Carbon Solutions for a Sustainable Future NYSE: DEN March 2023
DENBURY A Unique Carbon Solutions Company Strategic Focus Rocky Mountain Region ND Leading in carbon capture, utilization and storage, including Enhanced Oil Recovery MT 20+ years Experience Managing CO2 Safely transporting,…
Sustainability The Nature of Our Business Transported, injected and stored 4.4 million metric tons of industrial CO2 in 2022 Delivered net negative 2 million metric tons Scope 1 and Scope 2 CO2e emissions in 2021 (also anticipate net…
Denburys 2022 Highlights Generated 521 MM in cash flow from operations and 136 MM of free cash flow(1) Financial Expanded cash operating margins to 50 per BOE in 2022; up 59% from 2021 Exited 2022 with 29 MM of debt and 711 MM of…
2022 DEN Capital Allocation Priorities 2022 Cash Flow from Operations and Capex Capital Allocation Priorities MM 569 (1) 1. Maintain Strong Balance Sheet 2022 74% of FCF Exited 2022 with 29 MM in debt; 521 Free Cash Flow 180…
2022 YE Proved Reserves 5% Increase Over 2021 2022 Proved Reserves Breakdown Standardized Measure of Future Total Cash Flows PV-10 Value (2) SEC Oil (MMBoe) (in Billions) (in Billions) Pricing Rocky Gulf Proved Reserves(1) at…
2023 Capital Outlook Up 19% from 2022 Driven by CCUS 2022 and 2023E Capital Expenditures MM Carbon Capture, Utilization, Storage (CCUS) 600 510 Significant increase in 2023 up 130% from 2022 spend Focus on acquiring additional…
2023 Oil & Gas Outlook Production and Capital Production Gulf Coast MBOE/d 2023E Oil & Gas Capital Soso expanding successful Rodessa project into Phase 2 with 350 - 370 MM additional well conversions 46 - 49 Delhi drill new infill…
Oil & Gas Operations Gulf Coast Region 4Q22 Highlights Soso continued positive production response from Rodessa CO2 Tinsley Jackson Dome flood development Delhi Oyster Bayou completed drilling multiple wells for Frio A2 development…
Soso Field (MS) Revitalizing Mature Assets 2022 Highlights Phase 1 Soso Net production up 135% in 2022 Recompleted 9 vertical oil producers and 4 Rodessa CO2 injectors into the Rodessa interval to formation: Denbury CO2 pipelines…
Oil & Gas Operations Rocky Mountain Region 4Q22 Highlights Cedar Creek Anticline (CCA) ND Grieve continued strong production response from enhanced CO2 flood design and increased injection volumes MT CCA (Cabin Creek) drilled a…
Wind River (WY) Significant Value Increase Post Acquisition 2022 Highlights Beaver Creek Quarterly high production in 4Q22; up 72% from level when acquired in March 2021 Beaver Creek: executed Madison E/F reservoir project Net…
Cedar Creek Anticline Anticipate Phase 1 Response 2H 2023 Largest CO2 Flood in DEN History Est. 5 Billion Bbls OOIP 175,000 net acres NORTH DAKOTA MONTANA Estimated total recoverable resource of 400 MMBbls Drives Total…
World-Class CCA EOR Development ISO certification completed for both Cedar Hills South and East Lookout Butte (Phase 1 fields) in support of 45Q policy Phase 1 development update CO2 injection commenced early 2022 More than 1.4…
CCUS A Proven Pathway to Significantly Reduce CO2 Emissions Denbury Owned / Managed Processes CAPTURE TRANSPORT STORE / UTILIZE MONITOR / VERIFY CCUS is an effective, low-cost solution using proven technology to capture CO2…
2023 CCUS Goals Continue to Capture CO2 Emissions Market Expand Dedicated Storage Portfolio Secure additional agreements in 2023 from both Plans to secure additional CO2 storage sites in brownfield and greenfield projects strategic…
Increasing CCUS Scale With IRA and Technology Industry Capture Cost per Metric Ton New technologies and enhanced 45Q per tonne levels (35 / 50 to 60 / 85 per tonne) bring 90 post-combustion emissions into economic Current 45Q…
DEN Investments in Innovative Capture Technologies Advanced liquid absorption technologies in Hybrid facilitated transport membrane ICE-21 and ICE-31 Lowest capture costs of membrane technologies Significantly reduced cost…
U.S. Gulf Coast A World-class CCUS Opportunity The Gulf Coast has one of the highest concentrations of stationary CO2 emissions Advantaged for greenfield projects Access to low-cost natural gas feedstock, waterways and deepwater…
We are Best Positioned to Lead in CCUS Denbury combines four key elements for CCUS success Focused Historic CO2 EOR operations underpin future Focused Strategy growth strategy centered on CCUS Strategy Industry leading position…
U.S. Gulf Coast Major Source of Existing CO2 Emissions U.S. Gulf Coast Emissions w/in 30 Miles of DEN Pipelines Denbury CO2 pipelines CO2 (Mmtpa) Stationary CO2 emissions Planned Denbury sequestration site 70 Beaumont Port Arthur Lake…
Rocky Mountains An Emerging CCUS Opportunity Denbury CO2 pipelines ND Acquired initial CO2 sequestration Other CO2 pipelines Stationary CO2 emissions site (Corvus) in Wyoming for Secured sequestration site MT future storage…
CCUS Commercial Structures Types of Emissions Agreements Transportation Transportation & Storage Capture, Transportation, Storage Connect lateral to industrial Leverage DEN pipeline Turnkey operation for customer; move CO2 to system…
22 Mmtpa Under Existing Transport & Storage Agreements CO2 Emissions Agreements DEN announced contracts equivalent to (1) Mmtpa 50% of current global CO2 capture 22 19 20 7 5 2 2 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Current DEN…
Clean Hydrogen Works Ascension Clean Energy Project Planned to be one of the largest Blue MS Ammonia complexes in the world LA AL TX 7.2 million tons per year of ammonia (2 Blocks) CO2 offtake volume up to 12 Mmtpa Donaldsonville…
DEN Competitive Advantage CO2 Transport 1,300 miles of existing DEN CO2 pipelines (approximately 25%(1) of existing U.S. total) Specifically built for purpose of moving CO2 High efficiency and flexibility through supercritical…
Current Flow of CO2 Through DEN Gulf Coast Pipeline System Size Distance Pipeline Single Direction Flow (in) (miles) MS Green 24 320 DEN currently moving NEJD 20 183 10 Mmtpa Delta 24 108 to EOR / Utilization Free State 20 86 LA…
Future Potential Optimized Network to Maximize CO2 Flows Multi-directional flow MS DEN capable to move 150 Mmtpa w/ strategically located emissions / sequestration sites LA AL Denbury CO2 pipelines Potential future Denbury CO2…
DEN Competitive Advantage CO2 Storage 20+ years of CO2 injection and monitoring through EOR underpins technical leadership Multiple large-scale EOR developments and CO2 pipeline projects Extensive subsurface modeling and monitoring…
EOR Provides Large-scale CO2 Associated Storage Today More than 20 active EOR floods connected to DEN pipeline infrastructure Cedar Creek Anticline EOR began injection in 1H22 (anticipated production response in 2H23) DEN Class II…
The Most Environmentally Friendly Oil on the Planet Petroleum-based fuels remain a significant contributor to the global economy in all IEA scenarios Blue oil (negative CI score) and Electrofuels (net zero target) are direct drop-in…
Advancing 2 B Metric Tons of Gulf Coast CO2 Storage (1) (2) (3) (4) (5) (6) (7) GCMP Aries, Gemini Pegasus Orion Draco Leo Potential storage capacity 400 300 500 300 250 275 (million metric tons) Anticipated injection capacity 5-10…
Well Positioned to Deliver on Class VI Development Class II Well Class VI Well DEN Clear Leader in Class II CO2 Top of Injection cement required Top of 750 CO2 injection wells operating in the U.S. cement to surface required…
Example DEN CO2 Sequestration Site Bulk CO2 Sequestration results in 90% less Industrial pipeline surface impact than oil & gas operations facility O&G/EOR In-field CO2 Monitor well injection lines CO2 injection Example unit…
Substantial DEN Growth from Ongoing CCUS Negotiations Outlook for DEN CCUS Volumes CO2 transport & storage volumes (Mmtpa) Actively engaged with customers covering 55 125 Mmtpa of brownfield / greenfield projects: 100 Power…
Projecting Substantial Growth in CCUS Volumes and EBITDA Initial volumes anticipated in 2025; Projected Transport & Storage Volumes Estimated Annual EBITDA (1) 50 - 70 Mmtpa projected 2030 avg. CO2 (Mmtpa) MM (50/50…
Appendix
2023 Annual Guidance As of February 23, 2023 2022 Actual 2023 Guidance Commentary Oil & Gas development capital (MM) 364 350 - 370 Relatively equivalent quarterly CCUS capital (MM) 65 140 - 160 1H expected higher than 2H Sales…
Operating Cost Summary 4Q22 3Q22 4Q21 Correlation with LOE Cost Type Commodity Price (MM) (/BOE) (MM) (/BOE) (MM) (/BOE) CO2 Costs High 20 4.74 17 4.01 20 4.38 Power & Fuel High 38 8.91 44 10.07 36 7.94 Labor & Overhead Low 36 8.37…
NYMEX Oil Differential Summary per barrel 4Q22 3Q22 2Q22 1Q22 2022 2021 2020 Gulf Coast region (0.40) 0.66 0.16 (1.37) (0.19) (1.42) (1.14) Rocky Mountain region 0.56 1.02 0.01 (1.38) (0.02) (1.32) (2.80) Total Company NYMEX Oil…
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…
Net Income / Adjusted Net Income Reconciliation 4Q22 FY22 In millions (except per share data) Amount Per Diluted Amount Per Diluted Share Share Net income (GAAP measure) 75 1.39 480 8.83 Noncash fair value gains on commodity…
PV-10 Value Reconciliation December 31, In millions 2022 2021 Standardized Measure (GAAP Measure) 3,491 2,187 Discounted estimated future income tax 966 487 PV-10 Value (Non-GAAP Measure) 4,457 2,674 PV-10 Value is a non-GAAP…
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