J.P. Morgan 2019 Energy Conference June 18-19, 2019
Uncommon Company, Extraordinary Potential Industry Leading Oil Weighting Extreme Oil Gearing Strong Operating Margin Favorable Crude Quality & Significant Exposure to Premium Pricing Vertically Integrated CO2 Supply and…
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 1Q19…
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…
Differentiated Oil Quality & Market Access Premium Quality Geographic Advantages Mid-30s API Gravity 60% of Production Receives Gulf Coast Premium Pricing Low Sulfur Content (< 0.5%) Outside Constrained Basins Established…
Industry-Leading Oil Weighting 100% 1Q19 % 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…
Strong Operating Margin 1Q19 Peer Operating Margins (/BOE) 35 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 Peer P Peer Q…
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 20…
2019 Goals and Focus Areas Operational Financial Operate Safely and Responsibly Improve on record-levels of health, safety and environmental performance Generate Significant Free Cash Drive Organic EOR Growth Free cash target of…
2019 Capital Plan Reduced 20-25% from 2018 2019E Development Capital Budget (1) 2019E Production Guidance (BOE/d) 2019 Significant Capital Projects Tertiary Timing 75MM Reduction from 2018 Bell Creek Field Phase 6 Development 1Q-3Q…
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…
EOR Potential 400 MMBBL at Cedar Creek Anticline 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 production…
CCA Decades of Sustainable Production and Free Cash Flow CCA Project Highlights Est. Incremental EOR Production 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…
Bell Creek 50% Production Growth Over Last Two Years Continuing Field Development Best rock quality in Phases 5 and 6 leads Phase 5 to faster and better Capital spend 28MM production response Total Bell Creek Production Initial…
CCA Exploitation Continued Mission Canyon Success, Play-Opening Initial Charles B Test Mission Canyon Cedar Creek Anticline Extended play to the north and to the south with Cabin Creek and Little 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 Promising Initial Well Results Low-Perm Sand Horizontal Well Concept Target is 2A Sand in Conroe Field 20-60% oil cuts in current vertical producers Lower quality reservoir not…
Tinsley Significant Gas Condensate Resource Potential Positive Initial Well Results First well reached target depth in 1Q19 Cotton Valley Prospective Area Logged 100 Cotton Valley net pay Likely gas condensate Estimated 3-8 MMBOE…
Improving Leverage Profile Debt Principal Reduction Since 12/31/14 3/31/19 Debt Maturity Profile (In millions) (In millions) Over 1 Billion Debt Reduction since 2014 615 Million Undrawn Bank Credit Facility Maturing in Dec 2021…
Debt Exchange Summary Based on Early Participation Time Tenders Closing Scheduled for June 19, 2019 Principal Amount Principal to be Pro Forma Principal Notes Maturity Profile Outstanding as of Exchanged, Amount Outstanding (In…
Hedge Positions as of June 14, 2019 Downside Protection with Significant Upside Potential 2019 2020 2Q 2H 1H 2H FY20 WTI Volumes Hedged (Bbls/d) 3,500 2,000 2,000 2,000 Fixed Price NYMEX Swap Price(1) 59.05 60.59 60.59 60.59…
Appendix NYSE:DNR 25
Slide Notes Slide 9 Gulf Coast Region Slide 10 Rocky Mountain Region 1) Proved tertiary and non-tertiary oil and natural gas reserves based upon year-end 1) Proved tertiary and non-tertiary oil and natural gas reserves based upon…
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 Significant CO2 EOR Operators by Region CO2 EOR Oil Production by Region(1) Gulf Coast Region 300 Gulf Coast/Other Mid-Continent Denbury Resources Hilcorp 250 Rocky Mountains Permian Basin Region 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 ND Billion Barrels Rocky Mountain Region(2) 33-83 Billion of Technically WY Recoverable Oil(1,2)…
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…
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 12/31/18: 5.0 Tcf(1) Estimated field size: 750 square miles…
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 1Q19 Delhi 4,155 4,869 4,169 4,391 4,383 4,526 4,368 4,474 Hastings 4,829 4,830 5,704 5,716 5,486 5,480 5,596 5,539 Heidelberg 5,128 4,851…
NYMEX Oil Differential Summary Six consecutive quarters of company-wide positive differential to NYMEX Crude Oil Differentials per barrel 2016 2017 1Q18 2Q18 3Q18 4Q18 2018 1Q19 Tertiary Oil Fields Gulf Coast Region (1.35) 0.06…
Analysis of Total Operating Costs Total Operating Costs per BOE 2016 2017 1Q18 2Q18 3Q18 4Q18 2018 1Q19 CO2 Costs 2.16 2.86 3.09 2.92 2.63 3.62 3.07 3.90 Power & Fuel 5.29 5.97 6.68 6.19 6.31 6.08 6.32 6.70 1) Normalized LOE excludes…
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 (loss) (GAAP measure) to adjusted EBITDAX (non-GAAP measure) 2018 2019 In millions Q1 TTM Q2 Q3 Q4 FY Q1 TTM Net income (loss) (GAAP measure) 40 181 30 78 174 323 (26) 256 Adjustments to…
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