Carbon Solutions for a Sustainable Future NYSE: DEN June 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 2022 - transported, injected and stored 4.3 million metric tons of industrial-sourced CO2 Delivered net negative 2.5 million metric tons Scope 1 and Scope 2 CO2e emissions in 2022 Achieved…
Denburys 1Q23 Highlights Generated 89 MM of cash flows from operations; adjusted cash flows from operations 140 MM(1) Financial Ended 1Q23 with 68 MM in debt and 672 MM of financial liquidity Cash operating margins of 31 per BOE…
2023 Capital Spend and Sales Volume Outlook On Plan 1Q23 Capital Spend FY 2023 Anticipated Capital 510 MM(1) Sales Volumes(1) 2023E Volumes MM MM MBOE/d 46 49 MBOE/d CCUS Capital Orion strat test well 47.7 20 WY CO2 sequestration…
2023 Outlook DEN Capital Allocation Priorities 2023E Cash Flow from Operations and Capital Allocation Capital Allocation Priorities MM Equity invts.17 Free Cash Flow 1. Maintain Strong Balance Sheet 560 ARO 36 75 oil to be…
Oil & Gas Operations Gulf Coast Region 1Q23 Highlights Tinsley Jackson Dome Oyster Bayou strong production response from Frio A2 phase 2 development Soso completed Phase 2 Rodessa development, expected response 3Q23 Delhi Heidelberg…
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…
Oyster Bayou Field (TX) A2 Phase 2 Development Encouraging Frio A2 Phase 2 Development Response Converted two existing wells to CO2 injection and drilled one new CO2 injector TX LA and two new oil producers First injection September…
Oil & Gas Operations Rocky Mountain Region Cedar Creek 1Q23 Highlights Anticline (CCA) ND CCA (Cabin Creek) waterflood pilot development in the Charles formation (2 new drill production wells and 1 injection well) MT CCA EOR…
Wind River (WY) Significant Value Increase Post Acquisition 2022 Highlights Beaver Creek Quarterly high production in 1Q23; up 75% from level when acquired in March 2021 Beaver Creek: executed Madison E/F reservoir project Net…
World-class Cedar Creek Anticline EOR Development 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 CCA Formations Drives…
CCA EOR Initial Phase 1 Response Expected in 2Q23 1st CO2 Recycle Facility Commissioned in March 2023; Commissioning of 2nd Recycle Facility Underway Ongoing construction of 2 additional recycle facilities with Cedar Hills South…
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…
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…
On Track to Exceed 2023 CO2 Transportation and/or Storage Goal CO2 Emissions Agreements Announced Mmtpa 30 Actively engaged with 55 Mmtpa Previously announced emissions of brownfield & greenfield CCUS New agreements projects to…
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…
Strategic Gulf Coast Dedicated CO2 Storage Acquisition Denbury CO2 pipelines Dorado Sequestration Site in SE Texas Potential future Denbury CO2 pipeline New secured sequestration site 30,000-acre site in Matagorda County acquired in…
Advancing Premium Gulf Coast CO2 Sequestration Portfolio Denbury CO2 pipelines Submitted Initial Class VI Permits on Orion Secured sequestration site (3 permits Nov. 2022) and Leo (6 permits Stationary CO2 emissions 6 Apr. 2023)…
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…
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
22 Mmtpa Under Existing Transport & Storage Agreements CO2 Emissions Agreements DEN announced contracts equivalent to 50% Mmtpa of current global CO2 capture(1) 22 19 20 7 5 2 2 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Current DEN…
2023 Annual Guidance as of May 3, 2023 2023 Guidance 1Q Actuals Forward Commentary Oil & Gas development capital (MM) 350 - 370 100 2Q anticipated consistent with 1Q CCUS capital (MM) 140 - 160 20 2Q expected higher than 1Q 2Q…
Commodity Hedge Position as of May 3, 2023 NYMEX Oil Hedges 2023 2024 1H 2H 1H 2H Fixed-Price Swaps Volumes Hedged (Bbls/d) 9,500 18,000 5,000 1,000 (1) Swap Price 76.65 78.51 75.34 75.12 Collars Volumes Hedged (Bbls/d) 17,500…
Operating Cost Summary 1Q23 4Q22 1Q22 Correlation with LOE Cost Type Commodity Price (MM) (/BOE) (MM) (/BOE) (MM) (/BOE) CO2 Costs High 20 4.76 20 4.74 19 4.53 Power & Fuel High 37 8.57 38 8.91 37 8.76 Labor & Overhead Low 35 8.19…
Net Income / Adjusted Net Income Reconciliation Reconciliation of Net Income (GAAP Measure) to Adjusted Net Income (Non-GAAP Measure)(1) 1Q23 In millions (except per share data) Amount Per Diluted Share Net income (GAAP measure)…
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…
Loading...
