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Analyst Day Presentation – Denbury Resources Inc.

Denbury Resources Inc. · Nov 30, 2013 · 96 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. Analyst Day Presentation – Denbury Resources Inc. – slide 1
    VALUE Analyst Day DRIVEN Presentation November 2013 NYSE: DNR Denbury.com
  2. Analyst Day Presentation – Denbury Resources Inc. – slide 2
    Click to Leadership Proven edit Master Team title style Professional Years at Officer Title Experience Denbury Phil Rykhoek President and Chief Executive Officer 34 Years 18 Years Mark Allen SVP, Chief Financial Officer and…
  3. Analyst Day Presentation – Denbury Resources Inc. – slide 3
    Company Overview Phil Rykhoek President & Chief Executive Officer
  4. Analyst Day Presentation – Denbury Resources Inc. – slide 4
    Click to edit Master New Director title style Appointment John P. Dielwart, appointed to Board of Directors effective November 8, 2013. John successfully founded, built, and led one of Canadas preeminent mid-sized dividend paying,…
  5. Analyst Day Presentation – Denbury Resources Inc. – slide 5
    Click to editKind A Different Master titleCompany of Oil style Proven Unique Return Environmentally Process Strategy Focused Responsible CO2 EOR is one of We acquire mature Continual focus on We store CO2 the most efficient oil…
  6. Analyst Day Presentation – Denbury Resources Inc. – slide 6
    Click to edit Denbury at aMaster Glancetitle style Pro-forma Total 3P Reserves (12/31/12)(1) 1.2 BBOE % Oil Production (3Q13) 95% Total Daily Production BOE/d (3Q13) 71,531 Pro-forma Proved PV-10 (12/31/12) 94.71 NYMEX Oil Price…
  7. Analyst Day Presentation – Denbury Resources Inc. – slide 7
    Click 2013 to edit Master title style Accomplishments Successful Execution Full-year production expected to be within guidance range Recognized first CO2 EOR production and revenue in the Rocky Mountain region Added 350 BCF of…
  8. Analyst Day Presentation – Denbury Resources Inc. – slide 8
    Click What to edit is CO Master 2 EOR titleMuch & How styleOil Does It Recover Secure CO2 Supply Transport via Pipeline Inject into Oilfield CO2 EOR Delivers Almost as Much Production as each of Primary and Secondary…
  9. Analyst Day Presentation – Denbury Resources Inc. – slide 9
    Denburys Click to editVision Master title style Become a Premier Growth & Income Company Proven and repeatable process Strategic and competitive advantage Large portfolio of lower risk growth projects Unique…
  10. Analyst Day Presentation – Denbury Resources Inc. – slide 10
    Click to edit Initiating Master title style Dividends Accelerating dividend payments to 2014 Initial annualized dividend per share of 0.25 anticipated 0.0625 per share per quarter, first dividend expected 1Q14 Estimating an annual…
  11. Analyst Day Presentation – Denbury Resources Inc. – slide 11
    Our Value Click to editProposition Master title style Combined production and dividend growth Estimated Estimated Combined Growth Production Growth Dividend Yield & Income No Dividend Prior Plan 5 - 10% +/- 7.5% until 2017 +/-…
  12. Analyst Day Presentation – Denbury Resources Inc. – slide 12
    Click Benefits Other to edit Master titleon of Focusing style Growth and Income Increases internal priority on value creation (i.e., cash generation) Increases capital discipline Attracts additional longer-term focused investors…
  13. Analyst Day Presentation – Denbury Resources Inc. – slide 13
    Alternatives Click Considered to edit Master title style MLP Options Considered: Partial Gulf Coast Complete Midstream Dividend Drop-Down Drop-Down Drop-Down Drop-Down Paying C-Corp Form public Form public Form public Form…
  14. Analyst Day Presentation – Denbury Resources Inc. – slide 14
    Upstream Click to editMLP Considerations Master title style Pros Cons Another currency for potential Increases complexity acquisitions Potential CO2 allocation conflicts Potential value from Incentive Potential tax leakage…
  15. Analyst Day Presentation – Denbury Resources Inc. – slide 15
    Midstream Click to edit MLP Considerations Master title style Pros Cons Raises capital to fund capital Our CO2 assets do not fit normal expenditures, share buybacks, or midstream models dividend payments Increases complexity…
  16. Analyst Day Presentation – Denbury Resources Inc. – slide 16
    Click to edit Master Disciplined titletostyle Approach Capital Allocation Remaining share Excess Cash repurchase authorization increased from 109MM Share to 250MM repurchases, debt repayment, capital expenditures…
  17. Analyst Day Presentation – Denbury Resources Inc. – slide 17
    Click to edit Balanced andMaster Value Creation(1) title style Sustainable Steady Capital Expenditures(2) Continued Production Growth 1,200 100,000 Average Daily Production Annual Capital Expenditures 1,000 80,000 Est.…
  18. Analyst Day Presentation – Denbury Resources Inc. – slide 18
    Our Two CO2 EOR Target Areas: Click to edit Master title style Up to 10 Billion Barrels Recoverable with CO2 EOR Estimated 1.3 to 3.2 MT ND Billion Barrels Recoverable in Rocky Mountain Region(1) Greencore ID Pipeline SD Lost…
  19. Analyst Day Presentation – Denbury Resources Inc. – slide 19
    CO2 EOR Click to in Gulf edit Master Coast Region: title style Control of CO Sources & Pipeline Infrastructure Provides a Strategic Advantage 2 Tinsley(3) Summary(1) Delhi(3) 46 MMBbls 36 MMBbls Tinsley Proved 201 Jackson Dome…
  20. Analyst Day Presentation – Denbury Resources Inc. – slide 20
    CO2 EOR Click to in Rocky edit Master Mountain title style Region: Control of CO Sources & Pipeline Infrastructure Provides a Strategic Advantage 2 CO2 Sources Summary(1) Existing or Proposed CO2 Source Cedar Creek Anticline…
  21. Analyst Day Presentation – Denbury Resources Inc. – slide 21
    Click Moreto editaMaster than Billion title styleof Oil Potential Barrels 46 1,214 1,250 717 ..... ..... 89% 100% 100% 100% Oil Oil Natural 1,000 Oil Gas 750 MMBOE 462 451 500 409 ..... 77% 82% Oil 80% Oil 250…
  22. Analyst Day Presentation – Denbury Resources Inc. – slide 22
    Click to edit Highest Master Margin Operating in the Peer Group(1) title style /BOE 3-Months ended 9/30/2013 80 95% Oil Production Drives Higher Margins 70 60 50 40 30 20 10 0 DNR(2) Peer A Peer B Peer C…
  23. Analyst Day Presentation – Denbury Resources Inc. – slide 23
    Click to edit Highest Master Capital in Peer Group(1) title style Efficiency 60.26 Adjusted 3-Year Finding & Development Cost (/BOE)(2) 60.00 50.15 50.00 40.00 33.57 32.26 30.00 23.23 22.82 21.14 19.57 19.39 20.00 18.42…
  24. Analyst Day Presentation – Denbury Resources Inc. – slide 24
    Click ValuetoCreation edit Master title Portfolio through style Management Estimated Peak Production Rate Produced Proved Potential First (Net MBOE/d) Expected Operating Area to date(2) Remaining(2) Remaining(3) Production(1) Peak…
  25. Analyst Day Presentation – Denbury Resources Inc. – slide 25
    CO2 EOR Primer & CO2 Assets Charlie Gibson SVP Planning, Technology and CO2 Supply
  26. Analyst Day Presentation – Denbury Resources Inc. – slide 26
    How to Click much editoil remains Master titlein an old oil field style Sand Grain with water Remaining coating Oil Isolated oil droplets CO2 At Microscopic Level Initial Discovery After Primary Recovery After Secondary After…
  27. Analyst Day Presentation – Denbury Resources Inc. – slide 27
    Will CO Click recover to 2edit additional Master title styleoil At Microscopic Level Depends on how well CO2 mixes with oil % Oil Recovery Composition of oil, pressure and temperature of reservoir Estimated MMP to occur 2400…
  28. Analyst Day Presentation – Denbury Resources Inc. – slide 28
    Contacting Click to edit oil with title Master CO2 style Injector Producer CO2 Volumetric Sweep Efficiency is the volume of rock contacted by CO2 The greater the volume of reservoir contacted by CO2, the greater the oil…
  29. Analyst Day Presentation – Denbury Resources Inc. – slide 29
    Actual Click to Industry Recovery edit Master Curves title style Range of Recovery 10%-18% 31
  30. Analyst Day Presentation – Denbury Resources Inc. – slide 30
    Actual Click to Curves Denbury edit Master Mature Fields title style Range of Recovery 11%-20+% 32
  31. Analyst Day Presentation – Denbury Resources Inc. – slide 31
    CO2 Sources & Pipelines
  32. Analyst Day Presentation – Denbury Resources Inc. – slide 32
    Click to editCO Gulf Coast Master titlePlanned 2: 2014 style Activity Continue Jackson Dome Development CapEx: 100MM Wellwork (40MM) Facilities & Pipelines (60MM) Drill and complete 1 development well Construct Webster pipeline…
  33. Analyst Day Presentation – Denbury Resources Inc. – slide 33
    Gulf Coast Click to editIndustrial Partners Master title style Currently Producing or Under Construction Air Products PCS Nitrogen Mississippi Power (Under Construction) Port Arthur, Texas Geismar, Louisiana Kemper County, MS…
  34. Analyst Day Presentation – Denbury Resources Inc. – slide 34
    CO 2 Supply Click to edit to Support Master titleGulf styleCoast Growth 1,600 Additional CO2 Potential (not reflected in graph) Probable & Possible Reserves: 2.5 TCF Improved Recovery of Proved Reserves: 0.8 TCF Recycle: 3 TCF…
  35. Analyst Day Presentation – Denbury Resources Inc. – slide 35
    Click to edit Webster Master title style Lateral 9 Miles Preliminary Timetable Total Cost of 30MM 2014 Acquire right-of-way, procure material and begin construction of 9 mile, 16 pipeline (23MM) 2015 Initial CO2 delivery…
  36. Analyst Day Presentation – Denbury Resources Inc. – slide 36
    Click to edit Conroe Master Pipeline title style Lateral 90 Miles Preliminary Timetable Total Cost of 220MM 2014 Select route, engineering, acquire right-of-way and regulatory permits (3MM) 2015 Procure Material 2016 Begin…
  37. Analyst Day Presentation – Denbury Resources Inc. – slide 37
    Click to edit Rockies Master Region: title style Planned Pipeline Infrastructure CO2 Sources Cedar Creek Anticline Existing or Proposed CO2 Source Owned or Contracted MONTANA Cedar Creek Anticline NORTH DAKOTA Bell…
  38. Analyst Day Presentation – Denbury Resources Inc. – slide 38
    Click to edit to CO2 Supply Master title Support styleMountain Growth Rocky LaBarge Area Estimated Field Size: 750 Square Miles Estimated 100 TCF of CO2 Recoverable Riley Ridge Denbury Operated 100% WI in 9,700 acre Riley Ridge…
  39. Analyst Day Presentation – Denbury Resources Inc. – slide 39
    Click RockytoMountain edit Master title style CO2 Sources: 2014 Planned Activity Engineering and Permitting CapEx: 20MM Riley Ridge (15 million) Begin methane & helium sales in 1Q14 Complete new producer Existing well repair…
  40. Analyst Day Presentation – Denbury Resources Inc. – slide 40
    CO2 EOR Fields Overview Craig McPherson SVP & Chief Operating Officer
  41. Analyst Day Presentation – Denbury Resources Inc. – slide 41
    Click to edit Master Operational Focus title style Safety & Environment Operational excellence Maximize value creation Convert resources to producing reserves Project execution excellence Long-term production growth People:…
  42. Analyst Day Presentation – Denbury Resources Inc. – slide 42
    Click 2013 to edit Master Highlights: title style Tertiary Operations Area of Operation Operational Highlights Heidelberg Positive response from East Heidelberg development Solid year-over-year growth as the field de-waters and…
  43. Analyst Day Presentation – Denbury Resources Inc. – slide 43
    Click to edit Changes to Master title Previous style Development Plan Rockies: Previous Plan New Plan Delay CCA first CO2 EOR production 2017 2020 Delay Hartzog Draw first CO2 EOR production 2016 2020 Delay Riley Ridge CO2…
  44. Analyst Day Presentation – Denbury Resources Inc. – slide 44
    Click 2014 to (1) edit Master Guidance title style 2014 Capital Budget 1.0 Billion(2) 2014 Anticipated Dividends - 90 Million 2014 Production Estimate CO2 Pipelines 60MM 2013E(3) 2014E 2014E Operating area (BOE/d) (BOE/d)…
  45. Analyst Day Presentation – Denbury Resources Inc. – slide 45
    Current CO2 EOR Floods
  46. Analyst Day Presentation – Denbury Resources Inc. – slide 46
    Click to edit Tertiary Oil Master title style Production 45,000 Net Daily Tertiary Oil Production 40,000 35,000 30,000 Net BOPD 25,000 20,000 15,000 29% CAGR 10,000 1999-2012 5,000 0 2003 2004 2005 2006 2007…
  47. Analyst Day Presentation – Denbury Resources Inc. – slide 47
    Click to edit Hastings Master title style Field Net Daily Tertiary Oil Production 4,500 4,000 Facility downtime Expect production 3,500 increase in 4Q13 3,000 TEXAS Net BOPD LOUISIANA 2,500 2,000 1,500 1,000 500 0…
  48. Analyst Day Presentation – Denbury Resources Inc. – slide 48
    Click to edit Hastings Master Field: titleProgram 2014E style Continue CO2 EOR Development CapEx: 75MM Hastings West Hastings Unit Production: Growth 4,420 Acres 2014 Development: Develop new patterns Expand facility 2014…
  49. Analyst Day Presentation – Denbury Resources Inc. – slide 49
    Click Oysterto Bayou edit Master Field title style Net Daily Tertiary Oil Production 3,500 3,000 2,500 Net BOPD 2,000 TEXAS LOUISIANA 1,500 1,000 500 0 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 Green Pipeline…
  50. Analyst Day Presentation – Denbury Resources Inc. – slide 50
    Click Oysterto Bayou edit Master Field:title styleProgram 2014E Develop A-2 Zone CapEx: 50MM Oyster Bayou Production: Growth 2014 Development: Develop the A-2 Zone flood 9 injectors; 14 producers Optimize the A-1 Zone…
  51. Analyst Day Presentation – Denbury Resources Inc. – slide 51
    Click Delhito edit Master title style Field Net Daily Tertiary Oil Production 7,000 Delhi incident Delhi 6,000 Expect production 5,000 increase in 4Q13 Jackson Net BOPD Dome 4,000 Delhi 3,000 2,000 Free State…
  52. Analyst Day Presentation – Denbury Resources Inc. – slide 52
    Click Delhito edit Master Field: title style 2014E Program Install NGL Plant CapEx: 40MM Production: Flat until reversionary interest reached in 2014 Net Revenue Interest (NRI) changes from 76% to 57% Impact is 1,000 1,300 BOPD…
  53. Analyst Day Presentation – Denbury Resources Inc. – slide 53
    Delhi Field Click to edit Master title style Status Update Successfully plugged suspected source of leak Likely will not CO2 flood impacted area in future Remediation of surface nearly completed Reserves relatively unchanged Plugging…
  54. Analyst Day Presentation – Denbury Resources Inc. – slide 54
    Initiatives Click in Master to edit Response tostyle title Prior Operators P&A Performed additional reviews of P&A wells Continue to strengthen internal P&A criteria Dedicated staff to investigate, implement and monitor 200 MM…
  55. Analyst Day Presentation – Denbury Resources Inc. – slide 55
    Click to edit Field Heidelberg Master title style Net Daily Tertiary Oil Production 5,000 4,500 Jackson Heidelberg 4,000 Dome 3,500 Net BOPD 3,000 2,500 Free State Pipeline 2,000 1,500 Heidelberg 1,000 500 -…
  56. Analyst Day Presentation – Denbury Resources Inc. – slide 56
    Click to edit Field: Heidelberg Master2014E title style Program Continue CO2 EOR Development CapEx: 120MM Heidelberg Production: Growth 2014 East Development Expand Christmas zone development FB-3 Eutaw production in Q2 2014…
  57. Analyst Day Presentation – Denbury Resources Inc. – slide 57
    Click to edit Tinsley FieldMaster title style Net Daily Tertiary Oil Production 9,000 Tinsley 8,000 7,000 Jackson Dome 6,000 Net BOPD 5,000 Tinsley 4,000 3,000 2,000 1,000 0 1Q07 3Q09 3Q07 1Q08 3Q08…
  58. Analyst Day Presentation – Denbury Resources Inc. – slide 58
    Click to edit Tinsley Master Field: 2014Etitle style Program Continue CO2 EOR Development CapEx: 50MM Tinsley Tinsley Unit Phase 8 Expansion 13,160 Acres Production: Slight Decline 2014 Development: Phase 8 CO2 Flood…
  59. Analyst Day Presentation – Denbury Resources Inc. – slide 59
    Click to editField: Bell Creek Master title style 2014E Program Continue CO2 EOR Development CapEx: 55MM Production: Growth 2014 Development: Phase 3: 1st injection 2015 Continue development of Phase 2 Prepare to flood Phase 3…
  60. Analyst Day Presentation – Denbury Resources Inc. – slide 60
    Click to edit Mature Master title style Oil Fields Net Daily Tertiary Oil Production by Field 25,000 Mallalieu Area McComb Area Little Creek Area Soso Total 20,000 Net Average Daily Production (BOPD) All Mature Area…
  61. Analyst Day Presentation – Denbury Resources Inc. – slide 61
    Click to edit Mature CO2 Master Fields: title style 2014E Program Minimize Production Decline (Modest Decline in 2014) CapEx: 115MM Mallalieu Soso CapEx: 15MM CapEx: 10MM Brookhaven Cranfield CapEx: 35MM CapEx: 25MM McComb…
  62. Analyst Day Presentation – Denbury Resources Inc. – slide 62
    Click 2014 to edit Master Tertiary title style Production Variables that influence 2014 EOR production Bell Creek CO2 supply timing & volume Pace of response to CO2 injection Heidelberg New East Heidelberg flood performance…
  63. Analyst Day Presentation – Denbury Resources Inc. – slide 63
    Future CO2 Floods
  64. Analyst Day Presentation – Denbury Resources Inc. – slide 64
    Click to edit Webster Master Field: titleProgram 2014E style Prepare for CO2 Injection CapEx: 105MM Conventional Production: Modest Decline Prepare for CO2 injection in mid-2015 2014 Development: Drill/Recomplete 25 wells as…
  65. Analyst Day Presentation – Denbury Resources Inc. – slide 65
    Click to CO Future edit2 Master Floods title style Future CO2 Floods CapEx: 45MM Conroe Field Conventional Production: Decline 2014 CapEx: 30MM (Recompletions and Phase 1 water injection) Prepare for CO2 Injection 2017; Initial…
  66. Analyst Day Presentation – Denbury Resources Inc. – slide 66
    Click CedartoCreek edit Master titleFields Anticline style CCA Conventional Development CapEx: 110MM NORTH DAKOTA Glendive North MONTANA Glendive CCA Gas City DAWSON Production: Modest Decline North Pine WIBAUX…
  67. Analyst Day Presentation – Denbury Resources Inc. – slide 67
    Click to edit Hartzog DrawMaster title style Shannon Development CapEx: 40MM Hartzog Draw Production: Growth Re-frac 8 existing waterflood wells Shannon Sand Tight Oil Sand Horizontal development 40 Probable locations Regional…
  68. Analyst Day Presentation – Denbury Resources Inc. – slide 68
    Financial Overview Mark Allen SVP & Chief Financial Officer
  69. Analyst Day Presentation – Denbury Resources Inc. – slide 69
    Denburys Click to editCompelling Asset Master title Base style Leading operating margins and capital efficiency Long-lived assets with reasonable decline Ability to decrease capital spending with minimal near-term production…
  70. Analyst Day Presentation – Denbury Resources Inc. – slide 70
    Click to Unique editStructure Asset Master title style Relative to Other Independents Reserve life index(1) 1st year of decline rate by basin(1) 20.0x DNR Selected Companies(2) 90% EOR Assets Non-EOR Assets 80% Inclining 70%…
  71. Analyst Day Presentation – Denbury Resources Inc. – slide 71
    Dividend Click Policy to edit Master title style Denbury Dividend Guiding Principles: Designed to attract both income and growth investors Dividend stability is key Goal is to fund CapEx and Dividends with cash flow Maintain…
  72. Analyst Day Presentation – Denbury Resources Inc. – slide 72
    Dividend Yield Click to edit Distribution Master S&P 500 title style Source: Goldman Sachs report dated November 2013 using Capital IQ; market data as of 11/1/13. 1 Upstream focused companies include: APC, APA, COG, CHK, COP, DNR,…
  73. Analyst Day Presentation – Denbury Resources Inc. – slide 73
    Dividend Yield Click to edit Analysis Master title style Independent Dividend Paying E&P C-Corps Market Cap (MM) Yield DNR 2015E(1) 7,081 2.8% (1) CRK 899 2.7% OXY 79,047 2.6% MRO 25,518 2.1% MUR 11,576 2.0% DVN 26,541 1.4%…
  74. Analyst Day Presentation – Denbury Resources Inc. – slide 74
    Balance Click Sheet to edit Objectives Master title style Maintain excess liquidity under credit facility Borrowing base - 1.6 billion - assets could support 3.0 - 3.5 billion Continue hedging program De-lever with growth Use…
  75. Analyst Day Presentation – Denbury Resources Inc. – slide 75
    Click to edit Dividend Master Payment title style Flexibility Credit Facility Recent bank agreement amendments: No restrictions on distributions and share repurchases so long as: (i) minimum pro forma availability under the…
  76. Analyst Day Presentation – Denbury Resources Inc. – slide 76
    Click to edit Strong Master Financial title style Position 1.3 billion availability under Debt to Capitalization credit facility on 9/30/13 (9/30/13) Debt 38% 38% Unused Credit 81% Facility 1.6 billion borrowing base +…
  77. Analyst Day Presentation – Denbury Resources Inc. – slide 77
    Click to edit Capital Master title style Structure (MM) 9/30/13 Cash and cash equivalents 27 Bank credit facility (Borrowing base of 1.6 billion, matures May 2016) 310 8.25% Sr. Sub Notes due 2020 (Callable February 2015 at…
  78. Analyst Day Presentation – Denbury Resources Inc. – slide 78
    Click 2014 to edit Master Capital Budgettitle and Sources & Uses(1) style 2014 Capital Budget 1.0 Billion(2) 2014 Anticipated Dividends - 90 Million CO2 Pipelines 60MM 2014E Sources of Cash (MM) Est. Cash flow from operations…
  79. Analyst Day Presentation – Denbury Resources Inc. – slide 79
    Click to edit Master Production by Areatitle style (BOE/d) (1) Operating area 2009 2010 2011 2012 4Q12 1Q13 2Q13 3Q13 2013E 2014E Tertiary Oil Fields 24,343 29,062 30,959 35,206 37,550 39,057 38,752 37,513 36,500-39,500 42,000…
  80. Analyst Day Presentation – Denbury Resources Inc. – slide 80
    Click to edit Tertiary Master title Production style by Field Average Daily Production (BOE/d) Field 2009 2010 2011 2012 4Q12 1Q13 2Q13 3Q13 Brookhaven 3,416 3,429 3,255 2,692 2,520 2,305 2,339 2,224 Little Creek Area 1,502 1,805…
  81. Analyst Day Presentation – Denbury Resources Inc. – slide 81
    Impact of Share Repurchase Program Click to edit Master title style on Per Share Adjusted Net Income and PV-10 Share Repurchase Summary Since October 2011, we have purchased 11% of shares outstanding at September 30, 2011, at an…
  82. Analyst Day Presentation – Denbury Resources Inc. – slide 82
    Click to edit Financial Master(non-GAAP Results title style reconciliations) 3 Mos. Ended 9 Mos. Ended In thousands, except per share figures 9/30/13 9/30/13 Net income (GAAP measure) 102,054 319,605 Noncash fair value…
  83. Analyst Day Presentation – Denbury Resources Inc. – slide 83
    Click NYMEXto edit Master title Differential style Summary Crude Oil Differentials 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 Tertiary Oil Fields 4.33 9.69 14.84 19.44 9.80 13.60 10.61 15.57 15.82 11.23 4.30 Cedar…
  84. Analyst Day Presentation – Denbury Resources Inc. – slide 84
    Click to edit Tracking OilMaster Pricestitle style During the third quarter of 2013, we sold 44% of our oil production based on LLS index price and 22% at prices partially tied to the LLS index price. 135 125 Light Louisiana…
  85. Analyst Day Presentation – Denbury Resources Inc. – slide 85
    Click to edit Hedges Master Protect titleDownside Against style in Near-Term(1) Crude Oil 2013 2014 2015 4th Quarter 1st Half 2nd Half 1st Quarter 2nd Quarter 3rd Quarter Volumes hedged (Bbls/d) 54,000 58,000 58,000 58,000…
  86. Analyst Day Presentation – Denbury Resources Inc. – slide 86
    Click to edit Financial Master Data title style per BOE (6:1 Basis) 2011 1Q12 2Q12 3Q12 4Q12 2012 1Q13 2Q13 3Q13 Weighted Average NYMEX Variance per BOE(1) 4.92 0.17 1.80 0.83 8.76 2.88 10.34 4.49 (0.09) Oil and natural gas revenues…
  87. Analyst Day Presentation – Denbury Resources Inc. – slide 87
    Click to edit Analysis of Master Tertiarytitle style Costs Operating Correlation 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 w/Oil /BOE /BOE /BOE /BOE /BOE /BOE /BOE CO2 Costs Direct 5.76 5.14 4.96 5.21 6.78 6.13 6.82 Power & Fuel…
  88. Analyst Day Presentation – Denbury Resources Inc. – slide 88
    Click CO2 Cost (1) & to edit Master NYMEXtitle style Oil Price 0.40 100 0.35 0.30 80 NYMEX Crude Oil Price 0.25 CO2 Costs 60 0.20 0.15 40 0.10 20 0.05 0.00 0 Purchases OPEX Tax NYMEX Crude Oil (1)…
  89. Analyst Day Presentation – Denbury Resources Inc. – slide 89
    Closing Remarks Phil Rykhoek President & Chief Executive Officer
  90. Analyst Day Presentation – Denbury Resources Inc. – slide 90
    Click to edit Master IN SUMMARY: Valuetitle style Driven Leading Growth and Income, CO2 EOR Company in the US Focused on delivering value through consistent growth in production, reserves, and dividends Strategic advantage in CO2…
  91. Analyst Day Presentation – Denbury Resources Inc. – slide 91
    Appendix
  92. Analyst Day Presentation – Denbury Resources Inc. – slide 92
    Click Why to is edit CO2 Master title EOR our style core focus High Confidence of Oil Target 100 million barrels (gross) produced by Denbury to date Net upward adjustments to reserves to date CO2 Flooding Recovers Oil (CO2 s…
  93. Analyst Day Presentation – Denbury Resources Inc. – slide 93
    Click to edit CO2 EOR is Master title a Proven style Process Significant CO2 EOR Operators by Region Significant CO2 Suppliers by Region Gulf Coast Region Gulf Coast Region Denbury Resources Jackson Dome, MS (Denbury Resources)…
  94. Analyst Day Presentation – Denbury Resources Inc. – slide 94
    Click to edit Master CO2 Operations: Oiltitle style Process Recovery CO2 PIPELINE - from Jackson Dome INJECTION WELL - Injects CO2 in dense phase PRODUCTION WELLS Produce oil, water and CO2 Oil Formation (CO2 is recycled)…
  95. Analyst Day Presentation – Denbury Resources Inc. – slide 95
    Click CrudetoOil edit Master Hedge (1) style title Detail 2013 Crude Oil Hedges (BOPD) 2015 Crude Oil Hedges (BOPD) Average(2) Ceiling Average(2) Ceiling Instrument Volume Basis Floor Ceiling Low High Instrument Volume Basis…
  96. Analyst Day Presentation – Denbury Resources Inc. – slide 96
    Click to editInformation Corporate Master title style Corporate Headquarters Denbury Resources Inc. 5320 Legacy Drive Plano, Texas 75024 Ph: (972) 673-2000 Fax: (972) 673-2150 denbury.com Contact Information Phil Rykhoek…

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