GlobeNewswire Inc | Nov 16, 2020 05:20PM EST

November 16, 2020

PLANO, Texas, Nov. 16, 2020 (GLOBE NEWSWIRE) -- Denbury Inc. (NYSE: DEN) (Denbury or the Company) today announced its third quarter 2020 financial and operating results.

FINANCIAL AND OPERATIONAL HIGHLIGHTS

-- Successfully completed financial restructuring and emerged from Chapter 11 reorganization on September 18, 2020, with a strong balance sheet and strong liquidity position: Reduced bond debt by $2.1 billion, resulting in $165 million annual interest savingsEstablished a new $575 million senior secured bank credit facility, with $437 million of availability at September 30, 2020 after borrowings of $85 million and outstanding letters of creditRelocated corporate headquarters, resulting in $9 million in annual savingsAppointed a new board of directors consisting of four new independent members and three continuing membersCommenced trading of new common stock on the NYSE under the ticker symbol DEN on September 21, 2020 -- Produced 49,686 barrels of oil equivalent (BOE) per day (BOE/d) during 3Q 2020, roughly flat with 2Q 2020 -- Revenues and other income were $194 million for 3Q 2020, excluding $18 million in hedging receipts -- Adjusted EBITDAX (a non-GAAP measure) was $93 million for 3Q 2020 -- Received $25 million of proceeds from the sale of two parcels of marketed Houston area surface acreage, with proceeds of $14 million in July 2020 and $11 million in October 2020 -- Reacquired the NEJD and Free State CO2 pipelines, reducing debt by $25 million and lowering interest expense while maximizing flexibility for future CCUS operations

Upon emergence from bankruptcy on September 18, 2020 (the Emergence Date), the Company applied fresh start accounting, which resulted in a new entity for financial reporting purposes. In applying fresh start accounting, the Companys assets and liabilities were recorded at fair value as of the Emergence Date, which differs materially from historical values reflected on the Companys balance sheet prior to the Emergence Date. As a result of the application of fresh start accounting and the effects of the Companys Chapter 11 restructuring, the consolidated financial statements of the Company after September 18, 2020 are not comparable with its consolidated financial statements on or prior to that date. References to Successor refer to the new Denbury reporting entity after the Emergence Date, and references to Successor Period refer to the period from September 19, 2020 through September 30, 2020. References to Predecessor refer to the Denbury entity prior to emergence from bankruptcy, and references to Predecessor Period refer to periods (as specified herein) prior to and through September 18, 2020. Under GAAP, Denbury is required to report the Companys financial results for the Successor Period separately from Predecessor Periods, making the information not comparable. In order to provide meaningful comparable results of certain information for the third quarter and year to date periods, the Company has combined the results for the third quarters Successor Period and Predecessor Period where appropriate, which the Company refers to as Combined.

SELECTED QUARTERLY COMPARATIVE DATA

Following are unaudited financial highlights for the Successor Period, certain Predecessor Periods and on a Combined basis for the third quarter ended September 30, 2020.

Combined (Non-GAAP) Successor Predecessor ^(1) Period Period Quarter from Sept. from July Quarter Quarter Ended 19, 2020 1, 2020 Ended Ended through through(inmillions,except Sept. 30, Sept. 30, Sept. 18, June 30, Sept.per-share 2020 2020 2020 2020 30,and 2019per-unitdata)Netincome $ (806 ) $ 3 $ (809 ) $ (697 ) $ 73 (loss)Adjustednetincome(loss)^ 20 (32 ) 41 (2)(non-GAAPmeasure)AdjustedEBITDAX^(2) 93 39 145 (non-GAAPmeasure)Netincome(loss) 0.06 (1.63 ) (1.41 ) 0.14 perdilutedshare

Combined (Non-GAAP)^ Predecessor (1) Quarter Quarter Quarter Ended Ended Ended(in millions) Sept. 30, June 30, Sept. 2020 2020 30, 2019Oil, natural gas, and related $ 176 $ 109 $ 293 product salesCO[2], oil marketing sales and other 18 9 22 Total revenues and other income $ 194 $ 118 $ 315 Receipt on settlements of commodity $ 18 $ 46 $ 8 derivatives Cash flows from operations^(1) $ 74 $ 11 $ 131 Adjusted cash flows from operationsless special items^(2) (non-GAAP 68 9 126 measure)Development capital expenditures 18 21 51

(1) Combined results for the three months ended September 30, 2020 are provided for illustrative purposes and are derived from the financial statement line items from the Successor and Predecessor periods.(2) A non-GAAP measure. See accompanying schedules that reconcile GAAP to non-GAAP measures along with a statement indicating why the Company believes the non-GAAP measures provide useful information for investors.

Quarter Ended Sept. 30, June 30, Sept. 30, 2020 2020 2019Average realized oil price per barrel $ 39.23 $ 24.39 $ 57.64 (excluding derivative settlements)Average realized oil price per barrel 43.23 34.64 59.23 (including derivative settlements) Total production (BOE/d) 49,686 50,190 56,441 Total continuing production (BOE/d)^ 49,686 50,190 55,338 (1)

MANAGEMENT COMMENT

Chris Kendall, Denburys President and CEO, commented, In less than two months during the third quarter we entered and exited our Chapter 11 restructuring process. As a result of this process, Denbury emerged with a strong balance sheet, a solid liquidity position, and a significantly reduced cost structure providing us with a breakeven oil price near $30 per barrel. Denburys low base production decline and the flexible, low capital intensity nature of our assets are particularly well suited for todays environment. The industry-leading low carbon footprint of our CO2 EOR-focused oil production sets us apart. Moreover, the potential of the emerging CCUS business presents a unique, exciting, and significant growth opportunity to leverage both our strategically advantaged asset base and our extensive CO2 expertise developed during more than 20 years of CO2 EOR operations.

I want to thank the Denbury team for their focus, care, and diligence throughout 2020. Even in this challenging environment, the team is setting Company records for safety and efficiency, which is a testament to our employees professionalism, dedication, quality and resilience.

Going forward, while ensuring a steadfast focus of building on our strong foundation of safety and operational excellence, our priorities will be to protect and maintain our balance sheet, to continue to invest within cash flow, to further build our EOR-focused business, and to continue to position the Company to be a leader in what we believe will be a high value CCUS business.

(1) Continuing production excludes production from the Gulf Coast Working Interests Sale completed on March 4, 2020.

REVIEW OF OPERATING AND FINANCIAL RESULTS

Denburys oil and natural gas production averaged 49,686 BOE/d during third quarter 2020, relatively flat with second quarter of 2020 (the prior quarter) production and a decrease of 10% compared to continuing production in the third quarter of 2019 (the prior-year third quarter), which is adjusted for production from assets sold in the first quarter of 2020. Production during the second and third quarters of 2020 was impacted by approximately 4,300 BOE/d and 1,700 BOE/d, respectively, of production that was shut-in due to wells that were uneconomic to produce or repair. In addition to shut-in production, the year-over-year production decline was primarily due to production declines at Delhi Field which were mainly associated with the suspension of CO2 purchases since late-February 2020 as a result of the Delta-Tinsley CO2 pipeline being out of service for repairs, as well as reduced levels of workovers and capital investment due to actions taken by the Company to reduce costs in response to the significant decline in oil prices earlier in 2020. In late October 2020, repairs to the Delta-Tinsley pipeline were completed and the pipeline was brought back into service, allowing CO2 purchases to resume at Delhi Field. Further production information is provided on page 18 of this press release.

Denburys third quarter 2020 average realized oil price, including derivative settlements, was $43.23 per barrel (Bbl), an increase of 25% from the prior quarter and a decrease of 27% from the prior-year third quarter. Denburys NYMEX differential for the third quarter 2020 was $1.64 per Bbl below NYMEX WTI oil prices, compared to $4.03 per Bbl below NYMEX WTI in the prior quarter and $1.30 per Bbl above NYMEX WTI in the prior-year third quarter.

Total revenues and other income in the third quarter of 2020 were $194 million, an increase of 64% from the prior quarter and a decrease of 39% from the prior-year third quarter. The sequential quarterly increase was primarily due to higher realized oil prices, and the decrease from the prior-year third quarter was primarily due to lower oil prices and to a lesser degree lower oil production levels.

Total lease operating expenses in third quarter 2020 were $71 million, or $15.57 per BOE, a decrease of $10 million, or 12%, compared to the prior quarter due primarily to a $15 million insurance reimbursement received in the current quarter related to a 2013 incident at Delhi Field, partially offset by higher workover expense during the current quarter as the Company resumed some repairs and maintenance activity. Compared to the prior-year third quarter, lease operating expenses decreased $47 million, or 40%, due primarily to reductions in all expense categories, with the largest decreases in workover expense, labor, and power and fuel costs, as well as the insurance reimbursement noted above.

Taxes other than income, which includes ad valorem, production and franchise taxes, increased $5 million, or 50%, from the prior quarter and decreased $6 million, or 29%, from the prior-year third quarter, generally due to changes in oil and natural gas revenues.

General and administrative (G&A) expenses were $17 million in third quarter 2020, a $7 million decrease from the prior quarter, primarily due to the prior quarter including higher than normal compensation-related expenses related to modifications of the Companys 2020 employee compensation programs. During the prior quarter, the Company reinstated a bonus program for 2020 which had previously been suspended in the first quarter, resulting in a higher than normal bonus accrual in the second quarter. Compared to the prior-year third quarter, G&A expenses decreased $2 million, or 8%, due to lower overall employee compensation and related costs due to reduced headcount.

Interest expense, net of capitalized interest, totaled $8 million in third quarter 2020, a $13 million decrease from the prior quarter and a $15 million decrease from the prior-year third quarter. The decreases in both comparative periods were primarily due to the approximate $2.1 billion reduction in bond debt associated with the Companys Chapter 11 restructuring during the third quarter of 2020. A schedule detailing the components of interest expense is included on page 20 of this press release.

The Company recognized a full cost pool ceiling test write-down of $262 millionfor the Predecessor Period from July 1, 2020 through September18, 2020 as a result of the continued decline in first-day-of-the-month oil prices for the preceding 12 months. This write-down compares to full cost pool ceiling test write-downs of $662 million during the prior quarter and $73 million during the first quarter of 2020. As a result of fresh start accounting, oil and gas properties were recorded at fair value as of September 18, 2020, and there was no full cost pool ceiling test write-down for the Successor Period.

Depletion, depreciation, and amortization (DD&A) was $42 million during third quarter 2020, compared to $55 million in both the prior quarter and the prior-year third quarter. The decreases from the prior quarter and the prior-year third quarter were primarily due to the application of fresh start accounting resulting in lower asset balances.

Denburys effective tax rate for the Predecessor Period from January 1, 2020 through September 18, 2020 was 23%, slightly lower than the Companys estimated statutory rate of 25%, due primarily to the establishment of a valuation allowance on the Companys federal and state deferred tax assets after the application of fresh start accounting. Given the Companys cumulative loss position and the continued low oil price environment, management recorded a total valuation allowance of $129 million on its underlying deferred tax assets as of September 18, 2020. For the Successor Period, the Company continues to offset its deferred tax assets with a valuation allowance. Thus, the income tax expense associated with the Successors pre-tax book income was offset by a change in valuation allowance.

BANK CREDIT FACILITY

In connection with the emergence from Chapter 11 bankruptcy proceedings, the Company entered into a new $575 million senior secured bank credit facility due January 30, 2024, with the lending group remaining consistent with that of the Predecessors bank credit facility. As of September 30, 2020, the Company had $85 million of outstanding borrowings on the senior secured bank credit facility, leaving $437 million of borrowing base availability after consideration of $53 million of outstanding letters of credit.

RECENT PIPELINE TRANSACTIONS

In late October 2020, the Company restructured its CO2 pipeline financing arrangements with Genesis Energy, L.P. (Genesis), whereby (1) Denbury reacquired the NEJD Pipeline system from Genesis in exchange for $70 million to be paid in four equal payments during 2021, representing full settlement of all remaining obligations under the NEJD secured financing lease; and (2) Denbury reacquired the Free State Pipeline from Genesis in exchange for a one-time payment of $23 million made on October 30, 2020.

HEDGING UPDATE

Details of the Companys hedging positions as of November 13, 2020 are included below.

4Q 2020 2021 1H 2022WTI NYMEX Volumes Hedged (Bbls/d) 13,500 24,000 8,500Fixed-Price Swap Price^(1) $ 40.52 $ 42.22 $ 43.55SwapsArgus LLS Volumes Hedged (Bbls/d) 7,500 ? ?Fixed-Price Swap Price^(1) $ 51.67 ? ?SwapsWTI NYMEX Volumes Hedged (Bbls/d) 9,500 ? ?3-Way Sold Put Price / Floor / $47.93 / $57.00 ? ?Collars Ceiling Price^(1)(2) / $63.25Argus LLS Volumes Hedged (Bbls/d) 5,000 ? ?3-Way Sold Put Price / Floor / $52.80 / $61.63 ? ?Collars Ceiling Price^(1)(2) / $70.35 Total Volumes Hedged (Bbls/ 35,500 24,000 8,500 d)

(1) Averages are volume weighted.(2) If oil prices were to average less than the sold put, receipts on settlement would be limited to the difference between the floor price and the sold put price.

2020 CAPITAL BUDGET AND ESTIMATED PRODUCTION

The Companys 2020 estimated development capital budget, excluding acquisitions and capitalized interest, remains unchanged from its previously estimated range of $95 million to $105 million. The capital budget consists of approximately $70 million for tertiary and non-tertiary field investments and CO2 supply, plus approximately $30 million of estimated capitalized costs (including capitalized internal acquisition, exploration and development costs and pre-production tertiary startup costs). Of this combined capital expenditure amount, $78 million (78%) has been incurred through the first nine months of 2020. Based upon this capital spending level, Denburys estimated full-year 2020 production is currently expected to be within a range of 50,900 51,400 BOE/d.

THIRD QUARTER CONFERENCE CALL INFORMATION

Denbury management will host a conference call to review and discuss third quarter 2020 financial and operating results tomorrow, Tuesday, November17, at 10:00 A.M. (Central). Additionally, Denbury will post presentation materials on its website which will be referenced during the conference call. Individuals who would like to participate should dial 877.705.6003 or 201.493.6725 ten minutes before the scheduled start time. To access a live webcast of the conference call and accompanying slide presentation, please visit the investor relations section of the Companys website at www.denbury.com. The webcast will be archived on the website and a telephonic replay will be accessible for approximately one month after the call by dialing 844.512.2921 or 412.317.6671 and entering confirmation number 13696085.

Denbury is an independent oil and natural gas company with operations focused in two key operating areas: the Gulf Coast and Rocky Mountain regions. The Companys goal is to increase the value of its properties through a combination of exploitation, drilling and proven engineering extraction practices, with the most significant emphasis relating to CO2 enhanced oil recovery operations. For more information about Denbury, please visit www.denbury.com.

This press release, other than historical information, contains forward-looking statements that involve risks and uncertainties including estimated 2020 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 Successor Period, Predecessor Periods from July 1, 2020 through September 18, 2020 and January 1, 2020 through September 18, 2020, and certain Combined information for the three and nine months ended September 30, 2020, in order to assist investors in understanding the comparability of the Companys financial and operational results for the applicable periods. 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)

Combined (Non-GAAP)^ Successor Predecessor (1) Period Period from Quarter from Sept. July 1, 2020 Quarter Quarter Ended 19, 2020 through Ended Ended throughIn thousands, Sept. 30, Sept. 30, Sept. 18, Sept. 30, June 30,except 2020 2020 2020 2019 2020per-share dataRevenues and other incomeOil sales $ 174,447 $ 22,311 $ 152,136 $ 292,100 $ 108,538 Natural gas 964 10 954 1,092 849 salesCO[2] salesand 7,484 967 6,517 8,976 6,504 transportationfeesOil marketing 3,483 151 3,332 5,468 1,490 salesOther income 7,191 94 7,097 7,817 494 Total revenuesand other 193,569 23,533 170,036 315,453 117,875 incomeExpenses Leaseoperating 71,192 11,484 59,708 117,850 81,293 expensesTransportationand marketing 9,499 1,344 8,155 10,067 9,388 expensesCO[2]operating and 1,197 242 955 879 885 discoveryexpensesTaxes other 15,546 2,073 13,473 22,010 10,372 than incomeOil marketing 3,427 139 3,288 5,436 1,450 expensesGeneral andadministrative 16,748 1,735 15,013 18,266 23,776 expensesInterest, netof amountscapitalized of$4,887, $183, 8,038 334 7,704 22,858 20,617 $4,704, $8,773and $8,729,respectivelyDepletion,depreciation, 41,600 5,283 36,317 55,064 55,414 andamortizationCommodityderivatives 574 (4,035 ) 4,609 (43,155 ) 40,130 expense(income)Gain on debt ? ? ? (5,874 ) ? extinguishmentWrite-down ofoil and 261,677 ? 261,677 ? 662,440 natural gaspropertiesRestructuring 849,980 ? 849,980 ? ? items, netOther expenses 24,248 2,164 22,084 2,140 11,290 Total expenses 1,303,726 20,763 1,282,963 205,541 917,055 Income (loss)before income (1,110,157 ) 2,770 (1,112,927 ) 109,912 (799,180 )taxesIncome taxprovision (benefit)Current income (1,445 ) 6 (1,451 ) (859 ) 598 taxesDeferred (302,350 ) 6 (302,356 ) 37,909 (102,304 )income taxesNet income $ (806,362 ) $ 2,758 $ (809,120 ) $ 72,862 $ (697,474 )(loss) Net income(loss) per common shareBasic $ 0.06 $ (1.63 ) $ 0.16 $ (1.41 )Diluted $ 0.06 $ (1.63 ) $ 0.14 $ (1.41 ) Weightedaverage common sharesoutstandingBasic 50,000 497,398 455,487 495,245 Diluted 50,000 497,398 547,205 495,245

(1)Combined results for the quarter ended September 30, 2020 are provided for illustrative purposes and are derived from the financial statement line items from the Successor and Predecessor periods. Because of the impact of various adjustments to the financial statements in connection with the application of fresh start accounting, including asset valuation adjustments and liability adjustments, certain results of operations for the Successor are not comparable to those of the Predecessor. Management believes that the combined results provide meaningful information to assist investors in understanding the Companys financial results for the applicable period, but should not be considered in isolation, as a substitute for, or more meaningful than, independent results of the Predecessor and Successor periods for the quarter reported in accordance with GAAP.

Combined Successor Predecessor (Non-GAAP)^(1) Period Period from Nine Months from Sept. Jan. 1, 2020 Nine Months Ended 19, 2020 through Ended throughIn thousands, Sept. 30, Sept. 30,except Sept. 30, 2020 2020 Sept. 18, 2020 2019per-share dataRevenues and other incomeOil sales $ 511,562 $ 22,311 $ 489,251 $ 912,636 Natural gas 2,860 10 2,850 5,554 salesCO[2] salesand 22,016 967 21,049 25,532 transportationfeesOil marketing 8,694 151 8,543 8,274 salesOther income 8,513 94 8,419 12,274 Total revenuesand other 553,645 23,533 530,112 964,270 incomeExpenses Leaseoperating 261,755 11,484 250,271 361,205 expensesTransportationand marketing 28,508 1,344 27,164 32,076 expensesCO[2]operating and 2,834 242 2,592 2,016 discoveryexpensesTaxes other 45,604 2,073 43,531 71,312 than incomeOil marketing 8,538 139 8,399 8,213 expensesGeneral andadministrative 50,257 1,735 48,522 54,697 expensesInterest, netof amountscapitalized of$23,068, $183, 48,601 334 48,267 60,672 $22,885 and$27,545,respectivelyDepletion,depreciation, 193,876 5,283 188,593 170,625 andamortizationCommodityderivatives (106,067 ) (4,035 ) (102,032 ) 15,462 expense(income)Gain on debt (18,994 ) ? (18,994 ) (106,220 )extinguishmentWrite-down ofoil and 996,658 ? 996,658 ? natural gaspropertiesRestructuring 849,980 ? 849,980 ? items, netOther expenses 38,032 2,164 35,868 8,664 Total expenses 2,399,582 20,763 2,378,819 678,722 Income (loss)before income (1,845,937 ) 2,770 (1,848,707 ) 285,548 taxesIncome taxprovision (benefit)Current income (7,254 ) 6 (7,260 ) 1,214 taxesDeferred (408,863 ) 6 (408,869 ) 90,454 income taxesNet income $ (1,429,820 ) $ 2,758 $ (1,432,578 ) $ 193,880 (loss) Net income(loss) per common shareBasic $ 0.06 $ (2.89 ) $ 0.43 Diluted $ 0.06 $ (2.89 ) $ 0.41 Weightedaverage common sharesoutstandingBasic 50,000 495,560 453,287 Diluted 50,000 495,560 490,054

(1)Combined results for the nine months ended September 30, 2020 are provided for illustrative purposes and are derived from the financial statement line items from the Successor and Predecessor periods. Because of the impact of various adjustments to the financial statements in connection with the application of fresh start accounting, including asset valuation adjustments and liability adjustments, certain results of operations for the Successor are not comparable to those of the Predecessor. Management believes that the combined results provide meaningful information to assist investors in understanding the Companys financial results for the applicable period, but should not be considered in isolation, as a substitute for, or more meaningful than, independent results of the Predecessor and Successor periods for the nine months ended reported in accordance with GAAP.

DENBURY INC.CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Combined Successor Predecessor (Non-GAAP)^(1) Period Period from Nine Months from Sept. Jan. 1, 2020 Nine Months Ended 19, 2020 through Ended throughIn thousands Sept. 30, 2020 Sept. 30, Sept. 18, 2020 Sept. 30, 2020 2019Cash flowsfrom operating activitiesNet income $ (1,429,820 ) $ 2,758 $ (1,432,578 ) $ 193,880 (loss)Adjustments toreconcile netincome (loss) to cash flowsfrom operatingactivitiesNoncashreorganization 810,909 ? 810,909 ? items, netDepletion,depreciation, 193,876 5,283 188,593 170,625 andamortizationWrite-down ofoil and 996,658 ? 996,658 ? natural gaspropertiesDeferred (408,863 ) 6 (408,869 ) 90,454 income taxesStock-based 4,111 ? 4,111 9,866 compensationCommodityderivatives (106,067 ) (4,035 ) (102,032 ) 15,462 expense(income)Receipt onsettlements of 88,056 6,660 81,396 14,714 commodityderivativesGain on debt (18,994 ) ? (18,994 ) (106,220 )extinguishmentDebt issuancecosts and 11,685 114 11,571 7,607 discountsOther, net 1,028 589 439 (6,862 )Changes inassets andliabilities, net of effectsfromacquisitionsAccruedproduction 65,112 38,537 26,575 (1,428 )receivableTrade andother (20,977 ) 1,366 (22,343 ) (147 )receivablesOther currentand long-term 1,448 705 743 27 assetsAccountspayable and (24,082 ) (7,980 ) (16,102 ) (33,167 )accruedliabilitiesOil andnatural gas (17,856 ) (11,064 ) (6,792 ) (1,819 )productionpayableOther 94 (29 ) 123 (9,414 )liabilitiesNet cashprovided by 146,318 32,910 113,408 343,578 operatingactivities Cash flowsfrom investing activitiesOil andnatural gas (101,707 ) (2,125 ) (99,582 ) (204,904 )capitalexpendituresPipelines andplants capital (11,607 ) (6 ) (11,601 ) (25,965 )expendituresNet proceedsfrom sales ofoil and 42,202 880 41,322 10,494 natural gasproperties andequipmentOther 12,438 (309 ) 12,747 5,797 Net cash usedin investing (58,674 ) (1,560 ) (57,114 ) (214,578 )activities Cash flowsfrom financing activitiesBank (606,000 ) (55,000 ) (551,000 ) (641,000 )repaymentsBank 691,000 ? 691,000 691,000 borrowingsInterestpaymentstreated as a (46,417 ) ? (46,417 ) (59,808 )reduction ofdebtCash paid inconjunction (14,171 ) ? (14,171 ) ? with debtrepurchasesCash paid inconjunction ? ? ? (125,268 )with debtexchangeCosts of debt (12,482 ) ? (12,482 ) (11,017 )financingPipelinefinancing andcapital lease (51,846 ) (54 ) (51,792 ) (10,279 )debtrepaymentsOther (9,363 ) ? (9,363 ) 5,470 Net cashprovided by(used in) (49,279 ) (55,054 ) 5,775 (150,902 )financingactivitiesNet increase(decrease) incash, cash 38,365 (23,704 ) 62,069 (21,902 )equivalents,and restrictedcashCash, cashequivalents,and restricted 33,045 95,114 33,045 54,949 cash atbeginning ofperiodCash, cashequivalents,and restricted $ 71,410 $ 71,410 $ 95,114 $ 33,047 cash at end ofperiod

(1)Combined results for the nine months ended September 30, 2020 are provided for illustrative purposes and are derived from the financial statement line items from the Successor and Predecessor periods. Because of the impact of various adjustments to the financial statements in connection with the application of fresh start accounting, including asset valuation adjustments and liability adjustments, certain results of operations for the Successor are not comparable to those of the Predecessor. Management believes that the combined results provide meaningful information to assist investors in understanding the Companys financial results for the applicable period, but should not be considered in isolation, as a substitute for, or more meaningful than, independent results of the Predecessor and Successor periods for the nine months ended reported in accordance with GAAP.

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

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

Adjusted net income (loss) 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 (loss) 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 (loss) 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.

Combined (Non-GAAP)^ Predecessor (1) Quarter Quarter Ended Quarter Ended Ended Sept. 30, Sept. 30, 2019 June 30, 2020 2020In thousands, Per Perexcept per-share Amount Amount Diluted Amount Diluteddata Share ShareNet income (loss)(GAAP measure)^ $ (806,362 ) $ 72,862 $ 0.14 $ (697,474 ) $ (1.41 )(2)Adjustments toreconcile toadjusted net income (loss)(non-GAAPmeasure)Noncash fairvalue losses(gains) on 18,363 (35,098 ) (0.06 ) 85,759 0.17 commodityderivatives^(3)Reorganization 849,980 ? ? ? ? items, net^(4)Write-down of oiland natural gas 261,677 ? ? 662,440 1.34 properties^(5)Accelerateddepreciation 1,791 ? ? ? ? charge^(6)Gain on debtextinguishment^ ? (5,874 ) (0.01 ) ? ? (7)Severance-relatedexpense includedin general and ? ? ? 2,361 0.00 administrativeexpenses^(8)Expenseassociated with 16,232 ? ? 7,875 0.02 restructuring^(9)Delhi Fieldinsurance (15,402 ) ? ? ? ? reimbursements^(10)Other^(11) 1,013 (5,247 ) (0.01 ) 1,206 0.00 Estimated incometaxes on aboveadjustments tonet income (loss) (307,344 ) 14,499 0.02 (94,529 ) (0.19 )and otherdiscrete taxitems^(12)Adjusted netincome (loss) $ 19,948 $ 41,142 $ 0.08 $ (32,362 ) $ (0.07 )(non-GAAPmeasure)

Combined Predecessor (Non-GAAP)^(1) Nine Months Nine Months Ended Ended Sept. 30, 2020 Sept. 30, 2019 PerIn thousands, except per-share data Amount Amount Diluted ShareNet income (loss) (GAAP measure)^ $ (1,429,820 ) $ 193,880 $ 0.41 (2)Adjustments to reconcile toadjusted net income (loss) (non-GAAP measure)Noncash fair value losses (gains) (18,011 ) 30,176 0.06 on commodity derivatives^(3)Reorganization items, net^(4) 849,980 ? ? Write-down of oil and natural gas 996,658 ? ? properties^(5)Accelerated depreciation charge^(6) 39,159 ? ? Gain on debt extinguishment^(7) (18,994 ) (106,220 ) (0.22 )Severance-related expense includedin general and administrative 2,361 ? ? expenses^(8)Expense associated with 24,107 ? ? restructuring^(9)Delhi Field insurance (15,402 ) ? ? reimbursements^(10)Other^(11) 3,623 (793 ) 0.00 Estimated income taxes on aboveadjustments to net income (loss) (418,655 ) 28,483 0.06 and other discrete tax items^(12)Adjusted net income (loss) $ 15,006 $ 145,526 $ 0.31 (non-GAAP measure)

(1)Combined results for the three and nine months ended September 30, 2020 are provided for illustrative purposes and are derived from the financial statement line items from the Successor and Predecessor periods. Because of the impact of various adjustments to the financial statements in connection with the application of fresh start accounting, including asset valuation adjustments and liability adjustments, certain results of operations for the Successor are not comparable to those of the Predecessor. Management believes that the combined results provide meaningful information to assist investors in understanding the Companys financial results for the applicable period, but should not be considered in isolation, as a substitute for, or more meaningful than, independent results of the Predecessor and Successor periods for the quarter and nine months ended reported in accordance with GAAP. (2)Diluted net income (loss) per common share includes the impact of potentially dilutive securities including nonvested restricted stock, nonvested performance-based equity awards, warrants, and shares into which the Companys previous convertible senior notes were convertible. Basic and diluted earnings per share calculations for the GAAP reporting periods are included on page 13. (3)The net change between periods of the fair market values of open commodity derivative positions, excluding the impact of settlements on commodity derivatives during the period. (4)Reorganization items, net represent (a) expenses incurred subsequent to the filing petition for Chapter 11 as a direct result of the prepackaged joint plan of reorganization, (b) gains or losses from liabilities settled, and (c) fresh start accounting adjustments. (5)Full cost pool ceiling test write-downs related to the Companys oil and natural gas properties. (6)Accelerated depreciation for an asset impairment during the three months ended September 30, 2020, and impaired unevaluated properties during the three months ended March 31, 2020. (7)Gain on debt extinguishment related to the Companys 2020 open market repurchases and June 2019 debt exchange. (8)Severance-related expense associated with the Companys May-2020 involuntary workforce reduction. (9)Expenses incurred before the petition date and after the Emergence Date related to advisor and professional fees associated with review of strategic alternatives and comprehensive restructuring of the Companys indebtedness. (10)Insurance reimbursements associated with a 2013 incident at Delhi Field. (11)Other includes the following adjustments: (a) for the three months ended September 20, 2020, $5.9 million gain on land sales, $4.2 million write-off of trade receivables, $2.2 million of expense associated with the Delta-Tinsley CO2 pipeline incident and $0.5 million of expense associated with the helium supply contract trial court ruling, (b) for the three months ended September 30, 2019, a $6 million gain on land sales, <$1 million of transaction costs related to the Companys privately negotiated debt exchanges, and <$1 million of expense associated with the helium supply contract trial court ruling, (c) for the three months ended June 30, 2020, $0.5 million of costs associated with the helium supply contract trial court ruling and $0.7 million of expense associated with the Delta-Tinsley CO2 pipeline incident, (d) for the nine months ended September 30, 2020, $0.5 million of expense associated with the helium supply contract trial court ruling and $0.9 million of expense associated with the Delta-Tinsley CO2 pipeline incident, and (e) for the nine months ended September 30, 2019, $1 million of expense related to an impairment of assets, $1 million of transaction costs related to the Companys privately negotiated debt exchanges, and an additional $0.8 million of expense associated with the helium supply contract trial court ruling. (12)The estimated income tax impacts on adjustments to net income for the nine months ended September 30, 2020 are computed based upon a rate of 25% applied to income before tax, which incorporates discrete tax adjustments primarily comprised of the tax effect of the ceiling test and accelerated depreciation, impacts of the CARES Act, valuation allowances, and the periodic tax impacts of a shortfall (benefit) on the stock-based compensation deduction.

DENBURY INC.BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE

Successor Predecessor Period from Sept. 19, Period from July 1, 2020 Quarter Ended Quarter Ended 2020 through through Sept. 30, 2020 Sept. 18, 2020 Sept. 30, 2019 June 30, 2020In thousands, Per Perexcept per-share Amount Share Amount Per Share Amount Share Amount Per SharedataNumerator Net income (loss) $ 2,758 $ 0.06 $ (809,120 ) $ (1.63 ) $ 72,862 $ 0.16 $ (697,474 ) $ (1.41 )? basicEffect ofpotentially dilutivesecuritiesInterest onconvertible ? ? 5,101 ? senior notes, netof taxNet income (loss) $ 2,758 $ 0.06 $ (809,120 ) $ (1.63 ) $ 77,963 $ 0.14 $ (697,474 ) $ (1.41 )? diluted Denominator Weighted averagecommon shares 50,000 497,398 455,487 495,245 outstanding ?basicEffect ofpotentially dilutivesecuritiesRestricted stockand ? ? 865 ? performance-basedequity awardsConvertible ? ? 90,853 ? senior notesWeighted averagecommon shares 50,000 497,398 547,205 495,245 outstanding ?diluted

Successor Predecessor Period from Sept. Period from Jan. 1, 2020 Nine Months Ended 19, 2020 through through Sept. 30, 2020 Sept. 18, 2020 Sept. 30, 2019In thousands, Per Perexcept per-share Amount Share Amount Per Share Amount SharedataNumerator Net income (loss) $ 2,758 $ 0.06 $ (1,432,578 ) $ (2.89 ) $ 193,880 $ 0.43 ? basicEffect ofpotentially dilutivesecuritiesInterest onconvertible ? ? 5,649 senior notes, netof taxNet income (loss) $ 2,758 $ 0.06 $ (1,432,578 ) $ (2.89 ) $ 199,529 $ 0.41 ? diluted Denominator Weighted averagecommon shares 50,000 495,560 453,287 outstanding ?basicEffect ofpotentially dilutivesecuritiesRestricted stockand ? ? 2,489 performance-basedequity awardsConvertible ? ? 34,278 senior notesWeighted averagecommon shares 50,000 495,560 490,054 outstanding ?diluted

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. Adjusted cash flows from operations less special items is an additional non-GAAP measure that removes other special items. Free cash flow is a non-GAAP measure that represents adjusted cash flows from operations less special items and 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.

Combined Combined (Non-GAAP)^ Predecessor (Non-GAAP)^(1) Predecessor (1) Quarter Quarter Quarter Nine Months Nine Months Ended Ended Ended Ended EndedIn thousands Sept. 30, Sept. 30, June 30, Sept. 30, 2020 Sept. 30, 2020 2019 2020 2019Net income(loss) (GAAP $ (806,362 ) $ 72,862 $ (697,474 ) $ (1,429,820 ) $ 193,880 measure)Adjustments toreconcile toadjusted cash flows fromoperationsDepletion,depreciation, 41,600 55,064 55,414 193,876 170,625 andamortizationDeferred (302,350 ) 37,909 (102,304 ) (408,863 ) 90,454 income taxesStock-based 571 3,001 1,087 4,111 9,866 compensationNoncash fairvalue losses(gains) on 18,363 (35,098 ) 85,759 (18,011 ) 30,176 commodityderivativesGain on debt ? (5,874 ) ? (18,994 ) (106,220 )extinguishmentWrite-down ofoil and 261,677 ? 662,440 996,658 ? natural gaspropertiesNoncashreorganization 810,909 ? ? 810,909 ? items, netOther 4,434 (2,099 ) 4,026 12,713 745 Adjusted cashflows fromoperations 28,842 125,765 8,948 142,579 389,526 (non-GAAPmeasure)Net change inassets andliabilities 44,665 4,813 2,021 3,739 (45,948 )relating tooperationsCash flowsfrom $ 73,507 $ 130,578 $ 10,969 $ 146,318 $ 343,578 operations(GAAP measure) Adjusted cashflows fromoperations $ 28,842 $ 125,765 $ 8,948 $ 142,579 $ 389,526 (non-GAAPmeasure)Reorganizationitems settled 39,071 ? ? 39,071 ? in cashAdjusted cashflows fromoperationsless special 67,913 125,765 8,948 181,650 389,526 items(non-GAAPmeasure)Interest onnotes treated (3,911 ) (21,372 ) (20,912 ) (46,417 ) (64,006 )as debtreductionDevelopmentcapital (17,522 ) (51,420 ) (21,259 ) (77,566 ) (189,439 )expendituresCapitalized (4,887 ) (8,773 ) (8,729 ) (23,068 ) (27,545 )interestFree cash flow(deficit) $ 41,593 $ 44,200 $ (41,952 ) $ 34,599 $ 108,536 (non-GAAPmeasure)

(1)Combined results for the three and nine months ended September 30, 2020 are provided for illustrative purposes and are derived from the financial statement line items from the Successor and Predecessor periods. Because of the impact of various adjustments to the financial statements in connection with the application of fresh start accounting, including asset valuation adjustments and liability adjustments, certain results of operations for the Successor are not comparable to those of the Predecessor. Management believes that the combined results provide meaningful information to assist investors in understanding the Companys financial results for the applicable period, but should not be considered in isolation, as a substitute for, or more meaningful than, independent results of the Predecessor and Successor periods for the quarter and nine months ended reported in accordance with GAAP.

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

Reconciliation of commodity derivatives income (expense) (GAAP measure) to noncash fair value gains (losses) on commodity derivatives (non-GAAP measure)

Noncash fair value adjustments on commodity derivatives is a non-GAAP measure and is different from Commodity derivatives expense (income) in the Unaudited Condensed Consolidated Statements of Operations in that the noncash fair value gains (losses) on commodity derivatives represents only the net change between periods of the fair market values of open commodity derivative positions, and excludes the impact of settlements on commodity derivatives during the period. Management believes that noncash fair value gains (losses) on commodity derivatives is a useful supplemental disclosure to Commodity derivatives expense (income) because the GAAP measure also includes settlements on commodity derivatives during the period; the non-GAAP measure is widely used within the industry and by securities analysts, banks and credit rating agencies in calculating EBITDA and in adjusting net income (loss) to present those measures on a comparative basis across companies, as well as to assess compliance with certain debt covenants.

Combined Combined (Non-GAAP)^ Predecessor (Non-GAAP)^ Predecessor (1) (1) Quarter Quarter Quarter Ended Nine Months Nine Months Ended Ended Ended EndedIn Sept. 30, Sept. 30, June 30, 2020 Sept. 30, Sept. 30,thousands 2020 2019 2020 2019Receipt onsettlementsof $ 17,789 $ 8,057 $ 45,629 $ 88,056 $ 14,714 commodityderivativesNoncashfair valuegains(losses) on (18,363 ) 35,098 (85,759 ) 18,011 (30,176 )commodityderivatives(non-GAAPmeasure)Commodityderivativesincome $ (574 ) $ 43,155 $ (40,130 ) $ 106,067 $ (15,462 )(expense)(GAAPmeasure)

(1) Combined results for the three and nine months ended September 30, 2020 are provided for illustrative purposes and are derived from the financial statement line items from the Successor and Predecessor periods. Because of the impact of various adjustments to the financial statements in connection with the application of fresh start accounting, including asset valuation adjustments and liability adjustments, certain results of operations for the Successor are not comparable to those of the Predecessor. Management believes that the combined results provide meaningful information to assist investors in understanding the Companys financial results for the applicable period, but should not be considered in isolation, as a substitute for, or more meaningful than, independent results of the Predecessor and Successor periods for the quarter and nine months ended reported in accordance with GAAP.

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 financial 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.

Combined Combined (Non-GAAP)^ Predecessor (Non-GAAP)^(1) Predecessor (1) Quarter Quarter Quarter Nine Months Nine Months Ended Ended Ended Ended EndedIn thousands Sept. 30, Sept. 30, June 30, Sept. 30, 2020 Sept. 30, 2020 2019 2020 2019Net income (loss) $ (806,362 ) $ 72,862 $ (697,474 ) $ (1,429,820 ) $ 193,880 (GAAP measure)Adjustments toreconcile to Adjusted EBITDAXInterest expense 8,038 22,858 20,617 48,601 60,672 Income tax (303,795 ) 37,050 (101,706 ) (416,117 ) 91,668 expense (benefit)Depletion,depreciation, and 41,600 55,064 55,414 193,876 170,625 amortizationNoncash fairvalue losses(gains) on 18,363 (35,098 ) 85,759 (18,011 ) 30,176 commodityderivativesStock-based 571 3,001 1,087 4,111 9,866 compensationGain on debt ? (5,874 ) ? (18,994 ) (106,220 )extinguishmentWrite-down of oiland natural gas 261,677 ? 662,440 996,658 ? propertiesReorganization 849,980 ? ? 849,980 ? items, netSeverance-related 954 ? 2,361 3,315 ? expenseNoncash,non-recurring and 22,419 (4,744 ) 10,231 35,014 1,459 other^(2)Adjusted EBITDAX(non-GAAP $ 93,445 $ 145,119 $ 38,729 $ 248,613 $ 452,126 measure)^(3)

(1) Combined results for the three and nine months ended September 30, 2020 are provided for illustrative purposes and are derived from the financial statement line items from the Successor and Predecessor periods. Because of the impact of various adjustments to the financial statements in connection with the application of fresh start accounting, including asset valuation adjustments and liability adjustments, certain results of operations for the Successor are not comparable to those of the Predecessor. Management believes that the combined results provide meaningful information to assist investors in understanding the Companys financial results for the applicable period, but should not be considered in isolation, as a substitute for, or more meaningful than, independent results of the Predecessor and Successor periods for the quarter and nine months ended reported in accordance with GAAP.(2) Includes expenses incurred before the petition date and after the Emergence Date related to advisor and professional fees associated with review of strategic alternatives and comprehensive restructuring of the Companys indebtedness of $16 million and $8 million during the three months ended September 30, 2020 and June 30, 2020, respectively.(3) Excludes pro forma adjustments related to qualified acquisitions or dispositions under the Companys senior secured bank credit facility. Third quarter of 2020 adjusted EBITDAX includes an insurance reimbursement of $15 million, as EBITDAX was not adjusted for the related expenses when originally incurred, and second quarter of 2020 adjusted EBITDAX includes $12 million of expense in connection with cash retention and incentive compensation resulting from modification of compensation arrangements for 21 of the Companys executives and senior managers (See Note 6, Stock Compensation, in the Companys Form 10-Q for the period ended June 30, 2020).

DENBURY INC.OPERATING HIGHLIGHTS (UNAUDITED)

Quarter Ended Nine Months Ended September 30, June 30, September 30, 2020 2019 2020 2020 2019Production (daily ? net of royalties)Oil (barrels) 48,334 55,085 48,900 50,619 56,836 Gas (mcf) 8,110 8,135 7,737 7,916 9,681 BOE (6:1) 49,686 56,441 50,190 51,939 58,449 Unit sales price(excluding derivativesettlements)Oil (per barrel) $ 39.23 $ 57.64 $ 24.39 $ 36.88 $ 58.82 Gas (per mcf) 1.29 1.46 1.21 1.32 2.10 BOE (6:1) 38.37 56.46 23.95 36.15 57.54 Unit sales price(including derivativesettlements)Oil (per barrel) $ 43.23 $ 59.23 $ 34.64 $ 43.23 $ 59.77 Gas (per mcf) 1.29 1.46 1.21 1.32 2.10 BOE (6:1) 42.27 58.02 33.94 42.34 58.46 NYMEX differentials Gulf Coast region Oil (per barrel) $ (1.38 ) $ 3.11 $ (3.59 ) $ (0.86 ) $ 4.08 Gas (per mcf) (0.06 ) (0.24 ) (0.09 ) (0.07 ) (0.06 )Rocky Mountain regionOil (per barrel) $ (2.03 ) $ (1.65 ) $ (4.68 ) $ (2.89 ) $ (1.85 )Gas (per mcf) (1.74 ) (1.61 ) (1.04 ) (1.25 ) (0.90 )Total company Oil (per barrel) $ (1.64 ) $ 1.30 $ (4.03 ) $ (1.67 ) $ 1.79 Gas (per mcf) (0.83 ) (0.87 ) (0.54 ) (0.60 ) (0.47 )

DENBURY INC.OPERATING HIGHLIGHTS (UNAUDITED)

Quarter Ended Nine Months Ended September 30, June 30, September 30,Average Daily Volumes (BOE/ 2020 2019 2020 2020 2019d) (6:1)Tertiary oil production Gulf Coast region Delhi 3,208 4,256 3,529 3,515 4,405 Hastings 4,473 5,513 4,722 4,808 5,506 Heidelberg 4,256 4,297 4,366 4,331 4,123 Oyster Bayou 3,526 3,995 3,871 3,798 4,373 Tinsley 4,042 4,541 3,788 4,061 4,697 West Yellow Creek 588 728 695 686 584 Mature properties^(1) 5,683 6,415 5,249 5,772 6,448 Total Gulf Coast region 25,776 29,745 26,220 26,971 30,136 Rocky Mountain region Bell Creek 5,551 4,686 5,715 5,665 5,096 Salt Creek 2,167 2,213 1,386 1,902 2,116 Other ? 58 7 19 50 Total Rocky Mountain region 7,718 6,957 7,108 7,586 7,262 Total tertiary oil 33,494 36,702 33,328 34,557 37,398 productionNon-tertiary oil and gas productionGulf Coast region Mississippi 629 873 713 696 977 Texas 3,095 3,165 3,087 3,200 3,228 Other 4 6 5 6 7 Total Gulf Coast region 3,728 4,044 3,805 3,902 4,212 Rocky Mountain region Cedar Creek Anticline 11,485 13,354 11,988 12,170 14,211 Other 979 1,238 1,069 1,051 1,285 Total Rocky Mountain region 12,464 14,592 13,057 13,221 15,496 Total non-tertiary 16,192 18,636 16,862 17,123 19,708 productionTotal continuing production 49,686 55,338 50,190 51,680 57,106 Property sales Gulf Coast Working Interests ? 1,103 ? 259 1,057 Sale^(2)Citronelle^(3) ? ? ? ? 286 Total production 49,686 56,441 50,190 51,939 58,449

(1) Mature properties include Brookhaven, Cranfield, Eucutta, Little Creek, Mallalieu, Martinville, McComb and Soso fields.(2) Includes non-tertiary production related to the sale of 50% of our working interests in Webster, Thompson, Manvel, and East Hastings fields, sold in March 2020.(3) Includes production from Citronelle Field sold in July 2019.

DENBURY INC.PER-BOE DATA (UNAUDITED)

Quarter Ended Nine Months Ended September 30, June 30, September 30, 2020 2019 2020 2020 2019Oil andnatural gas $ 38.37 $ 56.46 $ 23.95 $ 36.15 $ 57.54 revenuesReceipt onsettlements of 3.90 1.56 9.99 6.19 0.92 commodityderivativesLeaseoperating (15.57 ) (22.70 ) (17.80 ) (18.39 ) (22.64 )expensesProduction andad valorem (3.00 ) (3.89 ) (1.92 ) (2.84 ) (4.12 )taxesTransportationand marketing (2.08 ) (1.94 ) (2.06 ) (2.00 ) (2.01 )expensesProduction 21.62 29.49 12.16 19.11 29.69 netbackCO[2] sales,net ofoperating and 1.38 1.56 1.23 1.35 1.47 discoveryexpensesGeneral andadministrative (3.66 ) (3.52 ) (5.21 ) (3.53 ) (3.43 )expensesInterest (1.76 ) (4.40 ) (4.51 ) (3.42 ) (3.80 )expense, netReorganizationitems settled (8.55 ) ? ? (2.75 ) ? in cashOther (2.72 ) 1.09 (1.71 ) (0.74 ) 0.48 Changes inassets andliabilities 9.77 0.93 0.44 0.26 (2.88 )relating tooperationsCash flowsfrom 16.08 25.15 2.40 10.28 21.53 operationsDD&A ?excludingaccelerated (8.71 ) (10.60 ) (12.13 ) (10.87 ) (10.69 )depreciationchargeDD&A ?accelerated (0.39 ) ? ? (2.75 ) ? depreciationcharge^(1)Write-down ofoil and (57.25 ) ? (145.04 ) (70.03 ) ? natural gaspropertiesDeferred 66.14 (7.30 ) 22.40 28.73 (5.67 )income taxesGain on debt ? 1.13 ? 1.33 6.66 extinguishmentNoncash fairvalue gains(losses) on (4.03 ) 6.75 (18.78 ) 1.26 (1.89 )commodityderivativesNoncashreorganization (177.40 ) ? ? (56.98 ) ? items, netOther noncash (10.85 ) (1.10 ) (1.56 ) (1.44 ) 2.21 itemsNet income $ (176.41 ) $ 14.03 $ (152.71 ) $ (100.47 ) $ 12.15 (loss)

(1)Represents an accelerated depreciation charge related to assets associated with impaired unevaluated properties that were transferred to the full cost pool during the three months ended March 31, 2020.

CAPITAL EXPENDITURE SUMMARY (UNAUDITED)(1)

Quarter Ended Nine Months Ended September 30, June 30, September 30,In thousands 2020 2019 2020 2020 2019Capitalexpenditure summaryTertiary oil $ 2,644 $ 17,547 $ 5,194 $ 22,564 $ 72,333 fieldsNon-tertiary 5,867 19,385 2,294 19,115 55,939 fieldsCapitalizedinternal 8,351 11,175 9,463 26,695 35,389 costs^(2)Oil andnatural gas 16,862 48,107 16,951 68,374 163,661 capitalexpendituresCO[2]pipelines, 660 3,313 4,308 9,192 25,778 sources andotherCapitalexpenditures,beforeacquisitions 17,522 51,420 21,259 77,566 189,439 andcapitalizedinterestAcquisitionsof oil and 15 25 38 95 122 natural gaspropertiesCapitalexpenditures,before 17,537 51,445 21,297 77,661 189,561 capitalizedinterestCapitalized 4,887 8,773 8,729 23,068 27,545 interestCapitalexpenditures, $ 22,424 $ 60,218 $ 30,026 $ 100,729 $ 217,106 total

(1) Capital expenditure amounts include accrued capital.(2) Includes capitalized internal acquisition, exploration and development costs and pre-production tertiary startup costs.

DENBURY INC.INTEREST AND FINANCING EXPENSES (UNAUDITED)

Successor Predecessor Period from Period from Sept. 19, July 1, 2020 Quarter Quarter 2020 through Ended Ended throughIn thousands Sept. 30, Sept. 18, Sept. 30, June 30, 2020 2020 2019 2020Cash interest^(1) $ 403 $ 17,734 $ 48,297 $ 45,263 Interest not reflectedas expense for ? (6,976 ) (21,372 ) (20,912 )financial reportingpurposes^(1)Noncash interest 114 347 1,060 1,061 expenseAmortization of debt ? 1,303 3,646 3,934 discount^(2)Less: capitalized (183 ) (4,704 ) (8,773 ) (8,729 )interestInterest expense, net $ 334 $ 7,704 $ 22,858 $ 20,617

Successor Predecessor Period from Period from Nine Months Sept. 19, 2020 Jan. 1, 2020 Ended through throughIn thousands Sept. 30, 2020 Sept. 18, 2020 Sept. 30, 2019Cash interest^(1) $ 403 $ 108,824 $ 144,616 Interest not reflected asexpense for financial ? (49,243 ) (64,006 )reporting purposes^(1)Noncash interest expense 114 2,439 3,517 Amortization of debt ? 9,132 4,090 discount^(2)Less: capitalized interest (183 ) (22,885 ) (27,545 )Interest expense, net $ 334 $ 48,267 $ 60,672

(1) Cash interest in Predecessor Periods includes interest which was paid semiannually on the Companys previously outstanding 9% Senior Secured Second Lien Notes due 2021 and 9% Senior Secured Second Lien Notes due 2022. As a result of the accounting for certain exchange transactions in previous years, most of the future interest related to these notes was recorded as debt as of the debt issuance dates, which is reduced as semiannual interest payments are made, and therefore not reflected as interest for financial reporting purposes.(2) Represents the amortization of debt discounts related to the Companys previously outstanding 7% Senior Secured Second Lien Notes due 2024 (7% Senior Secured Notes) and 6% Convertible Senior Notes due 2024 (6% Convertible Senior Notes) issued in June 2019. In accordance with FASC 470-50, Modifications and Extinguishments, the 7% Senior Secured Notes and 6% Convertible Senior Notes were recorded on the Companys balance sheet at a discount of $30 million and $80 million, respectively, which was being amortized as interest expense over the term of the notes.

SELECTED BALANCE SHEET DATA (UNAUDITED)

Successor PredecessorIn thousands Sept. 30, Dec. 31, 2019 2020Cash and cash equivalents $ 21,860 $ 516 Total assets 1,677,870 4,691,867 Borrowings under senior secured bank credit $ 85,000 $ ? facilityBorrowings under senior secured second lien ? 1,623,049 notes (principal only)^(1)Borrowings under senior convertible notes ? 245,548 (principal only)^(2)Borrowings under senior subordinated notes ? 245,690 (principal only)Financing and capital leases 90,967 167,439 Total debt (principal only) $ 175,967 $ 2,281,726 Total stockholders? equity $ 1,098,177 $ 1,412,259

(1) Excludes $165 million of future interest payable on the notes as of December 31, 2019 accounted for as debt for financial reporting purposes and also excludes a $27 million discount to par on the 7% Senior Secured Notes as of December 31, 2019.(2) Excludes a $75 million discount to par on the 6% Convertible Senior Notes as of December 31, 2019.

DENBURY CONTACTS: Mark C. Allen, Executive Vice President and Chief Financial Officer, 972.673.2000 John Mayer, Director of Investor Relations, 972.673.2383