Wal-Mart Enters Arrangement with Direct Sourcing Group and 1 Dow Mover Seeing Action
Wal-Mart Stores, Inc. (NYSE:WMT) and Direct Sourcing Group Pte, a division of Li & Fung, have reached a new sourcing arrangement, that supplants previous buying agreements made in January 2010, according to Reuters. In addition, Wal-Mart’s option to buy all of the shares of Direct Sourcing has ceased and Direct Sourcing will remain the primary direct resource for the Wal-Mart’s Sam’s Club, from a filing to the Hong Kong bourse.
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Exxon Mobil Corporation (NYSE:XOM) and its wholly owned subsidiary XTO Energy will acquire Bakken assets in North Dakota and Montana from Denbury Resources Inc. (NYSE:DNR). Through the terms, the seller will receive $1.6 billion in cash, subject to the customary closing adjustments, and also ExxonMobil’s operating interests in Webster Field in Texas and Hartzog Draw Field in Wyoming. Both these assets are ideal candidates for carbon dioxide flooding and are near Denbury’s existing or planned CO2 pipelines. Further, Denbury will either purchase an interest in the CO2 reserves in ExxonMobil’s LaBarge Field in southwestern Wyoming, or incremental CO2 from that field, on terms and conditions that will be mutually agreed upon by both parties. The transactions should close late in the fourth quarter with a July 1, 2012 effective date. Denbury plans to resume its stock buyback program begun in October 2011 under which $195 million of the $500 million of authorized repurchases have been made.
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