2021 Highlights and 2022 Outlook February 24, 2022
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…
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…
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…
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…
Significant Increase to 2021 Proved Reserves Each 10 change in oil price impacts PV-10 by 850 MM Total PV-10 Value(2) SEC Oil 2021 Proved Reserves Breakout (MMBOE) (Billion) Pricing(1) Proved reserves(1) at December 31, 2020 143 0.7…
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…
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…
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…
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…
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…
CCA Phase 1 CO2 Injection Underway Injection commenced on February 1, 2022 East Lookout Butte Unit Phase 1 Development Highlights 74 water injection wells converted to CO2 injectors by 3Q22 with CO2 injection volumes ramping to 150…
CCA EOR A Scope 3 Carbon Negative Development Phases 1 & 2 will result in associated underground storage of 85 million metric tons of industrial -sourced CO2 CO2 Emissions Scope 3 Negative Estimated Production Profile Phase 1…
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…
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 CO 2 emissions associated with the capture facility,…
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…
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…
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…
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…
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 CO 2 Geologic Site Characterization Secure Wellbore Design and…
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…
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…
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…
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)…
Reconciliation of PV-10 Value 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 2020 2021 Standardized…
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