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Enercom Conference – Denbury Resources Inc.

Denbury Resources Inc. · Aug 15, 2017 · 26 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 Conference – Denbury Resources Inc. – slide 1
    EnerComs The Oil & Gas Conference August 15, 2017 www.denbury.com NYSE: DNR NYSE: DNR www.denbury.com 1
  2. Enercom Conference – Denbury Resources Inc. – slide 2
    A Different Kind of Oil Company Core focus: CO2 enhanced oil recovery (CO2 EOR) Rocky Uniquely long-lived & lower-risk assets with extraordinary resource Mountain potential Region OPERATING CO2 supply and infrastructure provides our…
  3. Enercom 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. Enercom 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. Enercom 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) Denburys fields represent 10% of Existing Denbury CO2…
  6. Enercom 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 132 TX Tinsley…
  7. Enercom 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 36 MT MONTANA 260 - 290 MMBbls Potential…
  8. Enercom Conference – Denbury Resources Inc. – slide 8
    Building Scale in Our Core Operating Areas Rocky Mountain Salt Creek Region Proved reserves: 17 MMBbls Combined Proved + potential reserves: 25-35 MMBbls Current production: slightly above 2,000 Bbls/d Proved reserve additions…
  9. Enercom Conference – Denbury Resources Inc. – slide 9
    Realigning for Profitability and Sustainability Reduce cost structure Maximize value of broad asset base Improve balance sheet NYSE: DNR www.denbury.com 10
  10. Enercom Conference – Denbury Resources Inc. – slide 10
    2017 Capital Budget & Production Update 2017 Capital Budget Update 2017 Production Guidance Update PRODUCTION (BOE/D) REVISED DEVELOPMENT CAPITAL BUDGET(1) 58,000 - 62,000 60,000 - 62,000 (in millions) Reduced planned capital…
  11. Enercom Conference – Denbury Resources Inc. – slide 11
    Hastings Redevelopment Project Production has increased by 1,700 Bbls/d (gross) on capital spend of 26 MM 8,000 Hastings CO2 Field Gross Oil Production (Bbls/d) 7,000 6,000 PREVIOUS Production Well 5,000 Up 1,700 Bbls/d Injection…
  12. Enercom Conference – Denbury Resources Inc. – slide 12
    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…
  13. Enercom Conference – Denbury Resources Inc. – slide 13
    CO2 Utilization & Cost Summary 979 1,000 Total Company Injected Volumes 762 800 678 705 634 608 576 (MMcf/d) 600 82% 545 459 458 Jackson Dome CO2 400 76% 200 18% Industrial-sourced CO2 24% - 1Q15 2Q15 3Q15 4Q15…
  14. Enercom Conference – Denbury Resources Inc. – slide 14
    Debt & YTD Change in Bank Credit Facility in millions. Balances as of 6/30/2017 Borrowing Base 1,050 Bank Credit Facility: Ample Liquidity Undrawn Availability 498 773 498 million of borrowing & No Near-Term 615 622 LCs base…
  15. Enercom Conference – Denbury Resources Inc. – slide 15
    Oil Hedge Protection Detail as of August 10, 2017 Jul-17 Aug-17 Sep-17 4Q17 2018 WTI NYMEX Volumes Hedged (Bbls/d) 3,750 10,000 12,000 12,000 Swaps Fixed-Price Swaps Swap Price(1) 49.20 49.73 49.76 50.07 WTI NYMEX Volumes…
  16. Enercom Conference – Denbury Resources Inc. – slide 16
    Key Takeaways Reduce cost structure Looking Maximize value of broad asset base Ahead Improve balance sheet Long-Term Visibility Low decline, long-lived and low risk assets Tremendous resource potential Our Capital Flexibility…
  17. Enercom Conference – Denbury Resources Inc. – slide 17
    Appendix
  18. Enercom 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 Permian Basin Region Rocky Mountains 200 Permian…
  19. Enercom 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. Enercom Conference – Denbury Resources Inc. – slide 20
    Production by Area Average Daily Production (BOE/d) Field 2014 2015 1Q16 2Q16 3Q16 4Q16 2016 1Q17 2Q17 Mature area(1) 11,817 10,830 9,666 9,415 8,653 8,440 9,040 8,111 7,737 Delhi 4,340 3,688 3,971 3,996 4,262 4,387 4,155 4,991…
  21. Enercom Conference – Denbury Resources Inc. – slide 21
    NYMEX Oil Differential Summary Crude Oil Differentials per barrel 2014 2015 1Q16 2Q16 3Q16 4Q16 2016 1Q17 2Q17 Tertiary Oil Fields Gulf Coast Region 2.11 0.60 (1.95) (0.98) (0.82) (0.81) (1.35) (1.58) (1.01) Rocky Mountain Region…
  22. Enercom Conference – Denbury Resources Inc. – slide 22
    Analysis of Total Operating Costs Total Operating Costs /BOE 2014 2015 1Q16 2Q16 3Q16 4Q16 2016 1Q17 2Q17 CO2 Costs 3.79 2.66 1.97 2.13 2.17 2.40 2.16 2.86 2.36 Power & Fuel 5.93 5.59 5.26 5.02 5.39 5.53 5.29 5.93 6.04 Labor & Overhead…
  23. Enercom Conference – Denbury Resources Inc. – slide 23
    Analysis of Tertiary Operating Costs Tertiary Operating Costs /Bbl 2014 2015 1Q16 2Q16 3Q16 4Q16 2016 1Q17 2Q17 CO2 Costs 6.87 4.65 3.38 3.51 3.59 3.89 3.59 4.62 3.84 Power & Fuel 7.46 6.72 5.98 5.62 6.08 6.15 5.96 6.52 6.61 Labor &…
  24. Enercom Conference – Denbury Resources Inc. – slide 24
    Competitive Operating Margin 2Q17 Peer Operating Margins (/BOE) 30 25 Peer Average 20 15 10 5 - Peer A Peer B Peer C Peer D Peer E Peer F Peer G DNR Peer H Peer I Peer J Peer K Peer L Peer M Peer N Peer O Operating…
  25. Enercom 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 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2…
  26. Enercom Conference – Denbury Resources Inc. – slide 26
    Non-GAAP Measure Reconciliation of net income (loss) (GAAP measure) to adjusted cash flows from operations (non-GAAP measure) to cash flows from operations (GAAP measure) 2016 2017 In millions Q1 Q2 Q3 Q4 FY Q1 Q2 Net income (loss)…

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