J.P. Morgan 2018 Global High Yield & Leveraged Finance Conference February 26, 2018 NYSE:DNR w w w. d e n b u r y. c o m
Denbury What We Are A Unique Energy Business Rocky 60% of production via CO2 enhanced oil recovery (EOR) Mountain Vertically integrated CO2 supply and distribution Region Cost structure largely independent from industry 4Q17…
Leading Oil Weighting Among Oil Peers 3Q17 % Liquids Production 100% Oil Production NGL Production 90% 97% 80% Peer Average (% Liquids) 70% 60% Peer Average (% Oil) 50% 40% 30% 20% 10% 0% DNR(1) Peer A Peer B(1)…
Gulf Coast Region Reserves Summary(1) (MMBOE) Proved + Tertiary Potential Tertiary Reserves Proved 127 Potential 308 Non-Tertiary Reserves Proved 21 Total MMBOE(2) 456 Tertiary Potential by Field(3) Mature Area 30…
Rocky Mountain Region Reserves Summary(1) (MMBOE) Proved + Tertiary Potential Tertiary Reserves Proved 26 Potential 359 Non-Tertiary Reserves Proved 86 Total MMBOE(2) 471 Tertiary Potential by Field(3) Bell Creek 20 40…
2017 Reserves Update 127% Replacement of 2017 Production 1B PV-10 Value(2) Increase in 2017 Oil Gas Total PV-10 SEC Oil (MMBbl) (Bcf) MMBOE Value(2) Pricing(1) Proved reserves(1) at December 31, 2016 247 44 254 1.5 Billion 42.75…
2017 Successes & High Impact 2018 Priorities 2017 Focus Areas & Results 2018 Priorities Unlock Full Value of Asset Base Unlock Full Value of Asset Base o Mission Canyon Exploitation o Expand exploitation program o Hastings…
2018 Watch List 1H18 2H18 Development Oyster Bayou Facility Expansion Bell Creek Phase 5 Response West Yellow Creek Response CCA EOR Investment Decision Grieve Field Startup Delhi Tuscaloosa Infill Exploitation Cedar Creek…
2018 Capital Plan 2018 Development Capital Budget (1) Significant Capital Projects Tertiary Bell Creek Field Phase 6 development In Millions Delhi Field Tuscaloosa infill development 300 - 325 Million 45 Heidelberg Field Facility…
Spending Within Cash Flow In millions, unless otherwise noted Est. Cash Flow Range 55/Bbl 2018E Sources & Uses 400 (Including Hedges)(1) In millions 2018E(1) Capital Budget Adjusted cash flow from operations(2) 430 480 350…
2018 Production up 3% at Guidance Midpoint 2018 Production Guidance (BOE/d) 2018 Production Growth Drivers Phase 1-4 performance + Phase 5 Bell Creek response Mission Canyon exploitation drilling 60,000 - 64,000 Cedar Creek…
Exploitation A New Dimension for Growth Size of circles = Cost to test Costs per test range from 0.5MM 8MM Large Short-Cycle Opportunity Set 14 26 Numerous exploitation targets across 12 24 Denburys 600,000 acre asset base 50…
A Look Inside Mission Canyon Cedar Creek Anticline Mission Canyon Exploitation Successful MC14-29 well first step to unlocking 7.2 MMBOE(1) resource potential over 9,000 acres across our first Mission Canyon prospect in Pennel &…
Tinsley Perry Sand Opportunity Overview Recovery Factor Proven light tight oil accumulation with low North Fault Block recovery to date Plan to develop with horizontal wells 3,200 acre potential in North Fault Block with an…
Powder River Basin Stacked Pay In Hartzog Draw Unit Hartzog Draw Exploitation North Dakota 20,700 gross / 12,900 net acres in Campbell & Shannon: 449 BOED IP Johnson Counties, WY Montana Rate, 94% Oil Wyoming…
Significantly Improving Leverage Profile 836 Million Debt Principal Reduction Since 12/31/14 12/31/17 Pro Forma Debt Maturity Profile (In millions) (In millions) Expect significant improvement in 500 million of bank line 3,571 debt…
Hedge Positions as of February 21, 2018 2018 2019 Detail as of February 21, 2018 1H 2H 1H 2H Volumes Hedged (Bbls/d) 15,500 15,500 Fixed Price Swaps (1) WTI Swap Price 50.13 50.13 NYMEX Volumes Hedged (Bbls/d) 5,000 5,000…
Summary Lays the foundation What We Are for the success of our 2018 Priorities A Unique Energy Business Unlock the Full Value Extraordinarily Geared to of our Asset Base Crude Oil Value Sustaining with Build our Financial…
CO2 EOR Process CO2 Injection Well Production Well CO2 EOR can produce about as much oil as CO2 Pipeline primary or secondary recovery(1) Recovery of Original Oil in Place Primary 20% Secondary 18% (Waterfloods) (OOIP)…
CO2 EOR is a Proven Process CO2 EOR Oil Production by Region(1) Significant CO2 EOR Operators by Region 300 Gulf Coast/Other Gulf Coast Region Mid-Continent 250 Denbury Resources Rocky Mountains Permian Basin Region 200 Permian…
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)…
Abundant CO2 Supply & No Significant Capital Required for Several Years Gulf Coast CO2 Supply Rocky Mountain CO2 Supply Jackson Dome LaBarge Area o Proved CO2 reserves as of 12/31/17: 5.2 Tcf(1) o Estimated field size: 750 square…
Debt & Quarterly Change in Bank Credit Facility in millions. Balances as of 12/31/17 except where noted Bank Credit Facility: Borrowing Base 1,050 Adjusted for Debt Exchange Reaffirmed borrowing base of Undrawn (closing 1/9/18) Ample…
Summary of Recent Debt Exchanges Debt Reduction Post Exchange Debt Reduction Post Conversion Transaction Summary: (184) Million (329) Million 784 MM of senior subordinated notes exchanged for 600 MM of new notes, comprised of:…
Pro Forma Capitalization Debt Debt Exchange Exchange Pro Forma In millions, unless otherwise stated 9/30/17 (12/6/17) Other 12/31/17 (1/9/18) (1/9/18) Senior Secured Bank Credit Agreement 495 (20) 475 475 9% Senior Secured Second…
Senior Secured Bank Credit Facility Info Commitments & borrowing base 1.05 billion Scheduled redeterminations Semiannually May 1st and November 1st Maturity date December 9, 2019 Permitted bond repurchases Up to 225 million of bond…
Production by Area Average Daily Production (BOE/d) Field 2015 2016 1Q17 2Q17 3Q17 4Q17 2017 Delhi 3,688 4,155 4,991 4,965 4,619 4,906 4,869 Hastings 5,061 4,829 4,288 4,400 4,867 5,747 4,830 Heidelberg 5,785 5,128 4,730 4,996 4,927…
Houston Area Land Sales Conroe Webster o 3,400 surface acres consisting of 7 parcels for o 800 surface acres consisting of 11 commercial commercial and residential development parcels o Response to RFPs anticipated in March 2018 o…
Non-GAAP Measures 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 Q3 Q4 FY Net…
Non-GAAP Measures (Cont.) Reconciliation of the preliminary 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 2016 2017…
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