GlobeNewswire Inc | May 6, 2021 06:30AM EDT

May 06, 2021

PLANO, Texas, May 06, 2021 (GLOBE NEWSWIRE) -- Denbury Inc. (NYSE: DEN) (Denbury or the Company) today provided results for the first quarter of 2021, including the following key outcomes:

FIRST QUARTER 2021 HIGHLIGHTS

-- Net cash provided by operating activities was $53million; Adjusted cash flow from operations(1) (non-GAAP measure) was $81 million. -- Development capital expenditures totaled $20 million; Free cash flow(1) (non-GAAP measure) was $59 million. -- Net loss totaled $70 million, or $1.38 per diluted share. Adjusted net income(1) (non-GAAP measure) was $22 million, or $0.44 per diluted share(1) (non-GAAP measure) and Adjusted EBITDAX(1) (non-GAAP measure) totaled $82 million. -- Total production averaged 47,357 BOE/d, consistent with expectations. Severe winter weather reduced volumes for the quarter by approximately 1,400 BOE/d. -- Approved the initial phase of the CO2 enhanced oil recovery (EOR) development at Cedar Creek Anticline (CCA), including the Greencore CO2 pipeline extension from Bell Creek to CCA. -- Successfully closed the acquisition of the Big Sand Draw and Beaver Creek EOR fields in the Wind River Basin in early March 2021. -- Announced Nikulas Wood as Senior Vice President to lead the Denbury Carbon Solutions team, focused on expanding the Companys leading Carbon Capture, Use and Storage (CCUS) position to drive future value. -- Added Cindy Yeilding to the Denbury Board of Directors. Yeilding chaired the coordinating subcommittee of the 2019 National Petroleum Council study on CCUS.

EXECUTIVE COMMENT

Chris Kendall, the Companys President and CEO, commented, I am pleased with our first quarter performance, and we are off to a great start to the year. Although severe winter weather temporarily impacted operations, Denburys low-decline and low capital-intensity asset base nonetheless delivered meaningful free cash flow in the first quarter. Looking forward to the rest of the year, we are preparing to kick off construction on our CCA CO2 pipeline in the coming weeks. The CCA EOR development, which will produce low carbon-intensity blue oil through utilization of industrial-sourced CO2, provides the Company with a deep inventory of resource development opportunities and decades of free cash flow.

The Denbury Carbon Solutions team continues to progress multiple agreements that we expect will advance significant growth in Denburys transport and storage of captured industrial-sourced CO2. Denburys proven track record of partnership with industrial emitters in providing practical, reliable, and secure CO2 transportation and storage solutions is unmatched in the industry. Considering the Companys ideally positioned infrastructure and extensive CO2 experience, CCUS represents an incredible value creation opportunity for our Company.

OPERATING AND FINANCIAL RESULTS

Total revenues and other income in the first quarter of 2021 were $251million, an increase of 27% from the fourth quarter 2020 and 4% from the prior-year first quarter. The quarterly increases were primarily a result of higher realized pre-hedge oil prices, despite lower production due to severe winter weather in the first quarter 2021, natural field decline, and Denburys significant reduction in capital spending in 2020 related to the COVID-19 impact on global oil demand.

Denburys oil and natural gas production averaged 47,357 BOE/d during first quarter 2021, consistent with expectations, considering the impact of severe winter weather (lowered first quarter 2021 volumes approximately 1,400 BOE/d), as well as the March 2021 acquisition of assets in the Wind River Basin (added 870 BOE/d for the first quarter 2021). Over 97 percent of the Companys first quarter 2021 production was oil, with two-thirds of total volumes coming from tertiary CO2 fields. Blue oil production, resulting from captured industrial-sourced CO2 injection, increased to approximately 25% of total oil volumes as of the end of the first quarter.

Denburys first quarter 2021 average pre-hedge realized oil price was $56.28 per barrel (Bbl), representing a differential of $1.54 per Bbl below NYMEX WTI oil prices. The first quarter 2021 differential was on the favorable end of the Companys expectation of between $1.50 to $2.00 per Bbl discount to WTI.

Lease operating expenses (LOE) in first quarter 2021 totaled $82 million, or $19.23 per BOE. LOE was lower than anticipated in the first quarter primarily due to a favorable adjustment to power costs associated with winter storm Uri, which caused significant power outages and disrupted the Companys operations. Under certain of Denburys power agreements, the Company is provided compensation for reduced power usage, which resulted in a benefit of $15million for the quarter. The net impact to Denbury from lost production and revenues due to the storm, incremental costs incurred for recovery, and the reduced power usage benefit was estimated to be a positive $6million for the first quarter 2021.

General and administrative (G&A) expenses were $32 million in first quarter 2021, in line with expectations. G&A included $18 million of non-cash expense for stock-based compensation, of which $15million is non-recurring as the performance measures underlying those awards were achieved in the first quarter.

Commodity derivatives expense was $116 million in the first quarter of 2021, a result of the strengthening of oil prices during the period. Cash payments on hedges that settled in the first quarter totaled $38 million (representing $9.28 per Bbl), with the remaining amount representing the mark-to-market change in the value of the Companys hedging portfolio.

Adjustments to net loss for the quarter included the $77 million mark-to-market change on hedging and a $14 million full-cost ceiling test impairment. The full-cost ceiling test impairment resulted primarily from the difference in recording the book value of acquired properties at a higher oil price than the 12-month look-back oil price used in the ceiling test.

Depletion, depreciation, and amortization was $39 million during first quarter 2021, or $9.26 per BOE. The Companys effective tax rate for the first quarter 2021 was negligible, due primarily to a valuation allowance on its federal and state deferred tax assets which offsets the tax benefit generated from the pre-tax loss.

CAPITAL EXPENDITURES

First quarter 2021 development capital expenditures, which excluded acquisitions and capitalized interest, totaled $20 million, less than eight percent of the Companys annual capital budget. Acquisitions of oil & natural gas properties totaled nearly $11 million for the first quarter 2021, primarily representing the net purchase price of the Big Sand Draw and Beaver Creek fields in the Wind River Basin.

FINANCIAL STRENGTH AND BANK CREDIT FACILITY

The Companys total debt balance as of the end of the first quarter 2021 was $126 million, down $12 million from the end of 2020. Denbury had $75 million of outstanding borrowings drawn on its senior secured bank credit facility at the end of the quarter. Including unrestricted cash, total liquidity at the end of the first quarter was $483million, after consideration of outstanding letters of credit.

The borrowing base for the Companys $575 million senior secured bank credit facility was reaffirmed with its lending group at the end of April 2021.

HEDGING UPDATE

The Company has added new oil hedges for 2022, including certain swaps and collars to secure additional cash flows at improved prices. Details of the Companys current hedging positions are included below:

2Q - 4Q 1H 2022 2H 2022 2021WTI NYMEX Volumes Hedged (Bbls/d) 29,000 15,500 8,000Fixed-Price Swap Price^(1) $43.86 $49.01 $55.85SwapsWTI NYMEX Volumes Hedged (Bbls/d) 4,000 8,000 7,000Collars Floor - Ceiling Price^ $46.25 - $49.69 - $49.64 - (1) 53.04 62.16 61.66 Total Volumes Hedged 33,000 23,500 15,000 (Bbls/d)

(1) Averages are volume weighted.

REAFFIRMED ANNUAL GUIDANCE

As expected, first quarter 2021 capital spending and production were low relative to annual guidance levels. The Companys production outlook for the year remains unchanged at a range of 47,500 to 51,500 BOE/d. Considering a full quarters production impact from the asset acquisition and recovery from first quarter 2021 winter storms, Denbury anticipates quarterly production volumes will increase in the second quarter 2021.

Development capital expenditures for 2021 are still expected to range from $250 million to $270 million. Second quarter capital expenditures should step up meaningfully with tertiary field work at the Oyster Bayou and Tinsley fields, as well as initial spending for construction of the extension of the Greencore CO2 pipeline and EOR development at CCA. Capital levels are expected to increase throughout the year in line with planned development activities.

Additional guidance details are available in the Companys supplemental first quarter 2021 earnings presentation, which is available in the Investor Relations section of the Companys website www.denbury.com.

CONFERENCE CALL AND WEBCAST INFORMATION

Denbury will host a conference call and webcast to review and discuss first quarter 2021 financial and operating results and outlook today, Thursday, May6, at 11:00 a.m. Central Time. Additionally, Denbury will post presentation materials on its website before market open today. The presentation webcast will be available, both live and for replay, on the Investor Relations page of the Companys website at www.denbury.com. Individuals who would like to participate in the conference call should dial the following numbers shortly before the scheduled start time: 877.705.6003 or 201.493.6725 with confirmation number 13696087.

Denbury is an independent energy company with operations and assets focused on Carbon Capture, Use and Storage (CCUS) and Enhanced Oil Recovery (EOR) in the Gulf Coast and Rocky Mountain regions. For over two decades, the Company has maintained a unique strategic focus on utilizing CO2 in its EOR operations and since 2012 has also been active in CCUS through the injection of captured industrial-sourced CO2. The Company currently injects over three million tons of captured industrial-sourced CO2 annually, and its objective is to fully offset its Scope 1, 2, and 3 CO2 emissions within this decade, primarily through increasing the amount of captured industrial-sourced CO2 used in its operations. For more information about Denbury, visit www.denbury.com.

This press release, other than historical information, contains forward-looking statements that involve risks and uncertainties including estimated 2021 production and capital expenditures, and other risks and uncertainties detailed in the Companys filings with the Securities and Exchange Commission, including Denburys most recent report on Form 10-K. These risks and uncertainties are incorporated by this reference as though fully set forth herein. These statements are based on financial and market, engineering, geological and operating assumptions that management believes are reasonable based on currently available information; however, managements assumptions and the Companys future performance are both subject to a wide range of risks, and there is no assurance that these goals and projections can or will be met. Actual results may vary materially. In addition, any forward-looking statements represent the Companys estimates only as of today and should not be relied upon as representing its estimates as of any future date. Denbury assumes no obligation to update its forward-looking statements.

FINANCIAL AND STATISTICAL DATA TABLES AND RECONCILIATION SCHEDULES

The following tables include selected unaudited financial and operational information for the comparative three-month periods ended March 31, 2021 and 2020. References to Successor refer to the new Denbury reporting entity after the Companys emergence from bankruptcy on September 18, 2020, and references to Predecessor refer to the Denbury entity prior to emergence from bankruptcy. All production volumes and dollars are expressed on a net revenue interest basis with gas volumes converted to equivalent barrels at 6:1.

DENBURY INC.CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

The following information is based on GAAP reporting earnings (along with additional required disclosures) included or to be included in the Companys periodic reports:

Successor Predecessor Quarter Quarter Ended EndedIn thousands, except per-share data March 31, March 31, 2021 2020Revenues and other income Oil sales $ 233,044 $ 228,577 Natural gas sales 2,401 1,047 CO[2] sales and transportation fees 9,228 8,028 Oil marketing revenues 6,126 3,721 Other income 360 828 Total revenues and other income 251,159 242,201 Expenses Lease operating expenses 81,970 109,270 Transportation and marketing expenses 7,797 9,621 CO[2] operating and discovery expenses 993 752 Taxes other than income 18,963 19,686 Oil marketing expenses 6,085 3,661 General and administrative expenses 31,983 9,733 Interest, net of amounts capitalized of $1,083 and 1,536 19,946 $9,452, respectivelyDepletion, depreciation, and amortization 39,450 96,862 Commodity derivatives expense (income) 115,743 (146,771 )Gain on debt extinguishment ? (18,994 )Write-down of oil and natural gas properties 14,377 72,541 Other expenses 2,146 2,494 Total expenses 321,043 178,801 Income (loss) before income taxes (69,884 ) 63,400 Income tax provision (benefit) Current income taxes (191 ) (6,407 )Deferred income taxes (51 ) (4,209 )Net income (loss) $ (69,642 ) $ 74,016 Net income (loss) per common share Basic $ (1.38 ) $ 0.15 Diluted $ (1.38 ) $ 0.14 Weighted average common shares outstanding Basic 50,319 494,259 Diluted 50,319 586,190

DENBURY INC.CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Successor Predecessor Quarter Quarter Ended EndedIn thousands March 31, March 31, 2021 2020Cash flows from operating activities Net income (loss) $ (69,642 ) $ 74,016 Adjustments to reconcile net income (loss) to cash flows from operating activitiesDepletion, depreciation, and amortization 39,450 96,862 Write-down of oil and natural gas properties 14,377 72,541 Deferred income taxes (51 ) (4,209 )Stock-based compensation 17,680 2,453 Commodity derivatives expense (income) 115,743 (146,771 )Receipt (payment) on settlements of commodity (38,453 ) 24,638 derivativesGain on debt extinguishment ? (18,994 )Debt issuance costs and discounts 685 4,926 Other, net 727 (673 )Changes in assets and liabilities, net of effects from acquisitionsAccrued production receivable (36,750 ) 66,937 Trade and other receivables 865 (22,914 )Other current and long-term assets (2,542 ) 2,539 Accounts payable and accrued liabilities (1,402 ) (72,607 )Oil and natural gas production payable 12,795 (15,948 )Other liabilities (826 ) (954 )Net cash provided by operating activities 52,656 61,842 Cash flows from investing activities Oil and natural gas capital expenditures (19,627 ) (46,016 )Acquisitions of oil and natural gas properties (10,665 ) (42 )Pipelines and plants capital expenditures (458 ) (6,294 )Net proceeds from sales of oil and natural gas 3 40,543 properties and equipmentOther (2,916 ) (4,479 )Net cash used in investing activities (33,663 ) (16,288 ) Cash flows from financing activities Bank repayments (202,000 ) (161,000 )Bank borrowings 207,000 161,000 Interest payments treated as a reduction of debt ? (18,211 )Cash paid in conjunction with debt repurchases ? (14,171 )Pipeline financing debt repayments (16,509 ) (3,690 )Other (3,013 ) (2,953 )Net cash used in financing activities (14,522 ) (39,025 )Net increase in cash, cash equivalents, and 4,471 6,529 restricted cashCash, cash equivalents, and restricted cash at 42,248 33,045 beginning of periodCash, cash equivalents, and restricted cash at end $ 46,719 $ 39,574 of period

DENBURY INC.CONSOLIDATED BALANCE SHEETS (UNAUDITED)

SuccessorIn thousands, except par value and share data March 31, Dec. 31, 2020 2021Assets Current assets Cash and cash equivalents $ 5,647 $ 518 Restricted cash 400 1,000 Accrued production receivable 128,171 91,421 Trade and other receivables, net 18,322 19,682 Derivative assets 236 187 Prepaids 9,043 14,038 Total current assets 161,819 126,846 Property and equipment Oil and natural gas properties (using full cost accounting)Proved properties 936,742 851,208 Unevaluated properties 86,878 85,304 CO[2] properties 188,516 188,288 Pipelines 133,722 133,485 Other property and equipment 92,037 86,610 Less accumulated depletion, depreciation, (89,538 ) (41,095 )amortization and impairmentNet property and equipment 1,348,357 1,303,800 Operating lease right-of-use assets 19,832 20,342 Derivative assets 3,021 ? Intangible assets, net 95,096 97,362 Other assets 93,035 86,408 Total assets $ 1,721,160 $ 1,634,758 Liabilities and Stockholders? Equity Current liabilities Accounts payable and accrued liabilities $ 118,189 $ 112,671 Oil and gas production payable 61,960 49,165 Derivative liabilities 129,124 53,865 Current maturities of long-term debt 51,499 68,008 Operating lease liabilities 2,660 1,350 Total current liabilities 363,432 285,059 Long-term liabilities Long-term debt, net of current portion 75,000 70,000 Asset retirement obligations 223,465 179,338 Derivative liabilities 10,188 5,087 Deferred tax liabilities, net 1,224 1,274 Operating lease liabilities 18,961 19,460 Other liabilities 26,964 20,872 Total long-term liabilities 355,802 296,031 Commitments and contingencies Stockholders? equity Preferred stock, $.001 par value, 50,000,000shares authorized, none issued and ? ? outstandingCommon stock, $.001 par value, 250,000,000shares authorized; 50,005,619 and 49,999,999 50 50 shares issued, respectivelyPaid-in capital in excess of par 1,122,176 1,104,276 Accumulated deficit (120,300 ) (50,658 )Total stockholders? equity 1,001,926 1,053,668 Total liabilities and stockholders? equity $ 1,721,160 $ 1,634,758

DENBURY INC.OPERATING HIGHLIGHTS (UNAUDITED)

All production volumes and dollars are expressed on a net revenue interest basis with gas volumes converted to equivalent barrels at 6:1.

Quarter Ended March 31, 2021 2020Average daily production (BOE/d) Tertiary Gulf Coast region 24,281 28,931 Rocky Mountain region 7,187 7,930 Total tertiary production 31,468 36,861 Non-tertiary Gulf Coast region 3,621 4,173 Rocky Mountain region 12,268 14,151 Total non-tertiary production 15,889 18,324 Total Company Oil (Bbls/d) 46,007 54,649 Natural gas (Mcf/d) 8,102 7,899 BOE (6:1) 47,357 55,965 Unit sales price (excluding derivative settlements)Gulf Coast region Oil (per barrel) $ 56.46 $ 47.52 Natural gas (per mcf) 3.39 1.81 Rocky Mountain region Oil (per barrel) $ 56.03 $ 43.57 Natural gas (per mcf) 3.20 0.96 Total Company Oil (per barrel)^(1) $ 56.28 $ 45.96 Natural gas (per mcf) 3.29 1.46 BOE (6:1) 55.24 45.09

^ Total company realized oil prices including derivative settlements during(1) the three months ended March 31, 2021 and 2020 were $47.00 per Bbl and $50.92 per Bbl, respectively.

DENBURY INC.SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Reconciliation of net income (loss) (GAAP measure) to adjusted net income (non-GAAP measure)

Adjusted net income is a non-GAAP measure provided as a supplement to present an alternative net income (loss) measure which excludes expense and income items (and their related tax effects) not directly related to the Companys ongoing operations. Management believes that adjusted net income may be helpful to investors by eliminating the impact of noncash and/or special or unusual items not indicative of the Companys performance from period to period, and is widely used by the investment community, while also being used by management, in evaluating the comparability of the Companys ongoing operational results and trends. Adjusted net income should not be considered in isolation, as a substitute for, or more meaningful than, net income (loss) or any other measure reported in accordance with GAAP, but rather to provide additional information useful in evaluating the Companys operational trends and performance.

Successor Predecessor Quarter Ended Quarter Ended March 31, 2021 March 31, 2020In thousands, except Per Perper-share data Amount Diluted Amount Diluted Share ShareNet income (loss) (GAAP $ (69,642 ) $ (1.38 ) $ 74,016 $ 0.14 measure)^(1)Adjustments to reconcile toadjusted net income (non-GAAP measure)Noncash fair value losses(gains) on commodity 77,290 1.51 (122,133 ) (0.21 )derivatives^(2)Write-down of oil and 14,377 0.28 72,541 0.12 natural gas properties^(3)Accelerated depreciation ? ? 37,368 0.06 charge^(4)Gain on debt extinguishment ? ? (18,994 ) (0.03 )^(5)Other^(6) 325 0.03 1,404 0.00 Estimated income taxes onabove adjustments to net ? ? (16,782 ) (0.02 )income (loss) and otherdiscrete tax items^(7)Adjusted net income $ 22,350 $ 0.44 $ 27,420 $ 0.06 (non-GAAP measure)

Diluted net income (loss) per common share includes the impact of potentially dilutive securities including performance stock units,^ nonvested restricted stock units, and warrants during the Successor period(1) and includes nonvested restricted stock, nonvested performance-based equity awards, and shares into which the Predecessor?s previous convertible senior notes were convertible.^ The net change between periods of the fair market values of open commodity(2) derivative positions, excluding the impact of settlements on commodity derivatives during the period.^ Full cost pool ceiling test write-downs related to the Company?s oil and(3) natural gas properties.^ Accelerated depreciation related to impaired unevaluated properties that(4) were transferred to the full cost pool.^ Gain on debt extinguishment related to the Company?s 2020 open market(5) repurchases. Other adjustments include (a) a $0.3 million write-off of trade receivables^ during the three months ended March 31, 2021 and (b) <$1 million of costs(6) associated with the helium supply contract ruling and $1 million of costs associated with the Delta-Tinsley CO[2] pipeline incident during the three months ended March 31, 2020. The estimated income tax impacts on adjustments to net income for the three months ended March 31, 2020 are computed based upon an estimated annual^ effective tax rate of 16%, with other discrete tax adjustments totaling $39(7) million primarily comprised of the tax effect of the ceiling test and accelerated depreciation, impacts of the CARES Act, and the periodic tax impacts of a shortfall (benefit) on the stock-based compensation deduction.

DENBURY INC.SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Reconciliation of net income (loss) (GAAP measure) to Adjusted EBITDAX (non-GAAP measure)

Adjusted EBITDAX is a non-GAAP measure which management uses and is calculated based upon (but not identical to) a financial covenant related to Consolidated EBITDAX in the Companys senior secured bank credit facility, which excludes certain items that are included in net income (loss), the most directly comparable GAAP financial measure. Items excluded include interest, income taxes, depletion, depreciation, and amortization, and items that the Company believes affect the comparability of operating results such as items whose timing and/or amount cannot be reasonably estimated or are nonrecurring. Management believes Adjusted EBITDAX may be helpful to investors in order to assess the Companys operating performance as compared to that of other companies in the industry, without regard to financing methods, capital structure or historical costs basis. It is also commonly used by third parties to assess leverage and the Companys ability to incur and service debt and fund capital expenditures. Adjusted EBITDAX should not be considered in isolation, as a substitute for, or more meaningful than, net income (loss), cash flow from operations, or any other measure reported in accordance with GAAP. The Companys Adjusted EBITDAX may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted EBITDAX, EBITDAX or EBITDA in the same manner. The following table presents a reconciliation of the Companys net income (loss) to Adjusted EBITDAX.

Successor Predecessor Quarter QuarterIn thousands Ended Ended March 31, March 31, 2021 2020Net income (loss) (GAAP measure) $ (69,642 ) $ 74,016 Adjustments to reconcile to Adjusted EBITDAX Interest expense 1,536 19,946 Income tax expense (benefit) (242 ) (10,616 )Depletion, depreciation, and amortization 39,450 96,862 Noncash fair value losses (gains) on commodity 77,290 (122,133 )derivativesStock-based compensation 17,680 2,453 Gain on debt extinguishment ? (18,994 )Write-down of oil and natural gas properties 14,377 72,541 Noncash, non-recurring and other 1,467 2,364 Adjusted EBITDAX (non-GAAP measure)^(1) $ 81,916 $ 116,439

^ Excludes pro forma adjustments related to qualified acquisitions or(1) dispositions under the Company?s senior secured bank credit facility.



DENBURY INC.SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Reconciliation of cash flows from operations (GAAP measure) to adjusted cash flows from operations (non-GAAP measure) and free cash flow (non-GAAP measure)

Adjusted cash flows from operations is a non-GAAP measure that represents cash flows provided by operations before changes in assets and liabilities, as summarized from the Companys Unaudited Condensed Consolidated Statements of Cash Flows. Adjusted cash flows from operations measures the cash flows earned or incurred from operating activities without regard to the collection or payment of associated receivables or payables. Free cash flow is a non-GAAP measure that represents adjusted cash flows from operations less interest treated as debt reduction, development capital expenditures and capitalized interest, but before acquisitions. Management believes that it is important to consider these additional measures, along with cash flows from operations, as it believes the non-GAAP measures can often be a better way to discuss changes in operating trends in its business caused by changes in production, prices, operating costs and related factors, without regard to whether the earned or incurred item was collected or paid during that period. Adjusted cash flows from operations and free cash flow are not measures of financial performance under GAAP and should not be considered as alternatives to cash flows from operations, investing, or financing activities, nor as a liquidity measure or indicator of cash flows.

Successor Predecessor Quarter Quarter Ended EndedIn thousands March 31, March 31, 2021 2020

Cash flows from operations (GAAP measure) $ 52,656 $ 61,842 Net change in assets and liabilities relating to 27,860 42,947 operationsAdjusted cash flows from operations (non-GAAP 80,516 104,789 measure)Interest on notes treated as debt reduction ? (21,354 )Development capital expenditures (20,079 ) (38,785 )Capitalized interest (1,083 ) (9,452 )Free cash flow (non-GAAP measure) $ 59,354 $ 35,198

CAPITAL EXPENDITURE SUMMARY (UNAUDITED)(1)

Quarter Ended March 31,In thousands 2021 2020Capital expenditure summary Cedar Creek Anticline tertiary development $ 36 $ 1,354 Other tertiary oil fields 4,080 13,372 Non-tertiary fields 8,342 10,954 Capitalized internal costs^(2) 7,600 8,881 Oil and natural gas capital expenditures 20,058 34,561 Cedar Creek Anticline CO[2] pipeline 21 4,175 Other CO[2] pipelines, sources and other ? 49 Development capital expenditures 20,079 38,785 Acquisitions of oil and natural gas properties^(3) 10,665 42 Capital expenditures, before capitalized interest 30,744 38,827 Capitalized interest 1,083 9,452 Capital expenditures, total $ 31,827 $ 48,279

^ Capital expenditure amounts include accrued capital.(1)^ Includes capitalized internal acquisition, exploration and development(2) costs and pre-production tertiary startup costs.^ Primarily consists of working interest positions in the Wind River Basin(3) enhanced oil recovery fields acquired on March 3, 2021.

DENBURY CONTACTS:Brad Whitmarsh, Executive Director, Investor Relations, 972.673.2020, brad.whitmarsh@denbury.comSusan James, Manager, Investor Relations, 972.673.2593, susan.james@denbury.com