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Apr 2017 Corporate Presentation – Denbury Resources Inc.

Denbury Resources Inc. · Apr 21, 2017 · 33 slides

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Slides

  1. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 1
    Corporate Presentation April 2017 www.denbury.com NYSE: DNR NYSE: DNR www.denbury.com 1
  2. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 2
    A Different Kind of Oil Company CO2 enhanced oil recovery (CO2 EOR) is our core focus Rocky We have uniquely long-lived & lower-risk assets with extraordinary Mountain resource potential Region Owning and controlling the CO2 supply…
  3. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 3
    CO2 EOR Process CO2 Injection Well CO2 Pipeline Production Well CO2 EOR delivers almost as much production as primary or secondary recovery(1) Recovery of Original Oil in Place Primary 20% Secondary 18% (Waterfloods)…
  4. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 4
    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…
  5. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 5
    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 Existing Denbury CO2…
  6. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 6
    Responding to Oil Price Volatility Reduce costs Down-Cycle Optimize business Focus Reduce debt Preserve cash and liquidity Stabilize production and resume growth as oil prices improve Looking Ahead Continue to improve balance…
  7. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 7
    2017 Capital Budget & Production Guidance 2017 Development Capital Budget(1) Primarily focused on expanding existing CO2 floods and other DEVELOPMENT CAPITAL BUDGET infill opportunities (in millions) 55 Tertiary Projects 10 300…
  8. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 8
    2016 Reserves Update(1) Oil Gas Total PV-10 SEC Oil (MMBbl) (Bcf) MMBOE Value(2) Pricing(1) Proved reserves at December 31, 2015 282 38 289 2.3 Billion 50.28 Revisions of previous estimates (9) 16 (7) 2016 production (22) (6)…
  9. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 9
    Gulf Coast Region Control of CO2 Sources & Pipeline Infrastructure Provides a Strategic Advantage Summary(1) Delhi(3) Tinsley(3) Tertiary Reserves: 30 MMBOEs 25 MMBbls Proved 130 TX Tinsley Jackson Dome AL Potential 313 LA Free…
  10. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 10
    Rocky Mountain Region Control of CO2 Sources & Pipeline Infrastructure Provides a Strategic Advantage Summary(1) Tertiary Reserves: Cedar Creek Anticline DGC Beulah Area(3) Proved 19 MT MONTANA 260 - 290 MMBbls Potential 336…
  11. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 11
    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 12/31/16: 5.3 Tcf(1) Estimated field size: 750 square miles…
  12. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 12
    Sustained Improvement in CO2 Efficiency 1,000 979 44% 23% Total Company Injected Volumes 762 REDUCTION SINCE 1Q15 REDUCTION SINCE 4Q15 800 705 678 634 (MMcf/d) 600 545 82% 459 458 Jackson Dome CO2 400 78% 200 18%…
  13. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 13
    Continued Improvement of Cash Operating Costs 21% 42.81 REDUCTION CORPORATE 36.16 FY 2016 vs. FY 2014 33.79 CASH COSTS 7% FIELD LEVEL REDUCTION CASH COSTS FY 2016 vs. FY 2015 /BOE FY 2014 FY 2015 FY 2016 G&A - Cash (1) 4.53 4.34…
  14. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 14
    Top-Tier Operating Margin 4Q16 Peer Operating Margins (/BOE) 30 25 Peer Average 20 15 10 5 - Peer A Peer B Peer C Peer D DNR Peer E Peer F Peer G Peer H Peer I Peer J Peer K Peer L Peer M Peer N Peer O Operating…
  15. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 15
    Ample Liquidity & Significant Debt Reductions in millions Bank Credit Facility: Borrowing Base 1,050 Ample Liquidity 674 million in liquidity & No Near-Term Undrawn 773 & Available 674 615 622 as of 12/31/16 Maturities(1) 385…
  16. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 16
    Debt Structure Open-Market Debt Debt ( in millions) 12/31/2015 Debt Other 12/31/2016 Exchanges(1) Purchases Total Debt Principal Senior Secured Bank Credit Facility 175 76 50 301 Reduction 9% Senior Secured Second Lien Notes due…
  17. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 17
    Oil Hedge Protection Detail as of April 4, 2017 1Q17 2Q17 3Q17 4Q17 WTI NYMEX Volumes Hedged (Bbls/d) 22,000 22,000 Fixed-Price Swaps Swap Price(1) 42.67 43.99 Swaps Argus LLS Volumes Hedged (Bbls/d) 10,000 7,000 Fixed-Price…
  18. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 18
    Delhi NGL Plant In Service Late December 2016 Extracts NGLs from our gas stream to be sold separately Improves the Delhi flood with a purer CO2 recycle stream Self-generates power using extracted methane Delhi Field Delhi Field…
  19. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 19
    Key Takeaways Stabilize production and resume growth as oil prices improve Looking Continue to improve balance sheet Ahead Maintain and enhance efficiencies gained through the down-cycle Pursue opportunities to increase or accelerate…
  20. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 20
    Appendix
  21. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 21
    CO2 EOR is a Proven Process Significant CO2 EOR Operators by Region CO2 EOR Oil Production by Region(1) 300 Gulf Coast Region Gulf Coast/Other Denbury Resources 250 Mid-Continent Rocky Mountains Permian Basin Region 200 Permian…
  22. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 22
    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…
  23. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 23
    Actual Curves Denbury Mature Fields Range of Recovery 11%-20+% NYSE: DNR www.denbury.com 24
  24. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 24
    2016 Change in Bank Credit Facility Adjusted Cash Flow(1) 264 350 Development Capital Expenditures (209) Acquisitions (11) 300 Capitalized Interest (26) 301 (65) 250 Total 18 (In millions) 200 (59) 18 150 175 (77) 57…
  25. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 25
    Senior Secured Bank Credit Facility Info Commitments & Borrowing Base 1.05 billion Scheduled Redeterminations Semi-annually May 1st and November 1st Maturity Date December 9, 2019 Permitted bond repurchases Up to 225 million of bond…
  26. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 26
    Production by Area Average Daily Production (BOE/d) Field 2014 1Q15 2Q15 3Q15 4Q15 2015 1Q16 2Q16 3Q16 4Q16 2016 Mature area(1) 11,817 10,801 11,170 10,946 10,403 10,830 9,666 9,415 8,653 8,440 9,040 Delhi(2) 4,340 3,551 3,623 3,676…
  27. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 27
    NYMEX Oil Differential Summary Crude Oil Differentials per barrel 2014 1Q15 2Q15 3Q15 4Q15 2015 1Q16 2Q16 3Q16 4Q16 2016 Tertiary Oil Fields Gulf Coast Region 2.11 (0.22) 2.04 0.98 (0.97) 0.60 (1.95) (0.98) (0.82) (0.81) (1.35)…
  28. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 28
    Analysis of Total Operating Costs Total Operating Costs /BOE 2014 1Q15 2Q15 3Q15 4Q15 2015 1Q16 2Q16 3Q16 4Q16 2016 CO2 Costs 3.79 3.03 2.71 2.17 2.70(1) 2.66 1.97 2.13 2.17 2.40 2.16 Power & Fuel 5.93 5.88 5.28 5.77 5.43 5.59 5.26 5.02…
  29. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 29
    Analysis of Tertiary Operating Costs Tertiary Operating Costs /Bbl 2014 1Q15 2Q15 3Q15 4Q15 2015 1Q16 2Q16 3Q16 4Q16 2016 CO2 Costs 6.87 5.39 4.69 3.79 4.72(1) 4.65 3.38 3.51 3.59 3.89 3.59 Power & Fuel 7.46 7.30 6.27 6.81 6.53 6.72…
  30. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 30
    2017 Capital Budget Highlights Tertiary MM Non-Tertiary MM Bell Creek 25 Cedar Creek Anticline 25 Development Capital Budget(1) 55 Heidelberg 30 Exploitation 15 300 MM Total 10 Hastings 30 Other 20 Tinsley 15 Total 60 175 60…
  31. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 31
    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 (2) 0 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2…
  32. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 32
    Non-GAAP Measures Reconciliation of net loss (GAAP measure) to adjusted cash flows from operations (non-GAAP measure) to cash flows from operations (GAAP measure) 2015 2016 In millions Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Net loss (GAAP…
  33. Apr 2017 Corporate Presentation – Denbury Resources Inc. – slide 33
    Non-GAAP Measures (Cont.) Reconciliation of the standardized measure of discounted estimated future net cash flows after income taxes (GAAP measure) to PV-10 Value (non- GAAP measure) December 31, In millions 2015 2016 Standardized…

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