, contractual or otherwise, with employees, labor unions, financing sources, customers, suppliers, distributors, partners or other Persons (but, subject to clause (E), excluding Governmental Authorities), or any action or claim made or brought by any of the current or former stockholders of the Company (or on their behalf or on behalf of the Company) against the Company or any of its directors, officers or employees arising out of

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this Agreement or the Merger or the other transactions contemplated hereby (it being understood that this clause (D) shall not apply to a breach of any representation or warranty related to the announcement or consummation of the transactions contemplated hereby), (E) any Antitrust Actions or (F) any failure of any of the Company or any of its Subsidiaries to meet, with respect to any period or periods, any internal or published projections, forecasts, estimates of earnings or revenues or business plans relating to either of the Green Pipeline or the NEJD Pipeline (but not the underlying facts or basis for such failure to meet projections, forecasts, estimates of earnings or revenues or business plans, which may be taken into account in determining whether there has been a Specified Pipeline Event to the extent not otherwise falling within any of the other exceptions set forth in clauses (A) through (E) hereof).

Subsidiary” means, with respect to any Person, any Person of which securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other Persons performing similar functions are at any time directly or indirectly owned or controlled by such Person.

Tax” (and, with correlative meaning, “Taxes”) means all U.S. federal, state, local or non-U.S. taxes (including assessments, duties, levies, imposts or other similar charges in the nature of a tax) imposed by a Governmental Authority (whether payable directly or by withholding and whether or not requiring the filing of a Tax Return), including income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise profits, withholding (including backup withholding), social security, unemployment, disability, real property, personal property, sales, use, transfer, registration, ad valorem, value added, alternative or add-on minimum or estimated tax or any other tax of any kind whatsoever, together with any interest, penalty, addition to tax or additional amount, whether disputed or not, and any liability for any of the foregoing by reason of (i) assumption, transferee or successor liability or operation of Applicable Law, or (ii) being or having been before the Effective Time a member of an affiliated, consolidated, combined or unitary group, or a party to any agreement or arrangement, as a result of which liability of the Company or any of its Subsidiaries is determined or taken into account with reference to the activities of any other Person.

Tax Return” means any report, return, document, claim for refund, information return, declaration or statement or filing with respect to Taxes (and any amendments thereof), including any schedules or documents with respect thereto.

Tax Sharing Agreement” means any agreement or arrangement binding the Company or any of its Subsidiaries that provides for the allocation, apportionment, sharing, indemnification or assignment of any Tax liability or benefit, or the transfer or assignment of income, revenues, receipts, or gains for the purpose of determining any Person’s Tax liability (other than customary Tax sharing or indemnification provisions contained in an agreement entered into in the ordinary course of business the primary subject matter of which does not relate to Taxes).

Termination Fee” means the Company Termination Fee or the Parent Pipeline Termination Fee, as applicable.

Third Party” means any Person other than Parent or any of its Subsidiaries.

Title IV Plan” means any Employee Plan that is subject to Title IV of ERISA.

Trade Secrets” means trade secrets and other confidential know-how and confidential information and rights in any jurisdiction, including formulae, concepts, methods, techniques, procedures, processes (including manufacturing and production processes), algorithms, schematics, prototypes, models, designs, and business information (including customer lists and supplier lists, financial and marketing plans, and pricing and cost information).

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Units” means all pooled, communitized or unitized acreage that includes all or a part of any Oil and Gas Lease.

U.S. Plan” means any Employee Plan that covers Service Providers located primarily in the United States.

WARN” means the Worker Adjustment and Retraining Notification Act and any similar, applicable foreign, state or local law.

Warrant Agreements” means (i) the Series A Warrant Agreement, dated as of September 18, 2020, by and between the Company and Broadridge Corporate Issuer Solutions, Inc., and (ii) the Series B Warrant Agreement, dated as of September 18, 2020, by and between the Company and Broadridge Corporate Issuer Solutions, Inc.

“Warrants” means the Warrants, as defined in the Warrant Agreements.

Wells” means all oil or gas wells, whether producing, operating, shut-in or temporarily abandoned, located on an Oil and Gas Lease or any Unit that includes all or a part of such Oil and Gas Lease or otherwise associated with an Oil and Gas Property of the applicable Person or any of its Subsidiaries, together with all Hydrocarbon production from such well.

(b) Each of the following terms is defined in the Section set forth opposite such term:

Term

Section

Adverse Recommendation Change

6.03

Agreement

Preamble

Applicable Date

4.07

Burdensome Condition

8.01(c)

Certificates

2.03

Closing

2.01(b)

Closing Date

2.01(b)

Company

Preamble

Company 401(k) Plan

7.04(d)

Company Activities

8.01(c)

Company Board

4.02(b)

Company Board Recommendation

4.02(b)

Company DSU Consideration

2.04(b)

Company Equity Award Consideration

2.04(d)

Company Indebtedness Payoff Amount

8.11

Company Independent Petroleum Engineers

4.21

Company Independent Reserve Reports

4.21

Company Meeting

4.09

Company Preferred Stock

4.05

Company Restricted Stock Consideration

2.04(d)

Company RSU Consideration

2.04(a)

Company SEC Documents

4.07

Company Securities

4.05(b)

Company Shares

2.02

Company Subsidiary Securities

4.06

Company Termination Fee

11.04(b)(i)

Company TSR Performance Award Consideration

2.04(c)

Confidentiality Agreement

6.02

Continuation Period

7.04(b)

Continuing Employee

7.04(b)

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Data Breach

4.16

Davis Polk

8.10

Defensible Title

4.21

D&O Insurance

7.03(c)

Effective Time

2.01

Electronic Delivery

11.10

email

11.01

End Date

10.01

Exchange Agent

2.03

Indemnified Person

7.03(a)

Intervening Event

6.03(c)

IRS

4.18(a)

JPM

4.24

Lease

4.15

Material Contract

4.22(b)

Measurement Date

4.05(a)

Merger

2.01

Merger Consideration

2.02

Merger Sub

Preamble

Parent

Preamble

Parent 401(k) plan

7.04(d)

Parent Pipeline Termination Fee

11.04(c)

Parent Preferred Stock

5.05

Parent SEC Documents

5.07

Parent Securities

5.05

Parent Shares

2.02

Parent Subsidiary Securities

5.06

PJT

4.24

Proxy Statement/Prospectus

4.09

PWP

4.24

Registered IP

4.16

Registration Statement

4.09

Requisite Company Vote

4.02(a)

Rights-of-Way

4.15(c)

Sanctions

4.12(c)

Significant Subsidiaries

5.06

Superior Proposal

6.03(f)

Surviving Corporation

2.01

Transfer Taxes

2.03(c)

Treasury Regulations

Recitals

Uncertificated Shares

2.03

V&E

8.10

Section 1.02. Other Definitional and Interpretative Provisions. The words “hereof,” “herein” and “hereunder” and words of like import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation hereof. References to Articles, Sections, Exhibits and Schedules are to Articles, Sections, Exhibits and Schedules of this Agreement unless otherwise specified. All Exhibits and Schedules (including the Company Disclosure Schedule and the Parent Disclosure Schedule) annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Any capitalized terms used in any Exhibit or Schedule but not otherwise defined therein, shall have the meaning as defined in this Agreement. Any singular term in this Agreement shall be deemed to include the

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plural, and any plural term the singular. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation,” whether or not they are in fact followed by those words or words of like import. “Writing,” “written” and comparable terms refer to printing, typing and other means of reproducing words (including electronic media) in a visible form. References to any statute shall be deemed to refer to such statute as amended from time to time and, if applicable, to any rules, regulations or interpretations promulgated thereunder. References to any agreement or contract are to that agreement or contract as amended, modified, supplemented, extended or renewed from time to time in accordance with the terms hereof and thereof; provided that with respect to any agreement or contract listed on any schedule hereto (including the Company Disclosure Schedule and the Parent Disclosure Schedule), all such amendments, modifications, supplements, extensions or renewals must also be listed in the appropriate schedule. References to any Person include the successors and permitted assigns of that Person. References to a “party” or the “parties” means a party or the parties to this Agreement unless the context otherwise requires. References from or through any date mean, unless otherwise specified, from and including or through and including, respectively. The parties hereto have participated jointly in the negotiation and drafting of this Agreement and each has been represented by counsel of its choosing and, in the event of an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by such parties and no presumption or burden of proof will arise favoring or disfavoring any party due to the authorship of any provision of this Agreement. Unless otherwise specifically indicated, all references to “dollars” and “$” will be deemed references to the lawful money of the United States of America.

ARTICLE 2

THE MERGER

Section 2.01. The Merger. (a) Upon the terms and subject to the conditions set forth in this Agreement, at the Effective Time, Merger Sub shall merge (the “Merger”) with and into the Company in accordance with the DGCL, whereupon the separate existence of Merger Sub shall cease and the Company shall be the surviving corporation as a wholly owned Subsidiary of Parent (the “Surviving Corporation”).

(b) Subject to the provisions of Article 9, the closing of the Merger (the “Closing”) shall take place in New York City at the offices of Davis Polk & Wardwell LLP, 450 Lexington Avenue, New York, New York, 10017 as soon as possible, but in any event no later than four Business Days after the date the conditions set forth in Article 9 (other than conditions that by their nature are to be satisfied at the Closing, but subject to the satisfaction or, to the extent permissible, waiver of such conditions at the Closing) have been satisfied or, to the extent permissible, waived by the party or parties entitled to the benefit of such conditions, or at such other place (or by means of remote communication), at such other time or on such other date as Parent and the Company may mutually agree (the date on which the Closing occurs, the “Closing Date”).

(c) At the Closing, the Company and Merger Sub shall file a certificate of merger with the Delaware Secretary of State and make all other filings or recordings required by the DGCL in connection with the Merger. The Merger shall become effective at such time (the “Effective Time”) as the certificate of merger is duly filed with the Delaware Secretary of State (or at such later time as may be specified in the certificate of merger).

(d) From and after the Effective Time, the Surviving Corporation shall possess all the rights, powers, privileges and franchises and be subject to all of the obligations, liabilities, restrictions and disabilities of the Company and Merger Sub, all as provided under the DGCL.

Section 2.02. Conversion of Shares. At the Effective Time, by virtue of the Merger and without any action on the part of any holder of Company Shares or any holder of shares of common stock of Merger Sub:

(a) Except as otherwise provided in Section 2.02(b) or Section 2.02(d), each share of common stock of the Company, par value $0.001 per share (each a “Company Share” and collectively, the “Company Shares”),

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outstanding immediately prior to the Effective Time (including the Company Restricted Stock which shall also be governed by Section 2.04(d) below) shall be converted into the right to receive 0.840 shares of common stock of Parent, each without par value (each a “Parent Share” and collectively, the “Parent Shares”) (together with any cash in lieu of fractional Parent Shares as specified below, the “Merger Consideration”). As of the Effective Time, all such Company Shares shall no longer be outstanding and shall automatically be canceled and retired and shall cease to exist, and shall thereafter represent only the right to receive the Merger Consideration and the right to receive any dividends or other distributions pursuant to Section 2.03(f), in each case, to be issued or paid in accordance with Section 2.03, without interest and subject to any withholding of Taxes required by Applicable Law.

(b) Each Company Share held by the Company as treasury stock (other than Company Shares subject to or issuable in connection with an Employee Plan of the Company) or owned by Parent or Merger Sub immediately prior to the Effective Time shall be canceled, and no payment shall be made with respect thereto.

(c) Each share of common stock of Merger Sub outstanding immediately prior to the Effective Time shall be converted into and become one share of common stock of the Surviving Corporation with the same rights, powers and privileges as the shares so converted and shall constitute the only outstanding shares of capital stock of the Surviving Corporation.

(d) Each Company Share held by any Subsidiary of either the Company or Parent (other than the Merger Sub) immediately prior to the Effective Time shall be converted into such number of shares of stock of the Surviving Corporation such that each such Subsidiary owns the same percentage of the outstanding capital stock of the Surviving Corporation immediately following the Effective Time as such Subsidiary owned in the Company immediately prior to the Effective Time.

Section 2.03. Surrender and Payment. (a) Prior to the Effective Time, Parent shall appoint a nationally recognized financial institution reasonably acceptable to Parent and the Company (the “Exchange Agent”) for the purpose of exchanging for the Merger Consideration (i) certificates representing Company Shares (the “Certificates”) or (ii) uncertificated Company Shares (the “Uncertificated Shares”). The Exchange Agent agreement pursuant to which Parent shall appoint the Exchange Agent shall be in form and substance reasonably acceptable to the Company and Parent. At or prior to the Effective Time, Parent shall deposit with or otherwise make available to the Exchange Agent, the Merger Consideration to be paid in respect of the Certificates and the Uncertificated Shares (other than the Company Restricted Stock) and the Company Equity Award Consideration in respect of the Non-Employee Holders (and, if determined by Parent pursuant to Section 2.04(e), all or a portion of the Company Equity Award Consideration to all or a portion of the Employee Holders). Parent agrees to make available to the Exchange Agent, from time to time as needed, any dividends or distributions to which such holder is entitled pursuant to Section 2.03(f). Promptly after the Effective Time (and in any event within five Business Days thereafter), Parent shall send, or shall cause the Exchange Agent to send, to each holder of Company Shares at the Effective Time (other than the Company Restricted Stock), a letter of transmittal and instructions in customary form and reasonably acceptable to the Company (which shall specify that the delivery shall be effected, and risk of loss and title shall pass, only upon proper delivery of the Certificates (or affidavits of loss in lieu thereof) or transfer of the Uncertificated Shares to the Exchange Agent and shall include customary provisions with respect to delivery of an “agent’s message” regarding book-entry transfer of Uncertificated Shares) for use in such exchange. Such letter of transmittal shall be in the form and have such provisions as Parent and the Company may reasonably agree.

(b) Each holder of Company Shares that have been converted into the right to receive the Merger Consideration (other than the Company Restricted Stock) shall be entitled to receive, upon (i) surrender to the Exchange Agent of a Certificate, together with a properly completed letter of transmittal, or (ii) receipt of an “agent’s message” by the Exchange Agent (or such other evidence, if any, of transfer as the Exchange Agent may reasonably request) in the case of a book-entry transfer of Uncertificated Shares, the Merger Consideration payable for each such Company Share represented by such Certificate or for each such Uncertificated Share. The

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Parent Shares constituting part of such Merger Consideration, at Parent’s option, shall be in uncertificated book-entry form, unless a physical certificate is required under Applicable Law. Until so surrendered or transferred, as the case may be, each such Certificate or Uncertificated Share shall represent after the Effective Time for all purposes only the right to receive the Merger Consideration and the right to receive any dividends or other distributions pursuant to Section 2.03(f). At the time set forth in Section 2.04(e), each Non-Employee Holder shall be entitled to receive such Non-Employee Holder’s Company Equity Award Consideration and, if determined by Parent pursuant to Section 2.04(e), all or a portion of the Company Equity Award Consideration payable to all or a portion of the Employee Holders shall be paid pursuant to this Section 2.03. No interest shall be paid or shall accrue on any cash payable upon surrender of any Company Shares or upon the Company Equity Award Consideration.

(c) If any portion of the Merger Consideration (other than in respect of the Company Restricted Stock) is to be paid to a Person other than the Person in whose name the surrendered Certificate or the transferred Uncertificated Share is registered, it shall be a condition to such payment that (i) either such Certificate shall be properly endorsed or shall otherwise be in proper form for transfer or such Uncertificated Share shall be properly transferred and (ii) the Person requesting such payment shall pay to the Exchange Agent any Transfer Taxes required as a result of such payment to a Person other than the registered holder of such Certificate or Uncertificated Share or establish to the satisfaction of the Exchange Agent and Parent that such Transfer Tax has been paid or is not payable. The payment of any transfer, documentary, sales, use, stamp, registration, value-added and other Taxes and fees (including any penalties and interest) (“Transfer Taxes”) incurred solely by a holder of Company Shares in connection with the Merger and any other transactions contemplated hereby, and the filing of any related Tax Returns, shall be the sole responsibility of such holder.

(d) After the Effective Time, there shall be no further registration of transfers of Company Shares. If, after the Effective Time, Certificates or Uncertificated Shares are presented to Parent, the Surviving Corporation or the Exchange Agent, they shall be canceled and exchanged for the Merger Consideration provided for, and in accordance with the procedures set forth, in this Article 2.

(e) Any portion of the Merger Consideration made available to the Exchange Agent pursuant to Section 2.03(a) (and any interest or other income earned thereon) that remains unclaimed by the holders of Company Shares that have been converted into the right to receive the Merger Consideration nine months after the Effective Time shall be returned to Parent, upon demand, and any such holder who has not exchanged such Company Shares for the Merger Consideration in accordance with this Section 2.03 prior to that time shall thereafter look only to Parent for, and Parent shall remain liable for, payment of the Merger Consideration, and any dividends and distributions with respect thereto pursuant to Section 2.03(f), in respect of such Company Shares without any interest thereon and subject to any withholding of Taxes required by Applicable Law in accordance with this Section 2.03(e). Notwithstanding the foregoing, Parent shall not be liable to any holder of Company Shares for any amount paid to a public official pursuant to applicable abandoned property, escheat or similar laws. Any amounts remaining unclaimed by holders of Company Shares that have been converted into the right to receive the Merger Consideration two years after the Effective Time (or such earlier date immediately prior to such time when the amounts would otherwise escheat to or become property of any Governmental Authority) shall become, to the extent permitted by Applicable Law, the property of Parent free and clear of any claims or interest of any Person previously entitled thereto.

(f) No dividends or other distributions with respect to securities of Parent constituting part of the Merger Consideration, and no cash payment in lieu of fractional shares as provided in Section 2.06, shall be paid to the holder of any Certificates not surrendered or of any Uncertificated Shares not transferred until such Certificates or Uncertificated Shares are surrendered or transferred, as the case may be, as provided in this Section 2.03. Following such surrender or transfer, there shall be paid, without interest, to the Person in whose name the securities of Parent have been registered, at the time of such surrender or transfer, the amount of any cash payable in lieu of fractional shares to which such Person is entitled pursuant to Section 2.06 and the amount of all dividends or other distributions with a record date after the Effective Time previously paid or payable on the date of such surrender or transfer with respect to such securities.

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Section 2.04. Treatment of Company Equity Awards and ESPP. (a) At or immediately prior to the Effective Time, except as otherwise agreed in writing by Parent and the holder thereof or as set forth on Section 6.01(m) of the Company Disclosure Schedule, each Company RSU outstanding as of immediately prior to the Effective Time, whether vested or unvested, shall, without any action on the part of Parent, Merger Sub, the Company or the holder thereof, be canceled and converted into the right to receive, the Merger Consideration in respect of the total number of Company Shares subject to such Company RSU (the “Company RSU Consideration”). The payment of the Company RSU Consideration shall be subject to withholding for all Taxes required by Applicable Law.

(b) At or immediately prior to the Effective Time, each Company DSU outstanding as of immediately prior to the Effective Time, whether vested or unvested, shall, without any action on the part of Parent, Merger Sub, the Company or the holder thereof, be canceled and converted into the right to receive, the Merger Consideration in respect of the total number of Company Shares subject to such Company DSU (the “Company DSU Consideration”). The payment of the Company DSU Consideration shall be subject to withholding for all Taxes required by Applicable Law.

(c) At or immediately prior to the Effective Time, except as otherwise agreed in writing by Parent and the holder thereof, each Company TSR Performance Award outstanding as of immediately prior to the Effective Time, shall, without any action on the part of Parent, Merger Sub, the Company or the holder thereof, be deemed to vest at actual performance levels (as determined by the Company Board (or a duly authorized committee thereof) reasonably and in good faith in accordance with the terms of the applicable Company TSR Performance Award, as in effect on the date of this Agreement, and after reasonable consultation with Parent) with respect to the applicable performance-based vesting conditions relating to such Company TSR Performance Awards and such vested number of Company TSR Performance Awards (if any) shall be canceled and converted into the right to receive, the Merger Consideration in respect of the total number of Company Shares subject to such Company TSR Performance Awards that are deemed vested in accordance with the foregoing based on actual performance achieved as of the Effective Time with respect to applicable performance-based vesting conditions (the “Company TSR Performance Award Consideration”). The payment of the Company TSR Performance Award Consideration shall be subject to withholding for all required Taxes.

(d) At or immediately prior to the Effective Time, except as otherwise agreed by in writing by Parent and the holder thereof or as set forth on Section 6.01(m) of the Company Disclosure Schedule, each Company Restricted Stock outstanding as of immediately prior to the Effective Time shall, without any action on the part of Parent, Merger Sub, the Company or the holder thereof, become a fully vested Company Share and be converted into the right to receive the Merger Consideration in accordance with Section 2.02(a) (the “Company Restricted Stock Consideration” and, together with the Company RSU Consideration, Company DSU Consideration and Company TSR Performance Award Consideration, the “Company Equity Award Consideration). The payment of the Company Restricted Stock Consideration shall be subject to withholding for all required Taxes.

(e) As promptly as practicable and, in any event, no later than thirty (30) days following the Effective Time (or, with respect to any Company RSUs, Company DSUs and/or Company TSR Performance Awards that constitute nonqualified deferred compensation subject to (and within the meaning of) Section 409A of the Code, at the earliest practicable time permitted under the applicable Employee Plan or Section 409A of the Code that will not trigger a Tax or penalty under Section 409A of the Code), the Parent shall pay or cause to be paid to the applicable holders of Company RSUs, Company DSUs, Company TSR Performance Awards and/or Company Restricted Stock all Company Equity Award Consideration. Notwithstanding the foregoing, in the case of any payment owed to a Non-Employee Holder, the applicable payments shall be made through the Exchange Agent pursuant to Section 2.03, and Parent, in its sole discretion, shall be permitted to determine to pay all or any portion of the Company Equity Award Consideration to all or a portion of the Employee Holders through the Exchange Agent pursuant to Section 2.03.

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(f) As soon as practicable following the date of this Agreement and in any event, at least five days prior to the Effective Time, the Company Board shall adopt resolutions or take all other actions as may be required to provide that: (i) no new participants will commence participation in the ESPP after the date of this Agreement; (ii) no participant in the ESPP shall be allowed to increase his or her payroll contribution rate in effect as of the date of this Agreement or make separate non-payroll contributions following the date of this Agreement; and (iii) no new Offering Period (as defined in the ESPP) shall commence or be extended pursuant to the ESPP, in each case, after the date of this Agreement. With respect to each Offering Period that would otherwise be in effect on the Closing Date, the Company shall take action to provide that such Offering Period shall terminate on the date immediately preceding the Closing Date, and the Company shall apply the funds credited as of such date under the ESPP to each participant’s payroll withholding account under the ESPP to the purchase of whole Company Shares in accordance with the terms of the ESPP, which Company Shares shall be converted into the right to receive the Merger Consideration in accordance with Section 2.02(a) and shall be paid through the Exchange Agent pursuant to Section 2.03. The Company shall take all action to terminate the ESPP no later than immediately prior to and effective as of the Effective Time (but subject to the consummation of the Merger).

(g) In exchange for the payment of the consideration provided for under this Section 2.04, except as otherwise agreed in writing by Parent and the holder thereof or as set forth on Section 6.01(m) of the Company Disclosure Schedule, the Company shall terminate all Company RSUs, Company DSUs, Company TSR Performance Awards, the Equity Plan and the ESPP and shall cancel the Company Shares of Company Restricted Stock in accordance with Section 2.02(a), as of the Effective Time, and terminate the provisions in any other Employee Plan, Contract or arrangement providing for the issuance of grant or vesting of any other interest in respect of the capital stock of the Company or any of its Subsidiaries as of the Effective Time (but subject to the consummation of the Merger) without any liability to Parent, the Company and Merger Sub. The Company shall ensure that, following the Effective Time, no participant in any Equity Plan or other Employee Plan shall have any right thereunder to acquire any equity securities of Parent, the Company, the Surviving Corporation or any of their respective Subsidiaries, except for the Merger Consideration or as otherwise agreed in writing by Parent and the holder thereof or as set forth on Section 6.01(m) of the Company Disclosure Schedule.

Section 2.05. Adjustments. If, during the period between the date of this Agreement and the Effective Time, the outstanding capital stock of the Company or Parent shall have been changed into a different number of shares or a different class by reason of any reclassification, recapitalization, stock split or combination, exchange or readjustment of shares, respectively, or any stock dividend thereon with a record date during such period, or any other similar event, but excluding any change that results from (a) the exercise of Warrants, stock options or other equity awards to purchase Company Shares or Parent Shares (as set forth in Section 4.05 and Section 5.05, respectively), (b) the settlement of any other equity awards to purchase or otherwise acquire Company Shares or Parent Shares or (c) the grant of stock based compensation to directors or employees of Parent or (other than any such grants not made in accordance with the terms of this Agreement) the Company under Parent’s or the Company’s, as applicable, stock option or compensation plans or arrangements, the Merger Consideration and any other amounts payable pursuant to this Agreement, as applicable, shall be appropriately and proportionately adjusted. Nothing in this Section 2.05 shall be construed to permit any party to take any action that is otherwise prohibited or restricted by any other provision of this Agreement.

Section 2.06. Fractional Shares. No fractional Parent Shares shall be issued in the Merger. All fractional Parent Shares that a holder of Company Shares would otherwise be entitled to receive as a result of the Merger shall be aggregated and if a fractional share results from such aggregation, such holder shall be entitled to receive, in lieu thereof, an amount in cash without interest determined by multiplying the closing sale price of a Parent Share on the NYSE on the trading day immediately preceding the Effective Time by the fraction of a Parent Share to which such holder would otherwise have been entitled.

Section 2.07. Withholding Rights. Notwithstanding any provision contained herein to the contrary, each of the Exchange Agent, Parent, the Company, Merger Sub and the Surviving Corporation shall be entitled to deduct and withhold from the consideration otherwise payable to any Person pursuant to this Agreement such amounts

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as it reasonably concludes it is required to deduct and withhold with respect to the making of such payment under the Code, under any Tax law or pursuant to any other Applicable Law. If the Exchange Agent, Parent, the Company, Merger Sub or the Surviving Corporation, as the case may be, so deducts or withholds amounts, such amounts shall be treated for all purposes of this Agreement as having been paid to such Person in respect of which such deduction and withholding was made.

Section 2.08. Lost Certificates. If any Certificate shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the Person claiming such Certificate to be lost, stolen or destroyed and, if required by the Surviving Corporation, the posting by such Person of a bond, in such reasonable amount as the Surviving Corporation may direct, as indemnity against any claim that may be made against it with respect to such Certificate, the Exchange Agent shall pay, in exchange for such lost, stolen or destroyed Certificate, the Merger Consideration to be paid in respect of the Company Shares represented by such Certificate and any dividends or distributions with respect thereto pursuant to Section 2.03(f), as contemplated by this Article 2.

ARTICLE 3

THE SURVIVING CORPORATION

Section 3.01. Certificate of Incorporation. At the Effective Time, the certificate of incorporation of the Surviving Corporation shall be amended and restated as set forth in Exhibit A and, as so amended and restated, shall be the certificate of incorporation of the Surviving Corporation until further amended in accordance with Applicable Law.

Section 3.02. Bylaws. The bylaws of Merger Sub in effect at the Effective Time shall be the bylaws of the Surviving Corporation (except that references to the name of Merger Sub shall be replaced by reference to the name of the Surviving Corporation) until thereafter amended in accordance with Applicable Law.

Section 3.03. Directors and Officers. From and after the Effective Time, until successors are duly elected or appointed and qualified in accordance with Applicable Law, (a) the directors of Merger Sub at the Effective Time shall be the directors of the Surviving Corporation and (b) the officers of Merger Sub at the Effective Time shall be the officers of the Surviving Corporation.

ARTICLE 4

REPRESENTATIONSAND WARRANTIESOFTHE COMPANY

Subject to Section 11.05, except (x) as disclosed in any Company SEC Document filed with or furnished to the SEC and publicly available since January 1, 2022 through the Business Day prior to the date of this Agreement (but excluding any general cautionary or forward-looking statements contained in the “Risk Factors” section or “Forward-Looking Statements” and any other statements that are similarly cautionary, predictive or forward-looking in nature, in each case other than any description of historical facts or events included therein); provided that this clause (x) shall not apply to the representations and warranties set forth in Sections 4.05 or 4.06(b), or (y) as set forth in the Company Disclosure Schedule, the Company represents and warrants to Parent and Merger Sub that:

Section 4.01. Corporate Existence and Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has all corporate powers required to carry on its business as now conducted, other than as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. The Company is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction where the conduct of its business in such jurisdiction as currently conducted requires such qualification is necessary, except for those jurisdictions where failure to be so qualified or in good standing has not had and would not reasonably be expected to have, individually or in the

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aggregate, a Company Material Adverse Effect. The Company has made available to Parent (or included as an exhibit to the Company SEC Documents made available to Parent) complete and correct copies of the organizational documents of the Company and each Subsidiary of the Company, and each as so made available is in full force and effect. The Company and each of its Subsidiaries is not in breach of any of its organizational documents in any material respect.

Section 4.02. Corporate Authorization. (a) The Company has all requisite corporate power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the Merger, except for the required approval of the holders of at least a majority of the outstanding Company Shares entitled to vote in connection with the adoption and approval of this Agreement and the transactions contemplated hereby, including the Merger, in accordance with Applicable Law and the Company’s certificate of incorporation (the “Requisite Company Vote”). The Requisite Company Vote is the only vote of the holders of any of the capital stock of the Company or the capital stock of any of its Subsidiaries (including any Company Securities or Company Subsidiary Securities) necessary in connection with consummation of the Merger. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby, subject to obtaining the Requisite Company Vote at the Company Meeting, are within the Company’s corporate powers and have been duly authorized by all necessary corporate action on the part of the Company. The Company has duly executed and delivered this Agreement, and, assuming due authorization, execution and delivery by each of Parent and Merger Sub, this Agreement constitutes a valid and binding agreement of the Company enforceable against the Company in accordance with its terms (subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Applicable Laws affecting creditors’ rights generally and general principles of equity).

(b) At a meeting duly called and held, the board of directors of the Company (the “Company Board”) has unanimously (i) determined that this Agreement and the transactions contemplated hereby, including the Merger, are fair to and in the best interests of the Company and its stockholders, (ii) approved, adopted and declared advisable this Agreement and the transactions contemplated hereby, including the Merger, in accordance with the requirements of the DGCL and (iii) resolved, subject to Section 6.03(c), to recommend approval and adoption of this Agreement by the stockholders of the Company (such recommendation, the “Company Board Recommendation”). As of the date of this Agreement, the foregoing determinations and resolutions have not been rescinded, modified or withdrawn in any way.

Section 4.03. Governmental Authorization. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby require no action by or in respect of, or filing by or on behalf of the Company with, any Governmental Authority, other than (a) the filing of a certificate of merger with respect to the Merger with the Delaware Secretary of State and appropriate documents with the relevant authorities of other states in which the Company is qualified to do business, (b) compliance with any applicable requirements of the HSR Act, (c) compliance with any applicable requirements of the NYSE, 1933 Act, the 1934 Act and any other applicable state or federal securities laws, including the filing with the SEC of the Proxy Statement/Prospectus relating to the matters to be submitted to the stockholders of the Company at the Company Meeting, (d) any of the actions or filings set forth on Section 4.03 of the Company Disclosure Schedule and (e) any actions or filings the absence of which has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

Section 4.04. Non-contravention. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby do not and will not (a) contravene, conflict with, or result in any violation or breach of any provision of the certificate of incorporation or bylaws of the Company or any of its Subsidiaries, (b) assuming compliance with the matters referred to in Section 4.03, contravene, conflict with or result in a violation or breach of any provision of any Applicable Law, (c) assuming termination of the Company Credit Agreement and satisfaction in full of all obligations outstanding thereunder and compliance with the matters referred to in Section 4.03, require payment or notice to, or any consent or other action by any Person under, constitute a breach or default, or an event that,

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with or without notice or lapse of time or both, would constitute a violation or breach of, or give rise to any right of termination, suspension, cancellation, acceleration, payment or any other change of any rights or obligations of the Company or any of its Subsidiaries or the loss of any benefit to which the Company or any of its Subsidiaries is entitled under any provision of any Contract binding on the Company or any of its Subsidiaries or any Permit affecting, or relating to, the assets or business of the Company or its Subsidiaries or (d) result in the creation or imposition of any Lien on any asset of the Company or any of its Subsidiaries except, in the case of each of clauses (b) through (d), as have not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

Section 4.05. Capitalization. (a) The authorized capital stock of the Company consists of 250,000,000 Company Shares and 50,000,000 shares of preferred stock, par value $0.001 per share (the “CompanyPreferred Stock”). As of July 10, 2023 (the “Measurement Date”), there were outstanding (i) 50,473,057 Company Shares, of which 340,102 Company Shares constitute Company Restricted Stock, (ii) Warrants exercisable for 2,581,409 Company Shares and (iii) no shares of Company Preferred Stock. As of the Measurement Date, there were 5,679,352 Company Shares reserved and still available for issuance under the Equity Plan, of which there were outstanding awards with respect to 1,950,053 Company Shares subject to issuance upon vesting of Company RSUs, 230,096 Company Shares subject to issuance upon vesting of Company DSUs and 221,729 Company Shares subject to issuance upon vesting of Company TSR Performance Awards (assuming achievement of applicable performance objectives at target levels). As of the Measurement Date, 1,981,281 Company Shares are subject to outstanding purchase rights under the ESPP. All outstanding shares of capital stock of the Company have been, and all shares that may be issued pursuant to any employee stock option or other compensation plan or arrangement will be, when issued in accordance with the respective terms thereof, duly authorized and validly issued, fully paid and nonassessable, and free of preemptive rights. Section 4.05(a) of the Company Disclosure Schedule sets forth, for each equity award, the holder, type of award, grant date, number of shares, vesting schedule (including any acceleration provisions) and, if applicable, exercise price and expiration date.

(b) There are no outstanding bonds, debentures, notes or other Indebtedness of the Company having the right to vote (or convertible into, or exchangeable or exercisable for, securities having the right to vote) on any matters on which stockholders of the Company may vote. Except as set forth in Section 4.05(a) of the Company Disclosure Schedule and for changes since the Measurement Date resulting from the issuance of Company Shares pursuant to the settlement of Company RSUs, Company DSUs and Company TSR Performance Awards or the exercise of Warrants, in each case outstanding on such date in accordance with the terms thereof on such date, there are no issued, reserved for issuance or outstanding (i) shares of capital stock or other voting securities of or ownership interests in the Company, (ii) securities of the Company convertible into or exchangeable or exercisable for shares of capital stock or other voting securities of or ownership interests in the Company, (iii) warrants (other than Warrants), calls, options, subscriptions, commitments, Contracts or other rights to acquire from the Company, or other obligation of the Company to issue, any capital stock or other voting securities of, or ownership interests in, or any securities convertible into or exchangeable or exercisable for capital stock or other voting securities of or ownership interests in, the Company or (iv) restricted shares, restricted stock units, stock appreciation rights, performance units, contingent value rights, “phantom” stock or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the value or price of, any capital stock or voting securities of, or ownership interests in, the Company (the items in clauses (i) through (iv), including, for the avoidance of doubt, the Company Shares, being referred to collectively as the “Company Securities”). There are no outstanding obligations of the Company or any of its Subsidiaries to repurchase, redeem or otherwise acquire any of the Company Securities. Neither the Company nor any of its Subsidiaries is a party to any voting agreement with respect to the voting, registration or transfer of any Company Securities. Since the Company Balance Sheet Date, neither the Company nor any of its Subsidiaries has declared, set aside or paid any dividends on, or made any other distributions (whether in cash, stock, property or otherwise) in respect of, any capital stock of such Person (other than cash dividends and distributions by a direct or indirect wholly owned Subsidiary Securities.of the Company to its parent).

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(c) None of (i) the Company Shares or (ii) any Company Securities are owned by any Subsidiary of the Company.

Section 4.06(c)4.06. Subsidiaries. (a) Each Subsidiary of the Company has been duly organized, is validly existing and (where applicable) in good standing under the laws of its jurisdiction of organization, has all organizational powers and all governmental licenses, authorizations, permits, consents and approvals required to carry on its business as now conducted, other than where the failure to be so organized or to have such power, authority or standing would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Each such Subsidiary is duly qualified to do business as a foreign entity and is in good standing in each jurisdiction where such qualification is necessary, except for those jurisdictions where failure to be so qualified has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as set forth in Section 4.06(a) of the Company Disclosure Letter lists,Schedule, all Subsidiaries of the Company as of the date hereof and their respective jurisdictions of this Agreement, each Person other than a Subsidiaryorganization are identified in the Company 10-K.

(b) All of the Company in which the Company owns, directly or indirectly, any capital stock, or other equity, voting or ownership interest, other than (i) ownership interests in gas plants and operational joint-ventures and co-operatives customary in connection with the operation of the Company and its Subsidiaries, (ii) publicly traded securities held for investment which do not exceed 5% of the outstanding securities of any Person and (iii) securities held by any employee benefit plan of the Company or any of its Subsidiaries or any trustee or other fiduciary in such capacity under any such employee benefit plan. All of the capital stock or other voting securities of, or ownership interests in, each entity set forth on Section 4.06(c)Subsidiary of the Company Disclosure Letter thathave been duly authorized and validly issued and are owned, directly or indirectly, by the Company,fully paid and nonassessable and not subject to any preemptive rights and are owned by the Company, directly or a Subsidiary of the Companyindirectly, free and clear of all Liensany Lien and free of any other limitation or restriction (including any restriction on the right to vote, sell or otherwise dispose of such capital stock or other voting securities or ownership interests).

Section 4.07. SEC Filings and the Sarbanes-Oxley Act.(a) The Company has filed with There are no issued, reserved for issuance or furnished to the SEC all reports, schedules, forms, statements, prospectuses, registration statements and other documents required to be filed or furnished by the Company since January 1, 2008 (collectively, together with any exhibits and schedules thereto and other information incorporated therein, as they have been supplemented, modified or amended since the timeoutstanding (i) securities of filing, the “Company SEC Documents”).

(b) As of its filing date (or, if amended or superseded by a filing, on the date of such filing), each Company SEC Document complied as to form in all material respects with the applicable requirements of the 1933 Act and the 1934 Act and the Sarbanes-Oxley Act, as the case may be.

(c) As of its filing date (or, if amended or superseded by a filing, on the date of such filing), each Company SEC Document filed pursuant to the 1934 Act did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

(d) Each Company SEC Document that is a registration statement, as amended or supplemented, if applicable, filed pursuant to the 1933 Act, as of the date such registration statement or amendment became effective, did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading.

(e) The Company has established and maintains disclosure controls and procedures (as defined in Rules 13a-15 and 15d-15 under the 1934 Act). Such disclosure controls and procedures are reasonably designed to ensure that material information relating to the Company, including its consolidated Subsidiaries, required to be included in the Company’s periodic and current reports under the 1934 Act, is made known to the Company’s principal executive officer and its principal financial officer by others within those entities Such disclosure controls and procedures are effective in timely alerting the Company’s principal executive officer and principal financial officer to material information required to be included in the Company’s periodic and current reports required under the 1934 Act.

(f) The Company and its Subsidiaries have established and maintained a system of internal controls over financial reporting (as defined in Rule 13a-15 under the 1934 Act) (“internal controls”). Such internal controls are sufficient to provide reasonable assurance regarding the reliability of the Company’s financial reporting and the preparation of Company financial statements for external purposes in accordance with GAAP. The Company has disclosed, based on its most recent evaluation of internal controls prior to the date hereof, to the Company’s auditors and audit committee (i) any significant deficiencies and material weaknesses in the design or operation of internal controls which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information and (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in internal controls. There has not been any such disclosure made by management to the Company’s auditors and audit committee since January 1, 2008.

(g) Neither the Company nor any of its Subsidiaries has extended or maintained credit, arranged for the extension of credit, or renewed an extension of credit, in the form of a personal loan to or for any executive officer (as defined in Rule 3b-7 under the 1934 Act) or director of the Company in violation of Section 402 of the Sarbanes-Oxley Act.

(h) The Company is in compliance with, and since January 1, 2008 has complied, in each case in all material respects with (i) the applicable provisions of the Sarbanes-Oxley Act and (ii) the applicable listing and corporate governance rules and regulations of the NYSE.

(i) Each of the principal executive officer and principal financial officer of the Company (or each former principal executive officer and principal financial officer of the Company, as applicable) have made all certifications required by Rule 13a-14 and 15d-14 under the 1934 Act and Sections 302 and 906 of the Sarbanes-Oxley Act and any related rules and regulations promulgated by the SEC and the NYSE, and the statements contained in any such certifications are complete and correct. For purposes of this Agreement, “principal executive officer” and “principal financial officer” shall have the meanings given to such terms in the Sarbanes-Oxley Act.

(j) Section 4.07(j) of the Company Disclosure Letter describes, and the Company has delivered to Parent, prior to the date hereof, copies of the material documentation creating or governing, material securitization

transactions and other off-balance sheet arrangements (as defined in Item 303 of Regulation S-K of the SEC) that existed or were effected by the Company or its Subsidiaries since January 1, 2008.

(k) Since the Company Balance Sheet Date, there has been no transaction, or series of similar transactions, agreements, arrangements or understandings, nor is there any proposed transaction as of the date of this Agreement, or series of similar transactions, agreements, arrangements or understandings to which the Company or any of its Subsidiaries wasconvertible into, or is to be a party, that would be required to be disclosed under Item 404exchangeable or exercisable for, shares of Regulation S-K promulgated under the 1933 Act that has not been disclosedcapital stock or other voting securities of, or ownership interests in, the Company’s definitive proxy statement on Schedule 14A filed with the SEC on April 17, 2009.

Section 4.08. Financial Statements.The audited consolidated financial statements and unaudited consolidated interim financial statementsany Subsidiary of the Company, included(ii) warrants, calls, options, subscriptions, commitments, Contracts or incorporated by reference inother rights to acquire from the Company SEC Documents (including all related notes and schedules thereto) fairly present in all material respects, in conformity with GAAP (except, in the case of unaudited consolidated interim financial statements, as permitted by Form 10-Q of the SEC) applied on a consistent basis (except as may be indicated therein or in the notes thereto), the consolidated financial position of the Company and its consolidated Subsidiaries as of the dates thereof and their consolidated results of operations and cash flows for the periods then ended (subject to normal year-end audit adjustments in the case of any unaudited interim financial statements).

Section 4.09. Disclosure Documents.The information supplied by the Company in writing for inclusion or incorporation by reference in the registration statement of Parent on Form S-4 or any amendment or supplement thereto pursuant to which shares of Parent Stock issuable as part of the Merger Consideration will be registered with the SEC (the “Registration Statement”) shall not, at the time the Registration Statement is declared effective by the SEC (or, with respect to any post-effective amendment or supplement, at the time such post-effective amendment or supplement becomes effective), contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The proxy statement of the Company to be filed as part of the Registration Statement with the SEC in connection with the Merger and to be sent to the Company stockholders in connection with the Merger (the “Proxy Statement”), and any amendment or supplement thereto, when filed, will comply as to form in all material respects with the applicable requirements of the 1934 Act. The Proxy Statement, or any amendment or supplement thereto, shall not, on the date the Proxy Statement or any amendment or supplement thereto is first mailed to the stockholders of the Company and at the time of the Company Stockholder Approval, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The representations and warranties contained in this Section 4.09 will not apply to statements or omissions included or incorporated by reference in the Registration Statement or Proxy Statement or any amendment or supplement thereto based upon information furnished by Parent or any of its representativesSubsidiaries, or advisors in writing specifically for use or incorporation by reference therein.

Section 4.10. Absence of Certain Changes.Since the Company Balance Sheet Date through the date of this Agreement, (a) the business of the Company and its Subsidiaries has been conducted in the ordinary course of business consistent with past practice in all material respects and (b) there has not been any event, occurrence, development or state of circumstances or facts that has had or would , individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect.

Section 4.11. No Undisclosed Material Liabilities.There are no liabilities orother obligations of the Company or any of its Subsidiaries to issue, any capital stock or other voting securities of, any kind whatsoever, whether accrued, contingent, absolute, determined, determinable or otherwise, other than:

(a) liabilities or obligations disclosed, reflected, reserved against or otherwise provided forownership interests in, the Company Balance Sheet or in the notes thereto;

(b) liabilities or obligations incurred in the ordinary course of business consistent with past practices since the Company Balance Sheet Date;

(c) liabilities or obligations arising out of this Agreement or the transactions contemplated hereby; and

(d) liabilities or obligations that would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect.

Section 4.12. Compliance with Laws and Court Orders. The Company and each of its Subsidiaries is and since January 1, 2008 has been in compliance with, and to the knowledge of the Company, it is not under pending investigation with respect to and has not been threatened to be charged with or given notice of any violation of any, Applicable Law, except for failures to comply or violations that have not had and would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. There is no judgment, decree, injunction, rule or order of any arbitrator or Governmental Authority outstanding against the Company or any securities convertible into, or exchangeable or exercisable for, any capital stock or other voting securities of, its Subsidiaries that has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect or thatownership interests in, any manner seeks to prevent, enjoin or materially alter or delay the Merger or any of the other transactions contemplated hereby.

Section 4.13. Litigation.There is no Action pending against, or, to the knowledge of the Company, threatened against, the Company, any of its Subsidiaries or any of their respective properties, or any present or former officer, director or employeeSubsidiary of the Company or its Subsidiaries in their capacity as such, before (or, in(iii) restricted shares, restricted stock units, stock appreciation rights, performance units, contingent value rights, “phantom” stock or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the casevalue or price of, threatened Actions, that would be before)any capital stock or by any Governmental Authorityother voting securities of, or arbitrator, that (i) would, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect or (ii) that, as of the date of this Agreement, challenges or seeks to prevent, enjoin, alterownership interests in, any material respect or materially delay the Merger or any of the other transactions contemplated hereby.

Section 4.14. Regulatory Matters.Neither the Company nor any of its Subsidiaries is (a) an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended, and the rules and regulations promulgated thereunder or (b) a “holding company,” a “subsidiary company” of a “holding company,” an “affiliate” of a “holding company,” a “public utility” or a “public-utility company,” as each such term is defined in the Public Utility Holding Company Act of 2005. Except as set forth in Section 4.14Subsidiary of the Company Disclosure Letter, all natural gas pipeline systems and related facilities constituting(the items in clauses (i) through (iii) being referred to collectively as the Company’s and or any of its Subsidiaries’ properties are (i) “gathering facilities” that are exempt from regulation by the Federal Energy Regulatory Commission (“FERC”) under the Natural Gas Act of 1938, as amended, and (ii) not subject to rate regulation or comprehensive nondiscriminatory access regulation under the laws of any state or other local jurisdiction.

Section 4.15. Reserve Reports.The Company has delivered or made available to Parent true and correct copies of all reports requested or commissioned by the Company or its Subsidiaries and delivered to the Company or its Subsidiaries in writing estimating the Company’s and its Subsidiaries’ proved oil and gas reserves prepared by any unaffiliated Person, including those prepared by the engineering firm Miller and Lents, Ltd. (each, a Report Preparer”), concerning the Oil and Gas Interests of the Company and the Company Subsidiaries as of December 31, 2008 (the “Company Reserve Reports”). Except as, individually or in the aggregate, would not be material to the Company and its Subsidiaries, taken as a whole, the factual, non-interpretative data provided by the Company to each Report Preparer in connection with the preparation of the Company Reserve Reports that was material to such Report Preparer’s estimates of the oil and gas reserves set forth in the Company Reserve Reports was, as of the time provided (or as modified or amended prior to the issuance of the Company Reserve Reports), accurate, and the Company has no knowledge of any material errors in the assumptions and estimates provided by the Company to any Report Preparer in connection with their preparation of the Company Reserve Reports. To the knowledge of the Company, the estimates of proved oil and gas reserves provided by the Company to each Report Preparer in connection with the preparation of the Company Reserve Reports were, as of the time provided (or as modified or amended prior to the issuance of the

Company Reserve Reports), prepared in accordance with the definitions contained in Rule 4-10(a) of Regulation S-X promulgated by the SEC. Except for changes generally affecting the oil and gas exploration, development and production industry (including changes in commodity prices) and normal depletion by production, there has been no change in respect of the matters addressed in the Company Reserve Reports that has had or would, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. For purposes of this Agreement, “Oil and Gas Interests” means direct and indirect interests in and rights with respect to crude oil, natural gas, natural gas liquids and related properties and assets of any kind and nature, direct or indirect, including working and leasehold interests and operating rights and royalties, overriding royalties, production payments, net profit interests and other non-working interests and non-operating interests; Hydrocarbons or revenues therefrom, all contracts in connection therewith and claims and rights thereto (including all oil and gas leases, production sharing agreements, operating agreements, unitization and pooling agreements and orders, division orders, transfer orders, royalty deeds, oil and gas sales, exchange and processing contracts and agreements, and in each case, interests thereunder), surface interests, fee interests, reversionary interests, reservations, and concessions; all easements, rights of way, licenses, permits, leases, and other interests associated with, appurtenant to, or necessary for the operation of any of the foregoing; and all interests in equipment and machinery (including wells, well equipment and machinery), oil and gas production, gathering, transmission, treating, processing, and storage facilities (including tanks, tank batteries, pipelines, and gathering systems), pumps, water plants, electric plants, gasoline and gas processing plants, refineries, and other tangible personal property and fixtures associated with, appurtenant to, or necessary for the operation of any of the foregoing. For purposes of this Agreement, “Hydrocarbons” means, with respect to any Person, crude oil, natural gas and natural gas liquids (including coalbed gas).

Section 4.16. Derivatives.The Company SEC Reports accurately summarize, in all material respects, the outstanding Derivative positions of the Company, including Hydrocarbon and financial Derivative positions attributable to the production and marketing of the Company and its Subsidiaries as of the date reflected therein, and there have been no changes since the date thereof, except for changes in financial Derivative positions occurring in the ordinary course of business and in accordance with the Company’s policies and practices. For purposes of this Agreement, a “Derivative” means a derivative transaction within the coverage of SFAS No. 133, including any swap transaction, option, hedge, warrant, forward purchase or sale transaction, futures transaction, cap transaction, floor transaction or collar transaction relating to one or more currencies, commodities, bonds, equity securities, loans, interest rates, credit-related events or conditions or any indexes, or any other similar transaction (including any option with respect to any of these transactions) or combination of any of these transactions, including collateralized mortgage obligations or other similar instruments or any debt or equity instruments evidencing or embedding any such types of transactions, and any related credit support, collateral, transportation or other similar arrangements related to such transactions.

Section 4.17. Properties.(a) Except as, individually or in the aggregate, would not be material to the Company and its Subsidiaries, taken as a whole, all items of operating equipment owned or leased by the Company or any of the Company Subsidiaries with a fair market value in excess of $20 million as of the date of this Agreement (i) are, in the aggregate, in a state of repair so as to be adequate in all material respects for reasonably prudent operations in the areas in which they are operated and (ii) are adequate, together with all other properties of the Company and its Subsidiaries, to comply in the ordinary course of business consistent with past practice in all material respects with the requirements of all applicable contracts, including sales contracts.

(b) Except (i) as, individually or in the aggregate, would not be material to the Company and its Subsidiaries, taken as a whole, and (ii) for goods and other property sold, used or otherwise disposed of since the Company Balance Sheet Date in the ordinary course of business, the Company and its Subsidiaries have good and defensible title for oil and gas purposes to (x) all of the Oil and Gas Interests reflected in the Company Reserve Reports as attributable to interests owned by the Company and its Subsidiaries and (y) all other real properties and assets set forth in Section 4.17(b) of the Company Disclosure Letter, free and clear of any Lien, except (A) Permitted Liens and (B) Production Burdens. For purposes of this Agreement, “good and defensible

title” means title that is free from reasonable doubt to the end that a prudent person engaged in the business of purchasing and owning, developing, and operating producing oil and gas properties in the geographical areas in which they are located, with knowledge of all of the facts and their legal bearing, would be willing to accept the same acting reasonably.

(c) Section 4.17(c)(i) of the Company Disclosure Letter sets forth, as of the date hereof, the Company’s and its Subsidiaries’ average net revenue interests (working interest less Production Burdens) on an 8/8ths basis, sorted “by District” in the currently active wells of the Company and its Subsidiaries located in the United States. Section 4.17(c)(ii) of the Company Disclosure Letter sets forth the Company’s and its Subsidiaries’ average lessor royalty burden with respect to Leases entered into or renewed by the Company or any of its Subsidiaries since December 31, 2008 in each of the Company’s and its Subsidiaries’ shale plays and East Texas tight sands. “Production Burdens” means all royalty interests,any royalties (including lessor’s royalties), overriding royalty interests,royalties, production payments, net profit interests or other similar interests that constitute a burden on, and areburdens upon, measured by or are payable out of oil, gas or mineral production.

Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing into the productionenvironment.

Representative” means, with respect to any Person, the officers, directors, employees, investment bankers, accountants, consultants, agents, legal counsel, financial advisors and other representatives of Hydrocarbonssuch Person.

Sarbanes-Oxley Act” means the Sarbanes-Oxley Act of 2002.

SEC” means the U.S. Securities and Exchange Commission.

Service Provider” means any director, officer or employee of the proceeds realized fromCompany or any of its Subsidiaries or any individual directly (or through an alter ego entity) engaged by the saleCompany or other disposition thereof (including any amounts payable to publicly traded royalty trusts), other than Taxes and assessments of Governmental Authorities.its Subsidiaries as an independent contractor.

(d) Except as,Specified Pipeline Event” means any event, circumstance, development, occurrence, fact, condition, effect or change that, individually or in the aggregate, has resulted in, or would reasonably be expected to result in, a material detriment in the ability of the Company or its Subsidiaries (or after the Closing, Parent and its Subsidiaries) to realize the benefits or have the use of the Green Pipeline or the NEJD Pipeline, excluding any event, change, circumstance, effect, occurrence, condition, state of facts or development to the extent arising or resulting from (A) changes, developments or conditions after the date hereof in the general economic conditions in the United States, including in the financial, debt, credit, capital or securities markets, including changes in interest rates, (B) changes in GAAP or other accounting standards or interpretations thereof, (C) changes in commodity prices, including the prices of natural gas, crude oil, refined petroleum products, other hydrocarbon products, natural gas liquids, carbon dioxide, methane, nitrous oxide, fluorinated and other “greenhouse” gases, and other commodities, (D) the negotiation, execution, announcement or performance of this Agreement or the consummation of the Merger or the other transactions contemplated hereby, including the impact thereof on the relationships, contractual or otherwise, with employees, labor unions, financing sources, customers, suppliers, distributors, partners or other Persons (but, subject to clause (E), excluding Governmental Authorities), or any action or claim made or brought by any of the current or former stockholders of the Company (or on their behalf or on behalf of the Company) against the Company or any of its directors, officers or employees arising out of

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this Agreement or the Merger or the other transactions contemplated hereby (it being understood that this clause (D) shall not apply to a breach of any representation or warranty related to the announcement or consummation of the transactions contemplated hereby), (E) any Antitrust Actions or (F) any failure of any of the Company or any of its Subsidiaries to meet, with respect to any period or periods, any internal or published projections, forecasts, estimates of earnings or revenues or business plans relating to either of the Green Pipeline or the NEJD Pipeline (but not the underlying facts or basis for such failure to meet projections, forecasts, estimates of earnings or revenues or business plans, which may be taken into account in determining whether there has been a Specified Pipeline Event to the extent not otherwise falling within any of the other exceptions set forth in clauses (A) through (E) hereof).

Subsidiary” means, with respect to any Person, any Person of which securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other Persons performing similar functions are at any time directly or indirectly owned or controlled by such Person.

Tax” (and, with correlative meaning, “Taxes”) means all U.S. federal, state, local or non-U.S. taxes (including assessments, duties, levies, imposts or other similar charges in the nature of a tax) imposed by a Governmental Authority (whether payable directly or by withholding and whether or not requiring the filing of a Tax Return), including income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise profits, withholding (including backup withholding), social security, unemployment, disability, real property, personal property, sales, use, transfer, registration, ad valorem, value added, alternative or add-on minimum or estimated tax or any other tax of any kind whatsoever, together with any interest, penalty, addition to tax or additional amount, whether disputed or not, and any liability for any of the foregoing by reason of (i) assumption, transferee or successor liability or operation of Applicable Law, or (ii) being or having been before the Effective Time a member of an affiliated, consolidated, combined or unitary group, or a party to any agreement or arrangement, as a result of which liability of the Company or any of its Subsidiaries is determined or taken into account with reference to the activities of any other Person.

Tax Return” means any report, return, document, claim for refund, information return, declaration or statement or filing with respect to Taxes (and any amendments thereof), including any schedules or documents with respect thereto.

Tax Sharing Agreement” means any agreement or arrangement binding the Company or any of its Subsidiaries that provides for the allocation, apportionment, sharing, indemnification or assignment of any Tax liability or benefit, or the transfer or assignment of income, revenues, receipts, or gains for the purpose of determining any Person’s Tax liability (other than customary Tax sharing or indemnification provisions contained in an agreement entered into in the ordinary course of business the primary subject matter of which does not relate to Taxes).

Termination Fee” means the Company Termination Fee or the Parent Pipeline Termination Fee, as applicable.

Third Party” means any Person other than Parent or any of its Subsidiaries.

Title IV Plan” means any Employee Plan that is subject to Title IV of ERISA.

Trade Secrets” means trade secrets and other confidential know-how and confidential information and rights in any jurisdiction, including formulae, concepts, methods, techniques, procedures, processes (including manufacturing and production processes), algorithms, schematics, prototypes, models, designs, and business information (including customer lists and supplier lists, financial and marketing plans, and pricing and cost information).

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Units” means all pooled, communitized or unitized acreage that includes all or a part of any Oil and Gas Lease.

U.S. Plan” means any Employee Plan that covers Service Providers located primarily in the United States.

WARN” means the Worker Adjustment and Retraining Notification Act and any similar, applicable foreign, state or local law.

Warrant Agreements” means (i) the Series A Warrant Agreement, dated as of September 18, 2020, by and between the Company and Broadridge Corporate Issuer Solutions, Inc., and (ii) the Series B Warrant Agreement, dated as of September 18, 2020, by and between the Company and Broadridge Corporate Issuer Solutions, Inc.

“Warrants” means the Warrants, as defined in the Warrant Agreements.

Wells” means all oil or gas wells, whether producing, operating, shut-in or temporarily abandoned, located on an Oil and Gas Lease or any Unit that includes all or a part of such Oil and Gas Lease or otherwise associated with an Oil and Gas Property of the applicable Person or any of its Subsidiaries, together with all Hydrocarbon production from such well.

(b) Each of the following terms is defined in the Section set forth opposite such term:

Term

Section

Adverse Recommendation Change

6.03

Agreement

Preamble

Applicable Date

4.07

Burdensome Condition

8.01(c)

Certificates

2.03

Closing

2.01(b)

Closing Date

2.01(b)

Company

Preamble

Company 401(k) Plan

7.04(d)

Company Activities

8.01(c)

Company Board

4.02(b)

Company Board Recommendation

4.02(b)

Company DSU Consideration

2.04(b)

Company Equity Award Consideration

2.04(d)

Company Indebtedness Payoff Amount

8.11

Company Independent Petroleum Engineers

4.21

Company Independent Reserve Reports

4.21

Company Meeting

4.09

Company Preferred Stock

4.05

Company Restricted Stock Consideration

2.04(d)

Company RSU Consideration

2.04(a)

Company SEC Documents

4.07

Company Securities

4.05(b)

Company Shares

2.02

Company Subsidiary Securities

4.06

Company Termination Fee

11.04(b)(i)

Company TSR Performance Award Consideration

2.04(c)

Confidentiality Agreement

6.02

Continuation Period

7.04(b)

Continuing Employee

7.04(b)

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Data Breach

4.16

Davis Polk

8.10

Defensible Title

4.21

D&O Insurance

7.03(c)

Effective Time

2.01

Electronic Delivery

11.10

email

11.01

End Date

10.01

Exchange Agent

2.03

Indemnified Person

7.03(a)

Intervening Event

6.03(c)

IRS

4.18(a)

JPM

4.24

Lease

4.15

Material Contract

4.22(b)

Measurement Date

4.05(a)

Merger

2.01

Merger Consideration

2.02

Merger Sub

Preamble

Parent

Preamble

Parent 401(k) plan

7.04(d)

Parent Pipeline Termination Fee

11.04(c)

Parent Preferred Stock

5.05

Parent SEC Documents

5.07

Parent Securities

5.05

Parent Shares

2.02

Parent Subsidiary Securities

5.06

PJT

4.24

Proxy Statement/Prospectus

4.09

PWP

4.24

Registered IP

4.16

Registration Statement

4.09

Requisite Company Vote

4.02(a)

Rights-of-Way

4.15(c)

Sanctions

4.12(c)

Significant Subsidiaries

5.06

Superior Proposal

6.03(f)

Surviving Corporation

2.01

Transfer Taxes

2.03(c)

Treasury Regulations

Recitals

Uncertificated Shares

2.03

V&E

8.10

Section 1.02. Other Definitional and Interpretative Provisions. The words “hereof,” “herein” and “hereunder” and words of like import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation hereof. References to Articles, Sections, Exhibits and Schedules are to Articles, Sections, Exhibits and Schedules of this Agreement unless otherwise specified. All Exhibits and Schedules (including the Company Disclosure Schedule and the Parent Disclosure Schedule) annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Any capitalized terms used in any Exhibit or Schedule but not otherwise defined therein, shall have the meaning as defined in this Agreement. Any singular term in this Agreement shall be deemed to include the

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plural, and any plural term the singular. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation,” whether or not they are in fact followed by those words or words of like import. “Writing,” “written” and comparable terms refer to printing, typing and other means of reproducing words (including electronic media) in a visible form. References to any statute shall be deemed to refer to such statute as amended from time to time and, if applicable, to any rules, regulations or interpretations promulgated thereunder. References to any agreement or contract are to that agreement or contract as amended, modified, supplemented, extended or renewed from time to time in accordance with the terms hereof and thereof; provided that with respect to any agreement or contract listed on any schedule hereto (including the Company Disclosure Schedule and the Parent Disclosure Schedule), all such amendments, modifications, supplements, extensions or renewals must also be listed in the appropriate schedule. References to any Person include the successors and permitted assigns of that Person. References to a “party” or the “parties” means a party or the parties to this Agreement unless the context otherwise requires. References from or through any date mean, unless otherwise specified, from and including or through and including, respectively. The parties hereto have participated jointly in the negotiation and drafting of this Agreement and each has been represented by counsel of its choosing and, in the event of an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by such parties and no presumption or burden of proof will arise favoring or disfavoring any party due to the authorship of any provision of this Agreement. Unless otherwise specifically indicated, all references to “dollars” and “$” will be deemed references to the lawful money of the United States of America.

ARTICLE 2

THE MERGER

Section 2.01. The Merger. (a) Upon the terms and subject to the conditions set forth in this Agreement, at the Effective Time, Merger Sub shall merge (the “Merger”) with and into the Company in accordance with the DGCL, whereupon the separate existence of Merger Sub shall cease and the Company shall be the surviving corporation as a wholly owned Subsidiary of Parent (the “Surviving Corporation”).

(b) Subject to the provisions of Article 9, the closing of the Merger (the “Closing”) shall take place in New York City at the offices of Davis Polk & Wardwell LLP, 450 Lexington Avenue, New York, New York, 10017 as soon as possible, but in any event no later than four Business Days after the date the conditions set forth in Article 9 (other than conditions that by their nature are to be satisfied at the Closing, but subject to the satisfaction or, to the extent permissible, waiver of such conditions at the Closing) have been satisfied or, to the extent permissible, waived by the party or parties entitled to the benefit of such conditions, or at such other place (or by means of remote communication), at such other time or on such other date as Parent and the Company may mutually agree (the date on which the Closing occurs, the “Closing Date”).

(c) At the Closing, the Company and Merger Sub shall file a certificate of merger with the Delaware Secretary of State and make all other filings or recordings required by the DGCL in connection with the Merger. The Merger shall become effective at such time (the “Effective Time”) as the certificate of merger is duly filed with the Delaware Secretary of State (or at such later time as may be specified in the certificate of merger).

(d) From and after the Effective Time, the Surviving Corporation shall possess all the rights, powers, privileges and franchises and be subject to all of the obligations, liabilities, restrictions and disabilities of the Company and Merger Sub, all as provided under the DGCL.

Section 2.02. Conversion of Shares. At the Effective Time, by virtue of the Merger and without any action on the part of any holder of Company Shares or any holder of shares of common stock of Merger Sub:

(a) Except as otherwise provided in Section 2.02(b) or Section 2.02(d), each share of common stock of the Company, par value $0.001 per share (each a “Company Share” and collectively, the “Company Shares”),

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outstanding immediately prior to the Effective Time (including the Company Restricted Stock which shall also be governed by Section 2.04(d) below) shall be converted into the right to receive 0.840 shares of common stock of Parent, each without par value (each a “Parent Share” and collectively, the “Parent Shares”) (together with any cash in lieu of fractional Parent Shares as specified below, the “Merger Consideration”). As of the Effective Time, all such Company Shares shall no longer be outstanding and shall automatically be canceled and retired and shall cease to exist, and shall thereafter represent only the right to receive the Merger Consideration and the right to receive any dividends or other distributions pursuant to Section 2.03(f), in each case, to be issued or paid in accordance with Section 2.03, without interest and subject to any withholding of Taxes required by Applicable Law.

(b) Each Company Share held by the Company as treasury stock (other than Company Shares subject to or issuable in connection with an Employee Plan of the Company) or owned by Parent or Merger Sub immediately prior to the Effective Time shall be canceled, and no payment shall be made with respect thereto.

(c) Each share of common stock of Merger Sub outstanding immediately prior to the Effective Time shall be converted into and become one share of common stock of the Surviving Corporation with the same rights, powers and privileges as the shares so converted and shall constitute the only outstanding shares of capital stock of the Surviving Corporation.

(d) Each Company Share held by any Subsidiary of either the Company or Parent (other than the Merger Sub) immediately prior to the Effective Time shall be converted into such number of shares of stock of the Surviving Corporation such that each such Subsidiary owns the same percentage of the outstanding capital stock of the Surviving Corporation immediately following the Effective Time as such Subsidiary owned in the Company immediately prior to the Effective Time.

Section 2.03. Surrender and Payment. (a) Prior to the Effective Time, Parent shall appoint a nationally recognized financial institution reasonably acceptable to Parent and the Company (the “Exchange Agent”) for the purpose of exchanging for the Merger Consideration (i) certificates representing Company Shares (the “Certificates”) or (ii) uncertificated Company Shares (the “Uncertificated Shares”). The Exchange Agent agreement pursuant to which Parent shall appoint the Exchange Agent shall be in form and substance reasonably acceptable to the Company and Parent. At or prior to the Effective Time, Parent shall deposit with or otherwise make available to the Exchange Agent, the Merger Consideration to be paid in respect of the Certificates and the Uncertificated Shares (other than the Company Restricted Stock) and the Company Equity Award Consideration in respect of the Non-Employee Holders (and, if determined by Parent pursuant to Section 2.04(e), all or a portion of the Company Equity Award Consideration to all or a portion of the Employee Holders). Parent agrees to make available to the Exchange Agent, from time to time as needed, any dividends or distributions to which such holder is entitled pursuant to Section 2.03(f). Promptly after the Effective Time (and in any event within five Business Days thereafter), Parent shall send, or shall cause the Exchange Agent to send, to each holder of Company Shares at the Effective Time (other than the Company Restricted Stock), a letter of transmittal and instructions in customary form and reasonably acceptable to the Company (which shall specify that the delivery shall be effected, and risk of loss and title shall pass, only upon proper delivery of the Certificates (or affidavits of loss in lieu thereof) or transfer of the Uncertificated Shares to the Exchange Agent and shall include customary provisions with respect to delivery of an “agent’s message” regarding book-entry transfer of Uncertificated Shares) for use in such exchange. Such letter of transmittal shall be in the form and have such provisions as Parent and the Company may reasonably agree.

(b) Each holder of Company Shares that have been converted into the right to receive the Merger Consideration (other than the Company Restricted Stock) shall be entitled to receive, upon (i) surrender to the Exchange Agent of a Certificate, together with a properly completed letter of transmittal, or (ii) receipt of an “agent’s message” by the Exchange Agent (or such other evidence, if any, of transfer as the Exchange Agent may reasonably request) in the case of a book-entry transfer of Uncertificated Shares, the Merger Consideration payable for each such Company Share represented by such Certificate or for each such Uncertificated Share. The

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Parent Shares constituting part of such Merger Consideration, at Parent’s option, shall be in uncertificated book-entry form, unless a physical certificate is required under Applicable Law. Until so surrendered or transferred, as the case may be, each such Certificate or Uncertificated Share shall represent after the Effective Time for all purposes only the right to receive the Merger Consideration and the right to receive any dividends or other distributions pursuant to Section 2.03(f). At the time set forth in Section 2.04(e), each Non-Employee Holder shall be entitled to receive such Non-Employee Holder’s Company Equity Award Consideration and, if determined by Parent pursuant to Section 2.04(e), all or a portion of the Company Equity Award Consideration payable to all or a portion of the Employee Holders shall be paid pursuant to this Section 2.03. No interest shall be paid or shall accrue on any cash payable upon surrender of any Company Shares or upon the Company Equity Award Consideration.

(c) If any portion of the Merger Consideration (other than in respect of the Company Restricted Stock) is to be paid to a Person other than the Person in whose name the surrendered Certificate or the transferred Uncertificated Share is registered, it shall be a condition to such payment that (i) either such Certificate shall be properly endorsed or shall otherwise be in proper form for transfer or such Uncertificated Share shall be properly transferred and (ii) the Person requesting such payment shall pay to the Exchange Agent any Transfer Taxes required as a result of such payment to a Person other than the registered holder of such Certificate or Uncertificated Share or establish to the satisfaction of the Exchange Agent and Parent that such Transfer Tax has been paid or is not payable. The payment of any transfer, documentary, sales, use, stamp, registration, value-added and other Taxes and fees (including any penalties and interest) (“Transfer Taxes”) incurred solely by a holder of Company Shares in connection with the Merger and any other transactions contemplated hereby, and the filing of any related Tax Returns, shall be the sole responsibility of such holder.

(d) After the Effective Time, there shall be no further registration of transfers of Company Shares. If, after the Effective Time, Certificates or Uncertificated Shares are presented to Parent, the Surviving Corporation or the Exchange Agent, they shall be canceled and exchanged for the Merger Consideration provided for, and in accordance with the procedures set forth, in this Article 2.

(e) Any portion of the Merger Consideration made available to the Exchange Agent pursuant to Section 2.03(a) (and any interest or other income earned thereon) that remains unclaimed by the holders of Company Shares that have been converted into the right to receive the Merger Consideration nine months after the Effective Time shall be returned to Parent, upon demand, and any such holder who has not exchanged such Company Shares for the Merger Consideration in accordance with this Section 2.03 prior to that time shall thereafter look only to Parent for, and Parent shall remain liable for, payment of the Merger Consideration, and any dividends and distributions with respect thereto pursuant to Section 2.03(f), in respect of such Company Shares without any interest thereon and subject to any withholding of Taxes required by Applicable Law in accordance with this Section 2.03(e). Notwithstanding the foregoing, Parent shall not be liable to any holder of Company Shares for any amount paid to a public official pursuant to applicable abandoned property, escheat or similar laws. Any amounts remaining unclaimed by holders of Company Shares that have been converted into the right to receive the Merger Consideration two years after the Effective Time (or such earlier date immediately prior to such time when the amounts would otherwise escheat to or become property of any Governmental Authority) shall become, to the extent permitted by Applicable Law, the property of Parent free and clear of any claims or interest of any Person previously entitled thereto.

(f) No dividends or other distributions with respect to securities of Parent constituting part of the Merger Consideration, and no cash payment in lieu of fractional shares as provided in Section 2.06, shall be paid to the holder of any Certificates not surrendered or of any Uncertificated Shares not transferred until such Certificates or Uncertificated Shares are surrendered or transferred, as the case may be, as provided in this Section 2.03. Following such surrender or transfer, there shall be paid, without interest, to the Person in whose name the securities of Parent have been registered, at the time of such surrender or transfer, the amount of any cash payable in lieu of fractional shares to which such Person is entitled pursuant to Section 2.06 and the amount of all dividends or other distributions with a record date after the Effective Time previously paid or payable on the date of such surrender or transfer with respect to such securities.

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Section 2.04. Treatment of Company Equity Awards and ESPP. (a) At or immediately prior to the Effective Time, except as otherwise agreed in writing by Parent and the holder thereof or as set forth on Section 6.01(m) of the Company Disclosure Schedule, each Company RSU outstanding as of immediately prior to the Effective Time, whether vested or unvested, shall, without any action on the part of Parent, Merger Sub, the Company or the holder thereof, be canceled and converted into the right to receive, the Merger Consideration in respect of the total number of Company Shares subject to such Company RSU (the “Company RSU Consideration”). The payment of the Company RSU Consideration shall be subject to withholding for all Taxes required by Applicable Law.

(b) At or immediately prior to the Effective Time, each Company DSU outstanding as of immediately prior to the Effective Time, whether vested or unvested, shall, without any action on the part of Parent, Merger Sub, the Company or the holder thereof, be canceled and converted into the right to receive, the Merger Consideration in respect of the total number of Company Shares subject to such Company DSU (the “Company DSU Consideration”). The payment of the Company DSU Consideration shall be subject to withholding for all Taxes required by Applicable Law.

(c) At or immediately prior to the Effective Time, except as otherwise agreed in writing by Parent and the holder thereof, each Company TSR Performance Award outstanding as of immediately prior to the Effective Time, shall, without any action on the part of Parent, Merger Sub, the Company or the holder thereof, be deemed to vest at actual performance levels (as determined by the Company Board (or a duly authorized committee thereof) reasonably and in good faith in accordance with the terms of the applicable Company TSR Performance Award, as in effect on the date of this Agreement, and after reasonable consultation with Parent) with respect to the applicable performance-based vesting conditions relating to such Company TSR Performance Awards and such vested number of Company TSR Performance Awards (if any) shall be canceled and converted into the right to receive, the Merger Consideration in respect of the total number of Company Shares subject to such Company TSR Performance Awards that are deemed vested in accordance with the foregoing based on actual performance achieved as of the Effective Time with respect to applicable performance-based vesting conditions (the “Company TSR Performance Award Consideration”). The payment of the Company TSR Performance Award Consideration shall be subject to withholding for all required Taxes.

(d) At or immediately prior to the Effective Time, except as otherwise agreed by in writing by Parent and the holder thereof or as set forth on Section 6.01(m) of the Company Disclosure Schedule, each Company Restricted Stock outstanding as of immediately prior to the Effective Time shall, without any action on the part of Parent, Merger Sub, the Company or the holder thereof, become a fully vested Company Share and be converted into the right to receive the Merger Consideration in accordance with Section 2.02(a) (the “Company Restricted Stock Consideration” and, together with the Company RSU Consideration, Company DSU Consideration and Company TSR Performance Award Consideration, the “Company Equity Award Consideration). The payment of the Company Restricted Stock Consideration shall be subject to withholding for all required Taxes.

(e) As promptly as practicable and, in any event, no later than thirty (30) days following the Effective Time (or, with respect to any Company RSUs, Company DSUs and/or Company TSR Performance Awards that constitute nonqualified deferred compensation subject to (and within the meaning of) Section 409A of the Code, at the earliest practicable time permitted under the applicable Employee Plan or Section 409A of the Code that will not trigger a Tax or penalty under Section 409A of the Code), the Parent shall pay or cause to be paid to the applicable holders of Company RSUs, Company DSUs, Company TSR Performance Awards and/or Company Restricted Stock all Company Equity Award Consideration. Notwithstanding the foregoing, in the case of any payment owed to a Non-Employee Holder, the applicable payments shall be made through the Exchange Agent pursuant to Section 2.03, and Parent, in its sole discretion, shall be permitted to determine to pay all or any portion of the Company Equity Award Consideration to all or a portion of the Employee Holders through the Exchange Agent pursuant to Section 2.03.

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(f) As soon as practicable following the date of this Agreement and in any event, at least five days prior to the Effective Time, the Company Board shall adopt resolutions or take all other actions as may be required to provide that: (i) no new participants will commence participation in the ESPP after the date of this Agreement; (ii) no participant in the ESPP shall be allowed to increase his or her payroll contribution rate in effect as of the date of this Agreement or make separate non-payroll contributions following the date of this Agreement; and (iii) no new Offering Period (as defined in the ESPP) shall commence or be extended pursuant to the ESPP, in each case, after the date of this Agreement. With respect to each Offering Period that would otherwise be in effect on the Closing Date, the Company shall take action to provide that such Offering Period shall terminate on the date immediately preceding the Closing Date, and the Company shall apply the funds credited as of such date under the ESPP to each participant’s payroll withholding account under the ESPP to the purchase of whole Company Shares in accordance with the terms of the ESPP, which Company Shares shall be converted into the right to receive the Merger Consideration in accordance with Section 2.02(a) and shall be paid through the Exchange Agent pursuant to Section 2.03. The Company shall take all action to terminate the ESPP no later than immediately prior to and effective as of the Effective Time (but subject to the consummation of the Merger).

(g) In exchange for the payment of the consideration provided for under this Section 2.04, except as otherwise agreed in writing by Parent and the holder thereof or as set forth on Section 6.01(m) of the Company Disclosure Schedule, the Company shall terminate all Company RSUs, Company DSUs, Company TSR Performance Awards, the Equity Plan and the ESPP and shall cancel the Company Shares of Company Restricted Stock in accordance with Section 2.02(a), as of the Effective Time, and terminate the provisions in any other Employee Plan, Contract or arrangement providing for the issuance of grant or vesting of any other interest in respect of the capital stock of the Company or any of its Subsidiaries as of the Effective Time (but subject to the consummation of the Merger) without any liability to Parent, the Company and Merger Sub. The Company shall ensure that, following the Effective Time, no participant in any Equity Plan or other Employee Plan shall have any right thereunder to acquire any equity securities of Parent, the Company, the Surviving Corporation or any of their respective Subsidiaries, except for the Merger Consideration or as otherwise agreed in writing by Parent and the holder thereof or as set forth on Section 6.01(m) of the Company Disclosure Schedule.

Section 2.05. Adjustments. If, during the period between the date of this Agreement and the Effective Time, the outstanding capital stock of the Company or Parent shall have been changed into a different number of shares or a different class by reason of any reclassification, recapitalization, stock split or combination, exchange or readjustment of shares, respectively, or any stock dividend thereon with a record date during such period, or any other similar event, but excluding any change that results from (a) the exercise of Warrants, stock options or other equity awards to purchase Company Shares or Parent Shares (as set forth in Section 4.05 and Section 5.05, respectively), (b) the settlement of any other equity awards to purchase or otherwise acquire Company Shares or Parent Shares or (c) the grant of stock based compensation to directors or employees of Parent or (other than any such grants not made in accordance with the terms of this Agreement) the Company under Parent’s or the Company’s, as applicable, stock option or compensation plans or arrangements, the Merger Consideration and any other amounts payable pursuant to this Agreement, as applicable, shall be appropriately and proportionately adjusted. Nothing in this Section 2.05 shall be construed to permit any party to take any action that is otherwise prohibited or restricted by any other provision of this Agreement.

Section 2.06. Fractional Shares. No fractional Parent Shares shall be issued in the Merger. All fractional Parent Shares that a holder of Company Shares would otherwise be entitled to receive as a result of the Merger shall be aggregated and if a fractional share results from such aggregation, such holder shall be entitled to receive, in lieu thereof, an amount in cash without interest determined by multiplying the closing sale price of a Parent Share on the NYSE on the trading day immediately preceding the Effective Time by the fraction of a Parent Share to which such holder would otherwise have been entitled.

Section 2.07. Withholding Rights. Notwithstanding any provision contained herein to the contrary, each of the Exchange Agent, Parent, the Company, Merger Sub and the Surviving Corporation shall be entitled to deduct and withhold from the consideration otherwise payable to any Person pursuant to this Agreement such amounts

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as it reasonably concludes it is required to deduct and withhold with respect to the making of such payment under the Code, under any Tax law or pursuant to any other Applicable Law. If the Exchange Agent, Parent, the Company, Merger Sub or the Surviving Corporation, as the case may be, so deducts or withholds amounts, such amounts shall be treated for all purposes of this Agreement as having been paid to such Person in respect of which such deduction and withholding was made.

Section 2.08. Lost Certificates. If any Certificate shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the Person claiming such Certificate to be lost, stolen or destroyed and, if required by the Surviving Corporation, the posting by such Person of a bond, in such reasonable amount as the Surviving Corporation may direct, as indemnity against any claim that may be made against it with respect to such Certificate, the Exchange Agent shall pay, in exchange for such lost, stolen or destroyed Certificate, the Merger Consideration to be paid in respect of the Company Shares represented by such Certificate and any dividends or distributions with respect thereto pursuant to Section 2.03(f), as contemplated by this Article 2.

ARTICLE 3

THE SURVIVING CORPORATION

Section 3.01. Certificate of Incorporation. At the Effective Time, the certificate of incorporation of the Surviving Corporation shall be amended and restated as set forth in Exhibit A and, as so amended and restated, shall be the certificate of incorporation of the Surviving Corporation until further amended in accordance with Applicable Law.

Section 3.02. Bylaws. The bylaws of Merger Sub in effect at the Effective Time shall be the bylaws of the Surviving Corporation (except that references to the name of Merger Sub shall be replaced by reference to the name of the Surviving Corporation) until thereafter amended in accordance with Applicable Law.

Section 3.03. Directors and Officers. From and after the Effective Time, until successors are duly elected or appointed and qualified in accordance with Applicable Law, (a) the directors of Merger Sub at the Effective Time shall be the directors of the Surviving Corporation and (b) the officers of Merger Sub at the Effective Time shall be the officers of the Surviving Corporation.

ARTICLE 4

REPRESENTATIONSAND WARRANTIESOFTHE COMPANY

Subject to Section 11.05, except (x) as disclosed in any Company SEC Document filed with or furnished to the SEC and publicly available since January 1, 2022 through the Business Day prior to the date of this Agreement (but excluding any general cautionary or forward-looking statements contained in the “Risk Factors” section or “Forward-Looking Statements” and any other statements that are similarly cautionary, predictive or forward-looking in nature, in each case other than any description of historical facts or events included therein); provided that this clause (x) shall not apply to the representations and warranties set forth in Sections 4.05 or 4.06(b), or (y) as set forth in the Company Disclosure Schedule, the Company represents and warrants to Parent and Merger Sub that:

Section 4.01. Corporate Existence and Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has all corporate powers required to carry on its business as now conducted, other than as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. The Company is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction where the conduct of its business in such jurisdiction as currently conducted requires such qualification is necessary, except for those jurisdictions where failure to be so qualified or in good standing has not had and would not reasonably be expected to have, individually or in the

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aggregate, a Company Material Adverse Effect. The Company has made available to Parent (or included as an exhibit to the Company SEC Documents made available to Parent) complete and correct copies of the organizational documents of the Company and each Subsidiary of the Company, and each as so made available is in full force and effect. The Company and each of its Subsidiaries is not in breach of any of its organizational documents in any material respect.

Section 4.02. Corporate Authorization. (a) The Company has all requisite corporate power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the Merger, except for the required approval of the holders of at least a majority of the outstanding Company Shares entitled to vote in connection with the adoption and approval of this Agreement and the transactions contemplated hereby, including the Merger, in accordance with Applicable Law and the Company’s certificate of incorporation (the “Requisite Company Vote”). The Requisite Company Vote is the only vote of the holders of any of the capital stock of the Company or the capital stock of any of its Subsidiaries (including any Company Securities or Company Subsidiary Securities) necessary in connection with consummation of the Merger. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby, subject to obtaining the Requisite Company Vote at the Company Meeting, are within the Company’s corporate powers and have been duly authorized by all necessary corporate action on the part of the Company. The Company has duly executed and delivered this Agreement, and, assuming due authorization, execution and delivery by each of Parent and Merger Sub, this Agreement constitutes a valid and binding agreement of the Company enforceable against the Company in accordance with its terms (subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Applicable Laws affecting creditors’ rights generally and general principles of equity).

(b) At a meeting duly called and held, the board of directors of the Company (the “Company Board”) has unanimously (i) determined that this Agreement and the transactions contemplated hereby, including the Merger, are fair to and in the best interests of the Company and its stockholders, (ii) approved, adopted and declared advisable this Agreement and the transactions contemplated hereby, including the Merger, in accordance with the requirements of the DGCL and (iii) resolved, subject to Section 6.03(c), to recommend approval and adoption of this Agreement by the stockholders of the Company (such recommendation, the “Company Board Recommendation”). As of the date of this Agreement, the foregoing determinations and resolutions have not been rescinded, modified or withdrawn in any way.

Section 4.03. Governmental Authorization. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby require no action by or in respect of, or filing by or on behalf of the Company with, any Governmental Authority, other than (a) the filing of a certificate of merger with respect to the Merger with the Delaware Secretary of State and appropriate documents with the relevant authorities of other states in which the Company is qualified to do business, (b) compliance with any applicable requirements of the HSR Act, (c) compliance with any applicable requirements of the NYSE, 1933 Act, the 1934 Act and any other applicable state or federal securities laws, including the filing with the SEC of the Proxy Statement/Prospectus relating to the matters to be submitted to the stockholders of the Company at the Company Meeting, (d) any of the actions or filings set forth on Section 4.03 of the Company Disclosure Schedule and (e) any actions or filings the absence of which has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

Section 4.04. Non-contravention. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby do not and will not (a) contravene, conflict with, or result in any violation or breach of any provision of the certificate of incorporation or bylaws of the Company or any of its Subsidiaries, (b) assuming compliance with the matters referred to in Section 4.03, contravene, conflict with or result in a violation or breach of any provision of any Applicable Law, (c) assuming termination of the Company Credit Agreement and satisfaction in full of all obligations outstanding thereunder and compliance with the matters referred to in Section 4.03, require payment or notice to, or any consent or other action by any Person under, constitute a breach or default, or an event that,

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with or without notice or lapse of time or both, would constitute a violation or breach of, or give rise to any right of termination, suspension, cancellation, acceleration, payment or any other change of any rights or obligations of the Company or any of its Subsidiaries or the loss of any benefit to which the Company or any of its Subsidiaries is entitled under any provision of any Contract binding on the Company or any of its Subsidiaries or any Permit affecting, or relating to, the assets or business of the Company or its Subsidiaries or (d) result in the creation or imposition of any Lien on any asset of the Company or any of its Subsidiaries except, in the case of each of clauses (b) through (d), as have not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

Section 4.05. Capitalization. (a) The authorized capital stock of the Company consists of 250,000,000 Company Shares and 50,000,000 shares of preferred stock, par value $0.001 per share (the “CompanyPreferred Stock”). As of July 10, 2023 (the “Measurement Date”), there were outstanding (i) 50,473,057 Company Shares, of which 340,102 Company Shares constitute Company Restricted Stock, (ii) Warrants exercisable for 2,581,409 Company Shares and (iii) no shares of Company Preferred Stock. As of the Measurement Date, there were 5,679,352 Company Shares reserved and still available for issuance under the Equity Plan, of which there were outstanding awards with respect to 1,950,053 Company Shares subject to issuance upon vesting of Company RSUs, 230,096 Company Shares subject to issuance upon vesting of Company DSUs and 221,729 Company Shares subject to issuance upon vesting of Company TSR Performance Awards (assuming achievement of applicable performance objectives at target levels). As of the Measurement Date, 1,981,281 Company Shares are subject to outstanding purchase rights under the ESPP. All outstanding shares of capital stock of the Company have been, and all shares that may be issued pursuant to any employee stock option or other compensation plan or arrangement will be, when issued in accordance with the respective terms thereof, duly authorized and validly issued, fully paid and nonassessable, and free of preemptive rights. Section 4.05(a) of the Company Disclosure Schedule sets forth, for each equity award, the holder, type of award, grant date, number of shares, vesting schedule (including any acceleration provisions) and, if applicable, exercise price and expiration date.

(b) There are no outstanding bonds, debentures, notes or other Indebtedness of the Company having the right to vote (or convertible into, or exchangeable or exercisable for, securities having the right to vote) on any matters on which stockholders of the Company may vote. Except as set forth in Section 4.05(a) of the Company Disclosure Schedule and for changes since the Measurement Date resulting from the issuance of Company Shares pursuant to the settlement of Company RSUs, Company DSUs and Company TSR Performance Awards or the exercise of Warrants, in each case outstanding on such date in accordance with the terms thereof on such date, there are no issued, reserved for issuance or outstanding (i) shares of capital stock or other voting securities of or ownership interests in the Company, (ii) securities of the Company convertible into or exchangeable or exercisable for shares of capital stock or other voting securities of or ownership interests in the Company, (iii) warrants (other than Warrants), calls, options, subscriptions, commitments, Contracts or other rights to acquire from the Company, or other obligation of the Company to issue, any capital stock or other voting securities of, or ownership interests in, or any securities convertible into or exchangeable or exercisable for capital stock or other voting securities of or ownership interests in, the Company or (iv) restricted shares, restricted stock units, stock appreciation rights, performance units, contingent value rights, “phantom” stock or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the value or price of, any capital stock or voting securities of, or ownership interests in, the Company (the items in clauses (i) through (iv), including, for the avoidance of doubt, the Company Shares, being referred to collectively as the “Company Securities”). There are no outstanding obligations of the Company or any of its Subsidiaries to repurchase, redeem or otherwise acquire any of the Company Securities. Neither the Company nor any of its Subsidiaries is a party to any voting agreement with respect to the voting, registration or transfer of any Company Securities. Since the Company Balance Sheet Date, neither the Company nor any of its Subsidiaries has declared, set aside or paid any dividends on, or made any other distributions (whether in cash, stock, property or otherwise) in respect of, any capital stock of such Person (other than cash dividends and distributions by a direct or indirect wholly owned Subsidiary of the Company to its parent).

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(c) None of (i) the Company Shares or (ii) any Company Securities are owned by any Subsidiary of the Company.

Section 4.06. Subsidiaries. (a) Each Subsidiary of the Company has been duly organized, is validly existing and (where applicable) in good standing under the laws of its jurisdiction of organization, has all organizational powers and all governmental licenses, authorizations, permits, consents and approvals required to carry on its business as now conducted, other than where the failure to be so organized or to have such power, authority or standing would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Each such Subsidiary is duly qualified to do business as a foreign entity and is in good standing in each jurisdiction where such qualification is necessary, except for those jurisdictions where failure to be so qualified has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as set forth in Section 4.06(a) of the Company Disclosure Schedule, all Subsidiaries of the Company as of the date hereof and their respective jurisdictions of organization are identified in the Company 10-K.

(b) All of the outstanding capital stock or other voting securities of, or ownership interests in, each Subsidiary of the Company have been duly authorized and validly issued and are fully paid and nonassessable and not subject to any preemptive rights and are owned by the Company, directly or indirectly, free and clear of any Lien and free of any other limitation or restriction (including any restriction on the right to vote, sell or otherwise dispose of such capital stock or other voting securities or ownership interests). There are no issued, reserved for issuance or outstanding (i) securities of the Company or any of its Subsidiaries convertible into, or exchangeable or exercisable for, shares of capital stock or other voting securities of, or ownership interests in, any Subsidiary of the Company, (ii) warrants, calls, options, subscriptions, commitments, Contracts or other rights to acquire from the Company or any of its Subsidiaries, or other obligations of the Company or any of its Subsidiaries to issue, any capital stock or other voting securities of, or ownership interests in, or any securities convertible into, or exchangeable or exercisable for, any capital stock or other voting securities of, or ownership interests in, any Subsidiary of the Company or (iii) restricted shares, restricted stock units, stock appreciation rights, performance units, contingent value rights, “phantom” stock or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the value or price of, any capital stock or other voting securities of, or ownership interests in, any Subsidiary of the Company (the items in clauses (i) through (iii) being referred to collectively as the “Company Subsidiary Securities”). There are no outstanding obligations of the Company or any of its Subsidiaries to repurchase, redeem or otherwise acquire any of the Company Subsidiary Securities. Except for ownership interests in its Subsidiaries, the Company does not own, directly or indirectly, any capital stock or other voting securities of, or ownership interests in, any Person. The Company and its Subsidiaries have no obligation to acquire equity securities of, or make any capital contribution or investment in, any other Person, other than as set forth in Section 4.06(b) of the Company Disclosure Schedule.

Section 4.07. SEC Filings and the Sarbanes-Oxley Act. (a) Since January 1, 2021 (the “Applicable Date”), the Company has timely filed with or furnished to the SEC, all reports, schedules, forms, statements, prospectuses, registration statements and other documents required to be filed with or furnished to the SEC by the Company (such reports, schedules, forms, statements, prospectuses, registration statements and other documents so filed or furnished since the Applicable Date, collectively, together with any exhibits and schedules thereto and other information incorporated therein, the “Company SEC Documents”). No Subsidiary of the Company is, and since the Applicable Date, no Subsidiary of the Company has been, required to file any reports, schedules, forms, statements or other documents with the SEC. As of the date of this Agreement, (i) there are no outstanding or unresolved written comments from the SEC with respect to the Company SEC Documents and (ii) to the Company’s Knowledge, none of the Company SEC Documents filed on or prior to the date hereof is the subject of ongoing SEC review.

(b) As of its filing date (or, if amended by a filing prior to the date hereof, on the date of any such filing), each Company SEC Document complied, and each Company SEC Document filed subsequent to the date hereof

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will comply, as to form in all material respects with the applicable requirements of the NYSE, the 1933 Act, the 1934 Act, the Sarbanes-Oxley Act and the rules and regulations of the SEC promulgated under the 1933 Act, the 1934 Act and the Sarbanes-Oxley Act, as the case may be.

(c) As of its filing date (or, if amended by a filing prior to the date hereof, on the date of such filing), each Company SEC Document filed pursuant to the 1934 Act did not, and each Company SEC Document filed subsequent to the date hereof will not, contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.

(d) Each Company SEC Document that is a registration statement, as amended or supplemented, if applicable, filed pursuant to the 1933 Act, as of the date such registration statement or amendment became effective, did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading.

(e) The Company has established and maintained disclosure controls and procedures and internal control over financial reporting (as such terms are defined in paragraphs (e) and (f), respectively, of Rule 13a-15 under the 1934 Act) as required by Rule 13a-15 or 15d-15, as applicable, under the 1934 Act. The Company’s disclosure controls and procedures are designed to ensure that all material information required to be disclosed by the Company in the reports that it files or furnishes under the 1934 Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and that all such material information is accumulated and communicated to the Company’s management as appropriate to allow timely decisions regarding required disclosure and to make the certifications required pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act. The Company’s internal control over financial reporting is in compliance with the applicable requirements of Section 404 of the Sarbanes-Oxley Act, and the Company’s internal control over financial reporting is effective. Except as set forth on Section 4.07(e) of the Company Disclosure Schedule, since September 18, 2020, neither the Company nor, to the Knowledge of the Company, the Company’s independent registered accountant has identified or been made aware of (i) any significant deficiencies or material weaknesses in the design or operation of the Company’s internal control over financial reporting that are reasonably expected to adversely affect the Company’s ability to record, process, summarize or report financial information or (ii) any fraud, whether or not material, that involves the management or other employees of the Company who have a significant role in the Company’s internal control over financial reporting.

(f) There are no outstanding loans or other extensions of credit made by the Company or any of its Subsidiaries to any executive officer (as defined in Rule 3b-7 under the 1934 Act) or director of the Company.

(g) Since the Applicable Date, each of the principal executive officer and principal financial officer of the Company (or each former principal executive officer and principal financial officer of the Company, as applicable) has made all certifications required by Rule 13a-14 and 15d-14 under the 1934 Act and Sections 302 and 906 of the Sarbanes-Oxley Act and any related rules and regulations promulgated by the SEC and the NYSE, and the statements contained in any such certifications are complete and correct as of their respective dates.

Section 4.08. Financial Statements. The audited consolidated financial statements and unaudited consolidated interim financial statements of the Company included or incorporated by reference in the Company SEC Documents (a) as of their respective dates of filing with the SEC complied as to form in all material respects with the published rules and regulations of the SEC with respect thereto and (b) fairly present in all material respects, in conformity with GAAP applied on a consistent basis (except as may be indicated in the notes thereto), the consolidated financial position of the Company and its consolidated Subsidiaries as of the dates thereof and their consolidated results of operations and cash flows for the periods then ended (subject to normal year-end audit adjustments and the absence of footnotes in the case of any unaudited interim financial statements).

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Section 4.09. Disclosure Documents. (a) The information supplied by the Company for inclusion or incorporation by reference in the registration statement on Form S-4 or any amendment or supplement thereto pursuant to which Parent Shares issuable as part of the Merger Consideration will be registered with the SEC (the “Registration Statement”) shall not at the time the Registration Statement is declared effective by the SEC (or, with respect to any post-effective amendment or supplement, at the time such post-effective amendment or supplement becomes effective) contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The information supplied by the Company for inclusion in the proxy statement/prospectus, or any amendment or supplement thereto, to be sent to the Company stockholders in connection with the Merger and the other transactions contemplated by this Agreement (the “Proxy Statement/Prospectus”) shall not, on the date the Proxy Statement/Prospectus, and any amendments or supplements thereto, is first mailed to the stockholders of the Company or at the time of a meeting of such stockholders for purpose of adopting this Agreement and approving the Merger (including any adjournment or postponement thereof, the “Company Meeting”) or Requisite Company Vote contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

(b) The representations and warranties contained in this Section 4.09 will not apply to statements or omissions included or incorporated by reference in the Registration Statement or Proxy Statement/Prospectus based upon information supplied in writing by Parent, Merger Sub or any of their representatives or advisors specifically for use or incorporation by reference therein.

Section 4.10. Absence of Certain Changes. Since the Company Balance Sheet Date through the date of this Agreement, (a) the business of the Company and its Subsidiaries has been conducted in the ordinary course of business in all material respects, (b) there has not been any event, change, occurrence, development or state of circumstances or facts that has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect and (c) none of the Company or any of its Subsidiaries has taken or agreed or omitted to take any action that, if taken or omitted during the period from the date of this Agreement through the Effective Time without Parent’s consent, would constitute a breach of Section 6.01(a), Section 6.01(b), Section 6.01(c), Section 6.01(d), Section 6.01(g), Section 6.01(j), Section 6.01(k), Section 6.01(m), Section 6.01(n), Section 6.01(o), Section 6.01(p) or, as it relates to the foregoing, Section 6.01(s).

Section 4.11. No Undisclosed Material Liabilities. There are no liabilities or obligations of the Company or any of its Subsidiaries of any kind whatsoever, whether accrued, contingent, absolute, known or unknown, determined, determinable, due or to become due or otherwise, and there is no existing condition, situation or set of circumstances that could reasonably be expected to result in such a liability or obligation, other than: (a) liabilities or obligations disclosed and provided for in the Company Balance Sheet or in the notes thereto; (b) liabilities or obligations incurred in the ordinary course of business since the Company Balance Sheet Date (but excluding violations of law or regulation, compliance matters, internal investigations, major spills or pipeline damage, breaches of Contracts or Permits, torts or infringement); (c) liabilities incurred in connection with the Merger; and (d) liabilities or obligations that have not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

Section 4.12. Compliance with Laws, Permits and Court Orders. (a) The Company and each of its Subsidiaries is, and since the Applicable Date, has been, in compliance with, is not, to the Knowledge of the Company, under investigation with respect to, nor has been threatened in writing, to be charged with or given notice of any violation of, any Applicable Law, except for failures to comply or violations that have not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. There is no judgment, decree, injunction, rule or order of any arbitrator or Governmental Authority outstanding against the Company or any of its Subsidiaries: (i) that is or would reasonably be expected to be, individually or in the aggregate, material to the Company and its Subsidiaries, taken as a whole,whole; or (ii) that is outstanding as of the date hereof and that in any manner seeks to prevent, enjoin, alter or materially delay the Merger or any of the other transactions contemplated hereby.

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(b) Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) the Company and each of its Subsidiaries has all Permits necessary to own, lease and operate its properties and assets and to carry on its business as now conducted, (ii) the Company and each of its Subsidiaries is in compliance with the terms and requirements of such Permits, (iii) such Permits are in full force and effect and are not subject to any pending or threatened Action by any Governmental Authority to suspend, cancel, modify, terminate or revoke any such Permit and (iv) since the Applicable Date, there has occurred no violation by the Company or any of its Subsidiaries of, or default (with or without notice or lapse of time, or both) that would reasonably be expected to result in any suspension, cancellation, modification, termination or revocation of any such Permit.

(c) The Company, each of its Subsidiaries, and each of their respective directors, officers and, to the Knowledge of the Company, employees (in connection with their activities on behalf of the Company or any of its Subsidiaries) are, and since the Applicable Date have been, in compliance in all material respects with (i) the Foreign Corrupt Practices Act of 1977 and all other applicable anti-corruption laws, (ii) all economic sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control or the U.S. Department of State (collectively, “Sanctions”) and (iii) all applicable export controls laws.

(d) None of the Company or any of its Subsidiaries, or any director or officer, or, to the Company’s Knowledge, any Affiliate or representative of the Company or any of its Subsidiaries, is a Person that is, or is owned or controlled by Persons that are: (i) the subject of any Sanctions or (ii) located, organized or resident in a country or region that is the subject of Sanctions.

Section 4.13. Insurance. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (a) all insurance policies of the Company and its Subsidiaries relating to the business, assets and operations of the Company and its Subsidiaries in effect as of the date of this Agreement are in full force and effect and (b) no notice of cancellation or modification has been received by the Company relating to any material insurance policy of the Company, and there is no existing default or event which, with the giving of notice or lapse of time or both, would constitute a default by any insured under such insurance policies. Section 4.13 of the Company Disclosure Schedule sets forth all material insurance policies held by the Company and its Subsidiaries as of the date hereof.

Section 4.14. Litigation. There is no Action pending against, threatened in writing against or, to the Knowledge of the Company, otherwise threatened against, the Company, any of its Subsidiaries, any present or former officer, director or employee of the Company or any of its Subsidiaries or any Person for whom the Company or any of its Subsidiaries may be liable or any of their respective properties before (or, in the case of threatened Actions, would be before) or by any Governmental Authority or arbitrator, that would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Since the Applicable Date through the date hereof, there has not been any internal investigation conducted by the Company or the Company Board (or any committee thereof) concerning any material allegations of fraud or malfeasance. Since the Applicable Date, there has been no material allegation of fraud or malfeasance involving the Company any of its Subsidiaries or any their respective assets.

Section 4.15. Properties. (a) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the Company and its Subsidiaries have good title to, or valid leasehold interests in, all property and assets reflected on the Company Balance Sheet or acquired after the Company Balance Sheet Date, except as have been disposed of since the Company Balance Sheet Date in the ordinary course of business.

(b) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) each lease, sublease or license (each, a “Lease”) under which the Company or any of its Subsidiaries leases, subleases or licenses or otherwise acquires or obtains operating rights in any Oil and Gas Interests or any othermaterial real property is valid and in full force and effect (subject to lease expirations in the ordinary coursebankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Applicable Laws

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affecting creditors’ rights generally and general principles of business);equity), free and clear of all Liens other than Permitted Liens and (ii) neither the Company nor any of its Subsidiaries, nor to the Company’s knowledgeKnowledge any other party to a Lease, has violated any provision of, or taken or failed to take any act which, with or without notice, lapse of time, or both, would constitute a default under the provisions of such Lease;Lease, and (iii) neither the Company nor any of its Subsidiaries has received notice that it has breached, violated or defaulted under any Lease.

(c) Each of the Company and its Subsidiaries has such consents, easements, rights-of-way, fee assets, permits, servitudes and licenses (including rights to use the surface or subsurface under an Oil and Gas Lease) from each Person (collectively, “Rights-of-Way”) as are sufficient to conduct its business as it is presently conducted, except for such Rights-of-Waythe other partyabsence of which would not reasonably be expected to have, individually or in the aggregate, a LeaseCompany Material Adverse Effect. No event has occurred that allows, or after notice or lapse of time would allow, revocation or termination thereof or would result in any impairment of the rights of the holder of any such Rights-of-Way, except for such revocations, terminations and impairments that would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. All Pipelines owned or operated by the Company and any of its Subsidiaries are subject to Rights-of-Way or are located on real property owned or leased by the Company or its Subsidiaries, and there are no gaps (including any gap arising as a result of any violation, breach or default by the Company or any of its Subsidiaries as the case may be, has breached, violated or defaulted under any Lease.

Section 4.18.Intellectual Property.Section 4.18 of the Company Disclosure Letter sets forth a complete and correct list of all material registrations and applications for registrationterms of any Intellectual Property owned byRights-of-Way) in the Rights-of-Way other than gaps that would not reasonably be expected to have, individually or in the aggregate, a Company or any of its Subsidiaries.Material Adverse Effect. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect:Effect, no Right-of-Way contains a requirement that the holder thereof make royalty or other payments based, directly or indirectly, on the throughput of Hydrocarbons on or across such Right-of-Way (other than customary royalties under Oil and Gas Leases based solely on Hydrocarbons produced from such Oil and Gas Lease).

Section 4.16. Intellectual Property; IT Assets; Data Privacy and Security. (a) Section 4.16(a)of the Company Disclosure Schedule sets forth a complete and correct list as of the date hereof of all registrations, issuances and applications for registration or issuance of Company IP comprising trademarks, patents, copyrights and domain names (“Registered IP”). Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) the Company and each of its Subsidiaries owns, or is licensedsolely and exclusively own all of the Company IP, and, to use (inthe Knowledge of the Company, hold their rights in the Licensed IP, in each case, free and clear of any Liens except(other than Permitted Liens), (ii) the Company and each of its Subsidiaries own or have a valid and, to the Knowledge of the Company, enforceable license or other right to use all Intellectual Property used or held for use in, or necessary for, the conduct of its business as currently conducted; (ii)conducted, (iii) all Registered IP is subsisting and valid and, to the knowledgeKnowledge of the Company, is enforceable, (iv) neither the Company nor its Subsidiaries, nor the conduct of their respective businesses, has infringed, misappropriated, diluted or otherwise violated, or is infringing, misappropriating, diluting or otherwise violating, the Intellectual Property rights of any Person, in connection with the conduct of the business of the Company or its Subsidiaries; (iii)(v) to the knowledgeKnowledge of the Company, no Person has challenged, infringed, misappropriated, diluted, tarnished or otherwise violated any Intellectual Property right owned by and/Company IP or licensed toany rights of the Company or any of its Subsidiaries; (iv)Subsidiaries in any Licensed IP, (vi) neither the Company nor any of its Subsidiaries has receivedis subject to any written noticeAction, nor, to the Knowledge of the Company, is any Action threatened against the Company or otherwise has knowledgeany of any pending Actionits Subsidiaries, with respect to any Intellectual Property owned, used or held for use by the Company or any of its Subsidiaries or alleging that the any services provided, processes used or products manufactured, used, imported, offered for sale or sold by the Company or any of its Subsidiaries infringes, misappropriates, dilutes or otherwise violates any Intellectual Property rights of any Person; (v) the consummation of the transactions contemplated by this Agreement will not alter, encumber, impair or extinguish any Intellectual Property right of the Company or any of its Subsidiaries or impair the right of the Company or any of its Subsidiaries to develop, use, sell, license or dispose of, or to bring any action for the infringement of, any Intellectual Property right of the Company or any of its Subsidiaries; (vi)Person, (vii) the Company and its Subsidiaries have taken commercially reasonable actions to maintain, enforce and protect all Company IP and none of the Company IP has been adjudged invalid or unenforceable in whole or in part, (viii) the Company and its Subsidiaries have taken commercially reasonable steps in accordance with normal industry practicedesigned to maintain the confidentiality of all Trade Secrets owned, used or held for use by the Company or any of its Subsidiaries, and to the Company’s knowledge, nonone of such Trade Secrets havehas been disclosed to any third party other than pursuant to employees, contractors, consultants, representatives and agents of the Company or any of its Subsidiaries under appropriate written confidentiality agreements; (vii)agreements or comparable professional obligations of confidentiality, (ix) the Company and each of its Subsidiaries have either entered into binding, written agreements with their

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respective current and former employees and independent contractors who have participated in the development of any material Intellectual Property for or on behalf of the Company or such Subsidiary, as applicable, whereby such employees and independent contractors presently assign to the Company or such Subsidiary, as applicable, any ownership interest and right they may have in all such Intellectual Property, or have had such current and former employees and independent contractors assign to the Company or such Subsidiary, as applicable, any ownership interest and rights they may have in all such Intellectual Property by operation of law, (x) the consummation of the transactions contemplated by this Agreement will not (A) materially alter, encumber, extinguish or impair the Company IP or the Company’s or its Subsidiaries’ right to use any Licensed IP or (B) to the Knowledge of the Company, encumber any of the Intellectual Property owned or licensed by Parent or any of its Affiliates, and (xi) there exist no restrictions on the disclosure, use, license or transfer of the Company IP.

(b) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) the IT Assets operate and perform in a manner that permits the Company and its Subsidiaries to conduct their respective businesses as currently conducted, (ii) the Company and its Subsidiaries have taken commercially reasonable actions, consistent with current industry standards and Applicable Data Protection Requirements, designed to protect the confidentiality, integrity and security of the IT Assets (and all information and transactions stored or contained therein or transmitted thereby) against any unauthorized use, access, interruption, modification or corruption, including the implementation of commercially reasonable data backup, disaster avoidance and recovery procedures, business continuity procedures, multi-factor authentication procedures and encryption and other security protocol technology, and (iii) there has been no breach, or unauthorized use, access, interruption, modification or corruption, of any IT Assets (or any information or transactions stored or contained therein or transmitted thereby).

(c) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) the Company and its Subsidiaries have at all times complied, and are currently in compliance, with all Applicable Data Protection Requirements, (ii) no Actions are pending or, to the knowledgeKnowledge of the Company, nothreatened against the Company or any of its Subsidiaries by any Person has gained unauthorized accessalleging a violation of any Applicable Data Protection Requirement or such Person’s privacy, personal or confidentiality rights, nor, to the IT Assets; and (viii)Knowledge of the Company, are any investigations by any Governmental Authorities pending against the Company or any of its Subsidiaries relating to any Applicable Data Protection Requirements, (iii) the Company and its Subsidiaries have implemented and maintained commercially reasonable backupphysical, technical, and disaster recovery technology consistentorganizational measures designed to protect all IT Assets and Personal Information in their possession or control against a breach, or unauthorized use, access, exfiltration, destruction, alteration, disclosure, loss, theft, interruption, modification or corruption, thereof (“Data Breach”), including procedures with industry practices.

respect to notification of any Data Breach that are required under any Applicable Data Protection Requirements, and (iv) there has been no Data Breach with respect to any such Personal Information, and the Company and its Subsidiaries have not been required under any Applicable Data Protection Requirement to provide any notice to any Governmental Authority or Person in connection with any Data Breach.

Section 4.19.4.17. Taxes.

(a) (i) Each material income or material franchise Tax Return and each otherAll material Tax ReturnReturns required to be filed with any Taxing Authorityby Applicable Law by, or on behalf of, the Company or any of its Subsidiaries hashave been timely filed when due (taking into account any applicablevalid extensions of time)time to file), and isall such Tax Returns are true, complete and completecorrect in all material respects;

(ii)respects. Each of the Company and each of its Subsidiaries has timely paid or caused to be(or has had paid on its behalf) in full to the appropriate TaxingGovernmental Authority all material Taxes due and payable by it, whether or not shown as due and payable on allany Tax Returns that have been filed;Returns.

(iii) the accruals and reserves with respect to Taxes as set forth on(b) Each of the Company Balance Sheet are adequate (as determined in accordance with GAAP);

(iv) adequate accruals and reserves (as determined in accordance with GAAP) have been establishedeach of its Subsidiaries has properly and timely withheld or collected and timely paid, or is properly holding for timely payment, all material Taxes attributablerequired to taxable periods (or portions thereof) frombe withheld, collected and paid over by it under Applicable Law, and each of the Company Balance Sheet Date;and each of its Subsidiaries has complied in all material respects with all related information reporting, withholding and record retention requirements.

(v) there

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(c) There is no Action or audit pendingin respect of a material amount of Taxes of the Company and its Subsidiaries that is currently being conducted or, to the Company’s knowledge,Knowledge of the Company, threatened in writing againstby a Governmental Authority. There are no outstanding requests for filings or withdeterminations in respect toof any material Tax or Tax asset between the Company or any of its Subsidiaries and any Governmental Authority.

(d) No material Tax deficiency has been asserted in respectwriting against the Company or any of its Subsidiaries that has not been resolved or paid in full. Within the past six years, no material written claim has been made by any material Tax; andGovernmental Authority in a jurisdiction where the Company or a Subsidiary of the Company does not file a particular type of Tax Return or pay a particular type of Tax that the Company or a Subsidiary of the Company is or may be required to file such Tax Return or pay such Tax.

(vi) there(e) There are no Liens for material Taxes on any of the assets of the Company or any of its Subsidiaries attributable to a material amount of Taxes other than Liens for Taxes not yet due or being contested in good faith (and, in the case of Taxes being contested in good faith, which have been disclosed on Section 4.19(a)(vi) of the Company Disclosure Letter) or for which adequate accruals or reserves have been established on the Company Balance Sheet.Permitted Liens.

(b) The material income and material franchise Tax Returns of the Company and its Subsidiaries through the Tax year ended December 31, 2004 have been examined and the examinations have been closed or are Tax Returns with respect to which the applicable period for assessment, after giving effect to extensions or waivers, has expired.

(c) During the five-year period ending on the date hereof, neither(f) Neither the Company nor any of its Subsidiaries was a distributing corporationhas waived any statute of limitation in respect of Taxes or a controlled corporationagreed to any extension of time with respect to an assessment or deficiency for any material amount of Taxes, which waiver or extension is currently in a transaction intendedeffect (other than pursuant to be governed by Section 355extensions of time to file Tax Returns obtained in the ordinary course of business for no more than six months).

(g) Neither the Company nor any Subsidiary of the Code.Company (i) is, or has been, a member of any affiliated, consolidated, combined or unitary Tax group, other than a group the common parent of which is the Company or any Subsidiary of the Company, or (ii) has any liability for any material amount of Taxes of any Person (other than the Company or current or former Subsidiary of the Company) arising from the application of Treasury Regulations Section 1.1502-6 (or any analogous provision of U.S. state or local or non-U.S. Tax law) or as a transferee or successor.

(d) (h) Neither the Company nor any of its Subsidiaries has entered into, or participated in, any “listed transaction” within the meaning of Treasury Regulations Section 1.6011-4(b)(2).

(i) Neither the Company nor any of its Subsidiaries is,has taken or agreed to take any action, or has been,knowledge of any fact or circumstance, that could reasonably be expected to prevent or impede the Merger from qualifying as a party to any Tax Sharing Agreement (other than an agreement exclusively between or among“reorganization” within the Company and its Subsidiaries) pursuant to which it will have any obligation to make any payments for Taxes aftermeaning of Section 368(a) of the Effective Time and (ii) neitherCode.

(j) Neither the Company nor any of its Subsidiaries has been a member“distributing” corporation or a “controlled corporation” (each within the meaning of an affiliated group filingSection 355(a)(1)(A) of the Code) in any distribution of stock during the two-year period ending on the date of this Agreement that was purported or intended to be governed by Section 355 of the Code (or so much of Section 356 of the Code as relates to Section 355 of the Code).

(k) Neither the Company nor any Subsidiary of the Company is a consolidated federal incomeparty to, or is bound by or has any obligation under any material Tax ReturnSharing Agreement (other than a groupagreements solely by and among the common parent of which was the Company)Company and its Subsidiaries).

(e)Section 4.18. Employee Benefit Plans. (a) Section 4.18(a) of the Company Disclosure Schedule contains a correct and complete list of each material Employee Plan. With respect to each material Employee Plan, the Company has made available to Parent true, correct and complete copies of, to the extent applicable, (i) such Employee Plan, including any amendment thereto (or, in the case of any unwritten Employee Plan, a written description thereof), (ii) each trust, insurance, annuity or other funding arrangement or amendment related thereto, (iii) the most recent summary plan description and any summary of material modifications prepared, (iv) the three most recent financial statements and actuarial or other valuation reports prepared with respect thereto, (v) the most recent determination or opinion letter from the Internal Revenue Service (the “IRS”) and (vi) the three most recent annual reports on Form 5500 (or comparable form).

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(b) Neither the Company nor any of its SubsidiariesERISA Affiliates (nor any predecessor of any such entity) sponsors, maintains, administers or contributes to (or has participatedany obligation to contribute to), or has in a “listed transaction” within the meaning of Treasury Regulations Section 1.6011-4(b)(2).

(f) No jurisdiction in which the Company or any of its Subsidiaries does not file Tax Returns has asserted in writing that the Company or any of its Subsidiaries is or may be liable for a material Tax in that jurisdiction.

Section 4.20. Employees and Company Plans.(a) Section 4.20 of the Company Disclosure Letter contains a correct and complete list identifying each Benefit Plan which ispast six years sponsored, maintained, administered or contributed to by the Company(or had any obligation to contribute to), or has or is reasonably expected to have any ERISA Affiliate and covers any currentdirect or former employee, director or other independent contractor of the Company or any of its Subsidiaries, orindirect liability with respect to, whichany Title IV Plan (including any liability on account of a “complete withdrawal” or a “partial withdrawal” (within the Companymeaning of Sections 4203 and 4205 of ERISA, respectively) from any Multiemployer Plan) or any of its Subsidiaries has any liability (collectively, the “Company Plans”). Copies of the Company Plans (and, if applicable, related trust or funding agreements or insurance policies) and all amendments thereto have been furnished or made available to Parent together with, if applicable, the most recent annual report (Form 5500 including, if applicable, Schedule B thereto) and tax return (Form 990) prepared in connection with any such plan or trust.International Plan.

(b) Neither the Company nor any ERISA Affiliate nor any predecessor thereof sponsors, maintains or contributes to, or has in the past sponsored, maintained or contributed to, any Company Plan subject to Title IV of ERISA.

(c) Each CompanyEmployee Plan that is intended to be qualified under Section 401(a) of the Code has received a favorable determination or opinion letter, or has pending or has time remaining in which to file, an application for such determination from the Internal Revenue Service,IRS, and the Company is not aware of any reason why any such determination letter should be revoked or not be issued or reissued. The Company has made available to Parent copies

(d) Each Employee Plan, and any award thereunder, that is or forms part of a “nonqualified deferred compensation plan” within the meaning of Section 409A of the most recent Internal Revenue Service determination letters with respect to each such Company Plan. Each Company PlanCode has been maintainedtimely amended (if applicable) to comply and has been operated in material compliance with, its terms and with the requirements prescribed by any and all statutes, orders, rules and regulations, including ERISA and the Code, which areCompany and its Subsidiaries have complied in practice and operation with, all applicable to suchrequirements of Section 409A of the Code.

(e) Except as set forth on Section 4.18(e) of the Company Plan.

(d) TheDisclosure Schedule, neither the execution of this Agreement nor the consummation of the transactions contemplated by this Agreement will nothereby (either alone or together with any other event) will (i) entitle any employee, directorcurrent or other independent contractor of the Companyformer Service Provider to any payment or benefit, including any of its Subsidiaries tobonus, retention, severance, payretirement or job security payment or benefit, (ii) accelerate the time of payment or vesting or trigger any payment or funding (through a grantor trust or otherwise) of compensation or benefits under, or increase the amount payable or trigger any other material obligation pursuant to,under, any Company Plan. There is no contract, planEmployee Plan, (iii) limit or arrangement (written or otherwise) covering any current or former employee, director or other independent contractorrestrict the right of the Company or any of its Subsidiaries that, individually or, collectively, would entitleafter the Closing, Parent, to merge, amend or terminate any employeeEmployee Plan or former employee to any severance or other payment solely as a(iv) result of the transactions contemplated hereby, or could give rise toin the payment of any amount that would not be deductible pursuant to the termsby reason of Section 280G of the Code or 162(m)would be expected to be subject to an excise Tax under Section 4999 of the Code.

(e)(f) Neither the Company nor any of its Subsidiaries has any liability in respect of post-retirement health, medicalobligation to gross-up, indemnify or life insurance benefitsotherwise reimburse any current or former Service Provider for retired, former or current employees, directors or other independent contractors of the Company or its Subsidiaries except as required to avoid excise taxany Tax incurred by such Service Provider, including under Section 4980B409A or 4999 of the Code.

(f)(g) Neither the Company nor any of its Subsidiaries has any current or projected liability for, and no Employee Plan provides or promises, any post-employment or post-retirement medical, dental, disability, hospitalization, life or similar benefits (whether insured or self-insured) to any current or former Service Provider (other than coverage mandated by Applicable Law, including COBRA).

(h) Each Employee Plan and its related trust, insurance contract or other funding vehicle has been maintained in compliance with its terms and all Applicable Law, including ERISA and the Code, except for failures to comply that would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. No action, suit, investigation, audit, proceeding or claim (other than routine claims for benefits) is pending against or involves or, to the Company’s Knowledge, is threatened against or threatened to involve, any Employee Plan before any arbitrator or any Governmental Authority, including the IRS, the Department of Labor or the PBGC, which, individually or in the aggregate, if determined or resolved adversely in accordance with the plaintiff’s demands, could reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

(i) There has been no amendment to, written interpretation or announcement (whether or not written) by the Company or any of its Affiliates relating to, or change in employee participation or coverage under, a Companyan Employee Plan which would increase materially the expense of maintaining such CompanyEmployee Plan above the level of the expense incurred in respect thereof for the fiscal year ended December 31, 2008.

(g) All contributions and payments accrued under each Company Plan, determined in accordance with current funding and accrual practices, as adjusted to include proportional accruals for the period ending as of the date hereof, have been discharged and paid on or prior to the date hereof except to the extent reflected as a liability on the Company Balance Sheet.hereof.

(h) There is no Action pending against or involving or, to the knowledge of the Company, threatened against or involving, any Company Plan before any Governmental Authority that would, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect.

(i) No employee of the Company or any of its Subsidiaries is (i) employed outside of the United States by the Company or any of its Subsidiaries or (ii) entitled to receive any benefit or compensation under any Benefit Plan other than a Company Plan which covers primarily U.S. employees.A-29


(j) No Person has been treated as an independent contractor of the Company or any of its Subsidiaries for tax purposes, or for purposes of exclusion from any Company Plan, who, to the knowledge of the Company, should have been treated as an employee for such purposes.

(k) No individual is or is part of a unit represented by a labor union or workers’ association in connection with his or her employment with the Company or any of its Subsidiaries. Neither the Company nor any of its Subsidiaries is party to any collective bargaining agreement or similar labor agreement covering employees or former employees of the Company or any of its Subsidiaries. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, thereall contributions, premiums and payments that are due have been made for each Employee Plan within the time periods prescribed by the terms of such plan and Applicable Law, and all contributions, premiums and payments for any period ending on or before the Closing Date that are not due are properly accrued to the extent required to be accrued under applicable accounting principles and have been properly reflected on the Company Balance Sheet or disclosed in the notes thereto.

Section 4.19. Labor Matters. (a) Neither the Company nor any of its Subsidiaries is a party to or otherwise bound by any Collective Bargaining Agreement or any other Contract with a labor union or similar labor organization, and, to the Company’s Knowledge, no Person has applied to the National Labor Relations Board to be certified as the bargaining agent of any Company Employee with respect to such employee’s employment with the Company and its Subsidiaries.

(b) There are no (i)unfair labor strikes,

slowdowns or stoppages current,practice complaints pending or, to the Company’s Knowledge, threatened against or affecting the Company or any of its Subsidiaries (ii) representation claimsbefore the National Labor Relations Board or petitions pending before any other Governmental Authority or any organizing effortscurrent union representation questions involving Company Employees. There is no, and there has not been since the Applicable Date, labor strike, slowdown, stoppage, picketing, interruption of work or challenges concerning representation with respectlockout pending or, to the employeesCompany’s Knowledge, threatened against the Company or any of its Subsidiaries.

(c) Neither the Company nor any of its Subsidiaries currently employs or engages any Service Provider outside of the U.S.

(d) The Company and its Subsidiaries are, and have been since the Applicable Date, in compliance with all Applicable Laws relating to labor and employment, including those relating to labor management relations, wages, hours, overtime, employee classification, discrimination, civil rights, affirmative action, work authorization, immigration, safety and health, information privacy and security, workers compensation, continuation coverage under group health plans, wage payment, and the payment and withholding of Taxes, except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

(e) Since the Applicable Date, except as has not had and would not reasonably be expected to, individually or in the aggregate, material to the Company and its Subsidiaries, taken as a whole, (i) no allegations of sexual harassment, sexual abuse, or other sexual misconduct have been made against any Service Provider of the Company or any of its Subsidiaries with respect to actions taken in the course of employment or (iii) material grievancesengagement with the Company or its Subsidiaries and (ii) there are no proceedings pending arbitration proceedings againstor, to the Knowledge of the Company, threatened related to allegations of sexual harassment, sexual abuse or other sexual misconduct by any Service Provider of the Company or any of its Subsidiaries that arose out of or under any collective bargaining agreement.

(l)Subsidiaries. Since the Applicable Date, except as has not had and would not reasonably be expected to result in material liability to the Company Balance Sheet Date until the date hereof,and its Subsidiaries, taken as a whole, neither the Company nor any of its Subsidiaries has effectuatedentered into any settlement agreements related to allegations of sexual harassment, sexual abuse or announced or plans to effectuate or announce (i) a “plant closing,” as defined in the U.S. Workers Adjustment and Retraining Notification Act (“WARN”) affectingother sexual misconduct by any site of employment or one or more facilities or operating units within any site of employment or facilityService Provider of the Company or any of its Subsidiaries, (ii) a “mass layoff” (as definedSubsidiaries.

(f) Since the Applicable Date, except as has not had and would not reasonably be expected to have, individually or in the WARN)aggregate, a Company Material Adverse Effect, the Company and its Subsidiaries are in compliance with WARN and has no liabilities thereunder and have not taken any action during the 90-day period prior to the date hereof, or (ii)will take any other transaction, layoff, reduction in forceaction, that would reasonably be expected to cause Parent or employment terminations sufficient in numberany of its Affiliates or the Surviving Corporation or any of its successors or assigns to trigger application ofhave any similar Applicable Law.liability following the Closing Date under WARN.

Section 4.214.20. Environmental Matters. Environmental Matters.(a) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect: (i) no notice, notification, demand, request for

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information, citation, summons or order has been received, no complaint has been filed, no penalty has been assessed, and no Action is pending or, to the knowledgeKnowledge of the Company, is threatened by any Governmental Authority or other Person relating to the Company or any of its Subsidiaries andunder or relating to or arising out of any Environmental Law;Law, Hazardous Substance or Environmental Permit; (ii) the Company and its Subsidiaries are and for the past three years have been in compliance with all Environmental Laws, and such compliance includes obtaining, maintaining, timely renewing, and complying with, all Environmental Permits; and (iii) there arehas been no liabilitiesRelease of any Hazardous Substance at, from, in, on, under, to or obligationsabout (A) any property currently or, to the Knowledge of the Company, formerly owned, leased or operated by, or (B) to the Knowledge of the Company, any property or facility to which any Hazardous Substance has been transported for disposal, recycling or treatment by or on behalf of, in each case the Company or any of its Subsidiaries (or any of their respective predecessors); and (iv) the Company has made available to Parent complete and accurate copies of all environmental assessment and audit reports and studies that relate to the Company or its Subsidiaries (or any kind whatsoever, whether accrued, contingent, absolute, determined, determinableof their respective predecessors), in each case that are in the Company’s possession, custody or otherwise arising under or relating to any Environmental Law or any Hazardous Substance (including any such liability or obligation retained or assumed by contract or by operation of law) and there is no existing fact, condition, situation or set of circumstances that couldcontrol.

(b) Except as would not reasonably be expected to resulthave, individually or in any such liability or obligation.

(b) Thethe aggregate, a Company has delivered or otherwise made available for inspection to Parent copies of any material reports, studies, analyses, tests or monitoring prepared or conducted by third parties withinMaterial Adverse Effect, the past three years and possessed or initiated by the Company or otherwise in its control pertaining to Hazardous Substances in, on, beneath or adjacent to any property currently or formerly owned, operated or leased by the Company or any of its Subsidiaries, or regarding the Company’s or any of its Subsidiaries’ compliance with or liability under Environmental Laws.

(c) The consummation of the transactions contemplated hereby requirerequires no filings or notifications to be made or actions to be taken pursuant to any financial assurance, bond, letter of credit or similar instrument required for the operations of the Company or its Subsidiaries under any Environmental Law or Environmental Permit.

(c) The consummation of the transactions contemplated herein does not subject any Company owned or leased real property interest to the New Jersey Industrial Site Recovery Act (N.J.A.C. 7:26B) or the “ConnecticutConnecticut Property Transfer Law” (Sections Law (Conn. Gen. Stat. § 22a-134, through 22-134eet seq. as amended by Public Act 01-204).

Section 4.21. Oil and Gas Matters. (a) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, and except for property (i) sold, leased or otherwise disposed of in the ordinary course of business since the dates of the Connecticut General Statutes).

reserve reports prepared by DeGolyer and MacNaughton (collectively, the “Company Independent Petroleum Engineers” and such reserve reports, the “Company Independent Reserve Reports”) relating to the Company’s and its Subsidiaries’ interests referred to therein as of December 31, 2022, (ii) reflected in the Company Independent Reserve Report or in the Company SEC Documents as having been sold, leased or otherwise disposed of prior to the date hereof, or (iii) sold, leased or otherwise disposed of as permitted under Section 4.22. Material Contracts.(a) As6.01, the Company and its Subsidiaries have Defensible Title to all Oil and Gas Properties forming the basis for the reserves reflected in the Company Independent Reserve Report and in each case as attributable to interests owned by the Company and its Subsidiaries. For purposes of the foregoing sentence, “Defensible Title” means the Company’s or one or more of its Subsidiaries’, as applicable, title (as of the date hereof and as of the Closing) to each of the Oil and Gas Properties held or owned by them (or purported to be held or owned by them) that (A) entitles the Company (or one or more of its Subsidiaries, as applicable) to receive (after satisfaction of all Production Burdens applicable thereto), not less than the net revenue interest share shown in the Company Independent Reserve Report of all Hydrocarbons produced from or allocated to such Oil and Gas Properties throughout the life of such Oil and Gas Properties and (B) is free and clear of all Liens (other than Permitted Liens).

(b) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the factual, non-interpretive data supplied by the Company to the Company Independent Petroleum Engineers relating to the Oil and Gas Properties referred to in the Company Independent Reserve Reports that was material to such firm’s estimates of proved oil and gas reserves attributable to the Oil and Gas Properties of the Company and its Subsidiaries in connection with the preparation of the Company Independent Reserve Reports was, as of the time provided, accurate in all respects. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the oil and gas reserve estimates of the Company set forth in the Company Independent Reserve Reports are derived from reports that have been prepared by the Company Independent Petroleum Engineers, and such reserve estimates fairly reflect, in all respects, the oil and gas reserves of the Company and its Subsidiaries at the dates indicated

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therein and are in accordance with SEC guidelines applicable thereto applied on a consistent basis throughout the periods involved. Except for changes generally affecting the oil and gas exploration, development and production industry (including changes in commodity prices) and normal depletion by production, there has been no change in respect of the matters addressed in the Company Independent Reserve Reports that would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

(c) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) all rentals, shut-ins and similar payments owed to any Person under (or otherwise with respect to) any Oil and Gas Leases owned or held by the Company or any of its Subsidiaries have been properly and timely paid or contested in good faith in the ordinary course of business, as to which reserves have been taken in accordance with GAAP, (ii) all royalties, minimum royalties, overriding royalties and other Production Burdens with respect to any Oil and Gas Properties owned or held by the Company or any of its Subsidiaries have been timely and properly paid or contested in good faith in the ordinary course of business, as to which reserves have been taken in accordance with GAAP and (iii) none of the Company or any of its Subsidiaries (and, to the Company’s Knowledge, no third-party operator) has violated any provision of, or taken or failed to take any act that, with or without notice, lapse of time, or both, would constitute a default under the provisions of any Oil and Gas Lease (or entitle the lessor thereunder to cancel or terminate such Oil and Gas Lease) included in the Oil and Gas Properties owned or held by the Company or any of its Subsidiaries.

(d) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, all proceeds from the sale of Hydrocarbons produced from the Oil and Gas Properties of the Company and its Subsidiaries are being received by them in a timely manner (other than those being contested in good faith in the ordinary course of business, as to which reserves have been taken in accordance with GAAP) and are not being held in suspense (by the Company, any of its Subsidiaries, any third-party operator thereof or any other Person) for any reason other than awaiting preparation and approval of division order title opinions and the receipt of division orders for execution for recently drilled Wells. Neither the Company nor any of its Subsidiaries is obligated by virtue of a take-or-pay payment, advance payment, or similar payment (other than royalties, overriding royalties, deliveries required to resolve imbalances and similar arrangements established in the Oil and Gas Leases owned or held by the Company or its Subsidiaries) to deliver Hydrocarbons or proceeds from the sale thereof, attributable to such Person’s interest in the Oil and Gas Properties at some future time without receiving payment therefor at the time of delivery, except, in each case, as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

(e) All of the Wells and all water, carbon dioxide, injection or other wells (i) located on the Oil and Gas Properties of the Company and its Subsidiaries or on the Units included in the Oil and Gas Properties owned or held by the Company or its Subsidiaries or (ii) otherwise associated with an Oil and Gas Property of the Company or its Subsidiaries, have been drilled, completed and operated within the limits permitted by the applicable Contracts and Oil and Gas Leases entered into by the Company or any of its Subsidiaries (or their respective predecessor in interest) related to such wells and in compliance with Applicable Law, and all drilling and completion (and plugging and abandonment, if applicable) of such wells and all related development, production and other operations with respect to such wells have been conducted in compliance with all Applicable Law except, in each case, as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

(f) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, none of the Oil and Gas Properties of the Company or its Subsidiaries is subject to any preferential purchase, consent or similar right that would become operative as a result of the Merger and the other transactions contemplated by this Agreement,Agreement.

(g) All Oil and Gas Properties operated by the Company and its Subsidiaries have been operated in accordance with reasonable, prudent oil and gas field practices, except where the failure to so operate would not reasonably have, individually or in the aggregate, a Company Material Adverse Effect.

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Section 4.22. Material Contracts. (a) Except as set forth in Section 4.22(a) of the Company Disclosure Schedule, as of the date hereof, neither the Company nor any of its Subsidiaries is party to or bound by any contract, arrangement, commitment or understanding that:Contract:

(i) materially limitsthat would be required to be filed by the Company as a “material contract” pursuant to Item 601(b)(10) of Regulation S-K under the 1933 Act;

(ii) that are employment, independent contractor, consulting, severance or otherwise materially restricts insimilar agreements with any material respectindividual (or such individual’s alter ego entity) under which the Company or any of its Subsidiaries is or could become obligated to provide a base salary or annual consulting fees in excess of $500,000;

(iii) that (or, aftertogether with additional related Contracts with the Effective Time,same Person or its Affiliates) (A) involves the payment or receipt of amounts by the Company or any of its Subsidiaries of more than $35,000,000 in the calendar year ended December 31, 2022 or any subsequent calendar year or (B) is material to the CCUS Business and cannot be cancelled at any time by the Company or its applicable Subsidiary without penalty or further payment on no more than ninety (90) days’ notice;

(iv) that are partnership, strategic alliance or joint venture agreements (A) if the interest of the Company or any of its Subsidiaries therein has an aggregate book value in excess of $35,000,000 or (B) that are material to the CCUS Business;

(v) that provides for the acquisition or disposition, directly or indirectly (by merger or otherwise) of assets (including properties) or capital stock (other than acquisitions or dispositions of Hydrocarbons or inventory and raw materials and supplies in the ordinary course of business) (A) for aggregate consideration under such Contract in excess of $25,000,000 or (B) pursuant to which the Company or its Subsidiaries has continuing material “earn-out” or other contingent payment obligations;

(vi) providing for material indemnification by the Company or any its Subsidiaries, other than indemnification obligations in (A) customary joint operating agreements and (B) commercial agreements, in each case, in the ordinary course of business relating to the EOR Business;

(vii) that contains any “most favored nation” or most favored customer provision, preferential right or rights of first or last offer, negotiation or refusal (other than customary preferential rights in customary joint operating agreements entered into relating to the EOR Business in the ordinary course of business);

(viii) that contains a put, call or similar right pursuant to which the Company or any of its Subsidiaries could be required to purchase or sell, as applicable, any assets or any equity interests of any Person (excluding, in respect of the foregoing, agreements between the Company and its wholly-owned Subsidiaries);

(ix) that materially restricts or purports to materially restrict the ability of the Company or any of its Affiliates to compete with, or to provide services in any line of business or with any Person or in any geographic area or market segment, in each case that would be applicable to the Surviving Corporation or any of its Subsidiaries or purportedlythe Parent or any of its Subsidiaries) from (A) engaging or competing inSubsidiaries following the Effective Time;

(x) that is a Collective Bargaining Agreement;

(xi) containing any material line of business, in any geographical location or with any Person, (B) selling any products or services of or toswap, cap, floor, collar, futures contract, forward contract, option and any other Personderivative financial instrument, contract or inarrangement, based on any geographic regioncommodity, security, instrument, asset, rate or (C) obtaining products or services from any Person;

(ii) includes any material “most favored nations” terms and conditions (including, without limitation, with respect to pricing), any material exclusive dealing arrangement, any material arrangement that grants any material right of first refusal or material right of first offer or similar material right or that limits or purports to limit in any material respect the ability of the Company or its Subsidiaries (or, after the Effective Time, the Surviving Corporation, Parent or any of their respective Subsidiaries) to own, operate, sell, transfer, pledge or otherwise disposeindex of any material assetskind or business (excluding, in respect of each of the forgoing, customary joint operating agreements);

(iii) is a joint venture, alliancenature whatsoever (other than hedges or partnership agreement that either (A) is material to the operation of the Company and its Subsidiaries, taken as whole, or (B) would reasonably be expected to require the Company and its Subsidiaries to make expenditures in excess of $100 millionforward Contracts entered into in the aggregate duringordinary course of business);

(xii) (A) with (1) any beneficial owner (as defined in Rule 13d-3 under the 12-month period following the date hereof;

(iv) is a loan, guarantee1934 Act) of indebtedness5% or credit agreement, note, bond, mortgage, indenture or other binding commitment (other than those between the Company and its Subsidiaries) relating to indebtedness for borrowed money in an amount in excessmore of $50 million individually;

(v) is a Derivative contract, other than any such Derivative that expires by its terms on or before December 31, 2010;

(vi) is an acquisition agreement, asset purchase or sale agreement, stock purchase or sale agreement or other similar agreement pursuant to which (A) the Company reasonably expects that it is required to pay total consideration (including assumptionclass of debt) after the date hereof to be in excess of $50 million or (B) any other Person has the right to acquire any assetssecurities of the Company or any of its Subsidiaries who has filed a Schedule 13D or Schedule 13G

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under the 1934 Act (or, to the Company’s Knowledge, is required to make such a filing), or (2) any interests therein) afterdirector or officer of the Company or any of its Subsidiaries or (B) that is required to be disclosed under Item 404 of Regulation S-K promulgated under the 1933 Act;

(xiii) that (A) evidences Indebtedness for borrowed money of the Company or any Subsidiary of the Company (committed or outstanding) in excess of $15,000,000, (B) evidences a capitalized lease obligation in excess of $15,000,000 that is required to be classified as a balance sheet liability of the Company in accordance with GAAP or (C) restricts the payment of dividends or other distribution of assets by any of the Company or its Subsidiaries;

(xiv) that would be required to be scheduled against Section 4.04 if in existence as of the date of this Agreement with a fair market value or purchase price of more than $50 million;hereof;

(vii) is an agreement providing for the sale(xv) requiring future capital expenditures by the Company or any of its Subsidiaries other than any capital expenditure contemplated by Section 6.01(e) of Hydrocarbons which contains a material “take-or-pay” clause or any similar material prepayment or forward sale arrangement or obligation (excluding, “gas balancing” arrangements associated with customary joint operating agreements) to deliver Hydrocarbons at some future time without then or thereafter receiving full payment therefor;the Company Disclosure Schedule;

(viii) is an agreement pursuant to(xvi) under which the Company andor any of its Subsidiaries have paid amounts associated(A) grants any right, license or covenant not to sue with respect to any Production BurdenIntellectual Property (other than non-exclusive licenses granted to customers or vendors in the ordinary course of business) or (B) obtains any right, license or covenant not to be sued with respect to any Intellectual Property owned by any third party (other than licenses for commercial off-the-shelf software which are generally available on non-discriminatory pricing terms); or

(xvii) that is the subject of any Action individually in excess of $100 million during the immediately preceding fiscal year or with respect to$5,000,000 and under which the Company reasonably expects that it and its Subsidiaries will make payments associated with any Production Burden in any of the next three succeeding fiscal years that could, based on current projections, exceed $100 million per year;

(ix) is a transportation agreement involving the transportation of more than 100 MMcf (or the MMBtu equivalent) of Hydrocarbons per day (calculated on a yearly average basis);

(x) is a joint development agreement, exploration agreement, or acreage dedication agreement (excluding, in respect of each of the foregoing, customary joint operatingthere are outstanding obligations (including settlement agreements) that either (A) is material to the operation of the Company or any of its Subsidiaries.

(b) The Company has made available to Parent a true and its Subsidiaries, taken as whole,complete copy of each Contract listed or (B) would reasonablyrequired to be expected to requirelisted in Section 4.22(a) of the Company and its Subsidiaries to make expenditures in excess of $100 million in the aggregate during the 12-month period following the date hereof; or

(xi) is a settlement or similar agreementDisclosure Schedule (such Contracts, together with any Governmental Authority or order or consent of a Governmental AuthorityContract to which the Company or any of its Subsidiaries is subject involving future performancebecomes a party or by which it becomes bound after the Company or any of its Subsidiaries which is materialdate hereof that would be required to the Company and its Subsidiaries, taken as a whole;

(each such contractbe listed in Section 4.224.22(a) of the Company Disclosure Letter and any contractSchedule if in effect as of the Company or any of its Subsidiaries that isdate hereof, the “Material Contracts” and each, a material contract required to be filed as an exhibit to the Company 10-K pursuant to Item 601(b)(10) of Regulation S-K of the SEC, a Material Contract”).

(b) Except as, individually or in the aggregate, would not be material to the Company and its Subsidiaries, taken as a whole, each Material Contract is valid and binding and, to the knowledge of the Company, in full force and effect and, to the Company’s knowledge, enforceable against the other party or parties thereto in accordance with its terms (except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and similar laws of general applicability relating to or affecting creditors’ rights or by general equity principles), subject to scheduled expirations in the ordinary course. Except for breaches, violations or defaults which would not reasonably be expected to have, individually or in the aggregate, a

Company Material Adverse Effect, (i) each of the Material Contracts is valid, binding obligation of the Company, and to the Knowledge of the Company, each other party thereto, and in full force and effect, in each case subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles (whether considered in a proceeding in equity or at law), and (ii) since the Applicable Date, neither the Company nor any of its Subsidiaries, nor to the Company’s knowledgeKnowledge of the Company any other party to a Material Contract, has breached or violated any provision of, or taken or failed to take any act which, with or without notice, lapse of time, or both, would constitute a breach or default under the provisions of such Material Contract, and neither the Company nor any of its Subsidiaries has received written notice that it has breached, violated or defaulted under any Material Contract.

Section 4.234.23. . Tax Treatment.Affiliate Transactions. Neither the Company nor any of its Affiliates has taken or caused to be taken, agreed to take or cause to be taken or is aware of any fact or circumstance, that would prevent the Merger from qualifying as a reorganization within the meaning of Section 368Subsidiary of the Code (a “368 Reorganization”).Company is a party to any Contract or other transaction, agreement or binding arrangement or understanding between the Company or its Subsidiaries, on the one hand, and any Affiliates thereof (other than wholly owned Subsidiaries of such Person) on the other hand.

Section 4.244.24. . Finders’Finders Fees.Except for Barclays Capital, Inc.J.P. Morgan Securities LLC (“JPM”), Perella Weinberg Partners L.P. (“PWP”) and Jefferies & Company, Incorporated, a copy of whose engagement agreements have been delivered or made available to Parent prior to the date hereof, neither the Company nor any of its Subsidiaries has employed or engaged anyPJT Partners LP (“PJT”),there is no financial advisor, investment banker, broker, finder or other intermediary that has been retained by or is authorized to act on behalf of the Company or willany of its Subsidiaries who might be entitled to any fee or commission from the Company or any of its Affiliates in connection with the transactions contemplated by this Agreement.

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Section 4.25.4.25. Opinion of Financial Advisor.Advisors.

(a) The Company Board has received thean opinion of Barclays Capital, Inc., financial advisor to the Company,JPM, to the effect that, as of the date of this Agreement, and based upon and subjectsuch opinion, the Merger Consideration to be paid to the factors and assumptions set forth therein,holders of the exchange ratio of 0.7098 shares of Parent Stock for each share of Company StockShares in the Merger is fair, to the Company’s stockholders from a financial point of view.view, to such holders. A written copy of such opinion will be delivered promptly after the date hereof to Parent for informational purposes only.

Section 4.26. Antitakeover Statutes.Assuming(b) The Company Board has received an opinion of PWP, to the accuracyeffect that, as of the representationsdate of such opinion, the Merger Consideration to be received by holders of outstanding Company Shares (other than Parent and warrantiesits affiliates) in the proposed Merger pursuant to this Agreement is fair, from a financial point of view, to such holders. A written copy of such opinion will be delivered promptly after the date hereof to Parent for informational purposes only.

(c) The Company Board has received an opinion of PJT, to the effect that, as of the date of such opinion, the Merger Consideration to be received by the holders of the Company Shares in the Merger is fair to such holders from a financial point of view. A written copy of such opinion will be delivered promptly after the date hereof to Parent for informational purposes only.

Section 4.26. Antitakeover Statutes. The restrictions applicable to business combinations contained in Section 5.17, the Company has taken all action necessary to exempt the Merger, this Agreement, and the transactions contemplated hereby from Section 203 of Delaware Law, and, accordingly, assuming the accuracy of the representations and warranties of Parent contained in Section 5.17, neither such Section norDGCL (or any other antitakeover or similar statute or regulation applies or purportsregulation) are inapplicable to apply to any such transactions. Assuming the accuracyexecution, delivery and performance of this Agreement and the consummation of the representationsMerger and warranties of Parent contained in Section 5.17, to the knowledge of the Company after consultation with its outside legal advisors, noother transactions contemplated hereby. No other “control share acquisition,” “fair price,” “moratorium” or other antitakeover laws enacted under U.S. state or federal laws apply to this Agreement or any of the transactions contemplated hereby. There is no rights agreement, stockholder rights plan, tax preservation plan, net operating loss preservation plan or “poison pill” antitakeover plan in effect to which the Company or any of its Subsidiaries is subject, party to or otherwise bound.

Section 4.27.4.27. No Additional Representations.Other Representations or Warranties.

(a) Except for the representations and warranties made by the Company in this Article 4, as qualified by the Company Disclosure Schedule, or any certificate delivered pursuant to this Agreement, neither the Company nor any other Person makes any express or implied representation or warranty with respect to the Company or its Subsidiaries or their respective businesses, operations, assets, liabilities or conditions (financial or otherwise) or prospects in connection with this Agreement, the Merger or the transactions contemplated hereby, and the Company hereby disclaims any such other representations or warranties. In particular, without limiting the foregoing disclaimer, except as expressly provided in this Article 4, as qualified by the Company Disclosure Schedule, or any certificate delivered pursuant to this Agreement, neither the Company nor any other Person makes or has made any representation or warranty to Parent Merger Subsidiary, or any of theirits Affiliates or Representatives with respect to (a)(i) any financial projection, forecast, estimate, budget or prospect information relating to the Company or any of its Subsidiaries or their respective businesses,business; or (b)(ii) any oral or except for the representations and warranties made by the Company in this Article 4, written information presented to Parent Merger Subsidiary or any of theirits Affiliates or Representatives in the course of their due diligence investigation of the Company, the negotiation of this Agreement or in the course of the Merger or the transactions contemplated hereby.

(b) The Company acknowledges and agrees that the representations and warranties by Parent and Merger Sub set forth in this Agreement constitute the sole and exclusive representations and warranties of such parties in connection with the transactions contemplated hereby, and the Company understands, acknowledges and agrees that all other representations and warranties of any kind or nature whether express, implied or statutory are specifically disclaimed by Parent and Merger Sub.

ARTICLE 5

REPRESENTATIONSAND WARRANTIESOF PARENT

Subject to Section 11.05, except (a)(x) as disclosed in theany Parent SEC DocumentsDocument filed with or furnished to the SEC and publicly available since January 1, 2009 but2022 through the Business Day prior to the date hereof (andof this Agreement

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(but excluding any supplement, modificationgeneral cautionary or amendment thereto made afterforward-looking statements contained in the date hereof) (collectively,“Risk Factors” section or “Forward-Looking Statements” and any other statements that are similarly cautionary, predictive or forward-looking in nature, in each case other than any description of historical facts or events included therein); provided that this clause (x) shall not apply to the Filed Parent SEC Documents”)representations and warranties set forth in Sections 5.05 or (b)5.06(b), or (y) as set forth in the Parent Disclosure Letter,Schedule, Parent represents and warrants to the Company that:

Section 5.015.01. . Corporate Existence and Power.Power. Each of Parent and Merger SubsidiarySub is a corporation duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation and has all corporate powers and all governmental licenses, authorizations, permits, consents and approvals required to carry on its business as now conducted, except for those licenses, authorizations, permits, consents and approvals the absence of which have not had and would not reasonably be expected to have, individually or in the aggregate, reasonably be expected to have a Parent Material Adverse Effect. Parent is duly qualified to do business as a foreign corporation and is in good standing (with respect to jurisdictions that recognize such concept) in each jurisdiction where such qualification is necessary, except for those jurisdictions where failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Parent Material Adverse Effect. Prior to the date hereof, Parent has delivered or made available to the Company true and complete copies of the certificates of incorporation and bylaws of Parent and Merger Subsidiary as in effect on the date of this Agreement. Since the date of its incorporation, Merger SubsidiarySub has not engaged in any activities other than in connection with or as contemplated by this Agreement.

Section 5.025.02. Corporate Authorization. Corporate Authorization.Each of Parent and Merger Sub has all requisite corporate power and authority, as applicable, to perform its obligations hereunder and consummate the Merger. The execution, delivery and performance by Parent and Merger SubsidiarySub of this Agreement and the consummation by Parent and Merger SubsidiarySub of the transactions contemplated hereby are within the corporate powers of Parent and Merger SubsidiarySub and except for the approval of Parent as the sole stockholder of Merger Subsidiary (which approval Parent shall effect on the date hereof immediately following execution of this Agreement), have been duly authorized by all necessary corporate action on the part of Parent and Merger Subsidiary. No voteSub, except for the adoption of this Agreement by the holderssole stockholder of anyMerger Sub. Each of Parent’s capital stock is necessary in connection with the consummation of the Merger. ThisParent and Merger Sub has duly executed and delivered this Agreement, and, assuming due authorization, execution and delivery by the Company, this Agreement constitutes a valid and binding agreement of each of Parent and Merger Subsidiary,Sub, enforceable against Parent and Merger SubsidiarySub in accordance with its terms (subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other lawssimilar Applicable Laws affecting creditors’ rights generally and general principles of equity).

Section 5.035.03. Governmental Authorization. Governmental Authorization.The execution, delivery and performance by Parent and Merger SubsidiarySub of this Agreement and the consummation by Parent and Merger SubsidiarySub of the transactions contemplated hereby require no authorizations, consentsaction by or approvalsin respect of, or filing by or with respect to Parent or Merger Sub with, any Governmental Authority, other than (a) the filing of a certificate of merger with respect to the Merger with the Delaware Secretary of State and appropriate documents with the relevant authorities of other states in which Parent is qualified to do business, (b) compliance with any applicable requirements of the HSR Act, and any other Competition Laws, (c) compliance with any applicable requirements of the NYSE, 1933 Act, the 1934 Act and any other applicable state or federal securities takeover and “blue sky” laws, (d) compliance with any applicable requirements of the NYSEactions or filings set forth on Section 5.03 of the Parent Disclosure Schedule and (e) any authorizations, consents or approvalsactions or filings the absence of which would not reasonably be expected to have, individually or in the aggregate, reasonably be expected to have a Parent Material Adverse Effect or prevent or materially impede, interfere with, hinder or delay the consummation of the Merger.Effect.

Section 5.045.04. Non-contravention. Non-contravention.The execution, delivery and performance by Parent and Merger SubsidiarySub of this Agreement and the consummation by Parent and Merger SubsidiarySub of the transactions contemplated hereby do not and will not (a) contravene, conflict with, or result in any violation or breach of any provision of the certificate of incorporation or bylaws of Parent or Merger Subsidiary,Sub, (b) assuming compliance with the matters referred to in Section 5.03, contravene, conflict with, or result in a violation or breach of any provision of

any Applicable Law or (c) assuming compliance with the matters referred to in Section 5.03, require payment or notice to, or any consent or approvalother action by any Person under, constitute a breach or default, or an event that, with or without notice or lapse of time or both, would constitute a default, under,violation or causebreach of, or permit thegive rise to any right of termination, suspension, cancellation, acceleration, payment or any other adverse change of any rightrights or obligationobligations of Parent or any of its Subsidiaries, or the loss of any benefit to which Parent or any of its Subsidiaries is entitled under any provision of any agreement or other instrumentContract binding uponon Parent or any of its Subsidiaries or any license, franchise, permit, certificate, approval or other similar authorizationPermit affecting, or relating in any way to, the assets or business of Parent and its Subsidiaries or (d) result in the creation or imposition of any Lien other than Permitted Liens, on any asset of Parent or any of its Subsidiaries, except, in the case of each of clauses (b) through (d), for such as have not had and would not reasonably be reasonably expected to have, individually or in the aggregate, a Parent Material Adverse Effect or materially impair the ability of Parent or Merger Subsidiary to consummate the Merger.Effect.

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Section 5.055.05. Capitalization. Capitalization.(a) The authorized capital stock of Parent consists of (i) 9,000,000,000 shares of Parent StockShares and (ii) 200,000,000 shares of preferred stock, without par value.value (the “ParentPreferred Stock”). As of December 10, 2009,March 31, 2023, (A) 4,731,898,451 shares of4,042,984,946 Parent StockShares were issued and outstanding, (B) 41,775,550 shares of38,353,868 Parent Stock were subject to options to purchase shares of Parent Stock under employee stock options or compensation plans or arrangements of Parent (all of which were exercisable), (C) 50,299,227 shares of Parent StockShares were subject to awards made in the form of restricted common stock or restricted common stock units and (D)(C) no shares of preferred stockParent Preferred Stock were issued or outstanding. All outstanding shares of capital stock of Parent have been duly authorized and validly issued, fully paid and nonassessable and free of preemptive rights.

(b) There are no outstanding no bonds, debentures, notes or other indebtednessIndebtedness of Parent having the right to vote (or convertible into, or exchangeable or exercisable for, securities having the right to vote) on any matters on which stockholders of the Parent may vote. As of December 10, 2009,March 31, 2023, except as set forth in this Section 5.05, there were no outstanding (i) shares of capital stock or other voting securities of or other ownership interests in Parent, (ii) securities of Parent convertible into or exchangeable or exercisable for shares of capital stock or other voting securities of or other ownership interests in Parent, (iii) warrants, calls, options, subscriptions, commitments, Contracts or other rights to acquire from Parent, or other obligation of Parent to issue, any capital stock or other voting securities of, or ownership interests in, or any securities convertible into or exchangeable or exercisable for capital stock or other voting securities of or other ownership interests in, Parent or (iv) restricted shares, stock appreciation rights, performance shares or units, contingent value rights, “phantom” stock or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the value or price of, any capital stock of or other voting securities of, or other ownership interests in, Parent (the items in clauses (i), through (iv), including, for the avoidance of doubt, the Parent Shares, being referred to collectively as the “Parent Securities”). Neither Parent nor any of its Subsidiaries is a party to any voting trust, proxy, voting agreement or other similar agreement with respect to the voting, registration or transfer of any Parent Securities.

(c) The shares of Parent StockShares to be issued as part of the Merger Consideration have been duly authorized and, when issued and delivered in accordance with the terms of this Agreement, will have been validly issued and will be fully paid and nonassessable and the issuance thereof is not subject to any preemptive or other similar right.

Section 5.065.06. Subsidiaries. Subsidiaries.(a) Each Subsidiary of Parent is an entity duly incorporated or otherwise duly organized, validly existing and (where applicable) in good standing under the laws of its jurisdiction of incorporation or organization, has all corporate, limited liability company or comparable powers and all governmental licenses, authorizations, permits, consents and approvals required to carry on its business as now conducted, except for those licenses, authorizations, permits, consents and approvals the absence of which would not, individually or in the aggregate, reasonably be expected to have a Parent Material Adverse Effect. Each such Subsidiary is duly qualified to do business as a foreign entity and is in good standing (with respect to jurisdictions that recognize such concept) in each jurisdiction where such qualification is necessary, except for those jurisdictions where failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Parent Material Adverse Effect. The Parent Parent’s annual report on Form 10-K for the fiscal year ended December 31, 2022 identifies, as of its filing date, all “significant subsidiaries” (as defined under Rule 1-02(w) of Regulation S-X promulgated pursuant to the 1934 Act) (each, a “Significant Subsidiary”) of Parent and their respective jurisdictions of organization.

(b) As of the date hereof, there were no issued, reserved for issuance or outstanding (i) securities of Parent or any of its Significant Subsidiaries convertible into, or exchangeable for, shares of capital stock or other voting securities of, or ownership interests in, any of its Significant Subsidiaries, (ii) warrants, calls, options or other rights to acquire from Parent or any of its Significant Subsidiaries, or other obligations of Parent or any of its Significant Subsidiaries to issue, any capital stock or other voting securities of, or ownership interests in, or any securities convertible into, or exchangeable for, any capital stock or other voting securities of, or ownership interests in, any Significant Subsidiary of Parent or (iii) restricted shares, stock appreciation rights, performance units, contingent value rights, “phantom” stock or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the value or price of, any capital stock or other voting securities of, or ownership interests in, any Significant Subsidiary of Parent (the items in clauses (i) through (iii) being referred to collectively as the “Parent Subsidiary Securities”). As of the date hereof, there are no

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outstanding obligations of Parent or any of its Significant Subsidiaries to repurchase, redeem or otherwise acquire any of the Parent Subsidiary Securities.

(c) The authorized capital stock of Merger SubsidiarySub consists of 1,000 shares of common stock, par value $0.01$1.00 per share, ofall which 100 shares are validly issued and outstanding. All of the issued and outstanding capital stock of Merger SubsidiarySub is, and at the Effective Time will be, owned by Parent. Merger SubsidiarySub was formed solely for the purpose of engaging in the transactions contemplated by this Agreement and, prior to the Effective Time, Merger Sub will have engaged in no business and have no liabilities or obligations other than in connection with such transactions. Merger Sub has no Subsidiaries.

Section 5.075.07. . SEC Filings and the Sarbanes-Oxley Act.Act. (a) Since the Applicable Date, Parent has timely filed with or furnished to the SEC all reports, schedules, forms, statements, prospectuses, registration statements and other documents required to be filed or furnished by Parent since January 1, 2008 (collectively, together with any exhibits and schedules thereto and other information incorporated therein, as they may have been supplemented, modified or amended since the date of filing, the “Parent SEC Documents”).

(b) As of its filing date (or, if amended or superseded by a filing, on the date of such filing), each Parent SEC Document complied as to form in all material respects with the applicable requirements of the 1933 Act and the 1934 Act and the Sarbanes-Oxley Act, as the case may be.

(c) As of its filing date (or, if amended or superseded by a filing, on the date of such filing), each Parent SEC Document filed pursuant to the 1934 Act did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

(d) Each Parent SEC Document that is a registration statement, as amended or supplemented, if applicable, filed pursuant to the 1933 Act, as of the date such registration statement or amendment became effective, did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading.

(e) Since the Applicable Date, Parent has established and maintains disclosure controls and procedures (as defined in Rules 13a-15 and 15d-15 under the 1934 Act). Such disclosure controls and procedures are reasonably designed to ensure that material information relating to Parent, including its consolidated Subsidiaries, required to be included in Parent’s periodic and current reports under the 1934 Act, is made known to Parent’s principal executive officer and its principal financial officer by others within those entities. Such disclosure controls and procedures are effective in timely alerting Parent’s principal executive officer and principal financial officer to material information required to be included in Parent’s periodic and current reports required under the 1934 Act.

(f) Since the Applicable Date, Parent and its Subsidiaries have established and maintained a system of internal controls over financial reporting (as defined in Rule 13a-15 under the 1934 Act) sufficient to provide reasonable assurance regarding the reliability of Parent’s financial reporting and the preparation of Parent financial statements for external purposes in accordance with GAAP. Parent has disclosed, based on its most recent evaluation of internal controls prior to the date hereof, to Parent’s auditors and audit committee (i) any significant deficiencies and material weaknesses

in the design or operation of internal controls which are reasonably likely to adversely affect Parent’s ability to record, process, summarize and report financial information and (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in internal controls. There has not been any such disclosure made by management to Parent’s auditors and audit committee since January 1, 2008.the Applicable Date.

(g) Neither Parent nor any of its Subsidiaries has extended or maintained credit, arranged for the extension of credit, or renewed an extension of credit, in the form of a personal loan to or for any executive officer (as defined in Rule 3b-7 under the 1934 Act) or director of Parent in violation of Section 402 of the Sarbanes-Oxley Act.

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(h) Parent is in compliance with, and since January 1, 2008the Applicable Date has complied, in each case in all material respects with (i) the applicable provisions of the Sarbanes-Oxley Act and (ii) the applicable listing and corporate governance rules and regulations of the NYSE.

(i) Each of the principal executive officer and principal financial officer of Parent (or each former principal executive officer and principal financial officer of Parent, as applicable) have made all certifications required by Rules 13a-14 and 15d-14 under the 1934 Act and Sections 302 and 906 of the Sarbanes-Oxley Act and any related rules and regulations promulgated by the SEC and the NYSE, and the statements contained in any such certifications are complete and correct.

(j) Since the Parent Balance Sheet Date, there has been no transaction, or series of similar transactions, agreements, arrangements or understandings, nor is there any proposed transaction as of the date of this Agreement, or series of similar transactions, agreements, arrangements or understandings to which Parent or any of its Subsidiaries was or is to be a party, that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the 1933 Act that has not been disclosed in Parent’s definitive proxy statement on Schedule 14A filed with the SEC on April  13, 2009.

Section 5.085.08. . Financial Statements.The audited consolidated financial statements and unaudited consolidated interim financial statements of Parent included or incorporated by reference in the Parent SEC Documents (including all related notes and schedules thereto) fairly present in all material respects, in conformity with GAAP (except, in the case of unaudited consolidated interim financial statements, as permitted by Form 10-Q of the SEC) applied on a consistent basis (except as may be indicated therein or in the notes thereto), the consolidated financial position of Parent and its consolidated Subsidiaries as of the dates thereof and their consolidated results of operations and cash flows for the periods then ended (subject to normal year-end audit adjustments in the case of any unaudited interim financial statements).

Section 5.095.09. Disclosure Documents. Disclosure Documents.The Registration Statement, and any amendments or supplements thereto, when filed, will comply as to form in all material respects with the applicable requirements of the 1933 Act. At the time the Registration Statement or any amendment or supplement thereto becomes effective, the Registration Statement, as amended or supplemented, will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The information supplied by Parent in writing for inclusion or incorporation by reference in the Proxy StatementStatement/Prospectus or any amendment or supplement thereto shall not, at the time the Proxy StatementStatement/Prospectus or any amendment or supplement thereto is first mailed to stockholders of the Company and at the time of the Requisite Company Stockholder Approval,Vote, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. The representations and warranties contained in this Section 5.09 will not apply to statements or omissions included or incorporated by reference in the Registration Statement or Proxy StatementStatement/Prospectus or any amendment or supplement thereto based upon information furnished by the Company or any of its representatives or advisors in writing specifically for use or incorporation by reference therein.

Section 5.105.10. . Tax Treatment. Neither Parent nor any of its Subsidiaries has taken or agreed to take any action, or has knowledge of any fact or circumstance, that could reasonably be expected to prevent or impede the Merger from qualifying as a “reorganization” within the meaning of Section 368(a) of the Code.

Section 5.11. Absence of Certain Changes.Changes. Since the Parent Balance Sheet Date through the date of this Agreement, (a) the business of Parent and its Subsidiaries has been conducted in the ordinary course of business consistent with past practice in all material respects and (b) there has not been any event, change, occurrence, development or state of circumstances or facts that has had or would, individually or in the aggregate, reasonably be expected to have a Parent Material Adverse Effect.

Section 5.11. No Undisclosed Material Liabilities.There are no liabilities or obligations of Parent or any of its Subsidiaries of any kind whatsoever, whether accrued, contingent, absolute, determined, determinable or otherwise, other than:

(a) liabilities or obligations disclosed, reflected, reserved against or otherwise provided for in the Parent Balance Sheet or in the notes thereto;

(b) liabilities or obligations incurred in the ordinary course of business consistent with past practices since the Parent Balance Sheet Date;

(c) liabilities or obligations arising out of this Agreement or the transactions contemplated hereby; and

(d) liabilities or obligations that would not, individually or in the aggregate, reasonably be expected to have a Parent Material Adverse Effect.

Section 5.12. Compliance with Laws and Court Orders.Parent and each of its Subsidiaries is and since January 1, 2008, has been in compliance with, and to the knowledge of Parent, it is not under pending investigation with respect to and has not been threatened to be charged with or given notice of any violation of any, Applicable Law, except for failures to comply or violations that have not had and would not, individually or in the aggregate, reasonably be expected to have a Parent Material Adverse Effect. There is no judgment, decree, injunction, rule or order of any arbitrator or Governmental Authority outstanding against Parent or any of its Subsidiaries that has had or would reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect or that in any manner seeks to prevent, enjoin, alter or materially delay the Merger or anyEffect.

Section 5.12. Ownership of the other transactions contemplated hereby.

Section 5.13Company Shares. Litigation.There is no Action pending against, or, to the knowledge of Parent, threatened against, Parent, any of its Subsidiaries or any of their respective properties, or any present or former officer, director or employee of Parent or its Subsidiaries in their capacity as such, before (or, in the case of threatened Actions, that would be before) or by any Governmental Authority or arbitrator, that (i) would, individually or in the aggregate, reasonably be expected to have a Parent Material Adverse Effect or (ii) that, as of the date of this Agreement, challenges or seeks to prevent, enjoin, alter in any material respects or materially delay the Merger or any of the other transactions contemplated hereby.

Section 5.14. Tax Treatment.Neither Parent nor any of its Affiliates has takenSubsidiaries (including Merger Sub but excluding any pension or caused to be taken, agreed to takebenefit plan managed or cause to be taken or agreed not to take or cause to be taken any action or is aware of any fact or circumstance that would prevent the Merger from qualifying as a 368 Reorganization.

Section 5.15. Finders’ Fees.Except for J.P. Morgan Securities Inc., whose fees will be paidadvised by Parent, Parentits Subsidiaries or their respective employees) owns or has not employed or engagedowned at any investment banker, broker, finder or other intermediary that is or will be entitled to any fee or commission from Parent or any of its Affiliatestime in connection with the transactions contemplated by this Agreement.

Section 5.16. Opinion of Financial Advisor.Parent has received the opinion of J.P. Morgan Securities Inc., financial advisor to Parent, to the effect that, as ofthree years preceding the date of this Agreement and based upon and subject to the factors and assumptions set forth therein, the Merger Consideration is fair to Parent from a financial pointany Company Shares beneficially or of view.

record.

Section 5.17. Certain Agreements.Prior to the Board of Directors of the Company approving this Agreement, the Merger and the other transactions contemplated hereby for purposes of the applicable provisions of Delaware Law, neither Parent nor Merger Subsidiary, alone5.13. No Other Representations or together with any other Person, was at any time, or became, an “interested stockholder” (as such term is defined in Section 203 of the Delaware Law) thereunder with respect to the Company or has taken any action that would cause any anti-takeover statute under the Delaware Law or other Applicable Law to be applicable to this Agreement, the Merger, or any of the transactions contemplated hereby. None of Parent or any of its Subsidiaries has any direct or indirect beneficial ownership, or sole or shared voting power, with respect to any shares of Company Stock (other than for the avoidance of doubt any such shares held by any employee benefit plan of Parent or any of its Subsidiaries or any trustee or other fiduciary in such capacity under any such employee benefit plan).Warranties.

Section 5.18.Parent Plans; Continuing Employee Plans. Section 5.18 of the Parent Disclosure Letter contains a correct and complete list identifying each Parent Plan in which the Continuing Employees are expected to participate (the “Continuing Employee Plans”). Each Continuing Employee Plan has been maintained in material compliance with its terms and with the requirements prescribed by any and all statutes, orders, rules and regulations, including ERISA and the Code, which are applicable to such Continuing Employee Plan. For purposes hereof, “Parent Plan” shall mean each Benefit Plan which is maintained, administered or contributed to by Parent or any ERISA Affiliate and covers any current or former employee, director or other independent contractor of Parent or any of its Subsidiaries, or with respect to which Parent or any of its Subsidiaries has any liability.

Section 5.19. No Additional Representations.(a) Except for the representations and warranties made by Parent in this Article 5, none ofas qualified by the Parent Disclosure Schedule, or any certificate delivered pursuant to this Agreement, neither Parent, Merger Subsidiary orSub nor any

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other Person makes any express or implied representation or warranty with respect to Parent Merger Subsidiary or their respectiveits Subsidiaries or their respective businesses, operations, assets, liabilities or conditions (financial or otherwise) or prospects in connection with this Agreement, the Merger or the transactions contemplated hereby, and Parent hereby disclaims any such other representations or warranties. In particular, without limiting the foregoing disclaimer, none ofexcept as expressly provided in this Article 5, as qualified by the Parent Disclosure Schedule, or any certificate delivered pursuant to this Agreement, neither Parent, Merger Subsidiary orSub nor any other Person makes or has made any representation or warranty to the Company or any of its Affiliates or Representatives with respect to (a)(i) any financial projection, forecast, estimate, budget or prospect information relating to Parent Merger Subsidiary or any of their respectiveits Subsidiaries or their respective businesses,businesses; or (b)(ii) any oral or except for the representations and warranties made by Parent in this Article 5, written information presented to the Company or any of its Affiliates or Representatives in the course of their due diligence investigation of Parent and Merger Subsidiary, the negotiation of this Agreement or in the course of the Merger or the transactions contemplated hereby.

(b) Parent acknowledges and agrees that the representations and warranties by the Company set forth in this Agreement constitute the sole and exclusive representations and warranties of the Company in connection with the transactions contemplated hereby, and each of Parent and Merger Sub understands, acknowledges and agrees that all other representations and warranties of any kind or nature whether express, implied or statutory are specifically disclaimed by the Company. In connection with their due diligence investigation of the Company, Parent and Merger Sub have received and may continue to receive after the date hereof from the Company certain estimates, projections, forecasts and other forward-looking information regarding the Company and its businesses and operations. Parent and Merger Sub acknowledge that there are uncertainties inherent in attempting to make such estimates, projections, forecasts and other forward-looking statements and that Parent and Merger Sub will have no claim against the Company with respect thereto unless any such information is expressly included in a representation or warranty contained in this Agreement.

ARTICLE 6

COVENANTSOFTHE COMPANY

The Company agrees that:

Section 6.016.01. . Conduct of the Company. FromDuring the period from the date hereof until the Effective Time, except (i) with the prior written consent of Parent in each instance (which consent shall not be unreasonably withheld, delayed or conditioned); provided, that Parent’s consent will be deemed obtained if Parent has not expressly denied its consent with respect to a given action within five Business Days following the Company’s request for Parent’s consent, (ii) as required by Applicable Law, (iii) as otherwise expressly contemplated or permitted by this Agreement exceptor (iv) as set forth in Section 6.01 of the Company Disclosure Letter or as consented to in writing by Parent (such consent not to be unreasonably withheld, conditioned or delayed) or except as required by Applicable Law,Schedule, (A) the Company shall, and shall cause each of its Subsidiaries to use commercially reasonable efforts to (1) conduct its business in all material respects in the ordinary course consistent with past practice and use its commercially reasonable efforts to (i)of business, (2) preserve intact its present business organization, (ii)(3) comply with Applicable Laws and its Contracts, and maintain in effect all of its material foreign, federal, state and local licenses, permits, consents, franchises, approvals and authorizations, (iii)necessary Permits, (4) keep available the services of its directors, officers and key employees (iv) maintain all material Leaseson commercially reasonable terms and all material personal property used by the Company and its Subsidiaries and necessary to conduct its(5) preserve satisfactory business in the ordinary course of business consistent with past practice (but with no obligation to renew or extend any Lease or to otherwise exercise any rights or options it may have under any Lease, including

but not limited to rights to purchase or increase or decrease its current properties) and (v) maintain its existing relationships with its material customers, lenders, suppliers and others having material business relationships with it and with Governmental Authorities with jurisdiction over oil and gas-related matters. Without limiting the generalityit; provided that no COVID-19 Response shall be deemed to be a breach of the foregoing, from the date hereof until the Effective Time, except as expressly contemplated or permitted by this Agreement, except as set forth in Section 6.01 ofprovided that, prior to taking any COVID-19 Response, the Company Disclosure Letter or as consentedshall provide advance notice to and consult with Parent in writing by Parent (such consent not to be unreasonably withheld, conditioned or delayed), or except as required by Applicable Law,good faith with respect thereto, and (B) the Company shall not, nor shall it permit any of its Subsidiaries to:

(a) amend its articlescertificate of incorporation, bylaws or other similar organizational documents (whether by merger, consolidation or otherwise);

(b) enter into any new line of business outside of the CCUS Business, the EOR Business and the existing other businesses of the Company and its Subsidiaries as of the date of this Agreement;

(c) (i) adjust, split, combine, subdivide or reclassify any shares of its capital stock (other than such transactions by a wholly owned Subsidiary of the Company or any of its Subsidiaries orCompany), (ii) declare, authorize, establish a record date for,

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set aside or pay any dividend or other distribution (whether in cash, stock or property or any combination thereof) in respect of theits capital stock (including any Company Shares), except for dividends by any of the Company or its wholly-owned Subsidiaries or (iii) redeem, repurchase or otherwise acquire or offer to redeem, repurchase, or otherwise acquire any shares of its capital stock (including any Company Shares), Company Securities or any Company Subsidiary Securities, except for (i) dividends byother than (A) the withholding of equity securities to satisfy tax obligations with respect to awards granted pursuant to any of its wholly owned Subsidiaries, and (ii) regular quarterly cash dividends with customary record and payment dates on the sharesEquity Plan existing as of the date of this Agreement or (B) the acquisition by the Company Stock notof awards granted pursuant to any Equity Plan prior to the date hereof or otherwise in excessaccordance with this Agreement in connection with the forfeiture of $0.125 per share per quarter;such awards;

(c)(d) (i) issue, deliver, or sell, dispose, encumber, grant, confer, award or authorize the issuance, delivery, sale, disposal, encumbrance, grant, conferral or saleaward of, any shares of any of the Company Securities or of the Company Subsidiary Securities, other than the issuance (A) of any sharesCompany Shares upon settlement of Company RSUs, Company DSUs or Company TSR Performance Awards that are outstanding on the date of this Agreement in accordance with the terms of those equity-based awards on the date of this Agreement, (B) of any Company StockShares upon the exercise of the Company Stock Options and Company Warrants that are outstanding on the date of this Agreement in accordance with the terms of those options or warrants, as applicable,the Warrants on the date of this Agreement, or (B)(C) of any of the Company Subsidiary Securities to the Company or any other wholly owned Subsidiary of its other Subsidiariesthe Company, (D) of Company Shares under the ESPP in accordance with Section 2.04(f) and (E) of any equity or equity-based awards to the extent permitted by Section 6.01(m) or (ii) amend or otherwise change any term of any Company Security or any Company Subsidiary Security (in each case, whether by merger, consolidation or otherwise);

(d)(e) incur any capital expenditures or any obligations or liabilities in respect thereof, except for (i) those as may be contemplated by the plan described in Section 6.01(d)6.01(e) of the Company Disclosure Letter and (ii) any other capital expenditures not to exceed $300 million in the aggregate;Schedule;

(e)(f) acquire (by merger, consolidation, acquisition of stock or assets or otherwise), directly or indirectly, any assets, securities, properties, interests or businesses, other than (i) pursuant to an agreement of the Company or any of its Subsidiaries in effect on the date of this Agreement that is made available to Parent, (ii) acquisitions (not includingfor which the consideration is less than $35,000,000 individually or $70,000,000 in the aggregate or (iii) acquisitions of supplies and materialslicenses in the ordinary course of business) withbusiness;

(g) adopt a purchase price (including assumed indebtedness) that does not exceed $150 million inplan of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization, other than such transactions among wholly owned Subsidiaries of the aggregate and (ii) acquisitions permitted pursuant to Section 6.01(d)(i);Company;

(f)(h) sell, lease, license or otherwise transfer, or dispose of, mortgage, sell and lease back or otherwise, or create or incur any Lien on, any of the Company’s or its Subsidiaries’ assets, securities, properties, interests or businesses or other interests therein whether tangible or intangible (including securitizations) (other than Intellectual Property), other than (i) sales of inventory and equipment, or other assetssales of Hydrocarbons, in each case in the ordinary course of business, consistent with past practice,or sales of or disposals of obsolete or worthless assets at the end of their scheduled retirement, (ii) pursuant to contracts or arrangementsContracts in effect on the date hereof that are made available to Parent, (iii) Permitted Liens, (iv) transfers among the Company and its wholly owned Subsidiaries, or among the wholly owned Subsidiaries of the Company and (v) sales, leases or dispositions of obsolete or worthless assets or properties, (iv) sales of assets, properties, interests or businesses with a sale price (including assumed indebtedness) that do not exceed $50 millionfor which the consideration is less than $35,000,000 individually or $300 million$70,000,000 in the aggregateaggregate;

(i) sell, assign, license, sublicense, transfer, convey, abandon, or (v) subjectincur any Lien other than Permitted Liens on or otherwise dispose of or fail to Section 6.01(j)(ii), Permitted Liens;

(g) makemaintain, enforce or assumeprotect any Derivatives, includingmaterial Intellectual Property owned, used or held for use by the Company or any Derivative intended to benefit fromof its Subsidiaries (except for non-exclusive licenses or reducesublicenses of Intellectual Property granted by the Company or eliminate the riskany of fluctuations in the price of Hydrocarbons or other commodities, other thanits Subsidiaries in the ordinary course of the Company’s marketing business in accordance with the Company’s current policies;

(h) (i) amend or modify in any material respect or terminate (excluding terminations upon expiration of the term thereof in accordance with their terms) any Material Contract or waive, release or assign any material rights, claim or benefits of it or its Subsidiaries under any Material Contract, or (ii) enter into any contract or agreement that would have been a Material Contract had it been entered into prior to the date of this Agreement, except in

the case of this clause (ii), in connection with an action specifically contemplated by clause (d), (e), (f), (g), (i), (j), (k), (l), (m) or (q) of this Section 6.01;

(i) enter into new contracts to sell Hydrocarbons other than in the ordinary course consistent with past practice, but in no event any having a duration longer than six months;business);

(j) (i) engage in any exploration, development drilling, well completion or other development activities, other than in the ordinary course of business consistent with past practice, or (ii) create or incur any Production Burden on any of the Company’s or any of its Subsidiary’s Oil and Gas Interests or other properties and assets with a cost-free interest in any given year in excess of 30%;

(k) enter into any commitment or agreement to license or purchase seismic data that will cost in excess of the aggregate budgeted amount set forth in the Company’s fiscal 2009 plan or the plan described in Section 6.01(k) of the Company Disclosure Letter delivered or made available to Parent prior to the date hereof, other than pursuant to agreements or commitments existing on the date hereof;

(l) other than in connection with actions permitted by Sections 6.01(d) and (e), make any loans, advances or capital contributions to, or investments in, any other Person, other than in the ordinary course of business consistent with past practice or loans, advances or capital contributions to, or investments in, wholly-owned Subsidiaries of the Company;business;

(m)

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(k) create, incur, assume, suffer to existrefinance or otherwise bebecome liable with respect to any indebtednessIndebtedness for borrowed money or guarantees thereof, or issue or sell any debt securities, other than (i) as required by its terms, (ii) additional borrowings under the Company Credit Agreement as in effect as of the date hereof, (iii) additional Indebtedness for borrowed money to fund the capital expenditures contemplated by Section 6.01(e) of the Company Disclosure Schedule if such Indebtedness may be repaid at Closing without penalty, or (iv) Indebtedness for borrowed money among the Company and its Subsidiaries or among Subsidiaries of the Company, or guarantees thereof;

(l) enter into, amend or modify in any material respect or terminate any Material Contract or any Contract that would constitute a Material Contract if it were in effect on the date of this Agreement or otherwise waive, release or assign any material rights, claims or benefits of the Company or any of its Subsidiaries, except in the ordinary course of business consistent with past practice on termsand, in the case of Contracts relating to the CCUS Business, subject to Section 6.01(r);

(m) (i) with respect to any current or former Service Provider (A) grant or increase any compensation, bonus, severance, retention, change in control, termination pay, welfare or other benefits, except for (x) increases in base compensation or wages (and corresponding increases in target annual bonus opportunities) of not more than 6% per Company Employee for Company Employees with base compensation of less than $500,000 and (y) (i) payment of annual bonuses to the extent earned for the fiscal year ending December 31, 2023 pursuant to the applicable Employee Plan and (ii) grants of annual bonus opportunities in respect of any fiscal year that allow for prepayment at any time without penalty or (ii) for borrowings undercommences after the Company’sdate of this Agreement and its Subsidiaries’ existing commercial paper programs or revolving credit facilities;

(n) enter into any agreement or arrangement that would reasonably be expectedprior to after the Effective Time materially limit or materially restrictwith target amounts consistent with the preceding clause (x) and with performance goals that are consistent with the budget for the applicable fiscal year, in any material respect the Company, anycase of its Subsidiaries,each of clauses (x) and (y), in the Surviving Corporation, Parent or any of their respective Affiliates, from engaging or competing in any material lineordinary course of business consistent with past practice, (B) grant any equity or equity-based awards to, or discretionarily accelerate the vesting or payment of any equity or equity-based awards held by, any current or former Service Provider except as set forth in any geographical location or with any Person;

(o) except in each case as permitted under Section 6.01(o)6.01(m)(i)(B) of the Company Disclosure LetterSchedule, (C) take any action to accelerate the vesting or as required pursuant topayment of, or otherwise fund or secure the termspayment of, any Companycompensation or benefits under any Employee Plan (i)or (D) enter into or amend any employment, consulting, severance, retention, change in control, termination pay, retirement, deferred compensation, transaction bonus or similar agreement providing compensation or benefitsarrangement other than Contracts entered into or amended in the ordinary course of business consistent with past practice that are immaterial to the Company in both cost and significance, (ii) establish, terminate, adopt, enter into or amend any Employee Plan, (iii) establish, adopt or enter into any Collective Bargaining Agreement or recognize any new union, works council or similar employee representative with respect to any current or former Company Employee, (iv) hire any employees with base compensation of $200,000 or more (unless necessary to replace an employee (other than an officer or director of the Company or any of its Subsidiaries (each, a “Covered Individual”), except for ministerial amendments, (ii) adopt or amend any compensation or benefit plan, policy, practice, arrangement or agreement covering any Covered Individual, except ministerial amendments or as required by Applicable Law, (iii) grant any new awards or benefits underSubsidiaries) whose employment has ended, in which case such plan, policy, practice, arrangement or agreement covering any Covered Individual except for the grant of awards (other than equity or equity-based awards) or benefits in connection with and corresponding to any promotion or job change that are provided in the ordinary course of business and consistent with past practice, and provided that, upon the date of such promotion or job change, the Covered Individual subject to such promotion or job changereplacement employee shall be entitled to participate in the Company’s Management Group Employee Severance Protection Plan if not a participant therein prior to such promotion or job change so longhired on comparable terms as the Covered Individual meets the eligibility requirements of such plan and such Covered Individual is replacing a former employee who was eligible to participate in such plan immediately prior to the effective date of such employee’s termination of employment, (iv) otherwise increase the benefits or compensation provided to any Covered Individual except for salary and/or target bonus increases in connection with and corresponding to any promotion or job change that are provided in the ordinary course of business and consistent with past practice,being replaced), or (v) hire or engageterminate the servicesemployment of any individual exceptCompany Employee with base compensation of $200,000 or more, other than for the hiring or engagement ofcause;

(n) change in any individual with an annual rate of pay (which for purposes hereof shall include base salary or wages and target annual bonus, if any) of less than $200,000 (each, a “New

Hire”), which New Hire shall be entitled to participate in the Company’s Management Group Employee Severance Protection Plan, subject to the same terms and conditions set forth in clause (iii) of this Section 6.01(o), provided that if such terms and conditions are not applicable to such New Hire, he or she shall be entitled to participate in the Company’s Employee Severance Protection Program;

(p) changerespect the Company’s methods of financial accounting, except as required by concurrent changes in GAAP or in Regulation S-X of the 1934 Act, or interpretations thereof, after consultation withas agreed to by its independent public accountants;

(q)(o) settle, release, waive, discharge or compromise, or offer or propose to settle, release, waive, discharge or compromise, (i) (A) any Action or other claimthreatened Action (excluding any Action or threatened Action relating to Taxes, which shall be subject to Section 6.01(p)) involving or against the Company or any of its Subsidiaries or (B) any stockholder litigation or dispute against the Company or anythat results in a payment obligation (net of its officers or directors, except, in each case, where the amount paid in settlement or compromise does not exceed $5 million or (ii) any Action or dispute that relates to the transactions contemplated hereby, where the amount paid in settlement or compromise does not exceed $2 million;

(r) knowingly and intentionally take any action that would reasonably be expected to make any material representation or warrantyinsurance proceeds) of the Company hereunder inaccurate in any material respect at, or immediately prior to, the Effective Time;

(s) enter into any new line of business which represents a material change in the Company’s and its Subsidiaries’ operations and which is material to the Company and its Subsidiaries taken as a whole; or

(t) authorize or enter into any agreement to do any of the foregoing.

Section 6.02. Company Stockholder Meeting.The Company shall use its reasonable best efforts in accordance with Delaware Law, its certificate of incorporation and bylaws and the rules of the NYSE to duly call, give notice of, convene and hold a meeting of its stockholders (the “Company Stockholder Meeting”) as soon as reasonably practicable following effectiveness of the Registration Statement under the 1933 Act for the purpose of obtaining the Company Stockholder Approval. In connection with the Company Stockholder Meeting, the Company shall (i) mail the Proxy Statement and all other proxy materials for such meeting by first class mail to its stockholders as promptly as reasonably practicable after the Registration Statement is declared effective under the 1933 Act, (ii) unless there has been an Adverse Recommendation Change, use its reasonable best efforts to obtain the Company Stockholder Approval and (iii) otherwise comply with all legal requirements applicable to such meeting. Without limiting the generality of the foregoing, this Agreement and the Merger shall be submitted to the Company’s stockholders at the Company Stockholder Meeting whether or not (x) the Company’s Board of Directors shall have effected an Adverse Recommendation Change or (y) any Acquisition Proposal shall have been publicly proposed or announced or otherwise submitted to the Company or any of its advisors.

Section 6.03. No Solicitation; Other Offers; Adverse Recommendation Change. (a) General Prohibitions. Subject to Section 6.03(b), neither the Company nor any of its Subsidiaries shall, nor shall the Company or any of its Subsidiaries authorizein excess of $5,000,000 individually or permit$15,000,000 in the aggregate, or that imposes any of itsmaterial restrictions or their officers, directors, employees, investment bankers, attorneys, accountants, consultantslimitations upon the assets, operations or other agents or advisors (“Representatives”) to, directly or indirectly, (i) solicit, initiate or take any action to knowingly facilitate or encourage the submissionbusiness of any Acquisition Proposal, (ii) enter into or participate in any discussions or negotiations with, furnish any nonpublic information relating to the Company or any of its Subsidiaries or afford accessequitable or injunctive remedies or the admission of any criminal wrongdoing or (ii) any Action or threatened Action (excluding any Action or threatened Action relating to Taxes, which shall be subject to Section 6.01(p)) that relates to the transactions contemplated hereby;

(p) (i) make, change or revoke any material election with respect to Taxes, other than in the ordinary course of business, properties, assets, books(ii) file any amended material Tax Return, (iii) settle or records of the Companycompromise any material Tax claim, audit or

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assessment, (iv) prepare and file any of its Subsidiaries to, otherwise cooperatematerial Tax Return in a manner materially inconsistent with past practice, (v) adopt or change any way with, or knowingly assist, participate in, facilitate or encouragematerial Tax accounting method, (vi) change any effort byTax accounting period, (vii) enter into any Third Party that is seeking to make, or has made, an Acquisition Proposal, (iii) make an Adverse Recommendation Change, (iv) grant any waiver or release under any standstill or similarclosing agreement with respect to any class of equity securitiesmaterial Tax or surrender any right to claim a material Tax refund, offset or reduction in Tax, or (viii) consent to any extension or waiver of the Companylimitations period applicable to any material Tax claim or any of its Subsidiaries, (v) approve any transaction under, or any Person becoming an “interested stockholder” under, Section 203 of Delaware Law or (vi) enter into any agreement in principle, letter of intent, term sheet, merger

agreement, acquisition agreement, option agreement or other similar instrument relating to an Acquisition Proposalassessment (other than a confidentiality agreementany such extensions or waivers automatically granted);

(q) fail to the extent contemplateduse reasonable best efforts to maintain in Section 6.03(b))full force and effect existing material insurance policies (or substantially similar replacements thereto);provided that (so long asin the event of a termination, cancellation or lapse of any material insurance policy, the Company and its Representatives have otherwise compliedshall use commercially reasonable efforts to promptly obtain replacement policies providing substantially comparable insurance coverage with this Section 6.03) none of the foregoing shall prohibit the Company and its Representatives from contacting in writing any Persons or group of Persons who has made an Acquisition Proposal after the date of this Agreement solely to request the clarification of the terms and conditions thereof so as to determine whether the Acquisition Proposal is, or could reasonably be expected to lead to, a Superior Proposal, and any such actions shall not be a breach of this Section 6.03(a). It is agreed that any violation of the restrictions on the Company set forth in this Section by any Representative of the Company or any of its Subsidiaries shall be a breach of this Section by the Company.

(b)Exceptions. Notwithstanding Section 6.03(a), at any time priorrespect to the Company Stockholder Approval:

(i) the Company, directly or indirectly through its Representatives, may (A) engage in negotiations or discussions with any Third Party that, subject to the Company’s compliance with Section 6.03(a), has made after the date of this Agreement a Superior Proposal or an Acquisition Proposal that the Board of Directors of the Company determines in good faith, after consultation with its outside financialmaterial assets, operations and legal advisors, could reasonably be expected to lead to a Superior Proposal by the Third Party making such Acquisition Proposal and (B) furnish to such Third Party and its Representatives non-public information relating to the Company or any of its Subsidiaries and access to the business, properties, assets, books and recordsactivities of the Company and its Subsidiaries pursuant to a customary confidentiality agreement (a copyas currently in effect as of which shallthe date hereof;

(r) enter into, amend or modify any Contract that materially commits, restricts or encumbers the assets, capacities or volumes of either the Green Pipeline or the NEJD Pipeline following the Closing that cannot be provided for informational purposes only to Parent) with such Third Party with terms no less favorable tocancelled at any time by the Company or its applicable Subsidiary without penalty or further payment on no more than those contained inninety (90) days’ notice; or

(s) agree, resolve or commit to do any of the confidentiality agreementforegoing.

Section 6.02. Access to Information. From the date hereof until the Effective Time and subject to Applicable Law and the Confidentiality Agreement dated October 13, 2009as of May 10, 2021 between the Company and Parent (the “Confidentiality Agreement”) (it being understood, the Company shall (and shall cause its Subsidiaries to) (a) provide Parent or its Representatives reasonable access to the Representatives and herebyoffices, properties, books and records, work papers and other documents of the Company and its Subsidiaries (including existing financial and operating data relating to the Company and its Subsidiaries) and to Service Providers in accordance with Section 6.02 of the Company Disclosure Schedule and (b) furnish to Parent and its Representatives such existing information as such Persons may reasonably request within a reasonable time of such request, including copies of such existing information. Any investigation pursuant to this Section 6.02 shall be conducted in such manner as not to interfere unreasonably with the conduct of the business of the Company and its Subsidiaries and Parent shall only have the right to perform a visual site assessments of the Company properties. Notwithstanding anything to the contrary herein, (a) the Company shall not be required to, or to cause any of its Subsidiaries to, grant access or furnish information to Parent or any of its Representatives to the extent that such information is subject to an attorney/client privilege or the attorney work product doctrine or that such access or the furnishing of such information is prohibited by Applicable Law or an existing Contract or agreement, but the Company will institute an alternate arrangement reasonably acceptable to Parent that enables Parent to gain access to the relevant information; (b) Parent shall not have access to personnel records of the Company or any of its Subsidiaries relating to individual performance or evaluation records, medical histories or other information that in the Company’s good faith opinion the disclosure of which could subject the Company or any of its Subsidiaries to risk of liability; (c) Parent and its Representatives shall not be permitted to conduct any sampling or analysis of any environmental media or building materials at any facility of the Company or its Subsidiaries without the prior written consent of the Company, which may be granted or withheld in the Company’s sole discretion; and (d) to the extent the Company is obligated to provide Parent or its Representatives with physical access to the officers, key employees, agents, properties, offices and other facilities of the Company and its Subsidiaries and to their books, records, contracts and documents pursuant to this Section 6.02, the Company may instead provide such access by electronic means if physical access would not be permitted under Applicable Law (including any COVID-19 Measures). Parent agrees that it will not, and will cause its Representatives not to, use any information obtained pursuant to this Section 6.02 for any purpose unrelated to the consummation of the transactions contemplated by this Agreement. No information or knowledge obtained by Parent in any investigation pursuant to this Section shall affect or be deemed to modify any representation or warranty made by the Company hereunder or to operate as a non-compete obligation against Parent and its Subsidiaries.

Section 6.03. No Solicitation; Other Offers. (a) From the date hereof until the Effective Time, the Company shall not and shall cause its Subsidiaries and its and their directors and officers not to, and shall use reasonable

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best efforts to cause its and their Representatives not to, directly or indirectly, (i) solicit, initiate or knowingly facilitate or knowingly encourage the submission by a Third Party of any Acquisition Proposal, (ii) enter into, engage in or participate in any discussions or negotiations with, furnish any information relating to the Company or any of its Subsidiaries or afford access to the business, properties, assets, books, records, work papers and other documents related to the Company or any of its Subsidiaries to, otherwise knowingly cooperate in any way with, or knowingly assist, facilitate or encourage any effort by any Third Party, in each case, in connection with or in response to an Acquisition Proposal, or any inquiry that would reasonably be expected to lead an Acquisition Proposal, or (iii) enter into any oral or written or binding or non-binding agreement in principle, letter of intent, indication of interest, term sheet, merger agreement, acquisition agreement, option agreement or other similar instrument contemplating an Acquisition Proposal; provided that notwithstanding anything to the contrary in this Agreement, the Company or any of its Representatives may, (A) in response to an unsolicited inquiry or proposal, seek to clarify the terms and conditions of such inquiry or proposal and (B) in response to an inquiry or proposal from a Third Party, inform a Third Party or its Representative of the restrictions imposed by the provisions of this Section 6.03. The Company agrees not to release or permit the release of any Person from, or to waive or permit the waiver of, any standstill or similar agreement with respect to any class of equity securities of the Company or any of its Subsidiaries, and will enforce or cause to be enforced each such agreement in accordance with its terms at the request of Parent; provided, however, that the Company may waive or fail to enforce any provision of such standstill or similar agreement of any Person if the Company Board determines in good faith, after consultation with outside legal counsel, that the failure to take such action would be reasonably likely to be inconsistent with its fiduciary duties to the Company’s stockholders under Applicable Law. It is agreed that any violation of the restrictions on the Company set forth in this Section by any Subsidiary of the Company or by any Representative of the Company or any of its Subsidiaries shall be a breach of this Section 6.03(a) by the Company.

(b) Except as permitted by Section 6.03(c), the Company Board, including any committee thereof, agrees it will not (i) qualify, withdraw or modify in a manner adverse to Parent or Merger Sub, or propose publicly to qualify, withdraw or modify in a manner adverse to Parent or Merger Sub, the Company Board Recommendation, (ii) adopt, endorse, approve or recommend, or propose publicly to adopt, endorse, approve or recommend, any Acquisition Proposal, or resolve to take any such confidentiality agreement needaction, (iii) publicly make any recommendation in connection with a tender offer or exchange offer by a Third Party other than a recommendation against such offer or a temporary “stop, look and listen” communication by the Company Board of the type contemplated by Rule 14d-9(f) under the 1934 Act, (iv) other than with respect to a tender or exchange offer described in clause (iii), following the date any Acquisition Proposal or any material modification thereto is first publicly announced, fail to issue a press release reaffirming the Company Board Recommendation within ten Business Days after a request by Parent to do so or (v) fail to include the Company Board Recommendation in the Proxy Statement/Prospectus when disseminated to the Company’s stockholders (any of the foregoing in these clauses (i) through (v), an “Adverse Recommendation Change”).

(c) Exceptions. Notwithstanding Section 6.03(a) and Section 6.03(b), at any time prior to the receipt of the Requisite Company Vote:

(i) the Company, directly or indirectly through its Representatives, may (A) engage in the activities prohibited by clauses (i) through (iii) of Section 6.03(a) with any Third Party and its Representatives that has made after the date of this Agreement a bona fide, written Acquisition Proposal that did not containresult from a “standstill”breach of Section 6.03(a) that the Company Board determines in good faith, after consultation with its outside legal counsel and financial advisors, is, or similar provision that prohibitsis reasonably likely to lead to, a Superior Proposal, and (B) furnish to such Third Party from making any Acquisition Proposals, acquiringor its Representatives non-public information relating to the Company or taking any other action);of its Subsidiaries and afford access to the business, properties, assets, books or records of the Company or any of its Subsidiaries pursuant to a confidentiality agreement (a copy of which shall be provided for informational purposes only to Parent) with such Third Party with terms no less favorable to the Company than those contained in the Confidentiality Agreement; provided that all such information (to the extent that such information has not been previously provided or made available to Parent) is provided or made available to Parent, as the case may be,

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prior to or substantially concurrently with the time it is provided or made available to such Third Party)Party or its Representatives; and (C) take any action required by Applicable Law and any action that any court of competent jurisdiction orders

(ii) subject to compliance with Section 6.03(e), the Company to take; and

(ii) the Board of Directors of the Company may make an Adverse Recommendation Change (A) following receipt of ana bona fide, written Acquisition Proposal made after the date hereofthat did not result from a breach of Section 6.03(a) that the Company Board of Directors of the Company determines in good faith, after consultation with its outside financiallegal counsel and legalfinancial advisors, constitutes a Superior Proposal, make an Adverse Recommendation Change or terminate this Agreement pursuant to and in accordance with Section 10.01(d)(i) in order to enter into a definitive agreement for such Superior Proposal, or (B) solely in response to any material event, development, circumstance, occurrenceevents, changes or changedevelopments in circumstances or facts (including any change in probability or magnitude of circumstances) not relatedthat are material to an Acquisition Proposalthe Company and its Subsidiaries, taken as a whole, that waswere not known to the Company Board, of Directors of the Company on the date hereof (oror if known the magnitude or material consequences of which were not reasonably foreseeable, in each case as of or prior to the date hereof, and that become known to or understood by the Company Board of Directorsprior to the receipt of the Requisite Company as of the date hereof)Vote (an “Intervening Event”);, make an Adverse Recommendation Change; provided that in no event shall any of the following constitute or contribute to an Intervening Event: (A) any action taken by the parties pursuant to the affirmative covenants set forth in Section 8.01, or the consequences of any such action, (B) any event, circumstance, development, occurrence, fact, condition, effect or change relating to Parent or its Subsidiaries, (C) the fact that the Company exceeds any internal or published projections, estimates or expectations of the Company’s revenue, earnings or other financial performance or results of operations for any period; provided that any underlying event, circumstance, development, occurrence, fact, condition, effect or change that is the cause thereof may be taken into account, (D) changes in the Company Share price or Parent Share price or (E) the receipt, existence or terms of any Acquisition Proposal or any inquiry, offer, request or proposal that would reasonably be expected to lead to an Acquisition Proposal;

in each case referred to in the foregoing clauses (i) and (ii) only if the Company Board of Directors of the Company determines in good faith, by a majority vote, after consultation with its outside legal advisors,counsel, that the failure to take such action would reasonably likely to be inconsistent with its fiduciary duties under Delaware Law.

law. In addition, nothing contained herein shall prevent the Company or its Board of Directors from (i) complying with Rule 14d-914e-2(a) or 14e-2(a)Rule 14d-9 under the 1934 Act (or making any similar communicationwith regard to stockholders in connection with any amendment to the terms of a tender offer or exchange offer)an Acquisition Proposal so long as any action taken or statement made to so comply is consistent with this Section 6.03, (ii) disclosing factual information regarding the business, financial condition or results of operations of Parent or the Company or the fact that an Acquisition Proposal has been made, the identity of the party making such proposal or the material terms of such proposal in the Proxy Statement or otherwise, to the extent the Company in good faith determines that such information, facts, identity or terms is required to be disclosed under Applicable Law or that failure to make such disclosure would be inconsistent with its fiduciary duties under Applicable Law or (iii) making any statement or disclosure to the Company’s stockholders required by Applicable Law;provided that any such

6.03.

action taken or statement or disclosure made that relates to an Acquisition Proposal shall be deemed to be an Adverse Recommendation Change unless the Board of Directors of the Company reaffirms the Company Board Recommendation in such statement or disclosure or in connection with such action (except that a mere “stop, look and listen” disclosure in compliance with Rule 14d-9(f) of the 1934 Act shall not constitute an Adverse Recommendation Change).

(c)(d) Required Notices. The Company Board of Directors of the Company shall not take any of the actions referred to in Section 6.03(b)6.03(c)(i) unless the Company shall have delivered to Parent a prior written notice advising Parent that it intends to take such action, and, after taking such action, the Company shall, if such action is in connection with an Acquisition Proposal, continue to advise Parent on a reasonably current basis on the status and terms of any discussions and negotiations with the Third Party.action. In addition, the Company shall notify Parent promptly (but in no event later than 24 hours)hours after a director or senior executive officer of the Company becomes aware of such Acquisition Proposal or request) after receipt by the Company (or any of its Representatives) of any Acquisition Proposal, any written indication that a Third Party is considering making an Acquisition Proposal or any request for information relating to the Company or any of its Subsidiaries with respect to any Acquisition Proposal or for access to the business, properties, assets, books, records, work papers or records ofother documents relating to the Company or any of its Subsidiaries by any Third Party that has indicated it ismay be considering making, or has made, an Acquisition Proposal. The Company shall provide suchSuch notice orally and in writing and shall identify the Third Party making, and the terms and conditions of, any such Acquisition Proposal, indication or request. The Company shall keep Parent reasonably informed, on a reasonably current basis, of the status and details of any such Acquisition Proposal, indication or request and shall promptly (but in no event later than 24 hours after receipt) (x) provide to Parent copies of all correspondence and written materials sent or provided to the Company or any of its Subsidiaries by the Third Party that describes any terms or conditions of any Acquisition Proposal and (y) notify Parent after it becomes aware(as well as written summaries of any intentional and material breach of any of this Section 6.03 expressly sanctioned or knowingly permitted by the Company.oral communications addressing such matters). Any material amendment to any Acquisition Proposal will be deemed to be a new Acquisition Proposal for purposes of the Company’s compliance with this Section 6.03(c)6.03(d).

(d) “(e) Last Look. Further, the Company Board of Directorsshall not take any of the Company shall not make an Adverse Recommendation Changeactions referred to in response to an Acquisition Proposal as permitted by Section 6.03(b)6.03(c)(ii), unless (i) the Company promptly notifies Parent, in writing at least threefour Business Days before taking that action, of its intention to do so, specifying in reasonable detail the reasons therefor (which notice shall not constitute an Adverse Recommendation Change), attaching (A) in the case of a Superior Proposal, the most current version of the proposed agreement under which such AcquisitionSuperior Proposal is proposed to be consummated

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and the identity ofidentifying the Third Party making the Acquisition Proposal, or (B) in the case of an Intervening Event, a reasonably detailed description of such Intervening Event, (ii) the Company has negotiated, and (ii) Parent does not make, within three Business Days afterhas caused its receipt of that written notification, an offer that the Company’s Board of Directors determines,Representatives to negotiate in good faith afterwith Parent (to the extent Parent wishes to negotiate) during such notice period any revisions to the terms of this Agreement that Parent proposes and (iii) following the end of such notice period, the Company Board shall have determined, in consultation with outside legal counsel and its outsideindependent financial advisor, and legal advisors, is at least as favorablegiving due consideration to such revisions proposed by Parent, that (A) in the stockholderscase of the Company asa Superior Proposal, such AcquisitionSuperior Proposal would nevertheless continue to constitute a Superior Proposal (assuming such revisions proposed by Parent were to be given effect) (it being understood and agreed that any amendment to the financial terms or other material terms of such AcquisitionSuperior Proposal shall require a new written notification from the CompanyCompany; provided that for the purposes of such new notification the reference to “four Business Days” in Section 6.03(e)(i) shall be deemed to be “three Business Days”) and a new three Business Day period under clause (ii)(B) in the case of this Section 6.03(d)). The Board of Directors of the Company shall not make an Adverse Recommendation Change in responseto be made pursuant to an Intervening Event, as permitted by Section 6.03(b)(ii), unless (A) the Company has provided Parent with written information describing such Intervening Event in reasonable detail promptly after becoming aware of it, or becoming aware of or understandingwould nevertheless necessitate the magnitude orneed for such Adverse Recommendation Change (it being understood and agreed that any material consequences of it, as applicable,change to the facts and keeps Parent reasonably informed of material developments with respectcircumstances relating to such Intervening Event (B)shall require a new written notification from the Company; provided that for the purposes of any such new notification the reference to “four Business Days” in Section 6.03(e)(i) shall be deemed to be “three Business Days”), and, in either case, the Company has provided Parent at least three Business Days prior written notice advising Parent of its intention to make an Adverse Recommendation Change with respect to such Intervening Event, attaching a reasonably detailed explanation of the facts underlying the determination by the Board of Directors of the Company that an Intervening Event has occurred and its need to make an Adverse Recommendation Change in light of the Intervening Event and (C) Parent does not make, within three Business Days after its receipt of that written notification, an offer that the Company’s Board of Directors determines in good faith, after consultation with outside legal counsel, that the failure to take such action would be reasonably likely to be inconsistent with its outside financial and legal advisors, would obviate the need for an Adverse Recommendation Change in light of the Intervening Event. During any three Business Day period prior to its effecting an Adverse Recommendation Change pursuant to this Section 6.03(d), the Company and its Representatives shall negotiate in good faith with Parent and its Representatives regarding any revisions to the terms of the transactions contemplated by this Agreement proposed by Parent.

fiduciary duties under Delaware law.

(e)(f) Definition of Superior Proposal. For purposes of this Agreement, “Superior Proposal” means aany bona fide, unsolicited written Acquisition Proposal not solicited in breach of this Agreement (but substituting “50%” for at least a majorityall references to “20%” in the definition of the outstanding sharessuch term) by any Person or group (other than Parent or any of Company Stock or all or substantially all of the consolidated assets ofits Subsidiaries), (i) on terms that the Company and its Subsidiaries which the Board of Directors of the Company determines in good faith by a majority vote, after consultation with aoutside counsel and its financial advisor, of nationally recognized reputation and outside legal counsel, andare more favorable to the Company’s stockholders than the Merger, taking into account all the terms and conditions (including all financial, regulatory, financing, conditionality, legal and other terms and conditions) of the Acquisition Proposal, including the expected timingsuch proposal and likelihood of consummation, any break-up fees, expense reimbursement provisions and conditions to consummation, are more favorable and would reasonably be expected to provide greater value to the Company’s stockholders (other than Parent and any of its Affiliates) than as provided hereunderthis Agreement (taking into account any binding proposal by Parentrevisions to amend the terms of this Agreement pursuantproposed by Parent in response to such Acquisition Proposal as contemplated by Section 6.03(d)6.03(e)), which the Board of Directors of and (ii) that the Company Board determines is reasonably likely to be consummatedcompleted on the terms proposed, taking into account all financial, regulatory, financing, timing, conditionality, legal and for which financing, if a cash transaction (whether in whole or in part), is then fully committed or reasonably determined to be available by the Boardother aspects of Directorssuch proposal.

(g) Obligation of the Company.

(f)ObligationCompany to Terminate Existing Discussions. The Company shall, and shall cause its Subsidiaries and its and their directors and officers to, and shall use reasonable best efforts to cause its and their Representatives to, cease immediately and cause to be terminated any and all existing activities, discussions or negotiations, if any, with any Third Party and its Representatives and its financing sources conducted prior to the date hereof with respect to any Acquisition Proposal. The Company shall promptly request that each Third Party, if any, that has executed a confidentiality agreement within the 12-month period prior to the date hereof in connection with its consideration of any Acquisition Proposal return or destroy all confidential information heretofore furnished to such Person by or on behalf of the Company or any of its Subsidiaries (and all analyses and other materials prepared by or on behalf of such Person that contains, reflects or analyzes that information), andin accordance with the terms of such confidentiality agreements. The Company shall provideuse its reasonable best efforts to Parentsecure all certifications of such return or destruction from such other Persons as promptly as practicable after receipt thereof. The Company shall use its commercially reasonable efforts to secure all such certifications as promptly as practicable. If any such Person fails to provide any required certification within the time period allotted in the relevant confidentiality agreement (or if no such period is specified, then within a reasonable time period after the date hereof), then

Section 6.04. Updated Equity Awards Schedule. Upon Parent’s written request, the Company shall take all actions that may be reasonably necessary to secure its rights and ensure the performancewill provide Parent, within three days of such other party’s obligations thereunder as promptly as practicable.

request, a revised version of Section 6.04. Tax Matters.(a) From the date hereof until the Effective Time, neither the Company nor any of its Subsidiaries shall, except as required by Applicable Law, make or change any material Tax election, change any annual tax accounting period, adopt or change any method of tax accounting, file any material amended Tax Returns or claims for material Tax refunds, enter into any material closing agreement, surrender any material Tax claim, audit or assessment, surrender any right to claim a material Tax refund, offset or other reduction in Tax liability, consent to any extension or waiver of the limitations period applicable to any Tax claim or assessment or take or omit to take any other action, if any such action or omission would have the effect of increasing the Tax liability or accrual of Tax liability under FASB Interpretation No. 48 or reducing any Tax asset or accrual of Tax asset under FASB Interpretation No. 484.05(a) of the Company or any of its Subsidiaries.

(b) The Company and each of its Subsidiaries shall establish or cause to be established in accordance with GAAP on or before the Effective Time an adequate accrual for all Taxes due with respect to any period or portion thereof ending prior to orDisclosure Schedule, updated as of the Effective Time.most recent practicable date.

(c) Other than Taxes described in Section 2.03(g), all transfer, documentary, sales, use, stamp, registration, value added and other such Taxes and fees (including any penalties and interest) incurred in connection with the Merger (including any real property transfer tax and any similar Tax) shall be paid by the Company when due, and the Company shall, at its own expense, file all necessary Tax returns and other documentation with respect to all such Taxes and fees, and, if required by Applicable Law, the Company shall, and shall cause its Affiliates to, join in the execution of any such Tax returns and other documentation.

Section 6.05. Access to Information.From the date hereof until the Effective Time and subject to Applicable Law and the Confidentiality Agreement, the Company shall upon reasonable prior notice (a) give Parent, itsA-46


counsel, financial advisors, auditors and other authorized representatives reasonable access to the offices, properties, books and records of the Company and its Subsidiaries (including access to core samples, well logs and seismic data, in each case, which are in the possession of the Company or any of its Subsidiaries) during normal business hours, (b) furnish to Parent, its counsel, financial advisors, auditors and other authorized representatives such financial and operating data and other information as such Persons may reasonably request and (c) instruct the employees, counsel, financial advisors, auditors and other authorized representatives of the Company and its Subsidiaries to reasonably cooperate with Parent in its investigation of the Company and its Subsidiaries;provided, however, that the Company may restrict the foregoing access and the disclosure of information pursuant to this Section 6.05 to the extent that (i) in the reasonable good faith judgment of the Company, any Applicable Law requires the Company or its Subsidiaries to restrict or prohibit access to any such properties or information, (ii) in the reasonable good faith judgment of the Company, the information is subject to confidentiality obligations to a Third Party, (iii) such disclosure would result in disclosure of any trade secrets of Third Parties or (iv) disclosure of any such information or document would reasonably be expected to result in the loss of attorney-client privilege;provided, further, that with respect to clauses (i) through (iv) of this Section 6.05, the Company shall use its commercially reasonable efforts to (A) obtain the required consent of such Third Party to provide such access or disclosure, (B) develop an alternative to providing such information so as to address such matters that is reasonably acceptable to Parent and the Company or (C) in the case of clauses (i) and (iv), enter into a joint defense agreement or implement such other techniques if the parties determine that doing so would reasonably permit the disclosure of such information without violating Applicable Law or jeopardizing such privilege. Any investigation pursuant to this Section 6.05 shall be conducted in such manner as not to interfere unreasonably with the conduct of the business of the Company and its Subsidiaries. No information or knowledge obtained in any investigation pursuant to this Section 6.05 shall affect or be deemed to modify any representation or warranty made by any party hereunder.

ARTICLE 7

COVENANTSOF PARENT

Parent agrees that:

Section 7.017.01. . Conduct of Parent.ParentFrom. During the period from the date hereof until the Effective Time, except (i) with the prior written consent of the Company in each instance (which consent shall not be unreasonably withheld, delayed or conditioned); provided, that the Company’s consent will be deemed obtained if the Company has not expressly denied its consent with respect to a given action within five Business Days following the Parent’s request for the Company’s consent, (ii) as required by Applicable Law, (iii) as otherwise expressly contemplated or permitted by this Agreement exceptor (iv) as set forth in Section 7.01 of the Parent Disclosure Letter or as consented to in writing by the Company (such consent not to be unreasonably withheld, conditioned or delayed) or except as required by Applicable Law, Parent shall, and shall cause each of its Subsidiaries to conduct its business in all material respects in the ordinary course consistent with past practice and use its commercially reasonable efforts to preserve intact its business organizations and relationships with material Third Parties. Without limiting the generality of the foregoing, except as expressly contemplated or permitted by this Agreement, except as set forth in Section 7.01 of the Parent Disclosure Letter or as consented to in writing by the Company (such consent not to be unreasonably withheld, conditioned or delayed), or except as required by Applicable Law, from the date hereof until the Effective TimeSchedule, Parent shall not, nor shall it permit any of its Subsidiaries to:

(a) amend(b) adopt or propose any change in the articlescertificate of incorporation or bylaws of Parent in aany manner that would havebe materially adverse to the Company or the Company’s stockholders;

(c) adopt a material and adverse impact on the valueplan or agreement of Parent Stock;complete or partial liquidation or dissolution of Parent;

(b)(d) declare, set aside or pay any extraordinary dividend or other extraordinary distribution (whetherpayable in cash, stock or property or any combination thereof) inwith respect of theto Parent’s capital stock (excluding, for the avoidance of doubt, stock buybacks) other than regular quarterly cash dividends payable by Parent or redeem, repurchase or otherwise acquire or offer to redeem, repurchase, or otherwise acquire any capital stock of Parent in a manner inconsistentincluding increases that are materially consistent with past practice;

(c) acquire (or agree to acquire) (i) any assets utilized in production or transportation of natural gas or (ii) more than 50% of the voting interests of any entity that is a going concern, if, individually or in the aggregate, such acquisition or acquisitions would reasonably be expected to prevent, materially impede, interfere with or delay the consummation of the Merger and the other transactions contemplated by this Agreement;

(d) knowingly and intentionally take any action that would reasonably be expected to make any material representation or warranty of Parent hereunder inaccurate in any material respect at, or immediately prior to, the Effective Time; or

(e) authorizeagree or enter into any agreementcommit to do any of the foregoing.

Section 7.027.02. . Obligations of Merger Subsidiary.Sub. Parent shall take all action necessary to cause Merger SubsidiarySub to perform its obligations under this Agreement and to consummate the Merger on the terms and conditions set forth in this Agreement.

Section 7.037.03. . Approval by Sole Stockholder of Merger Subsidiary.Immediately following the execution of this Agreement by the parties, Parent, as sole stockholder of Merger Subsidiary, shall approve and adopt this Agreement, in accordance with Delaware Law, by written consent, and promptly deliver to the Company a correct and complete copy of such written consent, certified by the Secretary of Parent.

Section 7.04. Voting of Shares.Parent shall vote all shares of Company Stock beneficially owned by it or any of its Subsidiaries (other than for the avoidance of doubt any such shares held by any employee benefit plan of Parent or any of its Subsidiaries or any trustee or other fiduciary in such capacity under any such employee benefit plan) in favor of adoption of this Agreement at the Company Stockholder Meeting.

Section 7.05. Director and Officer Liability.Liability. (a) Without limiting any other right that an Indemnified Person may have pursuant to any employment agreement or indemnification agreement in effect on the date hereof or otherwise, Parent shall require the Surviving Corporation, and the Surviving Corporation hereby agrees, to do the following:

(i) For six years after the Effective Time, the Surviving Corporation shall and Parent shall cause the Surviving Corporation to, indemnify and hold harmless and provide the advancement of expenses to, the present and former directors, officers, employees, fiduciaries and directorsagents of the Company and its Subsidiaries, and any individuals serving in such capacity at or with respect to other Persons at the Company’s or its Subsidiaries’ request (each, an “Indemnified Person”) from and against any losses, damages, liabilities, costs, expenses (including attorneys’ fees), judgments, fines, penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect thereof) in respect of (i) acts or omissions occurringthe Indemnified Persons’ having served in such capacity at or prior to the Effective Time, (ii) the fact that such Indemnified Person was a director or officer, or is or was serving at the request of the Company or any of its Subsidiaries as a director or officer of another Person prior to the Effective Time and (iii) this Agreement and the transactions contemplated hereby, in each case, whether asserted or arising before or after the Effective Time, to the fullest extent permitted by Delaware Law or any other Applicable Lawthe DGCL or provided under the Company’s or its Subsidiaries’ certificate of incorporation and bylaws in effect on the date hereof;provided that such indemnification and advancement of expenses shall be subject to any limitation imposed from time to time under Applicable Law;provided, further,Law. If any Indemnified Person is made party to any claim, action, suit, proceeding or investigation arising out of or relating to matters that anywould be indemnifiable pursuant to the immediately preceding sentence, Surviving Corporation shall advance fees, costs and expenses (including attorneys’ fees and disbursements) as incurred by such Indemnified Person in connection with and prior to whom expenses are advanced shall provide an undertaking to repaythe final disposition of such advancesclaim, action, suit, proceeding or investigation in each case to the extent the Company is required by Applicable Law. Fromto do so and afteron the Effective Time, Parent hereby irrevocably and unconditionally guaranteessame terms as provided in the payment and performance obligationsCompany’s bylaws in effect on the date hereof; provided that any Indemnified Person wishing to claim indemnification or advancement of expenses under this Section 7.03, upon learning of any such proceeding, shall notify the Surviving Corporation (but the failure so to notify shall not relieve a party from any obligations that it may have under this Section 7.05(a).7.03 except to the extent such failure materially prejudices such party’s position with respect to such claims); and

(b)

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(ii) For six years after the Effective Time, Parent shall cause the Surviving Corporation shall cause to be maintained in effect provisions in the Surviving Corporation’s and the Company’s Subsidiaries’ certificatescertificate of incorporation bylaws and similar organizational documentsbylaws (or in such documents of any successor to the business of the Surviving Corporation) regarding elimination of liability of directors, indemnification of officers, directors, employees, fiduciaries and employeesagents and advancement of fees, costs and expenses with respect to matters existing or occurring at or prior to the Effective Time that are no less advantageous to the intended beneficiaries than the corresponding provisions in existence on the date of this Agreement in the Company’sAgreement.

(b) From and its Subsidiaries’ certificate of incorporation and bylaws.

(c) For six years after the Effective Time, Parent shall procurecause the provisionSurviving Corporation and its Subsidiaries shall honor and comply with their respective obligations under any indemnification agreement with any Indemnified Person that is set forth in Section 7.03(b) of the Company Disclosure Schedule, and not amend, repeal or otherwise modify any such agreement in any manner that would adversely affect any right of any Indemnified Person thereunder.

(c) Prior to the Effective Time, the Company shall or, if the Company is unable to, Parent shall cause the Surviving Corporation as of the Effective Time to, obtain and fully pay the premium for the non-cancellable extension of the directors’ and officers’ liability coverage of the Company’s existing directors’ and directors’officers’ insurance policies and the Company’s existing fiduciary liability insurance policies (collectively, “D&O Insurance”), which D&O Insurance shall (i) be for a claims reporting or discovery period of at least six years from and after the Effective Time with respect to any claim related to any period of time at or prior to the Effective Time, (ii) be from an insurance carrier with the same or better credit rating as the Company’s current insurance carrier with respect to D&O Insurance and (iii) have terms, conditions, retentions and limits of liability that are no less favorable than the coverage provided under the Company’s existing policies with respect to any actual or alleged error, misstatement, misleading statement, act, omission, neglect, breach of duty or any matter claimed against an Indemnified Person by reason of him or her having served in such capacity that existed or occurred at or prior to the Effective Time (including in connection with this Agreement or the transactions or actions contemplated hereby); provided that the Company shall give Parent a reasonable opportunity to participate in the selection of such tail policy and the Company shall give reasonable and good faith consideration to any comments made by Parent with respect thereto; provided further that the cost of any such tail policy shall not exceed 300% of the aggregate annual premium paid by the Company in respect of the D&O Insurance (which amount is set forth in Section 7.03(c) of the Company Disclosure Schedule); and provided, further, that if the aggregate premiums of such tail policy exceed such amount, the Company shall, or Parent shall cause the Surviving Corporation to, as applicable, obtain a policy with the greatest coverage available, with respect to matters existing or occurring prior to the Effective Time, (including with respect to acts or omissions occurring in connection with this Agreement and the transactions contemplated hereby) covering eachfor a cost not exceeding such Person currently covered by the Company’s officers’ and directors’ liability insurance policy on terms with respect to coverage and in amounts no less favorable than those of such policy in effect on the date hereof (it being understood that Parent may discharge its obligations pursuant to this paragraph by providing an insurance policy underwritten by Ancon Insurance Company, Inc., a wholly-owned Subsidiary of Parent, so long as at the time of underwriting such policy, Ancon Insurance Company, Inc. has the same or better rating as the

Company’s current insurance carrier);provided that if the aggregate annual premiums for such insurance at any time during such period shall exceed 300% of the per annum rate of premium paid by the Company and its Subsidiaries as of the date hereof for such insurance, then Parent shall, or shall cause its Subsidiaries to, provide only such coverage as shall then be available at an annual premium equal to 300% of such rate. Notwithstanding the foregoing, prior to the Effective Time, the Company may procure a fully prepaid “tail” policy of comparable coverage with a claims period of six years after the Effective Time from Ancon Insurance Company, Inc. (or if Ancon Insurance Company, Inc. does not have, at the time of underwriting such policy, the same or better rating as the Company’s current insurance carrier, any other insurance carrier with the same or better rating as the Company’s current insurance carrier) in respect of matters existing or occurring prior to the Effective Time (including with respect to acts or omissions occurring in connection with this Agreement and the transactions contemplated hereby) covering each such Person currently covered by the Company’s officers’ and directors’ liability insurance policy on terms with respect to coverage and in amounts no less favorable than those of such policy in effect on the date hereof;provided that if the aggregate annual premiums for such “tail” policy exceeds 300% of the per annum rate of premium paid by the Company and its Subsidiaries as of the date hereof for their existing officers’ and directors’ liability insurance policy, then the Company shall procure the maximum coverage that will then be available at an equivalent annual premium equal to 300% of such rate;provided, further, that the Company’s procurement of such fully prepaid “tail” policy in accordance with this sentence shall be deemed to satisfy in full Parent’s obligations pursuant to this Section 7.05(c).amount.

(d) If Parent, the Surviving Corporation or any of its successors or assigns (i) consolidates with or merges into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger, or (ii) transfers or conveys all or substantially all of its properties and assets to any Person, then, and in each such case, to the extent necessary, proper provision shall be made so that the successors and assigns of Parent or the Surviving Corporation as the case may be, shall assume the obligations set forth in this Section 7.05.7.03.

(e) Each Indemnified Person shall cooperate with Parent and the Surviving Corporation in the defense of any claim or Action for which indemnification may be sought pursuant to Section 7.05(a), shall furnish or cause to be furnished records, documents, information and testimony, and shall attend such conferences, discovery proceedings, hearings, trials or appeals, as may be reasonably requested by Parent in connection therewith.

(f) The rights of each Indemnified Person under this Section 7.057.03 shall be in addition to any rights such Person may have under the certificate of incorporation or bylaws of the Company or any of its Subsidiaries or under Delaware Lawthe DGCL or any other Applicable Law or under any agreement of any Indemnified Person with the Company or any of its Subsidiaries.Subsidiaries that is set forth in Section 7.03(b) of the Company Disclosure Schedule.

Section 7.04. Employee Matters. (a) Not later than five Business Days following the date of this Agreement, and to the extent permitted by Applicable Law, the Company shall provide Parent with a true, complete and correct list of the following with respect to (i) each Company Employee: name, employer, title, hire date, location, whether full- or part-time, whether active or on leave (and, if on leave, the nature of the leave and the expected return date), whether exempt from the Fair Labor Standards Act, annual salary or wage rate, most recent annual bonus received and current annual bonus opportunity and (ii) each individual independent contractor whose engagement involves providing material services to the Company: name, entity for which

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services are provided, services provided, service commencement date, rate of compensation and scheduled termination date.

(b) For the period commencing at the Closing and ending on the first anniversary thereof or shorter period of employment with Parent and its Affiliates (including the Surviving Corporation) following the Closing (the “Continuation Period”), Parent shall provide, or shall cause its Affiliates (including the Surviving Corporation) to provide, each Company Employee who is employed by the Company or any of its Subsidiaries immediately prior to the Effective Time (each, a “Continuing Employee”) and who continue employment during such time period (i) with a base salary or base wages and target annual cash incentive compensation opportunities that are no less favorable in the aggregate than those provided by the Company and its Subsidiaries to such Continuing Employee immediately prior to the Effective Time and (ii) employee benefits (excluding any equity or equity-based compensation, change in control, transaction or retention bonuses or payments) that are no less favorable in the aggregate than those provided by the Company and its Subsidiaries to such Continuing Employee immediately prior to the Effective Time. Notwithstanding anything provided in this Section 7.03 or anything else in this Agreement to the contrary, each Continuing Employee who, at any time during the Continuation Period becomes covered by a Collective Bargaining Agreement shall solely be provided with compensation, benefits and terms and conditions of employment consistent with the terms of such Collective Bargaining Agreement.

(c) With respect to any “employee benefit plan,” as defined in Section 3(3) of ERISA, maintained by Parent or its Affiliates in which any Continuing Employee is eligible to participate on or after the Closing, for purposes of determining eligibility to participate and vesting (but not for benefit accrual purposes, except for paid time off and severance), Parent shall, or shall cause its Affiliates (including the Surviving Corporation) to, use commercially reasonable efforts to treat such Continuing Employee’s service with the Company or any of its Subsidiaries prior to the Closing as service with Parent and its Affiliates to the same extent as such Continuing Employee was entitled, before the Closing, to credit for such service under any analogous Employee Plan; provided that the foregoing shall not apply to the extent that it would result in any duplication of benefits for the same period of service.

(d) Prior to the Closing Date, the Company shall take all actions that may be necessary or appropriate to terminate, as of the day immediately preceding the Closing Date, (i) the Company’s 401(k) plan (the “Company 401(k) Plan”) and (ii) each other Employee Plan identified in Section 7.04(d) of the Company Disclosure Schedule; provided that such termination is permitted under Section 409A of the Code. The obligationsCompany shall provide Parent with evidence that the Company 401(k) Plan and each other Employee Plan identified in Section 7.04(d) of the Company Disclosure Schedule has been terminated (the form and substance of which shall be subject to review and reasonable comment by Parent) not later than two Business Days immediately preceding the Closing Date. In connection with the termination of the Company 401(k) Plan, Parent shall permit each Continuing Employee who is a participant in the Company 401(k) Plan to (A) become a participant in a 401(k) plan of Parent or its Subsidiary that is an “eligible retirement plan” (within the meaning of Section 401(a)(31) of the Code) (the “Parent 401(k) Plan”) immediately after the Closing Date, subject to the terms and conditions of the Surviving Corporation underParent 401(k) Plan and (B) subject to the terms and conditions of the Parent 401(k) Plan, to make rollover contributions of “eligible rollover distributions” (within the meaning of Section 401(a)(31) of the Code) in cash or a note (in the case of a participant loan) in an amount equal to the eligible rollover distribution portion of the account balance distributed to each such Continuing Employee from the Company 401(k) Plan to the Parent 401(k) Plan effective as of the Closing Date (provided that the foregoing shall not require the Parent 401(k) Plan to accept a rollover of more than one loan note per participant). Notwithstanding the foregoing, the Company shall not terminate the Company 401(k) Plan or any other Employee Plan identified in Section 7.04(d) of the Company Disclosure Schedule if, not later than five Business Days prior to the Closing Date, Parent requests that the Company not terminate such plan.

(e) Nothing in this Section 7.057.03, express or implied, (i) is intended to or shall not be terminated, amendedconfer upon any Person other than the parties hereto, including any current or modified informer Service Provider, Company Employee or Continuing Employee, any manner so as to adversely affectright, benefit or remedy of any Indemnified Person (including their successors, heirs and legal representatives) to whom this Section 7.05 applies without the consent of such affected Indemnified Person (it being expressly agreed that the Indemnified Persons to whom this Section 7.05 applies shall be third party beneficiariesnature whatsoever under or by reason of this Agreement, (ii) shall

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establish, or constitute an amendment, termination or modification of, or an undertaking to amend, establish, terminate or modify, any Employee Plan or other benefit plan, program, agreement or arrangement, (iii) shall alter or limit the ability of Parent or any of its Subsidiaries (or, following the Effective Time, the Company or any of its Subsidiaries) to amend, modify or terminate any Employee Plan or any other benefit plan, program, agreement or arrangement at any time assumed, established, sponsored or maintained by any of them or (iv) shall create any obligation on the part of Parent or its Subsidiaries (or, following the Effective Time, the Company or any of its Subsidiaries) to employ or engage any Service Provider for any period following the Effective Time.

Section 7.05, and this Section 7.05 shall survive consummation of the Merger and shall be enforceable by such Indemnified Persons and their respective successors, heirs and legal representatives against Parent and the Surviving Corporation and their respective successors and assigns).

Section 7.067.05. . Stock Exchange Listing.Listing. Parent shall use its reasonable best efforts to cause the shares of Parent StockShares to be issued as part of the Merger Consideration to be listed on the NYSE, subject to official notice of issuance, prior to the Effective Time.issuance.

Section 7.07.7.06. Employee MattersTransfer Taxes. (a) For a period of one year following the Effective Time, Parent shall provide to employees ofAll transfer, documentary, sales, use, stamp, registration and other such similar Taxes imposed on the Company or any of its Subsidiaries as of the Effective Time who continue employment with the Surviving Corporation or any of its Affiliates (“Continuing Employees”) (i) base salaries that are not less than the salaries provided to such employees by the Company and its Subsidiaries, as in effect on December 1, 2009, (ii) except for the employees set forth in Section 7.07(a)(ii) of the Company Disclosure

Letter, annual or semi-annual, as applicable, cash bonuses that are not less than the annual or semi-annual, as applicable, cash bonuses provided to such employees by the Company and its Subsidiaries on December 1, 2009 and (iii) benefits (other than equity-based compensation and other than benefits referenced in Section 7.07(d)(ii) of the Company Disclosure Letter or Section 7.07(a)(iii) of the Company Disclosure Letter) that (A)respect to the extent provided under any Company Plan, are substantially comparable in the aggregate to the benefits provided by the Company and its Subsidiaries under such Company Plan immediately prior to the Effective Time and (B) to the extent provided under any Continuing Employee Plan, are substantially comparable in the aggregate to the benefits provided to similarly-situated Parent employees under such Continuing Employee Plan;provided that, for the avoidance of doubt and without limiting the foregoing clauses (A) and (B), nothingMerger shall require that the aggregate level of benefits for Continuing Employees across all Company Plans and Continuing Employee Plans after the Effective Time be substantially comparable to the benefits provided prior to the Effective Time under the Company Plans; andprovided, further, that nothing shall prohibit Parent from terminating or causing the Company to terminate any Company Plan or Continuing Employee Plan following the Effective Time. Except as set forth in Section 7.07(d)(ii) of the Company Disclosure Letter, if the occurrence of the Merger or any other transactions contemplated under this Agreement would impose any limitation on the ability of the Company, the Surviving Corporation, Parent or any of their respective Affiliates to amend or terminate any Company Plan, the Company shall, to the fullest extent permitted under the terms of such Company Plan and prior to the date that such limitation would be imposed, amend such Company Plan to (i) remove such limitation and (ii) provide for such other modifications to such Company Plan as requestedpaid by Parent with such modifications to become effective as of the date immediately preceding the Closing Date.and Merger Sub when due.

(b) With respect to any “employee benefit plan,” as defined in Section 3(3) of ERISA, maintained by Parent or any of its Subsidiaries, including the Surviving Corporation, in which any Continuing Employee becomes a participant, such Continuing Employee shall receive full credit for service with the Company or any of its Subsidiaries (or predecessor employers to the extent the Company provides such past service credit) for purposes of eligibility to participate and vesting, to the same extent that such service was recognized as of the Effective Time under a comparable plan of the Company and its Subsidiaries in which the Continuing Employee participated (but not for purposes of benefit accrual under any defined benefit pension plans, special or early retirement programs, window separation programs, or similar plans which may be in effect from time to time).

(c) Parent shall waive, or cause to be waived, any pre-existing condition limitations, exclusions, actively-at-work requirements and waiting periods under any welfare benefit plan maintained by Parent or any of its Subsidiaries in which the Continuing Employees (and their eligible dependents) will be eligible to participate from and after the Effective Time, except to the extent that such pre-existing condition limitations, exclusions, actively-at-work requirements and waiting periods would not have been satisfied or waived under the comparable plan of the Company and its Subsidiaries in which the Continuing Employee participated. If a Continuing Employee commences participation in any health benefit plan of Parent or any of its Subsidiaries after the commencement of a calendar year, to the extent commercially practicable, Parent shall cause such plan to recognize the dollar amount of all co-payments, deductibles and similar expenses incurred by such Continuing Employee (and his or her eligible dependents) during such calendar year for purposes of satisfying such calendar year’s deductible and co-payment limitations under the relevant welfare benefit plans in which such Continuing Employee (and dependents) commences participation.

(d) Without limiting the generality of the foregoing, Parent shall and shall cause Surviving Corporation to (i) enter into and perform under the consulting agreements with each of the individuals listed in Section 7.07(d)(i) of the Company Disclosure Letter, in the form agreed to prior to the date hereof and (ii) continue, in accordance with their respective terms, the plans and arrangements set forth in Section 7.07(d)(ii) of the Company Disclosure Letter for the benefit of the employees who are eligible to participate therein.

(e) Nothing in this Section 7.07 shall (i) be treated as an amendment of, or undertaking to amend, any benefit plan, (ii) prohibit Parent or any of its Subsidiaries, including the Surviving Corporation, from amending or terminating any employee benefit plan or (iii) confer any rights or benefits on any person other than the parties to this Agreement.

Section 7.08.Continuation of Company’s Existence. For a period of two years following the Effective Time (a) Parent shall maintain (or shall cause to be maintained) the Surviving Corporation as a wholly owned subsidiary of Parent with the name “XTO Energy Inc.” (and shall continue the commercial use of such name) and (b) Parent shall maintain and continue (or cause to be maintained and continued) the operations of the Company’s current facilities in Fort Worth, Texas. Furthermore, so long as Company employees who as of the Effective Time work from or are based at such Fort Worth, Texas locations remain employed by Parent or any of its Subsidiaries, Parent shall retain such employees at their current location for the one-year period following the Effective Time.

ARTICLE 8

COVENANTSOF PARENTANDTHE COMPANY

The parties hereto agree that:

Section 8.018.01. . Reasonable Best Efforts.Efforts. (a) Subject to the terms and conditions of this Agreement, each of the Company and Parent shall use itstheir reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under Applicable Law to consummate the Merger and the other transactions contemplated by this Agreement, including using such reasonable best efforts in connection with (i) preparing and filing as promptly as practicable with any Governmental Authority or other Third Partythird party all documentation to effect all necessary filings, notices, petitions, statements, registrations, submissions of information, applications and other documents and (ii) obtaining and maintaining all approvals, consents, registrations, permits, authorizations and other confirmations required to be obtained from any Governmental Authority or other Third Partythird party that are necessary, proper or advisable to consummate the Merger and the other transactions contemplated by this Agreement;provided that the parties hereto understand and agree that in no event shall Parent be required (or the Company, without Parent’s prior written consent, be permitted) by this Section 8.01 or any other provision of this Agreement (A) to enter into any settlement, undertaking, consent decree, stipulation or agreement with any Governmental Authority in connection with the transactions contemplated hereby or (B) to divest or otherwise hold separate (including by establishing a trust or otherwise), or take any other action (or otherwise agree to do any of the foregoing) with respect to any of their respective Subsidiaries or any of their respective Affiliates’ businesses, assets or properties, except, in the case of either of the foregoing clause (A) or (B), to the extent such action or actions would not reasonably be expected to, individually or in the aggregate, restrict, in any material respect, or otherwise negatively and materially impact the natural gas (including natural gas liquids) exploration, production and sales businesses of the Company and its Subsidiaries, taken as a whole, or the natural gas (including natural gas liquids) exploration, production and sales businesses of Parent and its Subsidiaries, taken as a whole.Agreement.

(b) In furtherance and not in limitation of the foregoing, each of Parent and the Company shall make or cause to be made an appropriate filing of a Notification and Report Form pursuant to the HSR Act with respect to the transactions contemplated hereby as promptly as practicable and in any event within 60 days oftwenty Business Days after the date hereof. Each of Parent and the Company and Parent shall use its reasonable best efforts to supplyrespond as promptly as practicable to any inquiries received from any Governmental Authority for additional information and documentary material that may be requested pursuant to the HSR Act or any other Competition Law and use itstheir reasonable best efforts to take all other actions necessary to cause the expiration or termination of the applicable waiting periods under the HSR Act or any other Competition Law as soon as practicable. Each of Parent andparty hereto shall (i) notify the Company shall cooperate with one another in (i) the overall strategic planning for the approach to Governmental Authorities under the HSR Act or any other applicable Competition Law, (ii) the makingparties of any filings, including the initial filing under the HSR Act, (iii) the receipt of any necessary approvals and (iv) the resolution of any investigation or other inquiry of any such Governmental Authority. Parent, in consultation with the Company, shall take the lead in communicating withsubstantive communication to that party from any Governmental Authority, and, developing strategy for respondingsubject to any investigation or other inquiry by any Governmental Authority under the HSR Act or other applicable Competition Law. Notwithstanding the foregoing sentence, except as prohibited by Applicable Law, each of Parent and the Company shall promptly notifypermit the other of, and if in writing, furnish the other with copies

of (or, in the case of oral communications, advise the other of) any substantive communications with any Governmental Authority, shall consult with each other prior to taking any substantive position with respect to the filings under the HSR Act or any other Competition Law in discussions with or filing to be submitted to any Governmental Authority, shall permit the otherparties to review and discuss in advance, and consider in good faith the views of the other party in connection with, any analyses, presentations, memoranda, briefs, arguments, opinions and proposals to be submittedproposed written communication to any Governmental Authority, (ii) promptly furnish the other parties with copies of all correspondence, filings and written communications between it and its Representatives, on the one hand, and such Governmental Authority, on the other hand, with respect to filings underthis Agreement and the HSR Act or any other Competition Law, shalltransactions contemplated hereby, (iii) not agree to participate in any substantive meeting or have any substantive communicationdiscussion with any such Governmental Authority in respect of any filings, investigation or inquiry concerning any competition or antitrust matters in connection with this Agreement or the transactions contemplated hereby unless it has givenconsults with the other an opportunity to consult with itparties in advance and, to the extent permitted by such Governmental Authority, shall givegives the other partyparties the opportunity to attend and participate therein,thereat and shall coordinate with(iv) furnish the other in preparing and exchanging such information and promptly provide the other party (and its counsel)parties with copies of all correspondence, filings, and communications (and memoranda setting forth the substance thereof) between them and their Affiliates and their respective Representatives on the one hand, and any Governmental Authority or members or their respective staffs on the other hand, with respect to any competition or antitrust matters in connection with

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this Agreement. Any materials exchanged in connection with this Section 8.01 may be redacted or withheld as necessary to address reasonable privilege or confidentiality concerns, and to remove references concerning valuation or other competitively sensitive material, correspondence, presentationsand the parties may, as they deem advisable and necessary, designate any materials provided to the other under this Section 8.01 as “outside counsel only.”

(c) Without limiting this Section 8.01, but subject to the remainder of this Section 8.01(c), Parent and the Company shall use their reasonable best efforts to resist, defend against, lift or submissions (and a summaryrescind the entry of any oral presentations) made by such party withinjunction or restraining order or other order of any Governmental Authority prohibiting the parties from consummating the transactions contemplated hereby in accordance with the terms of this Agreement; provided that nothing in this Section 8.01 or anything else in this Agreement shall require Parent or any of its Subsidiaries to (and neither the Company nor any of its Subsidiaries shall, or shall offer or agree to, do any of the following without Parent’s prior written consent): (i) sell, divest or discontinue any portion of the assets, liabilities, activities, businesses or operations of Parent or its Subsidiaries existing prior to the Closing, (ii) accept any other remedy with respect to Parent’s or any of its Subsidiaries’ assets, liabilities, activities, businesses or operations, (iii) accept any other remedy with respect to the Company’s or any of its Subsidiaries’ assets, liabilities, activities, businesses or operations (collectively, “Company Activities”) that would, in case of any such other remedy for purposes of this clause (iii), represent a material restriction, limit or restraint on the ability of Parent or its Subsidiaries to conduct or engage in Company Activities after the Closing (it being understood and agreed that any remedy with respect to the Company Activities relating to the CCUS Business will represent a material restriction, limit or restraint on the ability of Parent or its Subsidiaries to conduct or engage in Company Activities after the Closing) or (iv) otherwise take or commit to take any actions with respect to Company Activities that would reasonably be expected to, either individually or in the aggregate, have a material adverse effect on the Company and its Subsidiaries (any of the actions described in the preceding clauses (i)-(iv), a “Burdensome Condition”). Notwithstanding the foregoing, at the written request of Parent, the Company shall, and shall cause its Subsidiaries to, agree to take any action that would constitute a Burdensome Condition so long as, in the case of actions described in clauses (i)-(ii) of the definition of Burdensome Condition, such action is conditioned upon the occurrence of the Closing.

(d) Parent shall, upon consultation with the Company and in consideration of the Company’s views in good faith, be entitled to direct the defense of this Agreement and the transactions contemplated hereby before any Governmental Authority and to take the lead in the scheduling of, and strategic planning for, any meetings with, and the conducting of negotiations with, Governmental Authorities regarding (i) the expiration or termination of any applicable waiting period relating to the Merger under the HSR Act or (ii) obtaining any other Competition Law relatingconsent, approval, waiver, clearance, authorization or permission from a Governmental Authority; provided, however, that it shall afford the Company a reasonable opportunity to this Agreement or the transactions contemplated hereby.participate therein.

Section 8.028.02. Certain Filings. Proxy Statement; Registration Statement.(a) As promptly as practicable,Subject to Section 8.01 and Section 8.03, the Company and Parent shall cooperate with one another in determining whether any action by or in respect of, or filing with, any Governmental Authority is required, or any actions, consents, approvals or waivers are required to be obtained from parties to any Contracts, in connection with the consummation of the transactions contemplated by this Agreement. Subject to Section 8.01 and Section 8.03, upon Parent’s written request, the Company shall use reasonable best efforts to seek any such actions, consents, approvals and waivers; provided that in no event shall the Company be required to pay, prior to the Effective Time, any fee, penalty or other consideration to any Person for any such actions, consents, approvals and waivers (unless Parent agrees to reimburse the Company).

Section 8.03. Registration Statement; Proxy Statement/Prospectus; Company Meeting. (a) Parent and the Company will jointly prepare and filecause to be filed with the Proxy Statement andSEC the Registration Statement (in which the Proxy StatementStatement/Prospectus will be included) withand the SEC. The CompanyProxy Statement/Prospectus and Parent shall use theircommercially reasonable best efforts to cause the Registration Statement to become effective under the 1933 Act as soon after such filing as practicable and to keepbe made no later than 45 days after the Registration Statement effective as long as is necessary to consummate the Merger. Subject to Section 6.03, the Proxy Statement shall include the recommendation of the Board of Directors of the Company in favor of approval and adoption of this Agreement and the Merger.date hereof. The Company, Parent and Merger Sub shall use its reasonable best efforts to causecooperate with each other in the Proxy Statement to be mailed to its stockholders, as promptly as practicable after the Registration Statement becomes effective. Eachpreparation of the Company and Parent shall use its reasonable best efforts to ensure that the Registration Statement and the Proxy Statement/Prospectus and furnish all information concerning itself and its Affiliates that is required in connection with the preparation of the Registration Statement or Proxy Statement/Prospectus. No filing of, or

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amendment or supplement to, the Registration Statement or Proxy Statement/Prospectus or response to SEC comments will be made by Parent or the Company without providing the other party a reasonable opportunity to review and comment thereon and such party shall give reasonable consideration to any comments made by the other party and its Representatives; provided, that with respect to documents filed by Parent which are incorporated by reference in the Registration Statement or Proxy Statement/Prospectus, this Company right to review shall apply only with respect to information (if any) relating to the Company’s business, financial condition or results of operations. Each of Parent and the Company shall use its commercially reasonable efforts to (i) cause the Registration Statement and the Proxy Statement/Prospectus at the date that it (and any amendment or supplement thereto) is first published, sent, or given to the stockholders of the Company and at the time of the Company Meeting, to (A) comply as to form in all material respects with the rules and regulations promulgated by the SEC underrequirements of the 1933 Act and the 1934 Act, respectively.

(b) The Company and Parent shall make all necessary filings with respect to the Merger and the transactions contemplated hereby under the 1933 Act and the 1934 Act and applicable state “blue sky” lawsrespectively, and the rules and regulations thereunder.

(c) Eachpromulgated thereunder and (B) not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the Companycircumstances under which they were made, not misleading and Parent shall provide(ii) have the Registration Statement declared effective under the 1933 Act as promptly as practicable after its filing and keep the Registration Statement effective for so long as necessary to consummate the Merger.

(b) Each party will notify the other parties and their respective counsel with (i)party promptly of the receipt of any comments or other communications, whether written or oral, that such party or its counselRepresentatives may receive from time to time from the SEC or the staff of the SEC and of any request by the SEC or the staff of the SEC for amendments or supplements to the Registration Statement or Proxy Statement/Prospectus or for additional information and each party will supply the other with copies of all correspondence between it or any of its Representatives, on the one hand, and the SEC or the staff of the SEC, on the other hand, with respect to the Proxy StatementStatement/Prospectus or the Registration Statement, as applicable, promptly after receipt of those commentstransactions contemplated hereby. Parent will take the lead in any meetings or other communications and (ii) a reasonable opportunity to participate in the response to those comments.

(d) No amendment or supplement to the Proxy Statement or the Registration Statement will be made by Parent or the Company without the approval of the other parties hereto, which approval shall not be unreasonably withheld or delayed;provided, that with respect to documents filed by a party which are incorporated by reference in the Registration Statement or Proxy Statement, this right of approval shall apply only with respect to information relating to the other party or its business, financial condition or results of operations; andprovided, further, that the Company, in connection with an Adverse Recommendation Change, may amend or supplement the Proxy Statement (including by incorporation by reference) pursuant to an amendment or supplement to the Proxy Statement (including by incorporation by reference) to the extent it contains (i) an Adverse Recommendation Change, (ii) a statement of the reasons of the Board of Directors of the Company for making such Adverse Recommendation Change and (iii) additional information reasonably related to the foregoing. Each party will advise the other parties, promptly after it receives notice thereof, of the time when the Registration Statement has become effective or any supplement or amendment has been filed, the issuance of any stop order, the suspension of the qualification of Parent Stock issuable in connectionconferences with the Merger for offering or sale in any jurisdiction, or any request by the SEC for amendment of the Proxy Statement or the Registration Statement.SEC. If at any time prior to the Effective Time,Company Meeting (or any adjournment or postponement thereof) any information relating to Parent or the Company, discovers any information relating to any

party, or any of their respective Affiliates, directors or officers, is discovered by Parent or directors,the Company that should be set forth in an amendment or supplement to the ProxyRegistration Statement or Proxy Statement/Prospectus, so that the Registration Statement so that none of those documentsor Proxy Statement/Prospectus, respectively, would not include any misstatement of a material fact or omit to state any material fact necessary to make the statements in any such document,therein, in light of the circumstances under which they were made, not misleading, the party that discovers thatsuch information shallwill promptly notify the other party hereto and an appropriate amendment or supplement describing thatsuch information shallwill be promptly filed with the SEC and, to the extent required by law or regulation,Applicable Law, disseminated to the stockholders of the Company.

(c) The Company shall use reasonable best efforts to cause the Proxy Statement/Prospectus to be mailed to the stockholders of the Company as promptly as practicable after the Registration Statement is declared effective by the SEC.

(d) The Company will, as soon as reasonably practicable following the date of this Agreement, establish a record date (and commence a broker search pursuant to Section 8.03. Public Announcements.14a-13 of the 1934 Act in connection therewith) for, and as soon as reasonably practicable following the date the Registration Statement is declared effective by the SEC, duly call, give notice of, convene and hold (no later than the 50th day following the first mailing of the Proxy Statement/Prospectus), the Company Meeting. Subject to Section 8.02,6.03, the Company shall effect the Company Board Recommendation. The Proxy Statement/Prospectus shall (subject to Section 6.03) include the Company Board Recommendation. Once the Company Meeting has been scheduled by the Company, the Company shall not adjourn, postpone, reschedule or recess the Company Meeting without the prior written consent of Parent (such consent not to be unreasonably withheld, conditioned or delayed); provided that the Company may, notwithstanding the foregoing, without the prior written consent of Parent, postpone or adjourn the Company Meeting (i) if, after consultation with Parent, the Company believes in good faith that such adjournment or postponement is reasonably necessary to solicit additional proxies for the purpose of obtaining the Requisite Company Vote, (ii) if there are not holders of a sufficient number of Company Shares present or represented by proxy at the Company Meeting to constitute a quorum at the Company Meeting and (iii) to allow reasonable additional time for the filing or mailing of any supplemental or amended disclosure that the Company

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has determined in good faith, after consultation with outside legal counsel, is reasonably likely to be required under Applicable Law and for such supplemental or amended disclosure to be disseminated and reviewed by the stockholders of the Company prior to the Company Meeting; provided, however, that the Company Meeting shall not be postponed or adjourned as a result of clause (i) or clause (ii) above for a period of more than ten Business Days in the aggregate without the prior written consent of Parent. The Company agrees that, unless this Agreement is terminated pursuant to Section 10.01, its obligations pursuant to this Section 8.03 shall not be affected by the commencement, public proposal, public disclosure or communication to the Company or any other person of any Acquisition Proposal. The Company further agrees that unless this Agreement is terminated pursuant to Section 10.01, its obligation to hold the Company Meeting shall not be affected by the making of any Adverse Recommendation Change; provided, however, that in such event the Company shall have no obligation to solicit proxies to obtain the Requisite Company Vote. The Company shall provide updates to Parent with respect to the proxy solicitation for the Company Meeting (including interim results) as reasonably requested by Parent.

Section 8.04. Public Announcements. The initial press release issued by Parent and the Company with respect to the execution of this Agreement shall be reasonably agreed upon by Parent and the Company. Thereafter, Parent and the Company shall consult with each other before issuing any press release, having any communication with the press (whether or not for attribution) or making any other public statement, or scheduling any press conference or conference call with investors or analysts, with respect to this Agreement or the transactions contemplated by this Agreementhereby and, except forin respect of any public statement or press release as may be required by Applicable Law order of a court of competent jurisdiction or any listing agreement with or rule of any national securities exchange or association (in which case, such disclosing party will endeavor, on a basis reasonable under the circumstances, to provide a meaningful opportunity to the other party to review and comment upon such public statement or press release, and, in the case of the Company, will implement any reasonable comments of Parent thereto), shall not issue any such press release or make any such other public statement or schedule any such press conference or conference call before such consultation and providing(and, in the case of the Company, without the prior written consent of Parent (not to be unreasonably withheld)). Notwithstanding the foregoing, (i) without prior consultation, each otherparty may disseminate the opportunity to review and comment upon any suchinformation included in a press release or public statement. The initial press release ofother document previously approved for external distribution by the other parties and unmodified from the version so approved, and the restrictions set forth in this Section 8.04 shall not apply in connection with any dispute between the parties announcingregarding this Agreement or the executiontransactions contemplated hereby and (ii) no provision of this Agreement shall be deemed to restrict in any manner a jointparty’s ability to communicate with its employees. The Company shall not be required by any provision of this Agreement to consult with or obtain any approval from Parent with respect to a public announcement or press release issued solely in connection with the receipt and existence of Parentan Acquisition Proposal and the Companymatters related thereto or an Adverse Recommendation Change, other than as set forth in a form that is mutually agreed.and subject to compliance with Section 6.03.

Section 8.048.05. Further Assurances. Further Assurances.At and after the Effective Time, the officers and directors of the Surviving Corporation shall be authorized to execute and deliver, in the name and on behalf of the Company or Merger Subsidiary,Sub, any deeds, bills of sale, assignments, assurances or assurancesother instruments and to take and do, in the name and on behalf of the Company or Merger Subsidiary,Sub, any other actions and things to vest, perfect or confirm of record or otherwise in the Surviving Corporation any and all right, title and interest in, to and under any of the rights, properties or assets of the Company acquired or to be acquired by the Surviving Corporation as a result of, or in connection with, the Merger.

Section 8.058.06. . Section 16 Matters. Prior to the Effective Time, the Company and Parent shall take all actions necessary to cause any dispositions of (or other transactions in) Company Shares (including derivative securities with respect to such Company Shares) resulting from the transactions contemplated by this Agreement or acquisitions of Parent Shares (including derivative securities with respect to Parent Shares) resulting from the transactions contemplated by Article 2 of this Agreement, in each case, by each officer or director who is subject to the reporting requirements of Section 16(a) of the 1934 Act with respect to the Company to be exempt under Rule 16(b)-3 under the 1934 Act.

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Section 8.07. Notices of Certain Events.Each of the Company and Parent shall promptly notify and provide copies to the other of:

(a) any written notice or other communication from any Governmental Authority alleging that the consent or approval of such Governmental Authority is required to consummate the transactions contemplated by this Agreement or written notice from any other Person alleging that the consent of such Person is or may be required to consummatein connection with the transactions contemplated by this Agreement;

(b) any notice or other communication from any Governmental Authority in connection with the transactions contemplated by this Agreement;Agreement (other than such communications contemplated in Section 8.01, which shall be governed by such Section);

(c) any Actions commenced or, to its knowledge (or, in the case of the Company or its Subsidiaries, to the Knowledge of the Company), threatened against, relating to or involving or otherwise affecting the Company or any of its Subsidiaries or Parent orand any of its Subsidiaries, as the case may be, that, if pending on the date of this Agreement, would have been required to have been disclosed pursuant to any Section of such party’s representations or warranties, as the case may be,this Agreement or that are material and relate to the consummation of the transactions contemplated by this Agreement; and

(d) Knowledge of any occurrence or event that is reasonably likely to cause an inaccuracy of any representation or warranty ofmade by that party contained in this Agreement, ator any time during the term hereofother fact, event or circumstance, that couldwould reasonably be expected to cause any condition set forth in Article 9to the Merger to not be satisfied; and

(e) Knowledge of any failure of that party to comply with or satisfy any covenant, condition or agreement that would reasonably be expected to cause any condition to the Merger to not be satisfied;

providedthat the delivery of any notice pursuant to this Section 8.058.07 shall not affect or be deemed to modify any representation or warranty made by any party hereunder or limit or otherwise affect the remedies available hereunder to the party receiving such notice.

Section 8.068.08. . Tax-free Reorganization.(a) Prior to the Effective Time, each of Parent and the Company shall use its reasonable best efforts to cause the Merger to qualify as a 368 Reorganization, and shall not take any action reasonably likely to cause the Merger not so to qualify. Provided the opinion conditions contained in Sections 9.02(d) and 9.03(b) of this Agreement have been satisfied, each of Parent and the Company shall report the Merger for U.S. federal income tax purposes as a reorganization within the meaning of Section 368(a) of the Code.

(b) Officers of Parent, Merger Subsidiary and the Company shall execute and deliver to Davis Polk & Wardwell LLP, tax counsel for Parent, and Skadden, Arps, Slate, Meagher & Flom LLP, tax counsel for the Company, Tax Representation Letters. Each of Parent, Merger Subsidiary and the Company shall use its reasonable best efforts not to take or cause to be taken any action that would cause to be untrue any portion of the Tax Representation Letters.

Section 8.07. Section 16 Matters.Prior to the Effective Time, each of Parent and the Company shall take all such steps as may be required to cause any dispositions of Company Stock (including derivative securities with respect to Company Stock) or acquisitions of Parent Stock (including derivative securities with respect to Parent Stock) resulting from the transactions contemplated by Article 2 of this Agreement by each individual who is subject to the reporting requirements of Section 16(a) of the 1934 Act with respect to the Company or will become subject to such reporting requirements with respect to Parent to be exempt under Rule 16b-3 promulgated under the 1934 Act.

Section 8.08. Stock Exchange De-listing; 1934 Act Deregistration.De-listing.Prior to the Effective Time, the Company shall cooperate with Parent and use its reasonable best efforts to take, or cause to be taken, all actions, and do or cause to be done all things, reasonably necessary, proper or advisable on its part under Applicable Laws and rules and policies of the NYSE to enable the de-listing by the Surviving Corporation of the Company StockShares from the NYSE and the deregistration of the Company Stock and other securities of the CompanyShares under the 1934 Act as promptly as practicable after the Effective Time, and in any event no more than ten days afterthereafter.

Section 8.09. Takeover Statutes. If any “control share acquisition,” “fair price,” “moratorium” or other antitakeover or similar statute or regulation shall become applicable to the transactions contemplated by this Agreement, each of the Company, Parent and Merger Sub and the respective members of their boards of directors shall, to the extent permitted by Applicable Law, use reasonable best efforts to grant such approvals and to take such actions as are reasonably necessary so that the transactions contemplated by this Agreement may be consummated as promptly as practicable on the terms contemplated herein and otherwise to take all such other actions as are reasonably necessary to eliminate or minimize the effects of any such statute or regulation on the transactions contemplated hereby.

Section 8.10. Tax Matters.

(a) The Company shall use its reasonable best efforts to deliver to Vinson & Elkins, L.L.P. (“V&E”), counsel to the Company, and Davis Polk & Wardwell LLP (“Davis Polk”), counsel to Parent, the Company Tax Representation Letter, dated as of the Closing Date.

Section 8.09. Dividends.AfterDate (and, if requested, dated as of the date the Registration Statement shall have been declared effective by the SEC), signed by an executive officer of the Company, containing representations of the Company, and Parent shall use its reasonable best efforts to deliver to V&E and Davis Polk the Parent Tax Representation Letter, dated as of the Closing Date (and, if requested, dated as of the date the Registration Statement shall have been declared effective by the SEC), signed by an executive officer of Parent, containing representations of Parent, in each case, as shall be reasonably requested in connection with any Tax opinion regarding the U.S. federal income Tax consequences of the Merger that may be contained or set forth in the Registration Statement or delivered to a party in connection with the Closing.

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(b) The parties adopt this Agreement, eachagreement as a “plan of reorganization” for purposes of Section 368 of the Code and the Treasury Regulations thereunder. Each of Parent and the Company shall coordinate(and shall cause its Subsidiaries and Affiliates to) use its reasonable best efforts (i) to cause the Merger to qualify as a “reorganization” within the meaning of Section 368(a) of the Code with respect to which Parent and the Company will each be a “party to the reorganization” within the meaning of Section 368(b) of the Code and (ii) not to, and not permit or cause any of its respective Subsidiaries or Affiliates to, take or cause to be taken any action reasonably likely to cause the Merger to fail to qualify as a “reorganization” under Section 368(a) of the Code. Each of Parent and the Company shall notify the other party promptly after becoming aware of any fact or circumstance that could reasonably be expected to cause the Merger to fail to qualify as a “reorganization” under Section 368(a) of the Code.

(c) To the extent permitted by Applicable Law, the parties shall (and shall cause their Subsidiaries and Affiliates to) report the Merger for U.S. federal, state and other applicable income Tax purposes as a “reorganization” within the meaning of Section 368(a) of the Code (and comply with all reporting and recordkeeping requirements applicable to the Merger that are prescribed by the Code, the Treasury Regulations or forms, instructions or other publications of the Internal Revenue Service, including the recordkeeping and information-filing requirements prescribed by Treasury Regulations Section 1.368-3) and take no Tax position inconsistent therewith. Notwithstanding any provision in this Agreement to the contrary, (i) it is not a condition to the Closing that the Merger qualify as a “reorganization” within the meaning of Section 368(a) of the Code and (ii) none of Parent, the Company or any Subsidiary of either shall have any liability or obligation to any holder of Company Shares should the Merger fail to qualify as a “reorganization” within the meaning of Section 368(a) of the Code.

Section 8.11. Treatment of Company Indebtedness. Prior to the Closing Date, the Company shall, as reasonably requested by Parent in writing, (i) deliver (or cause to be delivered) notices of the payoff, prepayment, discharge and termination of any outstanding Indebtedness or obligations of the Company and each applicable Subsidiary of the Company as required under the Company Credit Agreement and any other Indebtedness for borrowed money of the Company and any of its Subsidiaries (the amounts outstanding under the Company Credit Agreement and under all other Indebtedness for borrowed money of the Company and its Subsidiaries, collectively, the “Company Indebtedness Payoff Amount”), (ii) take all other actions within its reasonable control and reasonably required to facilitate the repayment of the Company Indebtedness Payoff Amount, including the termination of the commitments under the Company Credit Agreement, in each case, substantially concurrently with the Effective Time, and (iii) obtain customary payoff or termination letters or other similar evidence with respect to the declarationCompany Credit Agreement and any other Indebtedness for borrowed money of the Company and any dividendsof its Subsidiaries, in each case, in a form reasonably acceptable to Parent, at least two (2) Business Days prior to the Closing Date (which payoff letters shall be subject to customary conditions). Parent shall (x) irrevocably pay off, or cause to be paid off, at or substantially concurrently with the Effective Time, the Company Indebtedness Payoff Amount (if any) and (y) take all actions within its control to provide all customary cooperation as may be reasonably requested by the Company to assist the Company in connection with its obligations under this Section 8.11. For the avoidance of doubt, (A) the Company and its Subsidiaries shall have no obligation to make any payment in respect of Parent Stock and the Company Stock with the mutual intention and goal that holders of Parent Stock and the Company Stock shall not receive two dividendsIndebtedness Payoff Amount or fail to receive one dividend, for any quarter with respect to those shares, on the one hand, and the Parent Stock issuable in respect of those shares pursuantany notice delivered under Section (i) of this Section 8.11 prior to the Merger, onEffective Time and (B) the other.Company shall not be obligated to terminate or discharge (or make or cause to become effective any such action) the Company Credit Agreement or any other Indebtedness for borrowed money of the Company or its Subsidiaries prior to the Effective Time.

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ARTICLE 9

CONDITIONSTOTHE MERGER

Section 9.019.01. . Conditions to the Obligations of Each Party.Party. The obligations of the Company, Parent and Merger SubsidiarySub to consummate the Merger are subject to the satisfaction or waiver by each party (to the extent permitted by Applicable Law) of the following conditions:

(a) the Company Stockholder Approval shall have been obtained in accordance with Delaware Law;

(b) no injunction or other order issued by a court of competent jurisdiction or Applicable Law or legal prohibition shall be in effect which prohibitsprohibit or make illegal the consummation of the Merger;

(b) the adoption and approval of this Agreement and the transactions contemplated hereby, including the Merger, by the Requisite Company Vote shall have been obtained;

(c) (i) any applicable waiting period (or extensions thereof) under the HSR Act relating to the transactions contemplated by this Agreement(including any extension thereof) shall have expired or been terminated and (ii) the applicable waiting period under the Dutch Competition Act (Mededingingswet) of 22 May 1997, as amended, relating to the transactions contemplated by this Agreement shall have expired or an approval of the Dutch Competition Authority (Nederlandse Mededingingsautoriteit) allowing the parties to complete the Merger shall have been obtained;

terminated;

(d) all other consents and approvals of (or filings or registrations with) any Governmental Authority required in connection with the execution, delivery and performance of this Agreement shall have been obtained or made, except for (i) filings to be made after the Effective Time and (ii) any such consent, approval, filing or registration the failure of which to obtain or make would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect or a Parent Material Adverse Effect;

(e) the Registration Statement shall have been declared effective and no stop order suspending the effectiveness of the Registration Statement shall be in effect and no proceedings for such purpose shall be pending before or threatened by the SEC; and

(f)(e) the shares of Parent StockShares to be issued in the Merger shall have been approved for listing on the New York Stock Exchange,NYSE, subject to official notice of issuance.

Section 9.029.02. . Conditions to the Obligations of Parent and Merger Subsidiary.Sub. The obligations of Parent and Merger SubsidiarySub to consummate the Merger are subject to the satisfaction or waiver (to the extent permitted by Applicable Law) of the following further conditions:

(a) (i) the Company shall have performed in all material respects alleach of its obligations hereunderunder this Agreement required to be performed by it at or prior to the Effective Time;

(b) (i) the representations and warranties of the Company set forth in Sections 4.01, 4.02, 4.04(a), 4.06 (other than the first four sentences of 4.06(b)), 4.23, 4.24, 4.25 and 4.26 of this Agreement shall be true and correct in all material respects as of the date of this Agreement and at and as of the Effective Time (except to the extent any such representation or warranty expressly relates to an earlier date or period, in which case as of such date or period); (ii) the representations and warranties of the Company containedset forth in Sections 4.01, 4.02, 4.04(a), 4.05 4.06, 4.10(b), 4.24, 4.25 and 4.264.06(b) (other than the last sentence thereof) of this Agreement shall be true and correct (except for de minimis inaccuracies) in all material respects as of the date of this Agreement and at and as of the Effective Time as if made at and(except to the extent any such representation or warranty expressly relates to an earlier date or period, in which case as of such time (other than such representationsdate or period); (iii) the representation and warranties that by their terms address matters only aswarranty of another specified time, whichthe Company set forth in Section 4.10(b) of this Agreement shall be true onlyand correct in all respects as of such time), (iii) the otherdate of this Agreement; and (iv) the representations and warranties of the Company containedset forth in this Agreement or(other than those referred to in any certificate delivered by the Company pursuant hereto (disregarding all materiality and Company Material Adverse Effect qualifications contained therein)preceding clauses (i)-(iii)) shall be true and correct as of the date of this Agreement and at and as of the Effective Time as if made at and(except to the extent any such representation or warranty expressly relates to an earlier date or period, in which case as of such time (other thandate or period), except where the failure of such representations and warranties that by their terms address matters only as of another specified time, which shallto be so true only as of such time), with, solely in the case of this clause (iii), only such exceptions as haveand correct has not had, and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, in the case of clauses (i), (ii) and (iv) Parentdisregarding for this purpose all “Company Material Adverse Effect” and “materiality” qualifications contained in such representations and warranties;

(c) there shall not have occurred since the date hereof a Company Material Adverse Effect;

(d) the closing condition in Section 9.01(a) (if the Applicable Law or legal prohibition relates to any of the matters referenced in Section 9.01(c)) shall have receivedbeen satisfied without the imposition of a Burdensome Condition (including any Burdensome Condition that would come into effect at the Closing);

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(e) the closing condition in Section 9.01(c) shall have been satisfied without the imposition of a Burdensome Condition (including any Burdensome Condition that would come into effect at the Closing); and

(f) the Company shall have delivered to Parent a certificate signed by an executive officer of the Company to the foregoing effect;

(b) there shall not be pending any Action by any Governmental Authority (i) challenging or seeking to make illegal, to delay materially or otherwise directly or indirectly to prohibit the consummationdated as of the Merger, (ii) seeking to prohibit Parent’s or Merger Subsidiary’s ability effectively to exercise full rights of ownership of the Company Stock, including the right to vote any shares of Company Stock acquired or owned by Parent or Merger Subsidiary following the Effective Time on all matters properly presented to the Company’s stockholders or (iii) seeking to compel Parent, the Company or any of their respective Subsidiaries to take any action of the type described in clause (A) or (B) of the proviso to Section 8.01(a) that is not required to be effected pursuant to the terms of this Agreement;

(c) there shall not have been any Applicable Law that, after the date hereof, is enacted, enforced, promulgated or issued by any Governmental Authority, other than the application of the waiting period provisions of the HSR Act to the Merger and any applicable provisions of any other Competition Law, that, would reasonably be likely to, directly or indirectly, result in any of the consequences referred to in clauses (i) through (iii) of paragraph (b) above;

(d) Parent shall have received the opinion of Davis Polk & Wardwell LLP, counsel to Parent, in form and substance reasonably satisfactory to Parent, dated the Closing Date rendered oncertifying that the basisconditions specified in paragraphs (a), (b) and (c) of facts, representations and assumptions set forth in such opinion and the certificates obtained from officers of Parent, Merger Subsidiary and the Company, all of which are consistent with the state of facts existing as of the Effective Time, to the effect that (i) the Merger will qualify as a reorganization within the meaning of Section 368(a) of the Code and (ii) the Company and Parent will each be a “party to the reorganization” within

the meaning of Section 368(b) of the Code. In rendering the opinion described in this Section 9.02(d), Davis Polk & Wardwell LLP shall9.02 have received and may rely upon the Tax Representation Letters referred to in been satisfied.

Section 8.06(b) hereof; and

(e) Since the date hereof, there shall not have occurred and be continuing any event, occurrence, development or state of circumstances or facts which, individually or in the aggregate, has had a Company Material Adverse Effect.

Section 9.039.03. . Conditions to the Obligations of the Company.Company. The obligations of the Company to consummate the Merger are subject to the satisfaction or waiver (to the extent permitted by Applicable Law) of the following further conditions:

(a) (i) each of Parent and Merger SubsidiarySub shall have performed in all material respects alleach of itstheir obligations hereunderunder this Agreement required to be performed by itthem at or prior to the Effective Time;

(b) (i) the representations and warranties of Parent and Merger Sub set forth in Sections 5.01, 5.02 and 5.04(a) of this Agreement shall be true and correct in all material respects as of the date of this Agreement and at and as of the Effective Time (except to the extent any such representation or warranty expressly relates to an earlier date or period, in which case as of such date or period); (ii) the representations and warranties of Parent containedset forth in Sections 5.01, 5.02, 5.04(a),Section 5.05 5.06, 5.10(b), 5.15 and 5.16of this Agreement shall be true and correct (except for de minimis inaccuracies) in all material respects as of the date of this Agreement and at and as of the Effective Time as if made at and(except to the extent any such representation or warranty expressly relates to an earlier date or period, in which case as of such time (other than such representationsdate or period); (iii) the representation and warranties that by their terms address matters only aswarranty of another specified time, whichParent set forth in Section 5.11 of this Agreement shall be true and correct in all material respects only as of such time), (iii) the otherdate of the Agreement; and (iv) the representations and warranties of Parent and Merger Subsidiary containedset forth in this Agreement or(other than those referred to in any certificate delivered by Parent or Merger Subsidiary pursuant hereto (disregarding all materiality and Parent Material Adverse Effect qualifications contained therein)the preceding clauses (i)-(iii)) shall be true and correct as of the date of this Agreement and at and as of the Effective Time as if made at and(except to the extent any such representation or warranty expressly relates to an earlier date or period, in which case as of such time (other thandate or period), except where the failure of such representations and warranties that by their terms address matters only as of another specified time, which shallto be so true only as of such time), with, solely in the case of this clause (iii), only such exceptions as haveand correct has not had, and would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect, in the case of clauses (i), (ii) and (iv) disregarding for this purpose all “Parent Material Adverse Effect” and “materiality” qualifications contained in such representations and warranties;

(c) there shall not have occurred since the Companydate hereof a Parent Material Adverse Effect; and

(d) Parent shall have receiveddelivered to the Company a certificate signed by an executive officer of Parent to the foregoing effect;

(b) The Company shall have received the opiniondated as of Skadden, Arps, Slate, Meagher & Flom LLP, counsel to the Company, in form and substance reasonably satisfactory to the Company, dated the Closing Date rendered oncertifying that the basisconditions specified in paragraphs (a), (b) and (c) of facts, representations and assumptions set forth in such opinion and the certificates obtained from officers of Parent, Merger Subsidiary and the Company, all of which are consistent with the state of facts existing as of the Effective Time, to the effect that (i) the Merger will qualify as a reorganization within the meaning of Section 368(a) of the Code and (ii) the Company and Parent will each be a “party to the reorganization” within the meaning of Section 368(b) of the Code. In rendering the opinion described in this Section 9.03(b), Skadden, Arps, Slate, Meagher & Flom LLP shall9.03 have received and may rely upon the Tax Representation Letters referred to in Section 8.06(b) hereof; andbeen satisfied.

(c) Since the date hereof, there shall not have occurred and be continuing any event, occurrence, development or state of circumstances or facts which, individually or in the aggregate, has had a Parent Material Adverse Effect.

ARTICLE 10

TERMINATION

Section 10.0110.01. Termination. Termination.This Agreement may be terminated and the Merger may be abandoned at any time prior to the Effective Time (notwithstanding any approval of this Agreement by the stockholders of the Company):Time:

(a) by mutual written agreement of the Company and Parent;

(b) by either the Company or Parent, if:

(i) the MergerEffective Time has not been consummatedoccurred on or before September 15, 2010 (theJuly 13, 2024 (as such date may be extended pursuant to the following proviso, theEnd Date”);provided, that, if on the End Date anysuch date, one or more of the conditions to the Closing set forth in Sections(A) Section 9.01(a) (if the Applicable Law or legal prohibition relates to any of the matters referenced in Section 9.01(c)), (B) Section 9.01(c), 9.02(b)(C) Section 9.02(d) or 9.02(c)(D) Section 9.02(e) shall

not have been satisfied, but all other conditions to the Closing shall have been satisfied (or in the case of conditions

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that by their terms are to be satisfied at the Closing, shall be satisfied or (to the extent legally permissible) waived, or are then capable of being satisfied on such date) or waived, then either the Company or Parent may extend the End Date shall be extended to December 31, 2010;January 13, 2025 by delivery of a written notice to the other party at or prior to 11:59 p.m. New York time, on July 13, 2024; provided further, that the right to extend the End Date or terminate this Agreement pursuant to this Section 10.01(b)(i) shall not be available to any party whose breach of any provision of this Agreement results in the failure of the Merger to be consummated by such time;the End Date;

(ii) thereany Governmental Authority of competent jurisdiction shall be anyhave issued an injunction, order or decree or enacted an Applicable Law in effect that (A) prohibits or makes illegal consummation of the Merger illegal or otherwise prohibited or (B) permanently enjoins the CompanyParent or ParentMerger Sub from consummating the Merger, and, in the case of clauses (A) and (B)with respect to any suchinjunction, order, decree or Applicable Law including anreferenced in clause (A) or (B), such injunction, order, decree or Applicable Law shall have become final and nonappealable;provided that the party seeking to terminate this agreement pursuant to this Section 10.01(b)(ii) shall have fulfilled its obligations under Section 8.01; or

(iii) at the Company Stockholder Meeting (including any adjournment or postponement thereof), the Requisite Company Stockholder ApprovalVote shall not have been obtained; or

(c) by Parent, if:

(i) if (a)before the Company’s Board of Directors shall have madeRequisite Company Vote has been obtained, an Adverse Recommendation Change (b) the Company’s Board of Directors shall have failed to reaffirm the Company Board Recommendation within 10 Business Days after receipt of any written request to do so from Parent, or (c)occurred;

(ii) prior to the Company Stockholder Approval having been obtained, an intentional and material breach (x) by the Company of Section 6.03 shall have occurred that is sanctioned or permitted by the Company or (y) by the Company of the first sentence of Section 6.02 shall have occurred; or

(ii)Effective Time, a breach of any representation or warranty or failure to perform any covenant or agreement on the part of the Company set forth in this Agreement shall have occurred that would cause the conditionconditions set forth in Section 9.02(a) or Section 9.02(b) not to be satisfied and such conditionbreach or failure is incapable of being satisfiedcured by the End Date;Date or, if curable by the End Date, is not cured by the Company within 30 days after receipt by the Company of written notice of such breach or failure; provided that, at the time of the delivery of such notice or thereafter, Parent or Merger Sub shall not be in material breach of its or their obligations under this Agreement so as to cause any of the conditions set forth in Section 9.01 or Section 9.03 not to be capable of being satisfied; or

(iii) a Specified Pipeline Event has occurred; provided that such termination right hereunder shall not be available to Parent if it fails to exercise such termination right within twenty Business Days of Parent becoming aware of the occurrence of a Specified Pipeline Event; or

(d) by the Company,

(i) before the Requisite Company Vote has been obtained, in order to enter into a definitive agreement with respect to a Superior Proposal; provided that the Company shall have contemporaneously with such termination tendered payment to Parent of the Company Termination Fee pursuant to Section 11.04(b)(i); or

(ii) prior to the Effective Time, if a breach of any representation or warranty or failure to perform any covenant or agreement on the part of Parent or Merger Subsidiary set forth in this Agreement shall have occurred that would cause the conditionconditions set forth in Section 9.03(a) or Section 9.03(b) not to be satisfied and such conditionbreach or failure is incapable of being satisfiedcured by the End Date.Date or, if curable by the End Date, is not cured by Parent or Merger Sub within 30 days after receipt by Parent of written notice of such breach or failure; provided that, at the time of the delivery of such notice or thereafter, the Company shall not be in material breach of its obligations under this Agreement so as to cause any of the conditions set forth in Section 9.01 or Section 9.02 not to be capable of being satisfied.

The party desiring to terminate this Agreement pursuant to this Section 10.01 (other than pursuant to Section 10.01(a)) shall give written notice of such termination to the other party.

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Section 10.0210.02. . Effect of Termination.If this Agreement is terminated pursuant to Section 10.01, this Agreement shall become void and of no effect without liability of any party (or any stockholder, director, officer, employee, agent, consultant or representative of such party) to the other partyparties hereto;provided that, except as set forth in Section 11.04(d), if such termination shall result from (a) the intentional and willful material failurefraud of any party to perform a covenant hereof,or (b) an intentional breach by any party of its covenants or agreements hereunder, such party shall be fully liable for any and all liabilities and damages incurred or suffered by the other partyparties as a result of such failure. None of Parent, Merger Subsidiary or the Company shall be relieved or released from any liabilities or damages (which the parties acknowledge and agree shall not be limited to reimbursement of expenses or out-of-pocket costs, and may include to the extent proven the benefit of the bargain lost by a party’s stockholders (taking into consideration relevant matters, including other combination opportunities and the time value of money), which shall be deemed in such event to be damages of such party) arising out of its intentional and willful breach of any provision of this Agreement. The provisions of this Section 10.02, the final two sentences of Section 6.02 and Article 11 and(but, in the Confidentiality Agreement,case of Section 11.13, only to the extent relating to obligations required to be performed after termination) shall survive any termination hereof pursuant to Section 10.01.

ARTICLE 11

MISCELLANEOUS

Section 11.0111.01. Notices. Notices.All notices, requests and other communications to any party hereunder shall be in writing (including electronic mail (“email”) transmission, so long as a receipt of such email is requested and received) and shall be deemed given, if personally delivered or sent by overnight courier (providing proof of delivery) or facsimile transmission (with confirmation of receipt),

if to Parent, Merger Sub or, Merger Subsidiary,after the Effective Time, the Company or the Surviving Corporation, to:

Exxon Mobil Corporation

5959 Las Colinas Boulevard22777 Springwoods Village Parkway

Irving,Spring, Texas 75039-229877389-1425

Attention: Charles W. MatthewsCraig S. Morford

Facsimile No.: (972) 444-1432Email: craig.s.morford@exxonmobil.com

with a copy to (which shall not constitute notice): to:

Davis Polk & Wardwell LLP

450 Lexington Avenue

New York, New York 10017

Attention: George R. Bason, Jr.

Louis L. Goldberg

Facsimile No.: (212) 450-3800H. Oliver Smith

Shanu Bajaj

Email: louis.goldberg@davispolk.com

oliver.smith@davispolk.com

shanu.bajaj@davispolk.com

if to the Company, prior to the Effective Time, to:

XTO EnergyDenbury Inc.

810 Houston Street5851 Legacy Circle

Fort Worth,Plano, Texas 7610275024

Attention: Vaughn O. Vennerberg, IIJames S. Matthews

Facsimile No.: (817) 870-1671Email: jim.matthews@denbury.com

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with a copy to (which shall not constitute notice): to:

Skadden, Arps, Slate, MeagherVinson & FlomElkins LLP

4 Times Square845 Texas Avenue

New York, New York 10036Houston, Texas 77002

Attention: Roger S. AaronStephen M. Gill;

                 Stephen F. ArcanoDouglas E. McWilliams

                 Kenneth M. WolffD. Alex Robertson

Facsimile No.: (212) 735-2000Email: sgill@velaw.com

dmcwilliams@velaw.com

arobertson@velaw.com

or to such other address or facsimile numberemail address as such party may hereafter specify for the purpose by notice to the other parties hereto. All such notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m. on a Business Day in the place of receipt.Day. Otherwise, any such notice, request or communication shall be deemed to have been received on the next succeeding Business Day in the place of receipt.Day.

Section 11.0211.02. . Survival of Representations, Warranties, Covenants and Warranties.Agreements. The representations, warranties, covenants and warrantiesagreements contained hereinin this Agreement and in any certificate or other writing delivered pursuant hereto including any rights arising out of any breach of such representations and warranties, shall not survive the Effective Time.Time, except for (a) those covenants and agreements contained herein that by their terms apply or are to be performed in whole or in part after the Effective Time and (b) those covenants and agreements set forth in this Article 11 (but, in the case of Section 11.13, only to the extent relating to obligations required to be performed after termination).

Section 11.0311.03. . Amendments and Waivers.Waivers. (a) Any provision of this Agreement (including any Schedule hereto) may be amended or waived prior to the Effective Time if, but only if, such amendment or waiver is in

writing and is signed, in the case of an amendment, by each party to this Agreement or, in the case of a waiver, by each party against whom the waiver is to be effective;provided that after the Requisite Company Stockholder ApprovalVote has been obtained, there shall be no amendment or waiver that would require the further approval of the stockholders of the Company under Delaware Lawthe DGCL without such approval having first been obtained.

(b) No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by Applicable Law.

Section 11.0411.04. Expenses. Expenses.(a)General. Except as otherwise provided herein, all costs and expenses incurred in connection with this Agreement shall be paid by the party incurring such cost or expense.

(b)Company Termination Fee. If a Company Payment Event (as hereinafter defined) occurs, the Company shall pay Parent (by wire transfer of immediately available funds), within five Business Days following such Company Payment Event, a fee of $900 million. “Company Payment Event” means:

(i) the termination ofIf this Agreement is terminated by (x) Parent pursuant to Section 10.01(c)(i); or (y) the Company pursuant to Section 10.01(d)(i), then the Company shall pay to Parent in immediately available funds $144,000,000 (the “Company Termination Fee”), in the case of a termination by Parent, within three Business Days after such termination and, in the case of a termination by the Company, contemporaneously with and as a condition to such termination.

(ii) If (A) the termination of this Agreement is terminated by Parent or the Company pursuant to (1) Section 10.01(b)(i) and the Company Stockholder Meeting had not been held on or prior to the fifth Business Day prior to the date of such termination (unless such Company Stockholder Meeting had not been held due to a material breach by Parent of Section 5.09 or 8.02 hereof) or (2) Section 10.01(b)(iii), (B) an Acquisition Proposal shall have been publicly announced after the date of this Agreement and prior to such termination, and suchan Acquisition Proposal shall not have been publicly and unconditionally withdrawn onannounced or prior to (x) in the case of the foregoing clause (A)(1), the fifth Business Day prior to such termination and (y) in the case of the foregoing clause (A)(2), the fifth Business Day priorotherwise been communicated to the Company Stockholder Meetingstockholders and (C) within 12 months following the date of such termination, the Company or any of its Subsidiaries shall have entered into a definitive agreement with respect to or recommended to its stockholders an Acquisition Proposal or an Acquisition Proposal shall have been consummated (provided that for purposes of this clause (C), each reference to “30%“20%” in the definition of Acquisition Proposal shall be deemed to be a reference to “50%”)., then the Company shall pay to Parent in immediately available funds, prior to or concurrently with the occurrence of the applicable event described in clause (C), the Company Termination Fee.

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(iii) If (A) this Agreement is terminated by Parent pursuant to Section 10.01(c)(ii), (B) after the date of this Agreement and prior to such termination, an Acquisition Proposal shall have been publicly announced or otherwise been communicated to the Company Board and (C) within 12 months following the date of such termination, the Company or any of its Subsidiaries shall have entered into a definitive agreement with respect to or recommended to its stockholders an Acquisition Proposal or an Acquisition Proposal shall have been consummated (provided that for purposes of this clause (C), each reference to “20%” in the definition of Acquisition Proposal shall be deemed to be a reference to “50%”), then the Company shall pay to Parent in immediately available funds, prior to or concurrently with the occurrence of the applicable event described in clause (C), the Company Termination Fee.

(iv) For the avoidance of doubt, the Company Termination Fee shall only be payable by the Company once hereunder.

(c) Parent Pipeline Termination Fee. If this Agreement is terminated pursuant to Section 10.01(c)(iii), Parent shall pay the Company, contemporaneously with and as a condition to such termination, a termination fee of $144,000,000 (the “Parent Pipeline Termination Fee”), in immediately available funds.

(d) Each party agrees that notwithstanding anything in this Agreement to the contrary (other than with respect to claims for, or arising out of or in connection with, fraud by any party or a willful breach by any party of its covenants or agreements hereunder), (i) in the event that any Termination Fee is paid to a party in accordance with this Section 11.04, the payment of such Termination Fee (including, if any, the costs or expenses payable pursuant to Section 11.04(e)) shall be the sole and exclusive remedy of such party, its subsidiaries, shareholders, Affiliates, officers, directors, employees and Representatives against the other party or any of its Representatives or Affiliates for, and (ii) in no event will the party being paid any Termination Fee or any other such person seek to recover any other money damages or seek any other remedy based on a claim in law or equity with respect to, in each case of clause (i) and (ii), (A) any loss suffered, directly or indirectly, as a result of the failure of the Merger to be consummated, (B) the termination of this Agreement, (C) any liabilities or obligations arising under this Agreement, or (D) any claims or actions arising out of or relating to any breach, termination or failure of or under this Agreement, and (iii) upon payment of any Termination Fee (including, if any, the costs or expenses payable pursuant to Section 11.04(e)) in accordance with this Section 11.04, no party nor any Affiliates or Representatives of any party shall have any further liability or obligation to the other party relating to or arising out of this Agreement or the transactions contemplated hereby; provided that payment of the Termination Fee shall not shall relieve either party from any liability or obligation under the Confidentiality Agreement.

(e) Other Costs and Expenses. The Company acknowledgesparties acknowledge that the agreements contained in this Section 11.04 are an integral part of the transactions contemplated by this Agreement and that, without these agreements, Parent and Merger Subsidiarythe other parties would not enter into this Agreement. The parties agree that the applicable Termination Fee is liquidated damages and not penalties, and the payment of such Termination Fee in the circumstances specified herein is supported by due and sufficient consideration. Accordingly, if the Company or Parent, as the case may be, fails promptly to timely pay any amountan applicable Termination Fee, due to Parent pursuant to this Section 11.04 it shall also pay any costs and, expenses actually incurred byin order to obtain such payment, either Parent or Merger Subsidiary in connection withthe Company, as the case may be, commences a legal action to enforce this Agreementsuit against the other party that results in a judgment againstfor the Company forpayment of the applicable Termination Fee, the party paying such amount, together withfee shall also pay to the other party interest on the amount of any unpaidsuch fee cost or expense at the publicly announcedannual rate equal to the prime rate, of Citibank, N.A. fromas published in The Wall Street Journal in effect on the date such fee, cost or expensepayment was required to be paid to (but excluding)made, through the date such payment date.was actually received, or such lesser rate as is the maximum permitted by Applicable Law.

(d) In the event of a termination of this Agreement under the circumstances giving rise to a Company Payment Event, any payment by the Company under this Section 11.04 shall be the sole and exclusive remedy of Parent and its Subsidiaries for damages against the Company with respect to this Agreement and the transactions contemplated hereby. In no event shall the Company be required to pay any amounts due to Parent pursuant to this Section  11.04 on more than one occasion.

Section 11.0511.05. . Disclosure LetterSchedule and SEC Document References.(a) The parties hereto agree that any reference in a particular Section of either the Company Disclosure LetterSchedule or the Parent Disclosure LetterSchedule shall only be deemed to be an exception to (or, as applicable, a disclosure for purposes of) (i) the representations and warranties (or covenants, as applicable) of the relevant party that are contained in the corresponding Section of this Agreement and (ii) any other representations and warranties of the such party that is contained in this Agreement (regardless of the absence of an express reference or cross-reference in a particular Section of this Agreement or

a particular Section of either the Company Disclosure Letter or Parent Disclosure Letter),A-61


Agreement, but only if the relevance of that reference as an exception to (or a disclosure for purposes of) such representations and warranties would be readily apparent. The mere inclusion of an item in the Company Disclosure Schedule or the Parent Disclosure Schedule as an exception to a representation or warranty (or covenant, as applicable) shall not be deemed an admission that such item represents a material exception or material fact, event or circumstance or that such item has had or would reasonably apparent.be expected to have a Company Material Adverse Effect or a Parent Material Adverse Effect, respectively.

(b) The parties hereto agree that any information contained in any part of any Filed Company SEC Document or Filed Parent SEC Document filed with or furnished to the SEC and publicly available since January 1, 2022 through the Business Day prior to the date of this Agreement shall only be deemed to be an exception to (or a disclosure for purposes of) the applicable party’s representations and warranties if the relevance of that information as an exception to (or a disclosure for purposes of) such representations and warranties would be reasonably apparent;providedreadily apparent to a person who has read that except for any specific factual information contained therein, in no event shall any information contained in any part of any Filed Company SEC Document or Filed Parent SEC Document entitled “Risk Factors” (or words of similar import) or containing a description or explanation of “Forward-Looking Statements” be deemed to be an exception to (or a disclosure for purposes of) anyconcurrently with such representations and warranties, without any independent knowledge on the part of any party contained in this Agreement.the reader regarding the matter(s) so disclosed.

Section 11.0611.06. . Binding Effect; Benefit; Assignment.Assignment. (a) The provisions of this Agreement shall be binding upon and, except as provided in Section 7.05,7.03, shall inure to the benefit of the parties hereto and their respective successors and assigns. Except as provided in Section 7.05,7.03 and for the provisions of Article 2 (including, for the avoidance of doubt, the right of former holders of Company equity securities to receive the consideration to which they are entitled under Article 2), no provision of this Agreement is intended to confer any rights, benefits, remedies, obligations or liabilities hereunder upon any Person other than the parties hereto and their respective successors and assigns. It is specifically intended that the Indemnified Persons are third party beneficiaries of Section 7.03.

(b) No party may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement without the prior written consent of each other party hereto, except that prior to the time that the Proxy Statement/Prospectus is mailed to the Company’s stockholders, Parent ormay designate, by written notice to the Company, another wholly owned Subsidiary in lieu of Merger Sub, in which event all references herein to Merger Sub shall be deemed references to such other Subsidiary may transfer or assign its rights and obligations under this Agreement, in whole or from timeall representations and warranties made herein with respect to time in part,Merger Sub shall be deemed representations and warranties with respect to (i) one or moresuch other Subsidiary as of their Affiliates at any time and (ii) after the Effective Time, to any Person;date of such designation; provided that any such transferassignment or assignment described in clause (i) or (ii)designation shall not relieve Parentand would not reasonably be expected to impede or delay the consummation of the Merger Subsidiaryor the other transactions contemplated hereby or otherwise materially impair or impede the rights of its obligations hereunderthe Company’s stockholders under this Agreement. Any purported assignment, delegation or enlarge, alter or change any obligationother transfer in violation of any other party hereto or due to Parent or Merger Subsidiary.this Section 11.06 shall be void.

Section 11.0711.07. Governing Law. Governing Law.This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to the conflicts of law rules of such state.

Section 11.0811.08. . Jurisdiction.The parties hereto agree that any suit, Action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby (whether brought by any party or any of its Affiliates or against any party or any of its Affiliates) shall be brought in the Delaware Chancery Court or, if such court shall not have jurisdiction, any federal court located in the State of Delaware or other Delaware state court, and each of the parties hereby irrevocably consents to the exclusive jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, Action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, Action or proceeding in any such court or that any such suit, Action or proceeding brought in any such court has been brought in an inconvenient forum. Process in any such suit, Action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 11.01 shall be deemed effective service of process on such party.

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Section 11.0911.09. . WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

Section 11.1011.10. Counterparts; Effectiveness. Counterparts; Effectiveness.This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.instrument, it being understood that the parties need not sign the same counterpart. Any such counterpart, to the extent delivered by fax or .pdf, .tif, .gif, ..jpg or similar attachment to electronic mail (any such delivery, an “Electronic Delivery”), will be treated in all manner and respects as an original executed counterpart and will be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. This Agreement shall become effective when each party hereto shall have received a counterpart hereof signed (including by electronic signature) by all of the other parties hereto. Until and unless each party has received a counterpart hereof

signed (including by electronic signature) by the other party hereto, this Agreement shall have no effect and no party shall have any right or obligation hereunder (whether by virtue of any other oral or written agreement or other communication). No party may raise the use of an Electronic Delivery to deliver a signature, or facsimile signatures shall be deemedthe fact that any signature or agreement or instrument was transmitted or communicated through the use of an Electronic Delivery, as a defense to be original signatures.the formation of a contract, and each party forever waives any such defense, except to the extent such defense relates to lack of authenticity.

Section 11.1111.11. Entire Agreement. Entire Agreement.This Agreement (including the Company Disclosure Schedule and the Parent Disclosure Schedule) and the Confidentiality Agreement and the exhibits, schedules and annexes hereto constitute the entire agreement between the parties with respect to theirthe subject matter of this Agreement and supersedes all prior agreements and understandings, both oral and written, between the parties with respect to thatthe subject matter.matter of this Agreement.

Section 11.1211.12. Severability. Severability.If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other Governmental Authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereby, taken as a whole, is not affected in any manner materially adverse to any party. Upon such a determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

Section 11.1311.13. . Specific Performance.The parties hereto agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with theits terms, hereof and that monetary damages, even if available, would not be an adequate remedy therefor. Accordingly, the parties shall be entitled to an injunction or injunctions, or any other form of equitable relief, to prevent breaches of this Agreement or to enforce specifically the performance of the terms and provisions hereof in any federal court locatedthe courts referred to in the State of Delaware or any Delaware state court,Section 11.08, in addition to any other remedy to which they aremay be entitled at law or in equity. Each party hereto accordingly agrees (i) the non-breaching party will be entitled to injunctive and other equitable relief, without proof of actual damages and (ii) the alleged breaching party will not raise any objections to the availability of the equitable remedy of specific performance to prevent or restrain breaches or threatened breaches of, or to enforce compliance with, the covenants and obligations of such party under this Agreement and will not plead in defense thereto that there are adequate remedies at law, all in accordance with the terms of this Section 11.13. The parties further agree to waive any requirement for the securing or posting of any bond or similar instrument in connection with such remedy (and each party hereto irrevocably waives any right it may have to require the securing or posting of any such bond or similar instrument), and that such remedy shall be in addition to any other remedy to which a party is entitled at law or in equity.

[The remainder of this page has been intentionally left blank; the next

page is the signature page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the date set forth on the cover page of this Agreement.

 

XTO ENERGYDENBURY INC.
By: 

/s/ BOB R. SIMPSON        Christian S. Kendall

 Name: Bob R. SimpsonChristian S. Kendall
 Title: Chairman of the BoardPresident and FounderChief Executive Officer

EXXON MOBIL CORPORATION
By: 

/s/ REX W. TILLERSON        Dan Ammann

 Name: 

Rex W. Tillerson

Dan Ammann
 Title: Chairman of the BoardVice President

EXXONMOBIL INVESTMENT
EMPF CORPORATION
By: 

/s/ WILLIAM M. COLTON        Scott Darling

 Name: 

William M. Colton

Scott Darling
 Title: President

Annex B

 

LOGO

745 Seventh Avenue

New York, NY 10019

United States

December 13, 2009

Board of Directors

XTO Energy Inc.

810 Houston Street, Suite 2000

Fort Worth, Texas 76102-6298

Members of the Board:

We understand that XTO Energy Inc. (“XTO”) intends[Signature Page to enter into a transaction (the “Proposed Transaction”) with Exxon Mobil Corporation (“ExxonMobil”) pursuant to which (i) ExxonMobil Investment Corporation (“Merger Sub”), a wholly-owned subsidiary of ExxonMobil, will merge with and into XTO with XTO surviving the merger (the “Merger”), as a wholly-owned subsidiary of ExxonMobil, and (ii) upon effectiveness of the Merger, each share of issued and outstanding common stock of XTO (“XTO Common Stock”) (other than shares to be cancelled pursuant to the Agreement (as defined below)) will be converted into the right to receive 0.7098 shares (the “Exchange Ratio”) of the common stock of ExxonMobil (“ExxonMobil Common Stock”). The terms and conditions of the Merger are set forth in the Agreement and Plan of Merger dated DecemberMerger]


Annex B

Execution Version

Privileged & Confidential

July 13, 2009 by and among XTO, ExxonMobil and Merger Sub (the “Agreement”) and the summary2023

The Board of the Proposed Transaction set forth above is qualified in its entirety by the termsDirectors

Denbury Inc.

5851 Legacy Circle

Plano, Texas 75024

Members of the Agreement.

We have been requested by the Board of Directors of XTO to renderDirectors:

You have requested our opinion with respectas to the fairness, from a financial point of view, to XTO’s stockholdersthe holders of common stock, par value $0.001 per share (the “Company Common Stock”), of Denbury Inc. (the “Company”) of the Exchange RatioConsideration (as defined below) to be paid to such holders in the Proposed Transaction.proposed merger (the “Transaction”) of the Company with a wholly-owned subsidiary of Exxon Mobil Corporation (the “Acquiror”). Pursuant to the Agreement and Plan of Merger dated as of July 13, 2023 (the “Agreement”) by and among the Company, the Acquiror and its wholly-owned subsidiary, EMPF Corporation (“Merger Sub”), Merger Sub will merge with and into the Company with the Company surviving the Transaction as a wholly-owned subsidiary of the Acquiror, and each share of Company Common Stock outstanding immediately prior to the Effective Time (as defined in the Agreement), other than shares of Company Common Stock held by the Company as treasury stock (other than Company Common Stock subject to or issuable in connection with any of the Company’s Employee Plans (as defined in the Agreement) or owned by the Acquiror or Merger Sub or held by any subsidiary of either the Company or the Acquiror (other than Merger Sub), will be converted into the right to receive 0.840 of a share (the “Consideration”) of the Acquiror’s common stock, without par value (the “Acquiror Common Stock”).

In connection with preparing our opinion, we have (i) reviewed the Agreement; (ii) reviewed certain publicly available business and financial information concerning the Company and the industries in which it operates; (iii) compared the financial and operating performance of the Company with publicly available information concerning certain other companies we deemed relevant and reviewed the current and historical market prices of the Company Common Stock and the Acquiror Common Stock and certain publicly traded securities of such other companies; (iv) reviewed certain internal financial analyses and forecasts prepared by the management of the Company relating to the Company’s business (including the financial projections identified to us by the Company as the “Strip Pricing through 2027E Base Case,” the “Strip Pricing through 2027E CCUS Delay Case,” the “Strip Pricing through 2025E Base Case,” the “Strip Pricing through 2025E CCUS Delay Case,” the “Consensus Pricing through 2025E Base Case,” the “Consensus Pricing through 2025E CCUS Delay Case,” the “3-Year Historical Spot Price Average Base Case” and the “3-Year Historical Spot Price Average CCUS Delay Case”); and (v) performed such other financial studies and analyses and considered such other information as we deemed appropriate for the purposes of this opinion.

In addition, we have held discussions with certain members of the management of the Company and the Acquiror with respect to certain aspects of the Transaction, and the past and current business operations of the Company, the financial condition and future prospects and operations of the Company, and certain other matters we believed necessary or appropriate to our inquiry.

In giving our opinion, we have relied upon and assumed the accuracy and completeness of all information that was publicly available or was furnished to or discussed with us by the Company and the Acquiror or otherwise reviewed by or for us. We have not independently verified any such information or its accuracy or completeness and, pursuant to our engagement letter with the Company, we did not assume any obligation to undertake any such independent verification. We have not conducted or been requestedprovided with any valuation or appraisal of any assets or liabilities, nor have we evaluated the solvency of the Company or the Acquiror under any state or federal laws relating to opinebankruptcy, insolvency or similar matters. In relying on financial analyses and forecasts

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provided to us or derived therefrom, we have assumed that they have been reasonably prepared based on assumptions reflecting the best currently available estimates and judgments by management as to the expected future results of operations and financial condition of the Company to which such analyses or forecasts relate. For purposes of our opinion does not in any manner address, XTO’s underlying business decision (i)and financial analyses, the Company’s Board of Directors directed us to proceed withuse the “Strip Pricing through 2027E Base Case” and the “Strip Pricing through 2025E Base Case.” We express no view as to such analyses or effectforecasts or the Proposedassumptions on which they were based or as to such direction by the Company’s Board of Directors. We have also assumed that the Transaction or (ii) to enter into or consummateand the Proposed Transaction at any particular time now orother transactions contemplated by the Agreement will qualify as a tax-free reorganization for United States federal income tax purposes, and will be consummated as described in the future. In addition,Agreement. We have also assumed that the representations and warranties made by the Company and the Acquiror in the Agreement and the related agreements are and will be true and correct in all respects material to our analysis. We are not legal, regulatory or tax experts and have relied on the assessments made by advisors to the Company with respect to such issues. We have further assumed that all material governmental, regulatory or other consents and approvals necessary for the consummation of the Transaction will be obtained without any adverse effect on the Company or on the contemplated benefits of the Transaction.

Our opinion is necessarily based on economic, market and other conditions as in effect on, and the information made available to us as of, the date hereof. It should be understood that subsequent developments may affect this opinion and that we do not have any obligation to update, revise, or reaffirm this opinion. Our opinion is limited to the fairness, from a financial point of view, of the Consideration to be paid to the holders of the Company Common Stock in the proposed Transaction and we express no opinion on, and our opinion does not in any manner address,as to the fairness of any consideration to be paid in connection with the Transaction to the holders of any other class of securities, creditors or other constituencies of the Company or as to the underlying decision by the Company to engage in the Transaction. Furthermore, we express no opinion with respect to the amount or the nature of any compensation to any officers, directors, or employees of any partiesparty to the Proposed Transaction, or any class of such persons relative to the considerationConsideration to be offeredpaid to the stockholdersholders of XTOthe Company Common Stock in the Proposed Transaction.

In arriving at our opinion, we reviewed and analyzed: (1) the Agreement and the specific terms of the Proposed Transaction; (2) publicly available information concerning XTO and ExxonMobil that we believe to be relevant to our analysis, including, without limitation, each of XTO’s and ExxonMobil’s Annual Reports on Form 10-K for the fiscal year ended December 31, 2008 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2009, June 30, 2009 and September 30, 2009; (3) financial and operating informationTransaction or with respect to the business, operations and prospectsfairness of XTO furnishedany such compensation. We are expressing no opinion herein as to us by XTO; (4)the price at which the Company Common Stock or the Acquiror Common Stock will trade at any future time.

We have acted as financial and operating informationadvisor to the Company with respect to the business, operationsproposed Transaction and prospectswill receive a fee from the Company for our services, a substantial portion of ExxonMobilwhich will become payable only if the proposed Transaction is consummated. In addition, the Company has agreed to indemnify us for certain liabilities arising out of our engagement. During the two years preceding the date of this letter, we and our affiliates have had commercial or investment banking relationships with the Company and the Acquiror, for which we and such affiliates have received customary compensation. Such services during such period for the Company have included acting as furnishedjoint lead arranger and joint lead bookrunner on a credit facility of the Company in May 2022, and such services during such period for the Acquiror have included acting as joint lead arranger and joint bookrunner on a credit facility of the Acquiror in August 2021. In addition, our commercial banking affiliate is an agent bank and a lender under outstanding credit facilities of the Company for which it receives customary compensation or other financial benefits. In addition, we and our affiliates hold, on a proprietary basis, less than 1% of the outstanding Company Common Stock and the Acquiror Common Stock. In the ordinary course of our businesses, we and our affiliates may actively trade the debt and equity securities or financial instruments (including derivatives, bank loans or other obligations) of the Company or the Acquiror for our own account or for the accounts of customers and, accordingly, we may at any time hold long or short positions in such securities or other financial instruments.

On the basis of and subject to usthe foregoing, it is our opinion as of the date hereof that the Consideration to be paid to the holders of the Company Common Stock in the proposed Transaction is fair, from a financial point of view, to such holders.

The issuance of this opinion has been approved by ExxonMobil; (5) consensus estimates published by First Calla fairness opinion committee of independent equity research analystsJ.P. Morgan Securities LLC. This letter is provided to the Board of Directors of the Company (in its capacity as such) in connection with and

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for the purposes of its evaluation of the Transaction. This opinion does not constitute a recommendation to any shareholder of the Company as to how such shareholder should vote with respect to (i) the future financial performance of XTO (the “XTO Research Projections”) and (ii) the future financial performance of ExxonMobil (the “ExxonMobil Research Projections”); (6) estimates of certain (i) proved reserves, as of December 31, 2008,Transaction or any other matter. This opinion may not be disclosed, referred to, or communicated (in whole or in part) to any third party for XTO as prepared by a third-party reserve engineer (the “XTO Year-End 2008 Engineered Proved Reserve Report”), (ii) proved reserves, as of December 31, 2008, for XTO prepared by the management of XTO based upon the XTO Year-End 2008 Engineered Proved Reserve Report adjusted for different commodity price assumptions (the “Price Adjusted XTO Year-End 2008 Proved Reserve Report”) and (iii) proved reserves, as of December 31, 2009, for XTO based upon a roll-forwardany purpose whatsoever except with our prior written approval. This opinion may be reproduced in full in any proxy or information statement mailed to shareholders of the Price Adjusted XTO Year-End 2008 Proved Reserve Report and XTO management guidance ((i) through

Company but may not otherwise be disclosed publicly in any manner without our prior written approval.

Page 2 of 4Very truly yours,

LOGOJ.P. MORGAN SECURITIES LLC

J.P. Morgan Securities LLC

 

(iii) collectively,

LOGO

V607855

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Annex C

LOGO

July 13, 2023

The Board of Directors

Denbury Inc.

5851 Legacy Circle

Plano, Texas 75024

Members of the “XTO Reserve Reports”Board:

We understand that Denbury Inc. (the “Company); (7) estimates, Exxon Mobil Corporation (“Parent”), and EMPF Corporation, a wholly-owned subsidiary of certain current non-proved reserve potential for XTOParent (“Merger Sub”), propose to enter into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which, among other things, Merger Sub will merge (the “Merger”) with and into the Company, as estimateda result of which the Company will become a wholly-owned subsidiary of Parent, and each share of common stock, par value $0.001 per share (the “Company Common Stock”), of the Company outstanding immediately prior to the effective time of the Merger, other than shares that are held as treasury stock (other than shares subject to or issuable in connection with an Employee Plan (as defined in Merger Agreement) of the Company or are owned by Parent or Merger Sub or held by any subsidiary of either the managementCompany or the Parent (other than Merger Sub) immediately prior to the effective time of XTOthe Merger), will be converted into the right to receive 0.840 shares (the “Merger Consideration”) of common stock, without par value (the “Parent Common Stock”), of Parent. The terms and classified byconditions of the management of XTO between (i) “Low-Risk Upside Resource Potential” and (ii) “Additional Resource Potential” based upon the level of risk inherentMerger are more fully set forth in the resources ((i) through (ii) collectively,Merger Agreement.

You have requested our opinion as to the “XTO Non-Proved Resource Potential”); (8)fairness from a financial point of view to the trading historiesholders of XTOoutstanding shares of Company Common Stock (other than Parent and ExxonMobil Common Stock from December 13, 2004 to December 11, 2009 and a comparison of those trading histories with each other and with those of other companies that we deemed relevant; (9) a comparisonits affiliates) of the historical financial results and present financial condition of XTO and ExxonMobil with each other and with those of other companies that we deemed relevant; (10) a comparisonMerger Consideration to be received by such holders in the proposed Merger pursuant to the Merger Agreement.

For purposes of the financial terms of the Proposed Transaction with the financial terms of certain other transactions that we deemed relevant; (11) the relative contributions of XTO and ExxonMobil to the current and future financial performance of the combined company on a pro forma basis and (12) certain strategic alternatives available to XTO. In addition,opinion set forth herein, we have, (i) had discussionsamong other things:

1.

reviewed certain publicly available financial statements and other publicly available business and financial information with respect to the Company and Parent, including equity research analyst reports;

2.

reviewed certain internal financial statements, analyses and forecasts (the “Company Forecasts”) and other internal financial information and operating data relating to the business of the Company, in each case, prepared by management of the Company and approved for our use by management of the Company (including the financial projections identified to us by the Company as a “Strip Pricing through 2027E Base Case,” a “Strip Pricing through 2027E CCUS Delay Case,” a “Strip Pricing through 2025E Base Case,” a “Strip Pricing through 2025E CCUS Delay Case,” a “Consensus Pricing through 2025E Base Case,” a “Consensus Pricing through 2025E CCUS Delay Case,” a “3-Year Historical Spot Price Average Base Case” and a “3-Year Historical Spot Price Average CCUS Delay Case”);

3.

discussed the past and current business, operations, financial condition and prospects of the Company and the combined company with senior management of the Company, the Board of Directors of the Company, and other representatives and advisors of the Company;

Heritage Plaza | 1111 Bagby, Suite 4900 | Houston, Texas 77002 | www.TPHco.com

TPH & Co. is the managementsenergy business of XTO and ExxonMobil concerning their respective businesses, operations, assets, financial conditions, reserves, production profiles, hedging levels, commodity prices, development programs, exploration programs and prospects and (ii) undertaken such other studies, analyses and investigations as we deemed appropriate.Perella Weinberg Partners LP, a registered broker-dealer, Members FINRA/SIPC

In arriving

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LOGO

4.

discussed with members of the senior management of the Company their assessment of the strategic rationale for, and the potential benefits of, the Merger;

5.

compared the financial performance of the Company with that of certain publicly-traded companies which we believe to be generally relevant;

6.

compared the financial terms of the Merger with the publicly available financial terms of certain transactions which we believe to be generally relevant;

7.

reviewed the historical trading prices and trading activity for the Company Common Stock and compared such price and trading activity with that of securities of certain publicly-traded companies which we believe to be generally relevant;

8.

participated in discussions among representatives of the Company and Parent and their respective advisors;

9.

took into account the results of our efforts on behalf of the Company to solicit, at the direction of the Company, indications of interest and proposals from third parties with respect to a potential acquisition of the Company;

10.

reviewed a draft of the Merger Agreement dated July 13, 2023; and

11.

conducted such other financial studies, analyses and investigations, and considered such other factors, as we have deemed appropriate.

For purposes of our opinion, we have assumed and relied upon, the accuracy and completeness of the financial and other information used by us without assuming any responsibility for independent verification, the accuracy and completeness of suchall of the financial, accounting, legal, tax, regulatory and other information provided to, discussed with or reviewed by us (including information that was available from public sources) and have further relied upon the assurances of management of the managements of XTO and ExxonMobilCompany that they are not aware of any facts or circumstances that would make such information inaccurate or misleading. Wemisleading in any material respect. With respect to the Company Forecasts, we have not been provided with, and did not have any access to, financial projections of XTO as preparedadvised by the management of XTO. Accordingly, upon the advice of XTO, weCompany and have assumed, with your consent, that they have been reasonably prepared on bases reflecting the XTO Research Projections are a reasonable basis upon whichbest currently available estimates and good faith judgments of management of the Company as to evaluate the future financial performance of XTOthe Company and the other matters covered thereby and we have used such projections in performing our analysis. In addition, forexpress no view as to the reasonableness of the Company Forecasts or the assumptions on which they are based. For purposes of our opinion and financial analyses, the Company’s Board of Directors directed us to use the “Strip Pricing through 2027E Base Case” and the “Strip Pricing through 2025E Base Case.” In particular, the Company Forecasts reflect certain assumptions regarding the industries or areas in which the Company operates that are subject to significant uncertainty and that, if different than assumed, could have a material impact on our analysis and due to the limited scope of the XTO Research Projections, we also have considered projections of XTO that we have prepared in consultation with the management of XTO. We have discussed these projections with the management of XTO and, based upon advice of XTO management, we have assumed that such projections are a reasonable basis upon which to evaluate the future performance of XTO, and management of XTO has agreed with the appropriateness of the use of such adjusted projections in performing our analysis. We have not been provided with, and did not have any access to, financial projections of ExxonMobil prepared by the management of ExxonMobil. Accordingly, upon the advice of XTO, we have assumed that the ExxonMobil Research Projections are a reasonable basis upon which to evaluate the future financial performance of ExxonMobil and that ExxonMobil will perform substantially in accordance with such estimates. With respect to the XTO Reserve Reports, we have discussed these reports with the management of XTO and, upon the advice of XTO, we have assumed that the XTO Reserve Reports are a reasonable basis upon which to evaluate the proved reserve levels of XTO. With respect to the XTO Non-Proved Resource Potential, we have discussed these estimates with the management of XTO and, upon the advice of XTO, we have assumed that the XTO Non-Proved Resource Potential is a reasonable basis upon which to evaluate the non-proved resource levels of XTO.this opinion. In arriving at our opinion, we have not made or been provided with any independent valuation or appraisal of the assets or liabilities (including any contingent, derivative or off-balance-sheet assets or liabilities) of the Company, Parent or any of their respective subsidiaries. We have not assumed any obligation to conduct, nor have we conducted, aany physical inspection of the properties andor facilities of XTOthe Company, Parent or ExxonMobil and have not made or obtained any evaluations or appraisals of the assets or liabilities of XTO or ExxonMobil.other party. In addition, you have not authorized us to solicit, and we have not solicited,evaluated the solvency of any indicationsparty to the Merger Agreement, or the impact of interestthe Merger thereon, including under any applicable laws relating to bankruptcy, insolvency or similar matters.

Heritage Plaza | 1111 Bagby, Suite 4900 | Houston, Texas 77002 | www.TPHco.com

TPH & Co. is the energy business of Perella Weinberg Partners LP, a registered broker-dealer, Members FINRA/SIPC

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We have assumed that the final Merger Agreement will not differ from the draft of the Merger Agreement reviewed by us in any thirdrespect material to our analysis or this opinion. We have also assumed that (i) the representations and warranties of all parties to the Merger Agreement and all other related documents and instruments that are referred to therein are true and correct in all respects material to our analysis and this opinion, (ii) each party to the Merger Agreement and such other related documents and instruments will fully and timely perform all of the covenants and agreements required to be performed by such party in all respects material to our analysis and this opinion, and (iii) the Merger will be consummated in a timely manner in accordance with the terms set forth in the Merger Agreement, without any modification, amendment, waiver or delay that would be material to our analysis or this opinion. In addition, we have assumed that in connection with the receipt of all approvals and consents required in connection with the proposed Merger, no delays, limitations, conditions or restrictions will be imposed that would be material to our analysis.

This opinion addresses only the fairness from a financial point of view, as of the date hereof, to the holders of Company Common Stock (other than Parent and its affiliates) of the Merger Consideration to be received by such holders in the proposed Merger pursuant to the Merger Agreement. We have not been asked to, nor do we, offer any opinion as to any other term of the Merger Agreement or any other document contemplated by or entered into in connection with the Merger Agreement, the form or structure of the Merger or the likely timeframe in which the Merger will be consummated. In addition, we express no opinion as to the fairness of the amount or nature of any compensation to be received by any officers, directors or employees of any party to the Merger Agreement, or any class of such persons, whether relative to the Merger Consideration or otherwise. We express no opinion as to the fairness of the Merger to the holders of any other class of securities, creditors or other constituencies of the Company, as to the underlying decision by the Company to engage in the Merger or as to the relative merits of the Merger compared with any alternative transactions or business strategies. Nor do we express any opinion as to any tax or other consequences that may result from the transactions contemplated by the Merger Agreement or any other related document. This opinion does not address any legal, tax, regulatory or accounting matters, as to which we understand the Company has received such advice as it deems necessary from qualified professionals.

We have acted as financial advisor to the Company with respect to the purchaseMerger and this opinion and will receive a fee for our services, a portion of all orwhich becomes payable upon delivery of this opinion (or would have become payable if we had advised the Company that we were unable to render this opinion) and a substantial portion of which is contingent upon consummation of the Merger. In addition, the Company has agreed to reimburse us for certain expenses and indemnify us for certain liabilities that may arise out of our engagement.

Perella Weinberg Partners LP and its affiliates, including TPH&Co., the energy business of Perella Weinberg Partners, as part of XTO’s business.their investment banking business, are regularly engaged in performing financial analyses with respect to businesses and their securities in connection with mergers and acquisitions, negotiated underwritings, competitive biddings, secondary distributions of listed and unlisted securities, private placements and other transactions as well as for estate, corporate and other purposes. We and our affiliates also engage in securities trading and brokerage, asset management activities, equity research and other financial services. Except in connection with our engagement as financial advisor to the Company in connection with the Merger, during the two-year period prior to the date hereof, no material relationship existed between Perella Weinberg Partners LP or its affiliates, on the one hand, and Parent, the Company or any of their respective affiliates

Heritage Plaza | 1111 Bagby, Suite 4900 | Houston, Texas 77002 | www.TPHco.com

TPH & Co. is the energy business of Perella Weinberg Partners LP, a registered broker-dealer, Members FINRA/SIPC

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LOGO

pursuant to which we or our affiliates has received or anticipates receiving compensation. However, we and our affiliates in the future may provide investment banking and other financial services to Parent and/or the Company and their respective affiliates and in the future may receive compensation for the rendering of these services. In the ordinary course of our business activities, we and our affiliates may at any time hold long or short positions, and may trade or otherwise effect transactions, for our own account or the accounts of customers or clients, in (i) debt, equity or other securities (or related derivative securities) or financial instruments (including bank loans or other obligations) of the Company, Parent or any of their respective affiliates and (ii) any currency or commodity that may be material to the parties or otherwise involved in the Merger. This issuance of this opinion was approved by a fairness opinion committee of Perella Weinberg Partners LP.

This opinion and our advisory services are for the information and assistance of the Board of Directors of the Company in connection with, and for the purpose of its evaluation of, the Merger. This opinion is not intended to be and does not constitute a recommendation to any holder of Company Common Stock as to how such holder should vote or otherwise act with respect to the proposed Merger or any other matter. We express no opinion as to what the value of the Parent Common Stock actually will be when issued or the prices at which the Company Common Stock or Parent Common Stock will trade at any time, including following announcement or completion of the Merger. In addition, we express no opinion as to the fairness of the Merger to, or any consideration received in connection with the Merger by the holders of any other class of securities, creditors or other constituencies of the Company. Our opinion is necessarily is based uponon financial, economic, market, economicmonetary and other conditions as they existin effect on, and can be evaluatedthe information made available to us as of, the date hereof. Subsequent developments may affect this opinion and the assumptions used in preparing it, and we do not have any obligation to update, revise, or reaffirm this opinion.

Based upon and subject to the foregoing, including the various assumptions and limitations set forth herein, we are of the opinion that, as of the date hereof, the Merger Consideration to be received by holders of outstanding shares of Company Common Stock (other than Parent and its affiliates) in the proposed Merger pursuant to the Merger Agreement is fair, from a financial point of view, to such holders.

Very truly yours,

LOGO

PERELLA WEINBERG PARTNERS LP

Heritage Plaza | 1111 Bagby, Suite 4900 | Houston, Texas 77002 | www.TPHco.com

TPH & Co. is the energy business of Perella Weinberg Partners LP, a registered broker-dealer, Members FINRA/SIPC

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Annex D

LOGOLOGO

July 13, 2023    

Board of Directors

Denbury Inc.

5851 Legacy Circle

Plano, Texas 75024

Members of the Board of Directors:

We understand that Denbury Inc. (the “Company”) proposes to enter into an Agreement and Plan of Merger (the “Agreement”), among the Company, Exxon Mobil Corporation (“Purchaser”) and a wholly owned subsidiary of Parent (“Merger Sub”), pursuant to which Merger Sub shall merge with and into the Company (the “Merger”), whereupon the separate existence of Merger Sub shall cease and the Company shall be the surviving corporation (the “Surviving Corporation”) as a wholly owned subsidiary of Purchaser and each outstanding share of common stock of the Company immediately prior to the Merger (such shares, the “Shares”), other than the Shares to be cancelled in accordance with the Agreement and any Shares held by any subsidiary of either the Company or Parent (other than Merger Sub), shall be converted into the right to receive 0.840 shares of common stock of Purchaser (the “Consideration”), each without par value (such shares, “Purchaser Shares” and such transactions, collectively, the “Transaction”), without interest and subject to any withholding of taxes required by applicable law. The terms and conditions of the Transaction are fully set forth in the Agreement.

You have asked us for our opinion as to the fairness, from a financial point of view, to the holders of the Shares of the Consideration to be received by such holders in the Transaction. In arriving at the opinion set forth below, we have, among other things:

(i)

reviewed certain publicly available information concerning the business, financial condition and operations of the Company and the Purchaser;

(ii)

reviewed certain internal information concerning the business, financial condition and operations of the Company prepared and furnished to us by the management of the Company;

(iii)

reviewed certain internal financial analyses, estimates and forecasts relating to the Company, including projections for fiscal years 2023 through 2030 that were prepared by or at the direction of and approved for our use by the management of the Company (collectively, the “Projections”);

(iv)

held discussions with members of senior management of the Company concerning, among other things, their evaluation of the Transaction and the Company’s business, operating and regulatory environment, financial condition, prospects and strategic objectives;

(v)

reviewed the historical market prices and trading activity for the Shares;

(vi)

compared certain publicly available financial and stock market data for the Company with similar information for certain other companies that we deemed to be relevant;

(vii)

compared the proposed financial terms of the Transaction with publicly available financial terms of certain other business combinations that we deemed to be relevant;

(viii)

reviewed a draft, dated July 13, 2023 of the Agreement; and

280 Park Avenue | New York, NY 10017 | t. +1.212.364.7800 | pjtpartners.com

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(ix)

performed such other financial studies, analyses and investigations, and considered such other matters, as we deemed necessary or appropriate for purposes of rendering this opinion.

In preparing this letter.opinion, with your consent, we have relied upon and assumed the accuracy and completeness of the foregoing information and all other information discussed with or reviewed by us, without independent verification thereof. We have assumed, with your consent, that the Projections and the assumptions underlying the Projections, and all other financial analyses, estimates and forecasts provided to us by the Company’s management, have been reasonably prepared in accordance with industry practice and represent the Company management’s best currently available estimates and judgments as to the business and operations and future financial performance of the Company. We assume no responsibility for updatingand express no opinion as to the Projections, the assumptions upon which they are based or revising our opinion based on events or circumstances that may occur afterany other financial analyses, estimates and forecasts provided to us by the date of this letter.

Page 3 of 4

LOGO

We have assumed the accuracy of the representations and warranties contained in the Agreement and all agreements related thereto.Company’s management. We have also assumed that there have been no material changes in the assets, financial condition, results of operations, business or prospects of the Company since the respective dates of the last financial statements made available to us. We have relied, with your consent, on the Company management’s representations and/or projections regarding taxable income, standalone net operating loss utilization and other tax attributes of the Company. We have further relied, with your consent, upon the adviceassurances of XTO,the management of the Company that all material governmental, regulatorythey are not aware of any facts that would make the information and third party approvals, consentsprojections provided by them inaccurate, incomplete or misleading.

We have not been asked to undertake, and releaseshave not undertaken, an independent verification of any information provided to or reviewed by us, nor have we been furnished with any such verification and we do not assume any responsibility or liability for the Proposedaccuracy or completeness thereof. We did not conduct a physical inspection of any of the properties or assets of the Company. We did not make an independent evaluation or appraisal of the assets or the liabilities (contingent or otherwise) of the Company, nor have we been furnished with any such evaluations or appraisals, nor have we evaluated the solvency of the Company under any applicable laws.

We also have assumed, with your consent, that the final executed form of the Agreement will not differ in any material respects from the draft reviewed by us and that the consummation of the Transaction will be obtained within the constraints contemplated by the Agreement and that the Proposed Transaction will be consummatedeffected in accordance with the terms and conditions of the Agreement, without waiver, modification or amendment of any material term, condition or agreement, thereof.and that, in the course of obtaining the necessary regulatory or third party consents and approvals (contractual or otherwise) for the Transaction, no delay, limitation, restriction or condition will be imposed that would have an adverse effect on the Company or Purchaser or the contemplated benefits of the Transaction. We have also assumed that the representations and warranties made by the Company and Purchaser in the Agreement and the related agreements are and will be true and correct in all respects material to our analysis. At your direction, we have assumed that it is intended for the Merger to qualify for U.S. federal income tax purposes as a reorganization within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended. We do not express any opinion as to any tax or other consequences that might result from the Proposed Transaction, nor does our opinion address any legal, tax, regulatory or accounting matters, as to which we understand that XTO hasthe Company obtained such advice as it deemed necessary from qualified professionals. We are not legal, tax or regulatory advisors and have relied upon without independent verification the assessment of the Company and its legal, tax and regulatory advisors with respect to such matters.

In addition,arriving at our opinion, we were not asked to solicit, and did not solicit, interest from any party with respect to any sale, acquisition, business combination or other extraordinary transaction involving the Company or its assets. We have not considered the relative merits of the Transaction as compared to any other business plan or opportunity that might be available to the Company or the effect of any other arrangement in which the Company might engage and our opinion does not address the underlying decision by the Company to engage in the Transaction. Our opinion is limited to the fairness as of the date hereof, from a financial point of view, to the holders of the Shares of the Consideration to be received by such holders in the Transaction, and our opinion does not address any other aspect or implication of the Transaction, the Agreement, or any other agreement or understanding entered into in connection with the Transaction or otherwise. We further express no opinion or view as to the fairness of the Transaction to the holders of any other class of securities, creditors or other

D-2


constituencies of the Company or as to the underlying decision by the Company to engage in the Transaction. We also express no opinion as to the fairness of the amount or nature of the compensation to any of the Company’s officers, directors or employees, or any class of such persons, relative to the Consideration to be received by holders of the Shares or otherwise. 

Our opinion is necessarily based upon economic, market, monetary, regulatory and other conditions as they exist and can be evaluated, and the information made available to us, as of the date hereof. We assume no responsibility for updating or revising our opinion based on circumstances or events occurring after the date hereof. We express no opinion as to the prices or trading ranges at which shares of (i) XTO Common Stockthe Shares or ExxonMobil Common StockPurchaser Shares will trade at any time, followingas to the announcementpotential effects of volatility in the credit, financial and stock markets on the Company, Purchaser or the Transaction or as to the impact of the ProposedTransaction on the solvency or viability of the Company or Purchaser or the ability of the Company or Purchaser to pay its obligations when they come due.

This opinion has been approved by a fairness committee of PJT Partners LP in accordance with established procedures. This opinion is provided to the Board of Directors of the Company, in its capacity as such, in connection with and for the purposes of its evaluation of the Transaction only and is not a recommendation as to any action the Board of Directors should take with respect to the Transaction or (ii) ExxonMobil Common Stock will trade at any time following the consummationaspect thereof. This opinion does not constitute a recommendation to any holder of the ProposedShares as to how any stockholder should vote or act with respect to the Transaction or any other matter. This opinion is not to be quoted, referenced, summarized, paraphrased or excerpted, in whole or in part, in any registration statement, prospectus or proxy or information statement, or in any other report, document, release or other written or oral communication prepared, issued or transmitted by the Board of Directors, including any committee thereof, or the Company, without our prior written approval. However, a copy of this opinion may be included, in its entirety, as an exhibit to any proxy, information statement or Schedule 14D-9 the Company is required to file with the Securities and Exchange Commission and distribute to its stockholders in connection with the Transaction. OurAny summary of or reference to this opinion should not be viewedor the analysis performed by us in connection with the rendering of this opinion in such documents shall require our prior written approval.

We are acting as providing any assurance thatfinancial advisor to the market valueCompany with respect to the Transaction and will receive a fee from the Company for our services, which is payable upon the delivery of this opinion to the Board of Directors of the ExxonMobil Common StockCompany. In addition, the Company has agreed to be held by the stockholders of XTO after the consummationreimburse us for all reasonably incurred and documented expenses and to indemnify us for certain liabilities arising out of the Proposed Transaction will be in excessperformance of such services (including the market valuerendering of this opinion).

In the XTO Common Stock owned by such stockholders at any time priorordinary course of our and our affiliates’ businesses, we and our affiliates may provide investment banking and other financial services to announcementthe Company, Purchaser or consummationtheir respective affiliates and may receive compensation for the rendering of these services. During the Proposed Transaction.two years preceding the date of this opinion, we and certain of our affiliates have not advised or received compensation from the Company or Purchaser.

* * *

Based uponon and subject to the foregoing, we are of the opinion, as investment bankers, that, as of the date hereof, that,the Consideration to be received by the holders of the Shares in the Transaction is fair to such holders from a financial point of view, the Exchange Ratio in the Proposed Transaction is fair to XTO’s stockholders.

We have acted as financial advisor to XTO in connection with the Proposed Transaction and will receive fees for our services, a portion of which is payable upon rendering this opinion and a substantial portion of which is contingent upon the consummation of the Proposed Transaction. In addition, XTO has agreed to reimburse our expenses and indemnify us for certain liabilities that may arise out of our engagement. We have performed various investment banking services for XTO and its affiliates in the past, and have received customary fees for such services. Specifically, in the past two years, we have performed the following investment banking and financial services for XTO and its affiliates, for which we have received customary compensation: (i) in August 2008, we acted as an underwriter on XTO’s 6.75% senior notes due 2037, 5.00% senior notes due 2010, 5.75% senior notes due 2013 and 6.50% notes due 2018; (ii), in July 2008, we acted as an underwriter on XTO’s common stock offering; (iii) in April 2008, we acted as an underwriter on XTO’s 4.625% senior notes due 2013, 5.500% senior notes due 2018, and 6.375% senior notes due 2038; (iv) in February 2008, we acted as an underwriter on XTO’s common stock offering; (v) between February 2009 and April 2009, we assisted XTO in repurchasing outstanding bonds of XTO on the open market; (vi) we are currently a lender under XTO’s existing revolving credit facility and a dealer under XTO’s commercial paper program and (vii) we have served and may continue to serve as a counterparty to XTO on certain commodity hedging and trading transactions. In the past two years, we have performed only limited services for ExxonMobil for which we have received limited compensation. We expect to perform investment banking and financial services for ExxonMobil and its affiliates in the future and expect to receive customary fees for such services.

Barclays Capital Inc. is a full service securities firm engaged in a wide range of businesses from investment and commercial banking, lending, asset management and other financial and non-financial services. In the ordinary course of our business, we and our affiliates may actively trade and effect transactions in the equity, debt and/or other securities (and any derivatives thereof) and financial instruments (including loans and other obligations) of XTO and ExxonMobil and their affiliates for our own account and for the accounts of our customers and, accordingly, may at any time hold long or short positions and investments in such securities and financial instruments.

Page 4 of 4

LOGOview.

 

This opinion, the issuance of which has been approved by our Fairness Opinion Committee, is for the use and benefit of the Board of Directors of XTO and is rendered to the Board of Directors of XTO in connection with its consideration of the Proposed Transaction. This opinion is not intended to be and does not constitute a recommendation to any stockholder of XTO as to how such stockholder should vote or act with respect to any matter relating to the Proposed Transaction.

Very truly yours,

/s/ Barclays Capital Inc.

BARCLAYS CAPITAL INC.

LOGO
PJT Partners LP

D-3


PART II

INFORMATION NOT REQUIRED IN THE PROSPECTUS

ITEM 20. INDEMNIFICATION OF DIRECTORS AND OFFICERS

ITEM 20.INDEMNIFICATION OF DIRECTORS AND OFFICERS

ExxonMobil’s restated certificate of incorporation does not contain any provision relating to the indemnification of its directors or officers. Article X of ExxonMobil’s by-laws provides that ExxonMobil shall indemnify to the full extent permitted by law any current or former director or officer made or threatened to be made a party to any legal action by reason of the fact that such person is or was a director, officer, employee or other corporate agent of ExxonMobil or any of its subsidiaries or serves or served any other enterprise at the request of ExxonMobil against expenses (including attorneys’ fees), judgments, fines, penalties, excise taxes and amounts paid in settlement, actually and reasonably incurred by such person in connection with such legal action. No indemnification is required under ExxonMobil’s by-laws with respect to any settlement or other nonadjudicated disposition of any legal action unless ExxonMobil has previously consented.consented to such settlement or other disposition.

ExxonMobil is organized under the laws of the State of New Jersey. Section 14A:3-5(2) of the New Jersey Business Corporation Act provides that a New Jersey corporation has the power to indemnify a corporate agent (generally defined as any person who is or was a director, officer, employee or agent of the corporation or of any constituent corporation absorbed by the corporation in a consolidation or merger and any person who is or was a director, officer, trustee, employee or agent of any other enterprise, serving as such at the request of the corporation or the legal representative of any such director, officer, trustee, employee or agent) against his or her expenses and liabilities in connection with any proceeding involving such corporate agent by reason of his or her being or having been a corporate agent, other than derivative actions,proceedings, if (i) he or she acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the corporation and (ii), with respect to any criminal proceeding, such person had no reasonable cause to believe that his or her conduct was unlawful. Under Section 14A:3-5(3) of the New Jersey Business Corporation Act, a similarNew Jersey corporation may indemnify a corporate agent against his or her expenses in connection with any derivative proceedings. A standard of care similar to Section 14A:3-5(2) of the New Jersey Business Corporation Act is applicable, in the case of derivative actions, except no indemnification may be provided in respect of any derivative actionclaim, issue or matter as to which the corporate agent is adjudged to be liable to the corporation, unless (and only to the extent that) the Superior Court of the State of New Jersey (or the court in which the proceeding was brought) determines upon application that the corporate agent is fairly and reasonably entitled to indemnity for such expenses as the court deems proper.

Section 14A:3-5(4) of the New Jersey Business Corporation Act requires a New Jersey corporation to indemnify a corporate agent for his or her expenses to the extent that such corporate agent has been successful on the merits or otherwise in any proceeding referred to above, or in defense of any claim, issue or matter therein. Except as required by the previous sentence, under Section 14A:3-5(11) of the New Jersey Business Corporation Act, no indemnification may be made or expenses advanced, and none may be ordered by a court, if such indemnification or advancement would be inconsistent with (i) a provision of the corporation’s certificate of incorporation, (ii) its by-laws, (iii) a resolution of the board of directors or of the corporation’s shareholders, (iv) an agreement to which the corporation is a party or (v) other proper corporate action (in effect at the time of the accrual of the alleged cause of action asserted in the proceeding) that prohibits, limits or otherwise conditions the exercise of indemnification powers by the corporation or the rights of indemnification to which a corporate agent may be entitled.

Under Section 14A:3-5(6) of the New Jersey Business Corporation Act, expenses incurred by a director, officer, employee or othercorporate agent in connection with a proceeding may, except as described in the immediately preceding paragraph, be paid by the corporation before the final disposition of the proceeding as authorized by the board of directors upon receiving an undertaking by or on behalf of the corporate agent to repay such amount if it shall ultimately be determined that he or she is not entitled to be indemnified. Article X of ExxonMobil’s by-laws provides that ExxonMobil shall pay the expenses (including attorneys’ fees) incurred by a current or former officer or director of ExxonMobil in defending any legal action in advance of its final disposition promptly upon receipt of such an undertaking.

 

PART II-1


Under Section 14A:3-5(8) of the New Jersey Business Corporation Act, the power to indemnify and advance expenses under the New Jersey Business Corporation Act does not exclude other rights, including the right to be indemnified against liabilities and expenses incurred in derivative proceedings, by or in the right of the corporation, to which a corporate agent may be entitled to under a certificate of incorporation, bylaw, agreement, vote of shareholders or otherwise. However, no indemnification may be made to or on behalf of such person if a judgment or other final adjudication adverse to such person establishes that his or her acts or omissions were in breach of his or her duty of loyalty to the corporation or its shareholders, were not in good faith or involved a knowing violation of the law, or resulted in the receipt by such person of an improper personal benefit.

Section 14A:3-5(9) of the New Jersey Business Corporation Act further provides that a New Jersey corporation has the power to purchase and maintain insurance on behalf of any corporate agent against any expenses incurred in any proceeding and any liabilities asserted against him or her by reason of his or her being or having been a corporate agent, whether or not the corporation would have the power to indemnify him or her against such expenses and liabilities under the New Jersey Business Corporation Act. ExxonMobil maintains directors’ and officers’ liability insurance on behalf of its directors and officers.

ITEM 21. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

ITEM 21.EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.

(a) The following exhibits are filed herewith or incorporated herein by reference:

 

Exhibit
Number

  

Description

 2.1  Agreement and Plan of Merger, dated as of DecemberJuly 13, 20092023, among XTO Energy Inc., Exxon Mobil Corporation, EMPF Corporation and ExxonMobil Investment CorporationDenbury Inc. (included as Annex A to the proxy statement/prospectus formingthat forms a part of this registration statement) (theRegistration Statement).*
 5.1Opinion of James E. Parsons, Esq., Executive Counsel (Corporate and Securities Law) of Exxon Mobil Corporation.#
 8.1Opinion of Davis Polk & Wardwell LLP, regarding certain U.S. federal income tax matters.#
 8.2Opinion of Vinson & Elkins L.L.P. regarding certain U.S. federal income tax matters.#
23.1Consent of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm of Exxon Mobil Corporation.#
23.2Consent of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm of Denbury Inc.#
23.3Consent of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm of Denbury Resources Inc. (Predecessor to Denbury Inc.).#
23.4Consent of DeGolyer and MacNaughton, Independent Petroleum Engineers of Denbury Inc.#
24.1Power of Attorney (included in the signature page).**
99.1Form of Proxy Card of Denbury Inc.**
99.2Consent of J.P. Morgan Securities LLC.#
99.3Consent of TPH & Co.#
99.4Consent of PJT Partners LP.#
99.5Consent of Davis Polk & Wardwell LLP (included in Exhibit 8.1).#
99.6Consent of Vinson & Elkins L.L.P. (included in Exhibit 8.2).#
107Filing Fee Table**

*

The annexes, schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K)

  3.1Restated Certificate of Incorporation of Exxon Mobil Corporation (incorporated herein by reference to Exhibit 3(i) to Exxon Mobil Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2006)
  3.2By-laws of Exxon Mobil Corporation (incorporated herein by reference to Exhibit 3(ii) to Exxon Mobil Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007)
  4.1The registrant has not filed with this registration statement copies of the instruments defining the rights of holders of long-term debt of the registrant and its subsidiaries for which consolidated or unconsolidated financial statements are required to be filed. The registrantS-K. ExxonMobil agrees to furnish supplementally a copy of such schedules and exhibits, or any such instrumentsection thereof, to the SEC upon request.

**

Previously Filed.

#

Filed herewith.

II-2


ITEM 22. UNDERTAKINGS

(a)

The undersigned registrant hereby undertakes:

(1)

To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

(i)

To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933.

(ii)

To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Securities and Exchange Commission upon request.

  5.1Opinion of Randall M. Ebner, Assistant General Counsel of Exxon Mobil Corporation, regarding the validity of shares of Exxon Mobil Corporation common stock being registered hereunder*
  8.1Form of Opinion of Davis Polk & Wardwell LLP regarding material federal income tax consequences relatingpursuant to the merger*
  8.2Form of Opinion of Skadden, Arps, Slate, Meagher & Flom LLP regarding material federal income tax consequences relating to the merger*
21.1Subsidiaries of Exxon Mobil Corporation (incorporated herein by reference to Exhibit 21 to ExxonMobil’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009)
23.1Consent of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm of Exxon Mobil Corporation
23.2Consent of KPMG LLP, Independent Registered Public Accounting Firm of XTO Energy Inc.

PART II-2


Exhibit
Number

Description

23.3Consent of Randall M. Ebner (includedRule 424(b) if, in the opinion filed as Exhibit 5.1 to this registration statement)*
23.4Consent of Davis Polk & Wardwell LLP (includedaggregate, the changes in volume and price represent no more than a 20 percent change in the opinion filed as Exhibit 8.1 to this registration statement)*
23.5Consent of Skadden, Arps, Slate, Meagher & Flom LLP (includedmaximum aggregate offering price set forth in the opinion filed as Exhibit 8.2 to this“Calculation of Registration Fee” table in the effective registration statement)*
23.6Consent of Miller and Lents, Ltd.
24.1Power of Attorney*
99.1Form of Proxy Card of XTO Energy Inc.*
99.2Consent of Barclays Capital Inc.statement.

 

*Previously filed.(iii)

To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.

(2)

That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(3)

To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(4)

That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, if the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness; provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

(5)

That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

(i)

Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

(ii)

Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

II-3


(iii)

The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

(iv)

Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

(b)

The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(c) The opinion of Barclays Capital Inc. is included as Annex B to the proxy statement/prospectus forming part of this registration statement.

 

ITEM 22.UNDERTAKINGS.(1)

The undersigned registrant hereby undertakes as follows: that prior to any public reoffering of the securities registered hereunder through use of a prospectus which is a part of this registration statement, by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c), the issuer undertakes that such reoffering prospectus will contain the information called for by the applicable registration form with respect to reofferings by persons who may be deemed underwriters, in addition to the information called for by the other items of the applicable form.

(a) The undersigned registrant hereby undertakes:

(2)

The registrant undertakes that every prospectus: (i) that is filed pursuant to paragraph (1) immediately preceding, or (ii) that purports to meet the requirements of Section 10(a)(3) of the Securities Act of 1933 and is used in connection with an offering of securities subject to Rule 415, will be filed as a part of an amendment to the registration statement and will not be used until such amendment is effective, and that, for purposes of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

(d)

The undersigned registrant hereby undertakes to respond to requests for information that is incorporated by reference into the proxy statement/prospectus pursuant to Item 4, 10(b), 11 or 13 of this form, within one business day of receipt of such request, and to send the incorporated documents by first class mail or other equally prompt means. This includes information contained in documents filed subsequent to the effective date of the registration statement through the date of responding to the request.

(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933.

(e)

The undersigned registrant hereby undertakes to supply by means of a post-effective amendment all information concerning a transaction, and the company being acquired involved therein, that was not the subject of and included in the registration statement when it became effective.

(ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement.

(iii) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.

(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initialbona fide offering thereof.

(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(b) The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initialbona fide offering thereof.
(f)

Insofar as indemnification for liabilities under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is therefore unenforceable. In the event a claim of indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in a successful defense of any action, suit or proceeding) is asserted by such director, officer, or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.

 

PART II-3


(c) (1) The undersigned registrant hereby undertakes as follows: that prior to any public reoffering of the securities registered hereunder through use of a prospectus which is a part of this registration statement, by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c), the issuer undertakes that such reoffering prospectus will contain the information called for by the applicable registration form with respect to reofferings by persons who may be deemed underwriters, in addition to the information called for by the other items of the applicable form.

(2) The registrant undertakes that every prospectus: (i) that is filed pursuant to paragraph (1) immediately preceding, or (ii) that purports to meet the requirements of Section 10(a)(3) of the Securities Act of 1933 and is used in connection with an offering of securities subject to Rule 415, will be filed as a part of an amendment to the registration statement and will not be used until such amendment is effective, and that, for purposes of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initialbona fide offering thereof.

(d) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the provisions described in Item 20 above, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.

(e) The undersigned registrant hereby undertakes to respond to requests for information that is incorporated by reference into the proxy statement/prospectus pursuant to Item 4, 10(b), 11 or 13 of this form, within one business day of receipt of such request, and to send the incorporated documents by first class mail or other equally prompt means. This includes information contained in documents filed subsequent to the effective date of the registration statement through the date of responding to the request.

(f) The undersigned registrant hereby undertakes to supply by means of a post-effective amendment all information concerning a transaction, and the company being acquired involved therein, that was not the subject of and included in the registration statement when it became effective.

PART II-4



SIGNATURES

Pursuant to the requirements of the Securities Act the registrantof 1933, ExxonMobil has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Irving,Spring, State of Texas, on April 20, 2010.September 27, 2023.

 

EXXON MOBIL CORPORATION
By: 

/s/ REXDarren W. TILLERSON        Woods

 Name: RexDarren W. TillersonWoods
 Title: Chairman of the Boardand Chief Executive Officer

Pursuant to the requirements of the Securities Act of 1933, as amended, this registration statementRegistration Statement has been signed by the following persons in the capacities andindicated below, on the dates indicated.September 27, 2023.

 

Signature/s/ Darren W. Woods

*

Darren W. Woods

Chairman, Chief Executive Officer and Director

(Principal Executive Officer)

 

Title

 

Date

/s/    REX W. TILLERSON        Michael J. Angelakis

Rex W. Tillerson

Chairman of the BoardDirector

(Principal Executive Officer)

April 20, 2010

*

Michael J. Boskin*

Susan K. Avery

Director

 Director April 20, 2010

Angela F. Braly

Director

*

Larry R. Faulkner*

Gregory J. Goff

Director

 Director April 20, 2010

John D. Harris II

Director

*

Kenneth C. Frazier*

Kaisa H. Hietala

Director

 Director April 20, 2010

Joseph L. Hooley

Director

*

William W. George*

Steven A. Kandarian

Director

 Director April 20, 2010

Alexander A. Karsner

Director

*

Reatha Clark King*

Lawrence W. Kellner

Director

 Director April 20, 2010

Jeffrey W. Ubben

Director

*

Marilyn Carlson Nelson

 DirectorApril 20, 2010

*

Samuel J. Palmisano

DirectorApril 20, 2010

*

Steven S. Reinemund

DirectorApril 20, 2010

*

Edward E. Whitacre, Jr.

DirectorApril 20, 2010

*

Donald D. Humphreys

 

*

Kathryn A. Mikells

Senior Vice President and TreasurerChief Financial Officer

(Principal Financial Officer)

 April 20, 2010

*

Patrick T. Mulva

 

Len M. Fox

Vice President and Controller

(Principal Accounting Officer)

April 20, 2010

* By:

 

/s/ RANDALL M. EBNERJohn D. Buchanan

Name: Randall M. EbnerJohn D. Buchanan
Title: Attorney-in-FactAttorney-In-Fact

 

PART II-5


EXHIBIT INDEX

Exhibit
Number

Description

  2.1Agreement and Plan of Merger dated as of December 13, 2009 among XTO Energy Inc., Exxon Mobil Corporation and ExxonMobil Investment Corporation (included as Annex A to the proxy statement/prospectus forming part of this registration statement) (the schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K)
  3.1Restated Certificate of Incorporation of Exxon Mobil Corporation (incorporated herein by reference to Exhibit 3(i) to Exxon Mobil Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2006)
  3.2By-laws of Exxon Mobil Corporation (incorporated herein by reference to Exhibit 3(ii) to Exxon Mobil Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007)
  4.1The registrant has not filed with this registration statement copies of the instruments defining the rights of holders of long-term debt of the registrant and its subsidiaries for which consolidated or unconsolidated financial statements are required to be filed. The registrant agrees to furnish a copy of any such instrument to the Securities and Exchange Commission upon request.
  5.1Opinion of Randall M. Ebner, Assistant General Counsel of Exxon Mobil Corporation, regarding the validity of shares of Exxon Mobil Corporation common stock being registered hereunder*
  8.1Form of Opinion of Davis Polk & Wardwell LLP regarding material federal income tax consequences relating to the merger*
  8.2Form of Opinion of Skadden, Arps, Slate, Meagher & Flom LLP regarding material federal income tax consequences relating to the merger*
21.1Subsidiaries of Exxon Mobil Corporation (incorporated herein by reference to Exhibit 21 to ExxonMobil’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009)
23.1Consent of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm of Exxon Mobil Corporation
23.2Consent of KPMG LLP, Independent Registered Public Accounting Firm of XTO Energy Inc.
23.3Consent of Randall M. Ebner (included in the opinion filed as Exhibit 5.1 to this registration statement)*
23.4Consent of Davis Polk & Wardwell LLP (included in the opinion filed as Exhibit 8.1 to this registration statement)*
23.5Consent of Skadden, Arps, Slate, Meagher & Flom LLP (included in the opinion filed as Exhibit 8.2 to this registration statement)*
23.6Consent of Miller and Lents, Ltd.
24.1Power of Attorney*
99.1Form of Proxy Card of XTO Energy Inc.*
99.2Consent of Barclays Capital Inc.

*Previously filed.