Skip to main content Johnson Rice 2017 Energy Conference – Denbury Resources Inc. Investor Presentation | Shale Experts
Loading...
Pm

Johnson Rice 2017 Energy Conference – Denbury Resources Inc.

Denbury Resources Inc. · Sep 26, 2017 · 29 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. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 1
    Johnson Rice 2017 Energy Conference September 26-27, 2017 www.denbury.com NYSE: DNR NYSE: DNR www.denbury.com 1
  2. Johnson Rice 2017 Energy 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. Johnson Rice 2017 Energy 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. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 4
    Significant Running Room with CO2 EOR Up to 83 Billion Barrels of Technically Recoverable Oil U.S Lower 48(1)(2) 2.8 to 6.6 MT Billion Barrels ND Rocky Mountain Region(2) 33-83 Billion of Technically WY Recoverable Oil(1,2)…
  5. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 5
    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…
  6. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 6
    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…
  7. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 7
    Realigning for Profitability and Sustainability Focus Areas Medium-Term Expectations Expect cost reductions 50 million in 2018 REDUCE COST STRUCTURE Cost reductions combined with unique asset base enhance profitability Continue…
  8. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 8
    2017 Capital Budget & Production Update Recent 2017 Capital Budget Update Recent 2017 Production Guidance Update PRODUCTION (BOE/D)(3) REVISED DEVELOPMENT CAPITAL BUDGET(1) 58,000 - 62,000 60,000 - 62,000 (in millions) Reduced…
  9. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 9
    Hastings Redevelopment Project Increased production by 1,700 Bbls/d (gross) on capital spend of 26 MM 8,000 Gross Oil Production (Bbls/d) 7,000 6,000 PREVIOUS Production Well 5,000 Up 1,700 Bbls/d Injection 4,000 Well 5/13 5/20…
  10. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 10
    Bell Creek Phases 5 & 6 Development Phases 5 & 6 have the best geological properties of the Bell Creek flood Larger EOR target than first four phases combined Increased pattern spacing improves capital efficiency Phase 5 On schedule…
  11. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 11
    Cedar Creek Anticline Mission Canyon High Value Exploitation Opportunity Horizontal wells targeting Low-cost horizontal well development upper portion of Mission unlocks 6 MMBOE resource potential over Canyon 9,000 acres within…
  12. Johnson Rice 2017 Energy 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. Johnson Rice 2017 Energy 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. Johnson Rice 2017 Energy 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. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 15
    Oil Hedge Protection Detail as of September 22, 2017 Jul-17 Aug-17 Sep-17 4Q17 2018 WTI NYMEX Volumes Hedged (Bbls/d) 3,750 10,000 12,000 15,500 Swaps Fixed-Price Swaps Swap Price(1) 49.20 49.73 49.76 50.13 WTI NYMEX Volumes…
  16. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 16
    Key Takeaways Reduce cost structure Looking Unlock full value of asset base Ahead Improve balance sheet Long-Term Visibility Low decline, long-lived and low risk assets Tremendous resource potential Our Capital Flexibility…
  17. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 17
    Appendix
  18. Johnson Rice 2017 Energy 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. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 19
    Examples of Significant Development Opportunities Gulf Coast Rocky Mountain Hastings, TX Delhi, LA Heidelberg, MS Bell Creek, MT Hartzog Draw, WY CHSU, ND Remaining development in Two of six test sites Realignment of Christmas Four of…
  20. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 20
    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…
  21. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 21
    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…
  22. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 22
    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…
  23. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 23
    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…
  24. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 24
    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…
  25. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 25
    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 &…
  26. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 26
    Cash Operating Costs 42.81 39.19 37.48 CORPORATE 36.16 33.79 CASH COSTS FIELD LEVEL CASH COSTS /BOE FY 2014 FY 2015 FY 2016 1Q 2017 2Q 2017 G&A - Cash (1) 4.53 4.34 4.08 4.47 3.85 Interest - Cash (2) 7.14 6.85 7.29 7.88 7.98…
  27. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 27
    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…
  28. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 28
    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…
  29. Johnson Rice 2017 Energy Conference – Denbury Resources Inc. – slide 29
    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)…

From the store

Browse maps, data & reports in the Shale Experts store