26th Annual Credit Suisse Energy Summit March 1, 2021
Denbury Overview NYSE: DEN A Unique Market Cap: 2.1B Strategically Energy Business Enterprise Value: 2.3B Advantaged Operations CO2 Enhanced Oil Recovery (EOR) is our primary focus Vertically integrated CO2 supply and distribution…
The CO2 EOR Process CO2 Enhanced Oil Recovery (EOR) can produce nearly as much oil from a reservoir as was produced in either primary or secondary recovery CO2 EOR Process Overview Example Recovery of Original Oil in Place CO2…
A Leading Producer of Low-Carbon Oil 20% of Denburys production is Scope 3 carbon negative through the use of industrial-sourced CO2 CO2 Emissions per Barrel of Oil Produced Industrial CO2 Injected 1,700 lbs/Bbl Scope 1+2+3 1,100…
Industry-Leading Oil Weighting Oil Production 97% Oil 4Q20 NGL Production % Oil & Liquids Production Peer Average 66% Liquids 65% 61% Peer Average 56% 57% 51% 52% 50% Oil 49% 47% 34% 27% (1) (1) DEN Peer A Peer B…
Strategically Positioned to Lead in CCUS Gulf Coast pipeline network provides extensive framework for CCUS operations 140 MM tons / year(1) of Gulf Coast Infrastructure Highlights CO2 are currently emitted within 15 miles of Denburys…
Pending Bolt-On Acquisition of Wyoming CO2 EOR Fields Supports Denburys CO2 EOR focused strategy, utilizing 100% industrial-sourced CO2 Beaver Creek / Big Sand Draw Oil Fields Transaction Highlights 12 million purchase price includes…
2020 Highlights & Results Highlights and Accomplishments 4Q20 Operating Margin (/BOE)(1) Achieved record levels of safety performance for 36% Cash Operating Margin the fourth consecutive year Realized Price Executed agreement for…
2021 Estimated Capital, Production and Cash Flow Capital (MM) Production (BOE/d) Cash Flow Range (MM) 2021 Budget Capital 2021 Guidance 2021 Budget 250 270 MM(1) includes Gulf Coast 350 Est. 2021 260 MM Midpoint winter storm impact…
Cedar Creek Anticline A World Class CO2 EOR Project 400 MMBbl total recovery potential using 100% industrial-sourced CO2 Est. 5 Billion Bbls OOIP CO2 Pipeline to CCA from Bell Creek 175,000 net acres Plan to install in 2H 2021; 100 MM…
CCA EOR A Scope 3 Carbon Negative Development Phases 1 & 2 will collectively store 85 million metric tons of industrial-sourced CO2 Additional Development Details Phase 1 incremental peak production Estimated Production Profile…
2021 Tertiary Capital - Oyster Bayou A1 Development Expansion Continues success from A2 Development Expansion project executed in 2020 2021 Future A1 Development Overview A1 Development Pattern Development A1 Development Expansion…
2021 Tertiary Capital Tinsley Perry CO2 Pilot 2021 Pilot unlocks development target of 10 MMBbls Development Overview Current Future CO2 Flood New CO2 flood in Tinsley Future Perry Phase Woodruff o Targets high residual oil…
Carbon Capture, Use and Storage (CCUS) Overview CCUS both through CO2 EOR or direct CO2 injection is a proven technology with the potential for safe, long-term, deep underground containment of billions of tons of industrial-sourced CO2…
Denburys Extensive CO2 Experience is Ideally Suited for CCUS Over 20+ years, we have transported and injected a combined 185 million metric tons of natural and industrial CO2 Subsurface Surveillance 4D seismic imaging to aid in…
An Industry Leader in Reducing CO2 Emissions Combined Scope 1 and Scope 2 CO2 Emissions Net Negative Environment Average of 2018 and 2019 The only U.S. public company of scale where Combined Captured Net Negative injecting CO2 into…
Strong Corporate Governance Governance 6 out of 7 directors are independent, including independent Chairman of the Board Long-standing female board representation since 2012 Strong corporate governance is essential to fulfilling our…
Committed to Operating Safely and Responsibly Achieved our best Total Recordable Incident Rate (TRIR) in 2020 Social Executive compensation is explicitly tied to safety targets We maintain a long-standing commitment to Comprehensive…
Debt Profile and Liquidity Leverage ratio of 0.4x at year-end 2020 Net Debt 482 million of (In millions, unless otherwise noted) availability under Bank Credit Facility Credit Facility Overview at 12/31/20 154 Sr. Secured Bank…
Hedge Portfolio As of February 24, 2021 2021 2022 Jan Feb Mar 2Q 3Q 4Q 1H 2H Fixed Volumes Hedged (Bbls/d) 26,000 27,000 29,000 29,000 29,000 29,000 9,500 1,000 WTI Price NYMEX Swaps Swap Price(1) 42.54 42.96 43.86 43.86 43.86…
Our Vision To be recognized as the world leader in CO2 Enhanced Oil Recovery, significant in scale, financially secure, and strategically positioned through our expertise and our assets to lead the industry in the emerging Carbon…
Appendix NYSE:DEN 25
Slide Notes Slide 7 Gulf Coast Region Slide 9 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 year-end…
Significant CO2 EOR Potential in the U.S. Denbury's assets and pipeline infrastructure are well positioned in key EOR potential basins 2.8 to 6.6 MT ND Billion Barrels Rocky Mountain Region(2) 33-83 Billion Barrels of Technically…
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 Denbury Hilcorp 250 Rocky Mountains Permian Basin Region Permian Basin…
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 12/31/20: 4.6 Tcf(1) Estimated field size: 750 square miles…
CCA CO2 EOR Development EOR Formation Details Initial Formations Targeted Red River, Interlake, Stony Mountain Field Discovery Timeframe (Oil) 1930s (Discovery), 1950s (Development) Formation Type Dolomite Depth 7,000 9,000 ft…
Oyster Bayou A2 Development Expansion Development Overview Producing zone in other phases New A2 Development Expansion Expanding A2 reservoir development in adjacent down- Development dip area Expansion Field compression capacity…
Houston Acreage Land Sale Update Transaction Highlights Conroe 49 million closed as of December 2020 Commercial and residential 20 million closed in 2018-2019 development surface acreage 14 million closed in July 2020 Sold 2,500…
2020 Proved Reserves Oil Gas Total PV-10 Value(2) SEC Oil (MMBbl) (Bcf) (MMBOE) (Billion) Pricing(1) Proved reserves(1) at December 31, 2019 226 24 230 2.6 55.69 2020 production (18) (3) (19) (0.2) Revisions due to price changes…
Denbury Reacquires NEJD and Free State Pipelines Reduced debt and lowered cash interest while maximizing flexibility for future CCUS operations Transaction Highlights Summary Reacquired the NEJD Pipeline for 70 million and the Free…
Production by Area Average Daily Production by Area (BOE/d) Field 2018 2019 1Q20 2Q20 3Q20 4Q20 2020 Delhi 4,368 4,324 3,813 3,529 3,208 3,132 3,419 Hastings 5,596 5,403 5,232 4,722 4,473 4,598 4,755 Heidelberg 4,355 4,195 4,371…
Analysis of Total Operating Costs Ability to flex operating costs in a low oil price environment Correlation with LOE Cost Type (/BOE) Oil Price 2018 2019 1Q20 2Q20 3Q20 4Q20 2020 CO2 Costs High 3.07 3.05 2.98 2.65 2.28 2.80 2.69…
Senior Secured Bank Credit Facility Info Commitments & borrowing base Borrowing Base / Commitment level: 575 million Scheduled redeterminations Semiannually May 1st and November 1st, next redetermination is May 2021 Maturity date…
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) 2019 2020 Combined Combined Predecessor Predecessor…
Non-GAAP Measures Reconciliation of net income (loss) (GAAP measure) to adjusted EBITDAX (non-GAAP measure) 2019 2020 Combined Combined Predecessor Predecessor (non-GAAP)(1) Successor (non-GAAP)(1) In millions Q1 Q2 Q3 Q4 FY Q1 Q2…
Non-GAAP Measures 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 2019 2020 Standardized Measure…
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