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Corporate Presentation – Denbury Resources Inc.

Denbury Resources Inc. · Jan 31, 2014 · 47 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. Corporate Presentation – Denbury Resources Inc. – slide 1
    VALUE Corporate DRIVEN Presentation January 2014 NYSE: DNR Denbury.com
  2. Corporate Presentation – Denbury Resources Inc. – slide 2
    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…
  3. Corporate Presentation – Denbury Resources Inc. – slide 3
    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…
  4. Corporate Presentation – Denbury Resources Inc. – slide 4
    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…
  5. Corporate Presentation – Denbury Resources Inc. – slide 5
    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…
  6. Corporate Presentation – Denbury Resources Inc. – slide 6
    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…
  7. Corporate Presentation – Denbury Resources Inc. – slide 7
    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…
  8. Corporate Presentation – Denbury Resources Inc. – slide 8
    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…
  9. Corporate Presentation – Denbury Resources Inc. – slide 9
    Click toTrack Proven edit Master Record title style Net Daily Oil Production Tertiary Operations (through 9/30/13) Mature Properties Tinsley Heidelberg Delhi Oyster Bayou Hastings 45,000 40,000 35,000 30,000 25,000 29% CAGR…
  10. Corporate Presentation – Denbury Resources Inc. – slide 10
    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…
  11. Corporate Presentation – Denbury Resources Inc. – slide 11
    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…
  12. Corporate Presentation – Denbury Resources Inc. – slide 12
    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 Successful startup in 4Q13 100%…
  13. Corporate Presentation – Denbury Resources Inc. – slide 13
    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…
  14. Corporate Presentation – Denbury Resources Inc. – slide 14
    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…
  15. Corporate Presentation – Denbury Resources Inc. – slide 15
    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%…
  16. Corporate Presentation – Denbury Resources Inc. – slide 16
    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…
  17. Corporate Presentation – Denbury Resources Inc. – slide 17
    Dividend Yield Click to edit Analysis Master title style Independent Dividend Paying E&P C-Corps Market Cap (MM) Yield DNR 2015E(1) 6,024 3.0% (1) CRK 819 3.0% OXY 76,656 2.7% MRO 24,569 2.2% MUR 12,131 1.9% DNR 2014E(1) 6,024…
  18. Corporate Presentation – Denbury Resources Inc. – slide 18
    Click to edit Master Disciplined titletostyle Approach Capital Allocation 422 million of share Excess Cash repurchases authorized as of December 31, 2013. Share repurchases, debt repayment, capital expenditures…
  19. Corporate Presentation – Denbury Resources Inc. – slide 19
    Click to editShare Disciplined Master title styleProgram Repurchase Rationale and Objectives Repurchase shares at meaningful discount to net asset value Improve per share metrics, 12% repurchased since 3Q11 Generate attractive return…
  20. Corporate Presentation – Denbury Resources Inc. – slide 20
    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)…
  21. Corporate Presentation – Denbury Resources Inc. – slide 21
    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.…
  22. Corporate Presentation – Denbury Resources Inc. – slide 22
    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 +…
  23. Corporate Presentation – Denbury Resources Inc. – slide 23
    Click to edit Hedge Commodity MasterSummary (1) title style Crude Oil 2014 2015 1st Half 2nd Half 1st Quarter 2nd Quarter 3rd Quarter Volumes hedged (Bbls/d) 58,000 58,000 58,000 58,000 58,000 Principal price swaps(2),(3) 93.53…
  24. Corporate Presentation – Denbury Resources Inc. – slide 24
    Click to editCO Estimated Master 2 EORtitle Peakstyle Production Rates 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. Corporate Presentation – Denbury Resources Inc. – slide 25
    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…
  26. Corporate Presentation – Denbury Resources Inc. – slide 26
    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…
  27. Corporate Presentation – Denbury Resources Inc. – slide 27
    Appendix
  28. Corporate Presentation – Denbury Resources Inc. – slide 28
    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…
  29. Corporate Presentation – Denbury Resources Inc. – slide 29
    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)…
  30. Corporate Presentation – Denbury Resources Inc. – slide 30
    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)…
  31. Corporate Presentation – Denbury Resources Inc. – slide 31
    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…
  32. Corporate Presentation – Denbury Resources Inc. – slide 32
    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…
  33. Corporate Presentation – Denbury Resources Inc. – slide 33
    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…
  34. Corporate Presentation – Denbury Resources Inc. – slide 34
    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…
  35. Corporate Presentation – Denbury Resources Inc. – slide 35
    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…
  36. Corporate Presentation – Denbury Resources Inc. – slide 36
    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…
  37. Corporate Presentation – Denbury Resources Inc. – slide 37
    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…
  38. Corporate Presentation – Denbury Resources Inc. – slide 38
    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…
  39. Corporate Presentation – Denbury Resources Inc. – slide 39
    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 Light Louisiana Sweet…
  40. Corporate Presentation – Denbury Resources Inc. – slide 40
    Click to edit Hedge Commodity title (1) MasterDetail style 2014 Crude Oil Hedges (BOPD) 2015 Crude Oil Hedges (BOPD) Average(2) Average(2) Ceiling Instrument Volume Basis Swap Instrument Volume Basis Floor Ceiling Low High Q1…
  41. Corporate Presentation – Denbury Resources Inc. – slide 41
    Actual Click to Industry Recovery edit Master Curves title style Range of Recovery 10%-18% 42
  42. Corporate Presentation – Denbury Resources Inc. – slide 42
    Click Texasto COedit Master 2 Pipeline title style Economies of Scale Infrastructure Hastings Oyster Bayou Webster Conroe Thompson 14 12 70 MMBbls Pipeline cost per tertiary Bbl 10 95 8 MMBbls 6 163 4 MMBbls…
  43. Corporate Presentation – Denbury Resources Inc. – slide 43
    Actual Click to Curves Denbury edit Master Mature Fields title style Range of Recovery 11%-20+% 44
  44. Corporate Presentation – Denbury Resources Inc. – slide 44
    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…
  45. Corporate Presentation – Denbury Resources Inc. – slide 45
    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…
  46. Corporate Presentation – Denbury Resources Inc. – slide 46
    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…
  47. Corporate Presentation – Denbury Resources Inc. – slide 47
    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…

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