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Corporate Presentation – Denbury Resources Inc.

Denbury Resources Inc. · Apr 1, 2014 · 48 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Corporate Presentation – Denbury Resources Inc. – slide 1
    VALUE Corporate DRIVEN Presentation April 2014 NYSE: DNR Denbury.com
  2. Corporate Presentation – Denbury Resources Inc. – slide 2
    Click to editKind A Different Master titleCompany of Oil style Proven Unique Return Environmentally Process Strategy Focused Responsible CO2 EOR is one of We acquire mature Continual focus on We store CO2 the most efficient oil…
  3. Corporate Presentation – Denbury Resources Inc. – slide 3
    Click to edit Growth MasterStrategy & Income title style Growth Income Estimated 4-8% organic Anticipate dividend growth over production growth through 2020 the long-term Large portfolio of lower-risk, Stability and…
  4. Corporate Presentation – Denbury Resources Inc. – slide 4
    Click to edit Denbury at aMaster Glancetitle style Total 3P Reserves (12/31/13) 1.25 BBOE % Oil Production (4Q13) 95% Total Daily Production BOE/d (4Q13) 71,466 Proved PV-10 (12/31/13) 96.94 NYMEX Oil Price 10.6 billion Market Cap…
  5. Corporate Presentation – Denbury Resources Inc. – slide 5
    Click What to edit2 EOR is CO Master titleMuch & How styleOil Does It Recover Secure CO2 Supply Transport via Pipeline Inject into Oilfield CO2 EOR Delivers Almost as Much Production as each of Primary and Secondary…
  6. Corporate Presentation – Denbury Resources Inc. – slide 6
    Our Two CO2 EOR Target Areas: Click to edit Master title style Up to 10 Billion Barrels Recoverable with CO2 EOR(1) Estimated 1.3 to 3.2 Billion Barrels ND MT Recoverable in Rocky Mountain Region(1) Greencore ID Pipeline SD…
  7. Corporate Presentation – Denbury Resources Inc. – slide 7
    CO2 EOR Click to in Master edit Gulf Coast title Region: style Control of CO Sources & Pipeline Infrastructure Provides a Strategic Advantage 2 Tinsley(3) Summary(1) Delhi(3) 46 MMBbls 45 MMBOEs Tinsley Proved 195 Jackson…
  8. Corporate Presentation – Denbury Resources Inc. – slide 8
    CO2 EOR Click to in Master edit Rocky Mountain title style Region: Control of CO Sources & Pipeline Infrastructure Provides a Strategic Advantage 2 CO2 Sources Summary(1) Existing or Proposed CO2 Source Proved 34 Cedar Creek…
  9. Corporate Presentation – Denbury Resources Inc. – slide 9
    Click to edit Proved Master Reserve title style Changes Estimated Proved Reserves (MMBOE) Proved Reserves 12/31/12(1) 409 New CO2 Flood (Bell Creek) 34 Acquisitions 43 2013 Production (26) Revisions 8 Proved Reserves…
  10. Corporate Presentation – Denbury Resources Inc. – slide 10
    Click Moreto editaMaster than Billion title styleof Oil Potential Barrels 1,500 102 1,250 1,250 680 ..... ..... 90% 100% 54% Oil 1,000 Oil Oil 82% MMBOE Oil 750 468 500 409 ..... 83% 80% Oil 250 Oil 0…
  11. Corporate Presentation – Denbury Resources Inc. – slide 11
    Click to edit Proven Master Track title style Record Net Daily Oil Production Tertiary Operations (through 12/31/13) Mature Properties Tinsley Heidelberg Delhi Oyster Bayou Hastings Bell Creek 45,000 40,000 35,000 30,000…
  12. Corporate Presentation – Denbury Resources Inc. – slide 12
    CO2 Supply Click to Support to edit Master title Gulf styleCoast Growth 1,600 Additional CO2 Potential (not reflected in graph) Probable & Possible Reserves: 2.1 TCF Improved Recovery of Proved Reserves: 0.8 TCF Recycle: 3 TCF…
  13. Corporate Presentation – Denbury Resources Inc. – slide 13
    Gulf to Click Coast edit Industrial Partners Master title style Currently Producing or Pending Startup Air Products PCS Nitrogen Mississippi Power (Pending Startup) Port Arthur, Texas Geismar, Louisiana Kemper County, MS…
  14. Corporate Presentation – Denbury Resources Inc. – slide 14
    Click to edit Master CO2 Supply titleRocky to Support style Mountain Growth LaBarge Area Estimated Field Size: 750 Square Miles Estimated 100 TCF of CO2 Recoverable Riley Ridge Denbury Operated Successfully placed in service in…
  15. Corporate Presentation – Denbury Resources Inc. – slide 15
    Leading Operating (1) Click to edit Master Margin title style /BOE 12-Months ended 12/31/2013 80 94% Oil Production Drives Higher Margins 70 60 50 40 30 20 10 0 (2) Peer A DNR Peer C Peer B Peer D Peer E Peer…
  16. Corporate Presentation – Denbury Resources Inc. – slide 16
    Click to edit Leading Master Capital (1) title style Efficiency Adjusted 2-Year Finding & Development Cost (/BOE)(2) 45 41.46 40 34.20 35 30 26.59 25 23.70 21.46 19.24 20 16.82 16.40 15 10 5 0 Peer B Peer E Peer D Peer…
  17. Corporate Presentation – Denbury Resources Inc. – slide 17
    Click toAsset Unique edit Master title Structure styleto Other Independents Relative Reserve life index(1) 1st year of decline rate by basin(1) 20.0x DNR Selected Companies(2) 90% EOR Assets Non-EOR Assets 80% Inclining 70%…
  18. Corporate Presentation – Denbury Resources Inc. – slide 18
    Click to edit Dividend MasterOutlook Growth title style Initiated dividend payments in 2014 0.0625 per share paid for 1Q14 Rate of 0.25 per share on an annualized basis Estimating an annual dividend of 0.50 to 0.60 per share in…
  19. Corporate Presentation – Denbury Resources Inc. – slide 19
    Dividend Click Yield to edit Analysis Master title style Independent Dividend Paying E&P C-Corps Market Cap Yield (MM) DNR 2015E(1) 5,838 3.0% OXY 75,289 3.0% CRK 1,092 2.2% MRO 24,754 2.1% MUR 11,277 2.0% DNR 2014E(1) 5,838…
  20. Corporate Presentation – Denbury Resources Inc. – slide 20
    Click to edit Master Disciplined titletostyle Approach Capital Allocation Remaining share Excess Cash repurchase authorization of 231 million as of Share February 20, 2014 repurchases, debt repayment, capital…
  21. Corporate Presentation – Denbury Resources Inc. – slide 21
    Click to edit Master Disciplined title style Program Share Repurchase Rationale and Objectives Repurchase shares at meaningful discount to net asset value Improve per share metrics 15% repurchased since 3Q11; including 4% since…
  22. Corporate Presentation – Denbury Resources Inc. – slide 22
    Click 2014to (1) edit Master Guidance title style 2014 Capital Budget - 1.0 Billion(2) 2014 Production Estimate 2014 Anticipated Dividends - 90 Million CO2 Pipelines 60MM 2013 2014E 2014E Operating area (BOE/d) (BOE/d) Growth…
  23. Corporate Presentation – Denbury Resources Inc. – slide 23
    Click to edit Balanced andMaster Value Creation(1) title style Sustainable Steady Capital Expenditures(2) Continued Production Growth 1,200 100,000 Average Daily Production Annual Capital Expenditures 1,000 80,000 Est.…
  24. Corporate Presentation – Denbury Resources Inc. – slide 24
    Click to edit Strong Master Financial title style Position 1.25 billion availability under Debt to Capitalization credit facility on 12/31/13 (12/31/13) Debt 38% 38% Unused Credit 78% Facility 1.6 billion borrowing base +…
  25. Corporate Presentation – Denbury Resources Inc. – slide 25
    Click to editHedge Commodity Master title style Summary as of March 2014 Crude Oil 2014 2015 1st Half 2nd Half 1st Quarter 2nd Quarter 3rd Quarter Collar Volumes Hedged (Bbls/d) -- -- 32,000 38,000 38,000 Average Floor Price…
  26. Corporate Presentation – Denbury Resources Inc. – slide 26
    Click to editCO Estimated Master 2 EORtitle Peakstyle Production Rates Estimated Peak Production Rate Produced Proved Potential First (Net MBOE/d) Expected Operating Area to date(2) Remaining(2) Remaining(3) Production(1) Peak…
  27. Corporate Presentation – Denbury Resources Inc. – slide 27
    Click to edit Master IN SUMMARY: title Value style Driven Leading Growth and Income, CO2 EOR Company in the US Focused on delivering value through consistent growth in production, reserves, and dividends Strategic advantage in…
  28. Corporate Presentation – Denbury Resources Inc. – slide 28
    Click to editInformation Corporate Master title style Corporate Headquarters Denbury Resources Inc. 5320 Legacy Drive Plano, Texas 75024 Ph: (972) 673-2000 Fax: (972) 673-2150 denbury.com Contact Information Phil Rykhoek…
  29. Corporate Presentation – Denbury Resources Inc. – slide 29
    Appendix
  30. Corporate Presentation – Denbury Resources Inc. – slide 30
    Click Why to is edit CO2 Master title EOR our style core focus High Confidence of Oil Target Over 100 million barrels (gross) produced by Denbury to date Net upward adjustments to reserves to date CO2 Flooding Recovers Oil (CO2…
  31. Corporate Presentation – Denbury Resources Inc. – slide 31
    Click to edit CO2 EOR is Master title a Proven style Process Significant CO2 EOR Operators by Region Significant CO2 Suppliers by Region Gulf Coast Region Gulf Coast Region Denbury Resources Jackson Dome, MS (Denbury Resources)…
  32. Corporate Presentation – Denbury Resources Inc. – slide 32
    Click to edit Master CO2 Operations: Oiltitle style Process Recovery CO2 PIPELINE - from Jackson Dome INJECTION WELL - Injects CO2 in dense phase PRODUCTION WELLS Produce oil, water and CO2 Oil Formation (CO2 is recycled)…
  33. Corporate Presentation – Denbury Resources Inc. – slide 33
    CO 2 EOR Click Superior to edit Production Master title style Profile Projected Production Profile with Same Capital Spending Capital Spending per Year Based on EOR Spending Pattern 12,000 Year MM Gulf Coast EOR Field 1 83 2 83…
  34. Corporate Presentation – Denbury Resources Inc. – slide 34
    Gulf ClickCoast to editCO Proven 2 EORtitle Master style Value Creation Investments Inception-to-12/31/2013 () Billions EOR Fields 3.5 CO2 Sources & Pipelines 2.1 Less Undeveloped: EOR Fields 0.2 CO2 Pipelines -- (0.2) Net…
  35. Corporate Presentation – Denbury Resources Inc. – slide 35
    Click to edit Changes in Master title style Plan 2014 Development Rockies: 2013 Plan 2014 Plan Delay CCA first CO2 EOR production 2017 2020 Delay Hartzog Draw first CO2 EOR production 2016 2020 Delay Riley Ridge CO2 sweetening…
  36. Corporate Presentation – Denbury Resources Inc. – slide 36
    Click edit(1)Master title style DelhitoField Status Update Successfully plugged suspected source of leak Remediation of surface complete(2) Restored CO2 injection outside impacted area Isolated impacted area with water curtain…
  37. Corporate Presentation – Denbury Resources Inc. – slide 37
    Click to edit Hartzog DrawMaster title style Shannon Development CapEx: 40MM Production: Growth Shannon Sand Tight Oil Sand Horizontal development 40 Probable locations Drilled and completed 2 wells Regional Activity Performing…
  38. Corporate Presentation – Denbury Resources Inc. – slide 38
    Click CedartoCreek edit Master titleFields Anticline style CCA Conventional Development CapEx: 110MM Production: Modest Decline NORTH DAKOTA Glendive North MONTANA CHSU & ELOB Glendive Gas City Waterflood expansion…
  39. Corporate Presentation – Denbury Resources Inc. – slide 39
    Click to edit Master Production by Areatitle style (BOE/d) Operating area 2009 2010 2011 2012 2013 1Q13 2Q13 3Q13 4Q13 2014E(1) Tertiary Oil Fields 24,343 29,062 30,959 35,206 38,477 39,057 38,752 37,513 38,603 42,000 44,000…
  40. Corporate Presentation – Denbury Resources Inc. – slide 40
    Click to edit Tertiary Master title Production style by Field Average Daily Production (BOE/d) Field 2009 2010 2011 2012 2013 1Q13 2Q13 3Q13 4Q13 Brookhaven 3,416 3,429 3,255 2,692 2,223 2,305 2,339 2,224 2,026 Little Creek Area…
  41. Corporate Presentation – Denbury Resources Inc. – slide 41
    Click to edit Analysis of Master Tertiarytitle style Costs Operating Correlation 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 w/Oil /BOE /BOE /BOE /BOE /BOE /BOE /BOE /BOE CO2 Costs Direct 5.76 5.14 4.96 5.21 6.78 6.13 6.82 7.53…
  42. Corporate Presentation – Denbury Resources Inc. – slide 42
    Click NYMEXto edit Master title Differential style Summary Crude Oil Differentials 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Tertiary Oil Fields Gulf Coast Region 4.33 9.69 14.84 19.44 9.80 13.60 10.61 15.57…
  43. Corporate Presentation – Denbury Resources Inc. – slide 43
    Click to edit Tracking OilMaster Pricestitle style During the fourth quarter of 2013, we sold 43% of our oil production based on LLS index price and 23% at prices partially tied to the LLS index price. 135 Light Louisiana Sweet…
  44. Corporate Presentation – Denbury Resources Inc. – slide 44
    Click to edit Hedge Commodity MasterDetail title style as of March 2014 2014 Crude Oil Hedges (BOPD) 2015 Crude Oil Hedges (BOPD) Average(1) Average(1) Ceiling Instrument Volume Basis Swap Instrument Volume Basis Floor Ceiling…
  45. Corporate Presentation – Denbury Resources Inc. – slide 45
    Actual Click to Industry Recovery edit Master Curves title style Range of Recovery 10%-18% 46
  46. Corporate Presentation – Denbury Resources Inc. – slide 46
    Click Texasto COedit Master 2 Pipeline title style Economies of Scale Infrastructure Hastings Oyster Bayou Webster Conroe Thompson 14 12 70 MMBbls Pipeline cost per tertiary Bbl 10 95 8 MMBbls 6 163 4 MMBbls…
  47. Corporate Presentation – Denbury Resources Inc. – slide 47
    Actual Click to Curves Denbury edit Master Mature Fields title style Range of Recovery 11%-20+% 48
  48. Corporate Presentation – Denbury Resources Inc. – slide 48
    Click to edit Capital Master title style Structure (MM) 12/31/13 Cash and cash equivalents 12 Bank credit facility (Borrowing base of 1.6 billion, matures May 2016) 340 8.25% Sr. Sub Notes due 2020 (Callable February 2015 at…

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