IPAA 2019 Oil and Gas Investment Symposium April 8, 2019 NYSE:DNR w w w. d e n b u r y. c o m
Uncommon Company, Extraordinary Potential Industry Leading Oil Weighting Extreme Oil Gearing Top Tier Operating Margin Favorable Crude Quality & High Exposure to LLS Pricing Vertically Integrated CO2 Supply and Infrastructure…
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 4Q18…
The Denbury Difference CO2 EOR Reduces Carbon Footprint 25-30% of our CO2 is industrially sourced We Operate Responsibly and Safely We Minimize Environmental Impact Consistently Improving Revitalizing Legacy Oil Fields Safety…
Industry-Leading Oil Weighting 100% 4Q18 % Liquids Production Oil Production 97% NGL Production 90% 80% Peer Average (% Liquids) 70% Peer Average (% Oil) 60% 50% 40% 30% 20% 10% 0% (1) (1) (1) DNR Peer A Peer B Peer C Peer…
Top Tier Operating Margins 4Q18 Peer Operating Margins (/BOE) 40 35 30 Peer Average 25 20 15 10 5 - Peer A Peer B Peer C DNR Peer D Peer E Peer F Peer G Peer H Peer I Peer J Peer K Peer L Peer M Peer N Peer O Peer P…
Gulf Coast Region Reserves Summary(1) (MMBOE) Proved + Tertiary Potential Tertiary Reserves Proved 127 Potential 301 Non-Tertiary Reserves Proved 24 Total MMBOE(2) 452 Proved + Tertiary Potential by Field(3) Mature Area 25…
Rocky Mountain Region Reserves Summary(1) (MMBOE) Proved + Tertiary Potential Tertiary Reserves Proved 24 Potential 536 Non-Tertiary Reserves Proved 88 Total MMBOE(2) 648 Proved + Tertiary Potential by Field(3) Bell Creek…
Highly Successful 2018 sets Foundation for a Strong 2019 2018 Successes 2019 Plans and Focus Areas Operational Operational Set company health, safety and environmental Continue HSE performance improvement (HSE) performance records…
2019 Capital Plan Reduced 20-25% from 2018 2019 Development Capital Budget (1) Significant Capital Projects 75MM Reduction from 2018 Tertiary In Millions Bell Creek Field Phase 6 Development 240 - 260 Million Heidelberg Field…
Generating Significant Free Cash in 2019 2019E Free Cash Flow Range, Including Hedges(1) 2019E Sources & Uses 50 oil(1) In millions, unless otherwise noted In millions 2019 200 Adjusted cash flow from operations(2) 420 470 175…
CO2 EOR Development at CCA Cedar Creek Anticline Overview EOR Formation Details Red River Initial Formations Targeted Interlake Stony Mountain 1930s (Discovery) Field Discovery Timeframe (Oil) 1950s (Development) Formation Type…
EOR Potential 400 MMBBL at Cedar Creek Anticline Revised Development Summary Phase 1 Red River formation development at East Lookout Butte and Cedar Hills South 175,000 net acres Targets 30 MMBbls of recoverable oil; first tertiary…
CCA Decades of Sustainable Production and Free Cash Flow Est. Incremental EOR Production CCA Project Highlights Phase 1 and 2 estimated incremental tertiary production 7,500 - 12,500 net Bbls/d for Phase 1 of 7,500 12,500 Bbls/d…
CCA Exploitation Continued Mission Canyon Success, Play-Opening Initial Charles B Test Mission Canyon Extended play to the north and to the south with Cabin Creek and Little Cedar Creek Anticline Beaver tests Up to four wells…
Exploitation Gulf Coast Unswept Low-Perm Oil Potential Gulf Coast Exploitation Opportunity Targeting horizontal well opportunities Low perm portions of reservoir with low aquifer sweep High remaining oil saturation Proven concept…
Unswept Low-Perm Oil Potential Conroe Field 2A Sand Conroe 2A Sand Exploitation Opportunity High Perm Target is 2A Sand in Conroe Field High remaining oil cuts in current producers Lower quality rock not impacted by historical…
Tinsley Cotton Valley Prospect - Promising Initial Results Tinsley Cotton Valley Exploitation Initial Results Cotton Valley First well reached target depth in 1Q 2019 Prospective Area Logged 100 Cotton Valley net pay Likely gas…
Improving Leverage Profile Net Debt Principal Reduction Since 12/31/14 12/31/18 Debt Maturity Profile (In millions) (In millions) Over 1 Billion Net Debt Reduction since 2014 615 Million Undrawn Bank Credit Facility Maturing in Dec…
Hedge Positions as of April 5, 2019 Solid Downside Protection with Significant Upside Potential 2019 2020 January February March Apr-June 2H 1H 2H WTI Volumes Hedged (Bbls/d) 3,500 3,500 3,500 3,500 Price Swaps NYMEX Swap…
Appendix NYSE:DNR 23 w w w. d e n b u r y. c o m
Slide Notes Slide 8 Gulf Coast Region Slide 33 YE Reserves 1) Proved tertiary and non-tertiary oil and natural gas reserves based upon year-end 1) Estimated proved reserves and PV-10 Value for year-end 2018 were computed using 12/31/18…
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 Hilcorp Rocky Mountains Permian Basin Region 200…
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 ND Billion Barrels 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 12/31/18: 5.0 Tcf(1) o Estimated field size: 750 square…
Senior Secured Bank Credit Facility Info Borrowing Base / Commitment level: 615 million Commitments & borrowing base Lender group comprised of 14 banks with largest individual commitment representing 11% of the total Scheduled…
Production by Area Average Daily Production (BOE/d) Field 2016 2017 1Q18 2Q18 3Q18 4Q18 2018 Delhi 4,155 4,869 4,169 4,391 4,383 4,526 4,368 Hastings 4,829 4,830 5,704 5,716 5,486 5,480 5,596 Heidelberg 5,128 4,851 4,445 4,330 4,376…
NYMEX Oil Differential Summary Another quarter of company-wide positive differential to NYMEX Crude Oil Differentials per barrel 2016 2017 1Q18 2Q18 3Q18 4Q18 2018 Tertiary Oil Fields Gulf Coast Region (1.35) 0.06 1.87 0.85 3.01…
Analysis of Total Operating Costs Total Operating Costs per BOE 2016 2017 1Q18 2Q18 3Q18 4Q18 2018 CO2 Costs 2.16 2.86 3.09 2.92 2.63 3.62 3.07 Power & Fuel 5.29 5.97 6.68 6.19 6.31 6.08 6.32 1) Normalized LOE excludes Labor &…
YE Reserves Update 111% Replacement of 2018 Production 1.5B PV-10 Value(2) Increase in 2018 Oil Gas Total PV-10 SEC Oil (MMBbl) (Bcf) MMBOE Value(2) Pricing(1) Proved reserves(1)(3) at December 31, 2017 253 43 260 2.5 Billion…
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 Multiple parcels along I-45 frontage road…
Non-GAAP Measures Reconciliation of net income (GAAP measure) to adjusted EBITDAX (non-GAAP measure) 2017 2018 In millions Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Net income (GAAP measure) 22 14 0 127 163 40 30 78 174 323 Adjustments to…
Non-GAAP Measures (Cont.) Reconciliation of net income (GAAP measure) to adjusted cash flows from operations (non-GAAP measure) to cash flows from operations (GAAP measure) 2017 2018 In millions Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Net…
Non-GAAP Measures (Cont.) Reconciliation of the 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 2017 2018 Standardized…
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