Barclays CEO Energy-Power Conference September 6, 2016 NYSE:DNR NYSE:DNR
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…
Responding to Oil Price Volatility Focus Focus for 2016 for 2016 Reduce costs Optimize business Reduce debt Preserve cash and liquidity NYSE:DNR 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…
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…
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)…
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 Free State Pipeline Potential 396…
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…
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…
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%…
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)…
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…
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…
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…
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…
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…
Appendix
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…
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…
Actual Curves Denbury Mature Fields Range of Recovery 11%-20+% NYSE:DNR 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%…
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…
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 repurchases…
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…
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