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February 2022 Company Presentation – Denbury Inc.

Denbury Inc. · Feb 24, 2022 · 37 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. February 2022 Company Presentation – Denbury Inc. – slide 1
    Company Presentation February 2022
  2. February 2022 Company Presentation – Denbury Inc. – slide 2
    Powering the Energy Transition With World-Leading Carbon Solutions ROCKY MOUNTAIN REGION Strategic Focus Market Cap: 3.4B Leading in Carbon Capture, Use and Enterprise Value: 3.4B Storage, including Enhanced Oil Recovery YE21 Proved…
  3. February 2022 Company Presentation – Denbury Inc. – slide 3
    2021 Highlights Record-low Total Recordable Incident Rate of 0.4(1); 5th consecutive annual safety improvement 105-mile CCA CO2 Pipeline installation completed ahead of schedule and under budget; CO2 linefill completed Reduced debt…
  4. February 2022 Company Presentation – Denbury Inc. – slide 4
    Leading Sustainability Net Negative Combined Scope 1 and Scope 2 CO2 Emissions Environment Average of 2018, 2019 and 2020 Combined 1.8 million metric tons The only U.S. public company of scale where Scope 1 & 2 Emissions injecting…
  5. February 2022 Company Presentation – Denbury Inc. – slide 5
    2021 Corporate Responsibility Report Report Highlights 2019/2020 Delivered negative Scope 1 and Scope 2 carbon emissions for each year Reduced total Scope 1, Scope 2, and Scope 3 emissions by 12% since 2018 Annually transported…
  6. February 2022 Company Presentation – Denbury Inc. – slide 6
    Strong Balance Sheet offers Significant Flexibility Total Debt - 103 MM Reduction in 2021 2021 Cash Flow from Operations of 317 (In millions) MM; Free Cash Flow(1) of 55 MM 176 High oil mix (97% of sales volumes) and strong cash 532…
  7. February 2022 Company Presentation – Denbury Inc. – slide 7
    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…
  8. February 2022 Company Presentation – Denbury Inc. – slide 8
    Massive Expansion in CCUS Required to Meet Global Targets Global Carbon Capture Required to Meet IEAs Net-Zero Emissions The IEAs Net-Zero Emissions by by 2050 Scenario (NZE) 2050 Scenario (NZE) outlines a carbon reduction pathway…
  9. February 2022 Company Presentation – Denbury Inc. – slide 9
    Proposed 45Q Revisions Significantly Increase CCUS Opportunity Congressional Proposals(1) for CCUS Capture Potential on the Cost Curve(2) 45Q Enhancements 2018 Emissions/Existing Facilities 1,200 Higher Credit Structure 1,200…
  10. February 2022 Company Presentation – Denbury Inc. – slide 10
    Denbury Carbon Solutions - 2022 Goals Accelerating CCUS development in 2022 Strategic Priorities 2021 2022 Secure Transportation & Executed agreements for 2 mmtpa Cumulative Target for agreements 10 mmtpa of CO2 Storage Agreements…
  11. February 2022 Company Presentation – Denbury Inc. – slide 11
    Negotiations to Transport, Store and Utilize 50 MMTPA of CO2 2022 targeting cumulative 10 mmtpa executed agreements 100 mmtpa Current Targeted Market Initial Negotiations TX 22% 50+ mmtpa Initial Negotiations Emissions LA Other…
  12. February 2022 Company Presentation – Denbury Inc. – slide 12
    Current CO2 Transport, Storage and Utilization Agreements Industry-leading partner in developing the CCUS market 2021: 2 mmtpa 2022: 3 mmtpa to date Mitsubishi Corporation Louisiana Chemical Plant Initial project 1.8 mmtpa 0.4 mmtpa…
  13. February 2022 Company Presentation – Denbury Inc. – slide 13
    Secured Potential CO2 Storage Capacity 850MM metric tons Continuing to develop portfolio of storage sites 2022 CCUS Capital 50MM Alabama Lease acquisition costs 300MM metric tons potential capacity Pre-development activities on…
  14. February 2022 Company Presentation – Denbury Inc. – slide 14
    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 Detailed analysis and modeling to ensure Wellbores…
  15. February 2022 Company Presentation – Denbury Inc. – slide 15
    2022 Goals / Priorities Continue to Improve Record Safety Performance; further reduce Total Recordable Incident and Spill rates Progress and execute Phase 1 of CCA EOR development project; On track for first tertiary production in 2H…
  16. February 2022 Company Presentation – Denbury Inc. – slide 16
    2022 E&P Outlook for Increasing Cash Flows Strong cash flows provide flexibility for funding CCUS growth E&P Development Capital Sales Volumes Cash Flow From Operations (MM) (MBOE/d) (MM) Pre-Working Capital 500 290 - 320 A 10 oil…
  17. February 2022 Company Presentation – Denbury Inc. – slide 17
    Gulf Coast Region 2022 Development / Activity Plans Tertiary Development East Heidelberg Adding downdip dedicated injection for additional recovery in the Tuscaloosa sands Cranfield Phase 8 Three new CO2 flood patterns including new…
  18. February 2022 Company Presentation – Denbury Inc. – slide 18
    Rocky Mountain Region 2022 Development / Activity Plans Cedar Creek Anticline EOR Development Phase I CO2 injection underway in Cedar Hills South and East Lookout Butte (25 MM capitalized in 2022) Installation of CO2 recycle…
  19. February 2022 Company Presentation – Denbury Inc. – slide 19
    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…
  20. February 2022 Company Presentation – Denbury Inc. – slide 20
    A Leading Producer of Low-Carbon Oil 25% 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…
  21. February 2022 Company Presentation – Denbury Inc. – slide 21
    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 Complete 175,000 net acres Initial CO2 injection…
  22. February 2022 Company Presentation – Denbury Inc. – slide 22
    CCA Phase 1 CO2 Injection Underway Injection commenced on February 1, 2022 Phase 1 Development Highlights 74 water injection wells converted to CO2 injectors by 3Q22 with CO2 injection volumes ramping to 150 Mmcf/d (2.8 mmtpa) 75…
  23. February 2022 Company Presentation – Denbury Inc. – slide 23
    CCA EOR A Scope 3 Carbon Negative Development Phases 1 & 2 will collectively store 85 million metric tons of industrial-sourced CO2 CO2 Emissions Scope 3 Negative Estimated Production Profile Phase 1 incremental Scope 1, 2, 3 Phase…
  24. February 2022 Company Presentation – Denbury Inc. – slide 24
    Third Party Verified Negative Carbon Intensity Oil Calculated including the emissions of the carbon capture facility and downstream refining Cradle to Grave analysis includes all CO2 emissions associated with the capture facility,…
  25. February 2022 Company Presentation – Denbury Inc. – slide 25
    Appendix NYSE:DEN 26
  26. February 2022 Company Presentation – Denbury Inc. – slide 26
    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…
  27. February 2022 Company Presentation – Denbury Inc. – slide 27
    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…
  28. February 2022 Company Presentation – Denbury Inc. – slide 28
    Current Natural and Industrial CO2 Sources 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 Additional probable CO2…
  29. February 2022 Company Presentation – Denbury Inc. – slide 29
    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…
  30. February 2022 Company Presentation – Denbury Inc. – slide 30
    2022 Annual Guidance As of February 24, 2022 Outlook based on 70 WTI 2021 Actual 2022 Guidance Commentary E&P Development Capital 252 million 290 - 320 million 60% Sustaining, 40% CCA CCUS Capital 50 million Subject to progress and…
  31. February 2022 Company Presentation – Denbury Inc. – slide 31
    Commodity Hedge Position As of 2/24/22 NYMEX Oil Hedges 2022 2023 1H 2H 1H 2H Fixed-Price Volumes Hedged (Bbls/d) 15,500 9,500 4,500 2,000 Swaps Swap Price(1) 49.01 57.52 74.88 76.80 Volumes Hedged (Bbls/d) 11,000 11,500 5,500…
  32. February 2022 Company Presentation – Denbury Inc. – slide 32
    Average Daily Sales Volumes by Area Average Daily Sales Volumes by Area (BOE/d) Sales Volumes (BOE/d) Field 4Q21 3Q21 2Q21 1Q21 4Q20 Delhi 2,731 2,859 2,931 2,925 3,132 Hastings 4,212 4,343 4,487 4,226 4,598 49,133 49,682 48,882…
  33. February 2022 Company Presentation – Denbury Inc. – slide 33
    Operating Cost Summary Operating Cost Summary 4Q21 3Q21 4Q20 Correlation with LOE Cost Type Commodity Price (MM) (/BOE) (MM) (/BOE) (MM) (/BOE) CO2 Costs High 20 4.38 18 3.99 13 2.80 Power & Fuel Moderate 36 7.94 34 7.52 30 6.61…
  34. February 2022 Company Presentation – Denbury Inc. – slide 34
    NYMEX Oil Differential Summary NYMEX Oil Differentials per barrel 2021 2020 4Q21 3Q21 2Q21 1Q21 4Q20 3Q20 2Q20 1Q20 Gulf Coast region (1.42) (1.14) (1.41) (1.77) (1.13) (1.37) (1.85) (1.38) (3.59) 1.18 Rocky Mountain region (1.32)…
  35. February 2022 Company Presentation – Denbury Inc. – slide 35
    Cash Flows from Operations/Free Cash Flow Reconciliation Reconciliation of Cash Flows from Operations (GAAP Measure) to Adjusted Cash Flows from Operations (Non-GAAP Measure) and Free Cash Flow (Non-GAAP Measure) (1) In millions 4Q21…
  36. February 2022 Company Presentation – Denbury Inc. – slide 36
    Net Income / Adjusted Net Income Reconciliation Reconciliation of Net Income (GAAP Measure) to Adjusted Net Income (Non-GAAP Measure)(1) 4Q21 FY 2021 Per Diluted Per Diluted In millions, except per-share data Amount Share Amount…
  37. February 2022 Company Presentation – Denbury Inc. – slide 37
    Reconciliation of Net Income (Loss) to Adjusted EBITDAX Reconciliation of net income (loss) (GAAP measure) to adjusted EBITDAX (non-GAAP measure) 2020 2021 Combined Combined Predecessor (non-GAAP)(1) Successor (non-GAAP)(1)…

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