DENBURY A Unique Carbon Solutions Company Strategic Focus Rocky Mountain Region ND Leading in carbon capture, use and storage, including Enhanced Oil Recovery MT 20+ years Experience Managing CO2 CCA Pipeline Safely transporting,…
Sustainability The Nature of Our Business Transported, injected and stored over 3.7 million metric tons of industrial CO2 in 2021 Delivered net negative 2 million metric tons Scope 1 and Scope 2 CO2e emissions in 2021 Established…
2022E Oil & Gas Development Capital and Sales Volumes 2022 Anticipated Capital 360MM 3Q22 YTD Capital Spend Sales Volumes(2) (excludes CCUS capital) MM MBOE/d MM 47.5 - 49 47.1 1Q22 CCA CO2 Capital 46.9 58 CO2 recycle facilities 75…
Gulf Coast Region 3Q22 Highlights 4Q22 Activity Soso higher than anticipated Webster drilling multiple horizontal Tinsley Jackson Dome production response from Rodessa producers in the Frio reservoir reservoir CO2 flood development…
Rocky Mountain Region 3Q22 Highlights 4Q22 Activity Cedar Creek Anticline (CCA) ND Beaver Creek positive results from Cedar Creek Anticline continued E/F reservoir development with EOR development including install of optimization of…
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…
Increasing CCUS Scale With IRA and Technology Industry Capture Cost per Metric Ton New technologies and enhanced 45Q per metric ton levels (35 / 50 to 60 / 85 per tonne) bring 90 post-combustion emissions into economic Current 45Q…
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…
Industrial Sources of CO2 and Pipeline Transportation 12
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…
20 Mmtpa Under Existing Transport & Storage Agreements CO2 Emissions Agreements DEN announced contracts equivalent to Mmtpa (1) 47% of current global CO2 capture 19 20 7 5 2 2 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 To-date CO2 volume…
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…
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…
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…
CO2 Storage EOR and Sequestration 20
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…
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…
Cedar Creek Anticline A Carbon-negative CO2 EOR Project Largest EOR project in DEN history Estimated Production Profile 400 MMBbl total recovery potential Bbls/d Phase 1 oil production response to CO2 remains on Est. 5 Billion Bbls…
World-Class CCA EOR Development Phase 1 CO2 Injection Commenced Early 2022 More than 1 million metric tons CO2 injected to date Oil response from CO2 injection remains on schedule for 2H23 Phase 1 Development Highlights 73 water…
Advancing 2 B Metric Tons of CO2 Sequestration Projects (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…
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…
Projecting Substantial Growth in CCUS Volumes and EBITDA (1) Initial volumes anticipated in 2025; Projected Transport & Storage Volumes Estimated Annual EBITDA CO2 (Mmtpa) MM 50 70 Mmtpa projected 2030 avg. (50/50…
Appendix 28
2022 Annual Guidance as of November 3, 2022 Current Guidance YTD 9/30 Commentary Oil & Gas development capital (MM) 360 243 Excludes 10 MM equity investment CCUS capital (MM) 50 32 in blue ammonia complex 4Q expected 47.5 49…
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