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EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc.

Denbury Resources Inc. · Aug 17, 2016 · 31 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. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 1
    EnerComs The Oil & Gas Conference August 16, 2016 NYSE:DNR NYSE:DNR
  2. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 2
    A Different Kind of Oil Company 6.7 Tcf Gross proved Over CO2 reserves 1,100 As of 12/31/2015 miles of CO2 pipelines Operating Areas 2Q16 Tertiary Production Produced over Denburys Profile: 39,212 135 Million CO2 enhanced oil…
  3. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 3
    Responding to Oil Price Volatility Focus Focus for 2016 for 2016 Reduce costs Optimize business Reduce debt Preserve cash and liquidity NYSE:DNR 4
  4. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 4
    CO2 EOR Process CO2 EOR delivers almost as much production as primary or secondary recovery(1) Recovery of Original Oil in Place (OOIP) Primary 20% Secondary 18% (Waterfloods) CO2 EOR 17% (Tertiary) CO2 Oil Bank Remaining…
  5. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 5
    U.S. Lower-48 CO2 EOR Potential Up to 83 Billion Barrels of Technically Recoverable Oil(1)(2) 33-83 Billion of Technically Recoverable Oil(1,2) (amounts in billions of barrels) Permian 9-21 East & Central Texas 6-15 Mid-Continent…
  6. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 6
    Up to 16 Billion Gross Barrels Recoverable(1) in Our Two CO2 EOR Target Areas MT ND 2.8 to 6.6 Billion Barrels WY Estimated Recoverable in Rocky Mountain Region(2) Denbury-operated fields represent 10% of total potential(3)…
  7. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 7
    CO2 EOR in Gulf Coast Region Control of CO2 Sources & Pipeline Infrastructure Provides a Strategic Advantage Delhi(3) Tinsley(3) 45 MMBOEs 46 MMBbls Summary(1) Tinsley Jackson Dome Proved 144 Potential 396 Delhi Free State…
  8. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 8
    CO2 EOR in Rocky Mountain Region Control of CO2 Sources & Pipeline Infrastructure Provides a Strategic Advantage Summary(1) Cedar Creek Anticline Area(3) DGC Beulah MONTANA Proved 21 260 - 290 MMBbls Potential 329 NORTH DAKOTA…
  9. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 9
    Ample CO2 Supply & No Significant Capital Required for Several Years Gulf Coast CO2 Supply Rocky Mountain CO2 Supply Jackson Dome LaBarge Area Proved CO2 reserves as of 12/31/15: 5.5 Tcf(1) Estimated field size: 750 square miles…
  10. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 10
    Significant Improvement in CO2 Efficiency 1,200 Total Company Injected Volumes (MMcf/d) 1,000 979 53% 28% REDUCTION SINCE 1Q15 REDUCTION SINCE 1Q16 800 762 678 705 634 600 82% Jackson Dome CO2 459 400 75% 200 18%…
  11. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 11
    Continued Improvement of Cash Costs 25% 15% REDUCTION SINCE FY2014 REDUCTION SINCE 1Q15 38.22 37.26 35.00 34.06 32.93 32.32 CORPORATE CASH COSTS FIELD LEVEL CASH COSTS /BOE 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 G&A - Cash (1)…
  12. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 12
    Top Tier Operating Margin 2Q16 Peer Operating Margins (/BOE) 25 Upper Quartile 20 15 Peer Average 10 5 - Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer DNR A B C D E F G H I J K L M N O…
  13. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 13
    Ample Liquidity & Significant Debt Reductions Ample Liquidity & No Near-Term Maturities(1) Bank Credit Facility: Borrowing Base In millions 1,050 671 million in liquidity Undrawn & Available 797 as of 6/30/16 671 615 622 Basket for…
  14. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 14
    Significant Oil Hedge Protection Detail as of August 11, 2016 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 WTI NYMEX Volumes Hedged (Bbls/d) 11,500 18,500 26,000 22,000 22,000 Fixed-Price Swaps Swap Price(1) 61.84 38.96 38.70 42.67 43.99 WTI…
  15. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 15
    2016 Capital Budget & Production Guidance 2016 Capital Budget:200 Million Production Update Capitalized Adjusted mid-point of 2016 production guidance Items(1) from 66,000 BOE/d to 65,000 BOE/d due to non- 55 core asset sales and…
  16. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 16
    Update on Delhi Field NGL Plant Benefits Benefitsof ofthe Focus NGL Plant for 2016 the NGL Plant Will extract NGLs from our gas stream to be sold separately Will improve the Delhi flood with a purer CO2 recycle stream…
  17. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 17
    Key Takeaways Reduce costs Near-Term Focus Optimize business Reduce debt Preserve cash and liquidity Long-Term Visibility Our Advantages CO2 EOR is a proven process Long-lived and lower-risk assets Tremendous resource…
  18. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 18
    Appendix
  19. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 19
    CO2 EOR is a Proven Process Significant CO2 EOR Operators by Region Significant CO2 Supply by Region Gulf Coast Region Gulf Coast Region Denbury Resources Jackson Dome, MS (Denbury Resources) Permian Basin Region Port Arthur, TX…
  20. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 20
    Actual Industry Recovery Curves Range of Recovery 10%-18% An auditors view, Mike Stell, Ryder Scott, Permian Basin Study Group, April 4, 2011 Reserve booking guidelines, Mike Stell, Ryder Scott, CO2 Conference, Midland…
  21. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 21
    Actual Curves Denbury Mature Fields Range of Recovery 11%-20+% NYSE:DNR 22
  22. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 22
    Capital Structure Total Debt Principal Reduction YTD 545,014 (1) Open-Market Debt Debt ( in thousands) 12/31/2015 Debt Purchases Other Exchanges(2) 6/30/2016 Senior Secured Bank Credit Facility 175,000 55,521 89,479 320,000 9% Senior…
  23. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 23
    1H16 Change in Bank Credit Facility (In millions) 350 300 (22) 320 275 - 300 (103) 250 Cash Flow Covers CapEx 200 (56) 150 175 150 (114) 100 50 0 4Q15 Adjusted CapEx(2) Note Changes in Capital Lease 2Q16 YE2016 Bank…
  24. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 24
    Senior Secured Bank Credit Facility Info Commitments & borrowing base 1.05 billion Redetermination Semi-annually May 1st and November 1st Maturity date December 9, 2019 Permitted bond repurchases Up to 225 million of bond…
  25. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 25
    Production by Area Average Daily Production (BOE/d) Field 2013 2014 1Q15 2Q15 3Q15 4Q15 2015 1Q16 2Q16 Mature area(1) 13,803 11,817 10,801 11,170 10,946 10,403 10,830 9,666 9,415 Delhi(2) 5,149 4,340 3,551 3,623 3,676 3,898 3,688…
  26. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 26
    NYMEX Oil Differential Summary Crude Oil Differentials per barrel 2013 2014 1Q15 2Q15 3Q15 4Q15 2015 1Q16 2Q16 Tertiary Oil Fields Gulf Coast Region 7.86 2.11 (0.22) 2.04 0.98 (0.97) 0.60 (1.95) (0.98) Rocky Mountain Region…
  27. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 27
    Significant Reductions in LOE 12/31/13 WTI Price 98.42 /BBL 12/31/14 53.27 6/30/16 48.33 Recurring LOE(1) 12/31/15 /BOE 38.34 2/11/16 25.68 26.21 23.26 23.17 22.64 21.08 19.70 19.43 19.31 17.04 16.23 1Q14 2Q14 3Q14…
  28. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 28
    Analysis of Total Operating Costs Total Operating Costs /BOE 2013 2014 1Q15 2Q15 3Q15 4Q15 2015 1Q16 2Q16 CO2 Costs 3.73 3.79 3.03 2.71 2.17 2.70(1) 2.66 1.97 2.13 Power & Fuel 5.36 5.93 5.88 5.28 5.77 5.43 5.59 5.26 5.02 Labor &…
  29. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 29
    Analysis of Tertiary Operating Costs Tertiary Operating Costs /Bbl 2013 2014 1Q15 2Q15 3Q15 4Q15 2015 1Q16 2Q16 CO2 Costs 6.82 6.87 5.39 4.69 3.79 4.72(1) 4.65 3.38 3.51 Power & Fuel 6.64 7.46 7.30 6.27 6.81 6.53 6.72 5.98 5.62 Labor…
  30. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 30
    CO2 Cost & NYMEX Oil Price 0.55 110 0.50 100 0.45 90 0.40 80 NYMEX Crude Oil Price / Bbl (1) 0.35 70 CO2 Costs / Mcf 0.30 60 0.25 50 0.20 40 0.15 30 0.10 20 0.05 10 0.00 Q1 0 1Q Q2 2Q Q3 3Q Q4 4Q…
  31. EnerCom The Oil and Gas Conference 2016 – Denbury Resources Inc. – slide 31
    Non-GAAP Measure Reconciliation of cash flows from operations (GAAP measure) to adjusted cash flows from operations (non-GAAP measure) 2015 2016 In millions Q1 Q2 Q3 Q4 Q1 Q2 Cash flows from operations (GAAP measure) 138 289 273 165…

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