Skip to main content 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. Investor Presentation | Shale Experts
Loading...
Pm

2017 JP Morgan Energy Equity Conference – Denbury Resources Inc.

Denbury Resources Inc. · Jun 26, 2017 · 25 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. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 1
    J.P. Morgan 2017 Energy Equity Conference June 26, 2017 www.denbury.com NYSE: DNR NYSE: DNR www.denbury.com 1
  2. 2017 JP Morgan Energy Equity Conference – 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. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 3
    CO2 EOR Process CO2 Injection Well CO2 Pipeline Production Well CO2 EOR can produce about as much oil as primary or secondary recovery(1) Recovery of Original Oil in Place Primary 20% Secondary 18% (Waterfloods) (OOIP)…
  4. 2017 JP Morgan Energy Equity Conference – 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. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 5
    Up to 16 Billion Gross EOR Barrels Recoverable(1) in Our Two Core Operating 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. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 6
    Gulf Coast Region Vast CO2 Supply and Distribution Capacity in Texas, Louisiana & Mississippi Tinsley(3) Reserves Summary(1) Delhi(3) West Yellow Creek(3) 25 MMBbls 5 -10 MMBbls Tertiary Reserves: 30 MMBOEs Proved 130 TX Tinsley…
  7. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 7
    Rocky Mountain Region Control of CO2 Sources & Pipeline Infrastructure Provides a Strategic Advantage Reserves Summary(1) Tertiary Reserves: Cedar Creek Anticline Area(3) DGC Beulah Proved 19 MT MONTANA 260 - 290 MMBbls Potential…
  8. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 8
    2017 Priorities Maintain and enhance Stabilize production and efficiencies gained through resume growth the down-cycle Pursue opportunities to Continue to improve balance sheet increase or accelerate growth NYSE: DNR…
  9. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 9
    Building Scale in Our Core Operating Areas Rocky Mountain Salt Creek Region PDP reserves: 9 MMbls Combined Estimated PUD reserves(1): 9 MMbls Proved + Potential: 25-35 MMbls Proved reserve additions Current production: 2,100 Bbls…
  10. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 10
    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…
  11. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 11
    Abundant 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. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 12
    CO2 Utilization & Cost Summary 1,000 979 41% 18% Total Company Injected Volumes 762 REDUCTION SINCE 1Q15 REDUCTION SINCE 4Q15 800 678 705 634 (MMcf/d) 600 576 82% 545 459 458 Jackson Dome CO2 400 74% 200 18%…
  13. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 13
    Ample Liquidity & Significant Debt Reductions in millions Bank Credit Facility: Borrowing Base 1,050 Ample Liquidity 623 million in liquidity & No Near-Term Undrawn 773 & Available 623 615 622 as of 3/31/17 Maturities(1) LCs 385…
  14. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 14
    Increased Flexibility in Recent Bank Amendment Item Updates Revised Financial Covenants and Pricing Grid 2018 Commitments & Borrowing Base Reaffirmed at 1.05 billion 2017 2019 Q1 Q2 Q3 Q4 Total Net Debt to EBITDAX (max) Eliminated…
  15. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 15
    Oil Hedge Protection Detail as of May 31, 2017 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 WTI NYMEX Volumes Hedged (Bbls/d) 22,000 3,000 3,000 3,000 3,000 Fixed-Price Swap Price(1) 43.99 50.20 50.20 50.20 50.20 Swaps Swaps Argus LLS…
  16. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 16
    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…
  17. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 17
    Appendix
  18. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 18
    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…
  19. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 19
    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…
  20. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 20
    Production by Area Average Daily Production (BOE/d) Field 2014 2015 1Q16 2Q16 3Q16 4Q16 2016 1Q17 Mature area(1) 11,817 10,830 9,666 9,415 8,653 8,440 9,040 8,111 Delhi 4,340 3,688 3,971 3,996 4,262 4,387 4,155 4,991 Hastings 4,777…
  21. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 21
    NYMEX Oil Differential Summary Crude Oil Differentials per barrel 2014 2015 1Q16 2Q16 3Q16 4Q16 2016 1Q17 Tertiary Oil Fields Gulf Coast Region 2.11 0.60 (1.95) (0.98) (0.82) (0.81) (1.35) (1.58) Rocky Mountain Region (11.10) (2.74)…
  22. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 22
    Analysis of Total Operating Costs Total Operating Costs /BOE 2014 2015 1Q16 2Q16 3Q16 4Q16 2016 1Q17 CO2 Costs 3.79 2.66 1.97 2.13 2.17 2.40 2.16 2.86 Power & Fuel 5.93 5.59 5.26 5.02 5.39 5.53 5.29 5.93 1) Normalized LOE excludes…
  23. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 23
    Analysis of Tertiary Operating Costs Tertiary Operating Costs /Bbl 2014 2015 1Q16 2Q16 3Q16 4Q16 2016 1Q17 CO2 Costs 6.87 4.65 3.38 3.51 3.59 3.89 3.59 4.62 Power & Fuel 7.46 6.72 5.98 5.62 6.08 6.15 5.96 6.52 Labor & Overhead 5.04…
  24. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 24
    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 20 Total 60 175 60…
  25. 2017 JP Morgan Energy Equity Conference – Denbury Resources Inc. – slide 25
    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…

From the store

Browse maps, data & reports in the Shale Experts store