Denbury Reports 2021 Fourth Quarter and Full-Year Results
PLANO, Texas–(BUSINESS WIRE)–#Blueoil–Denbury Inc. (NYSE: DEN) (“Denbury” or the “Company”) today provided its fourth quarter and full-year 2021 financial and operating results.
|
|
4Q 2021 |
|
|
FY 2021 |
||||
(in thousands, except per-share and volume data) |
|
Total |
|
Per Diluted Share |
|
|
Total |
|
Per Diluted Share |
Net Income |
|
$120,631 |
|
$2.19 |
|
|
$56,002 |
|
$1.04 |
Adjusted net income(1)(2) (non-GAAP) |
|
41,670 |
|
0.76 |
|
|
137,646 |
|
2.56 |
Adjusted EBITDAX(1) (non-GAAP) |
|
81,466 |
|
|
|
|
316,422 |
|
|
Cash flows from operations |
|
69,601 |
|
|
|
|
317,158 |
|
|
Adjusted cash flows from operations(1) (non-GAAP) |
|
82,824 |
|
|
|
|
312,115 |
|
|
Development capital expenditures |
|
78,350 |
|
|
|
|
252,171 |
|
|
|
|
|
|
|
|
|
|
|
|
Average daily sales volumes (BOE/d) |
|
48,882 |
|
|
|
|
48,770 |
|
|
Blue Oil (% oil volumes using industrial-sourced CO2) |
|
25% |
|
|
|
|
24% |
|
|
Industrial-sourced CO2 injected (thousand metric tons) |
|
841 |
|
|
|
|
3,271 |
|
|
FULL YEAR 2021 FINANCIAL AND OPERATING HIGHLIGHTS
- Set a fifth consecutive Company annual record for employee and contractor safety, achieving a Total Recordable Incident Rate of 0.40. Over 600,000 man-hours were completed on the Cedar Creek Anticline (“CCA”) CO2 pipeline and EOR project without a recordable safety incident.
- Completed the 105-mile CCA CO2 pipeline ahead of schedule and under budget, which made Denbury the largest operator of CO2 pipelines in the U.S. by mileage.
- Received third-party verification of the negative Carbon Intensity (“CI”) of Denbury’s blue oil production at the West Hastings and Bell Creek CO2 floods, resulting in a CI score ranging between -40 to -20 grams of CO2 equivalent emitted per megajoule of energy.
- Acquired the Big Sand Draw and Beaver Creek EOR fields in Wyoming, including surface facilities and a 46-mile CO2 transportation pipeline.
- Divested non-producing surface acreage in the Houston area for $15 million, and sold undeveloped deep mineral rights in Wyoming for $18 million.
- Generated more than $55 million of free cash flow(1) (a non-GAAP measure).
- Invested $252 million of development capital, at the low end of the Company’s original development capital guidance range.
- Reduced the Company’s total debt by $103 million over the last year, and exited 2021 with $532 million of financial liquidity (cash on hand and borrowing capacity under the Company’s existing credit facility).
(1) |
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. |
(2) |
Calculated using weighted average diluted shares outstanding of 55.1 million and 53.8 million for the quarter and year ended December 31, 2021, respectively. |
2021 CCUS HIGHLIGHTS
- Established the Denbury Carbon Solutions team to drive the Company’s CCUS strategy.
- Executed a term sheet with Mitsubishi Corporation for the transport and storage of CO2 captured from Mitsubishi’s proposed ammonia project along the U.S. Gulf Coast. The agreement covers a 20-year period, and Mitsubishi’s project is targeted to produce associated CO2 emissions of approximately 1.8 million metric tons per year, beginning in the latter half of the decade.
- Commenced a joint evaluation with Mitsui E&P USA LLC of potential opportunities across the U.S. Gulf Coast to develop carbon-negative oil assets utilizing industrial-sourced CO2. As part of the evaluation, the parties seek to jointly pursue CO2 offtake opportunities from Mitsui’s potential projects along the Gulf Coast.
- Announced joint development of a Texas Gulf Coast sequestration site with Gulf Coast Midstream Partners, with the potential to store up to 400 million metric tons of CO2. The EPA Class VI permitting process has been initiated and sequestration is estimated to be available by early 2025.
EXECUTIVE COMMENT
Chris Kendall, Denbury’s President and CEO, commented, “I am incredibly proud of our dedicated employees’ achievements throughout 2021 despite many challenges, including the ongoing pandemic and its impacts. First and foremost, we set another record on safety performance, the top priority for me and the entire Denbury leadership team. We further established the framework upon which we will execute our CCUS vision, placing Denbury as the leader in this evolving industry. Within our core operations, we completed the CCA CO2 pipeline project on time and under budget, and I thank our employees and contractors for their exceptional efforts in achieving this great outcome. We successfully initiated the CCA CO2 flood which we expect will be one of the largest CO2 floods in the world, and I’m pleased to share that we started Phase 1 injection early this month. This important milestone will greatly enhance our EOR business and increase Denbury’s production of carbon negative blue oil, which we believe will become a highly desired commodity. Further and importantly, our strong EOR business will provide significant cash flow with which to fund our CCUS investments.
As we enter 2022, we are extremely excited about what lies ahead for Denbury. Our expansive CO2 pipeline network and proven track record in all aspects of CO2 transportation and injection positions Denbury as the ideal partner to provide CCUS solutions. We demonstrate our expertise continuously by safely transporting and injecting the nearly ten thousand tons of CO2 we receive daily from our industrial partners into underground formations. We built on these strengths in 2021 with the execution and establishment of several new CCUS agreements that further set the stage for even greater success in our CCUS operations. My aspiration is that all of Denbury’s existing and future CCUS customers will recognize Denbury as the experienced and accountable partner upon whom they can rely to safely handle their captured CO2 for decades to come.”
FOURTH QUARTER 2021 FINANCIAL AND OPERATING RESULTS
Denbury’s fourth quarter 2021 total revenues and other income totaled $362 million, a five percent increase over third quarter 2021 levels, driven primarily by an improvement in underlying commodity prices and improved oil price differentials. The Company’s fourth quarter 2021 average pre-hedge realized oil price was $75.68 per barrel (“Bbl”), which was $1.22 per Bbl below NYMEX WTI oil prices. Denbury’s average differential improved more than 50 cents per Bbl from the third quarter of 2021 as values for the Company’s Gulf Coast and Rocky Mountain region sales volumes both improved relative to WTI.
Oil and natural gas sales volumes averaged 48,882 BOE/d during the fourth quarter of 2021, down modestly from the third quarter of 2021 and lower than expectations primarily as a result of unplanned downtime in December. In addition, lower volumes at CCA were attributed to increased oil prices and profitability resulting in more volumes allocated to the third-party net profits interest in that field. Oil represented 97% of the Company’s fourth quarter 2021 volumes, with 25% of the Company’s oil produced through the injection of industrial-sourced CO2, resulting in carbon-negative blue oil.
Lease operating expense in the fourth quarter of 2021 was $116 million, or $25.75 per BOE, consistent with the Company’s expectation. The slight increase on a per BOE basis from the third quarter 2021 was primarily related to higher commodity prices as higher oil prices increase the Company’s CO2 costs and higher natural gas prices increase power expenses. Transportation and marketing expenses for the quarter totaled $7 million, consistent with the third quarter of 2021 and reflecting improved contractual arrangements for certain of the Company’s Rocky Mountain region oil volumes.
General and administrative expenses were $16 million in the fourth quarter of 2021, in line with expectations and relatively consistent with the third quarter of the year. Depletion, depreciation, and amortization (“DD&A”) expense was $37 million during the fourth quarter of 2021, or $8.25 per BOE, essentially flat with the third quarter of the year.
Commodity derivatives expense totaled $23 million in the final quarter of 2021, comprised of cash payments on hedges that settled in the quarter of $98 million, offset by a $75 million non-cash gain representing mark-to-market changes in the value of the Company’s hedging portfolio. The Company’s effective tax rate for the fourth quarter of 2021 was negligible, as virtually all of the tax expense/benefit generated is currently fully offset by a change in valuation allowance on its federal and state deferred tax assets.
CAPITAL EXPENDITURES
Fourth quarter 2021 development capital expenditures totaled $78 million, bringing full-year 2021 capital expenditures to a total of $252 million, close to the low end of the Company’s original annual guidance range of $250 million to $270 million. Nearly 60% of the fourth quarter total was dedicated to the CCA EOR project, including the completion of the 105-mile CO2 pipeline from Bell Creek to CCA, the booster station install, and the infield distribution system to prepare for CO2 injection. The CCA CO2 Pipeline was completed ahead of schedule and under budget. Line fill of CO2 was also completed in 2021, and CO2 injection into the Cedar Hills South and East Lookout Butte fields commenced in early February 2022. Tertiary oil production response is anticipated in the second half of 2023.
2021 PROVED RESERVES
The Company’s total estimated proved oil and natural gas reserves as of December 31, 2021, were 192 million barrels of oil equivalent (MMBOE), consisting of 189 million barrels of crude oil and 17 billion cubic feet of natural gas. Proved reserves increased by 49 MMBOE during 2021, primarily resulting from increased commodity pricing utilized in determining economic reserves. As of the end of 2021, 95% of proved reserves were proved developed.
Year-end 2021 estimated proved reserves and the discounted net present value of Denbury’s proved reserves, using a 10% per annum discount rate (“PV-10 Value”)(1) (a non-GAAP measure), were computed using first-day-of-the-month 12-month average prices of $66.56 per Bbl for oil (based on NYMEX prices) and $3.60 per million British thermal unit (“MMBtu”) for natural gas (based on Henry Hub cash prices), adjusted for prices received at the field. Comparative prices for 2020 were $39.57 per Bbl of oil and $1.99 per MMBtu for natural gas, adjusted for prices received at the field. The PV-10 Value(1) of Denbury’s proved reserves was $2.7 billion at December 31, 2021, compared to $0.7 billion at December 31, 2020.
Denbury’s estimated proved CO2 reserves at year-end 2021 were 5.5 trillion cubic feet (“Tcf”), including 4.5 Tcf at Jackson Dome in Mississippi (on a gross basis) and 1.0 Tcf at LaBarge Field in Wyoming (overriding royalty interest). Total CO2 reserves reflected a slight reduction from year-end 2020 due to 2021 production.
CONFERENCE CALL AND WEBCAST INFORMATION
Denbury management will host a conference call to review and discuss fourth quarter and full-year 2021 financial and operating results, as well as its outlook for 2022, today, Thursday, February 24, at 11:00 a.m. Central Time (12:00 p.m. Eastern Time). Additionally, Denbury will post supporting 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 Company’s 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 13723080.
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.
(1) |
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. |
This press release, other than historical information, contains forward-looking statements that involve risks and uncertainties detailed in the Company’s filings with the Securities and Exchange Commission, including Denbury’s 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, management’s assumptions and the Company’s 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 Company’s 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
References below to “Successor” refer to the new Denbury reporting entity after the Company’s emergence from bankruptcy on September 18, 2020 (the “Emergence Date”), and references to “Predecessor” refer to the Denbury entity prior to emergence from bankruptcy. The following tables include selected unaudited financial and operational information for the Successor three month and annual periods ended December 31, 2021, Successor period from October 1, 2020 through December 31, 2020 and September 19, 2020 through December 31, 2020; Predecessor period from January 1, 2020 through September 18, 2020; and certain Combined information for the year ended December 31, 2020, in order to assist investors in understanding the comparability of the Company’s financial and operational results for the applicable periods. All sales volumes and dollars are expressed on a net revenue interest basis with gas volumes converted to equivalent barrels at 6:1.
DENBURY INC. |
||||||||
The following information is based on GAAP reported earnings. Additional required disclosures will be included in the Company’s Form 10-K: |
||||||||
|
|
Quarter Ended |
||||||
In thousands, except per-share data |
|
December 31, 2021 |
|
December 31, 2020 |
||||
Revenues and other income |
|
|
|
|
||||
Oil sales |
|
$ |
329,308 |
|
$ |
177,458 |
|
|
Natural gas sales |
|
|
4,040 |
|
|
1,329 |
|
|
CO2 sales and transportation fees |
|
|
12,576 |
|
|
8,452 |
|
|
Oil marketing revenues |
|
|
12,204 |
|
|
5,225 |
|
|
Other income |
|
|
3,770 |
|
|
4,603 |
|
|
Total revenues and other income |
|
|
361,898 |
|
|
197,067 |
|
|
Expenses |
|
|
|
|
||||
Lease operating expenses |
|
|
115,819 |
|
|
89,750 |
|
|
Transportation and marketing expenses |
|
|
6,513 |
|
|
9,251 |
|
|
CO2 operating and discovery expenses |
|
|
2,191 |
|
|
1,734 |
|
|
Taxes other than income |
|
|
25,891 |
|
|
14,511 |
|
|
Oil marketing purchases |
|
|
11,971 |
|
|
5,179 |
|
|
General and administrative expenses |
|
|
16,437 |
|
|
17,735 |
|
|
Interest, net of amounts capitalized of $1,085 and $1,078, respectively |
|
|
690 |
|
|
1,481 |
|
|
Depletion, depreciation, and amortization |
|
|
37,118 |
|
|
40,529 |
|
|
Commodity derivatives expense (income) |
|
|
22,832 |
|
|
65,937 |
|
|
Write-down of oil and natural gas properties |
|
|
— |
|
|
1,006 |
|
|
Other expenses |
|
|
903 |
|
|
5,908 |
|
|
Total expenses |
|
|
240,365 |
|
|
253,021 |
|
|
Income (loss) before income taxes |
|
|
121,533 |
|
|
(55,954 |
) |
|
Income tax provision (benefit) |
|
|
|
|
||||
Current income taxes |
|
|
504 |
|
|
24 |
|
|
Deferred income taxes |
|
|
398 |
|
|
(2,562 |
) |
|
Net income (loss) |
|
$ |
120,631 |
|
$ |
(53,416 |
) |
|
|
|
|
|
|
||||
Net income (loss) per common share |
|
|
|
|
||||
Basic |
|
$ |
2.35 |
|
$ |
(1.07 |
) |
|
Diluted |
|
$ |
2.19 |
|
$ |
(1.07 |
) |
|
|
|
|
|
|
||||
Weighted average common shares outstanding |
|
|
|
|
||||
Basic |
|
|
51,247 |
|
|
50,000 |
|
|
Diluted |
|
|
55,114 |
|
|
50,000 |
|
|
|
Year Ended Dec. 31, 2021 |
|
Year Ended Dec. 31, 2020 |
|
Period from Sept. 19, 2020 through Dec. 31, 2020 |
|
Period from Jan. 1, 2020 through Sept. 18, 2020 |
||||||||
|
|
|
|
|
||||||||||||
In thousands, except per-share data |
|
Successor |
|
Combined (Non-GAAP)(1) |
|
Successor |
|
Predecessor |
||||||||
Revenues and other income |
|
|
|
|
|
|
|
|
||||||||
Oil sales |
|
$ |
1,148,022 |
|
$ |
689,020 |
|
|
$ |
199,769 |
|
|
$ |
489,251 |
|
|
Natural gas sales |
|
|
11,933 |
|
|
4,189 |
|
|
|
1,339 |
|
|
|
2,850 |
|
|
CO2 sales and transportation fees |
|
|
44,175 |
|
|
30,468 |
|
|
|
9,419 |
|
|
|
21,049 |
|
|
Oil marketing revenues |
|
|
38,742 |
|
|
13,919 |
|
|
|
5,376 |
|
|
|
8,543 |
|
|
Other income |
|
|
15,288 |
|
|
13,116 |
|
|
|
4,697 |
|
|
|
8,419 |
|
|
Total revenues and other income |
|
|
1,258,160 |
|
|
750,712 |
|
|
|
220,600 |
|
|
|
530,112 |
|
|
Expenses |
|
|
|
|
|
|
|
|
||||||||
Lease operating expenses |
|
|
424,550 |
|
|
351,505 |
|
|
|
101,234 |
|
|
|
250,271 |
|
|
Transportation and marketing expenses |
|
|
28,817 |
|
|
37,759 |
|
|
|
10,595 |
|
|
|
27,164 |
|
|
CO2 operating and discovery expenses |
|
|
6,678 |
|
|
4,568 |
|
|
|
1,976 |
|
|
|
2,592 |
|
|
Taxes other than income |
|
|
91,390 |
|
|
60,115 |
|
|
|
16,584 |
|
|
|
43,531 |
|
|
Oil marketing purchases |
|
|
37,734 |
|
|
13,717 |
|
|
|
5,318 |
|
|
|
8,399 |
|
|
General and administrative expenses |
|
|
79,258 |
|
|
67,992 |
|
|
|
19,470 |
|
|
|
48,522 |
|
|
Interest, net of amounts capitalized of $4,585, $24,146, $1,261 and $22,885, respectively |
|
|
4,147 |
|
|
50,082 |
|
|
|
1,815 |
|
|
|
48,267 |
|
|
Depletion, depreciation, and amortization |
|
|
150,640 |
|
|
234,405 |
|
|
|
45,812 |
|
|
|
188,593 |
|
|
Commodity derivatives expense (income) |
|
|
352,984 |
|
|
(40,130 |
) |
|
|
61,902 |
|
|
|
(102,032 |
) |
|
Gain on debt extinguishment |
|
|
— |
|
|
(18,994 |
) |
|
|
— |
|
|
|
(18,994 |
) |
|
Write-down of oil and natural gas properties |
|
|
14,377 |
|
|
997,664 |
|
|
|
1,006 |
|
|
|
996,658 |
|
|
Restructuring items, net |
|
|
— |
|
|
849,980 |
|
|
|
— |
|
|
|
849,980 |
|
|
Other expenses |
|
|
10,816 |
|
|
43,940 |
|
|
|
8,072 |
|
|
|
35,868 |
|
|
Total expenses |
|
|
1,201,391 |
|
|
2,652,603 |
|
|
|
273,784 |
|
|
|
2,378,819 |
|
|
Income (loss) before income taxes |
|
|
56,769 |
|
|
(1,901,891 |
) |
|
|
(53,184 |
) |
|
|
(1,848,707 |
) |
|
Income tax provision (benefit) |
|
|
|
|
|
|
|
|
||||||||
Current income taxes |
|
|
403 |
|
|
(7,230 |
) |
|
|
30 |
|
|
|
(7,260 |
) |
|
Deferred income taxes |
|
|
364 |
|
|
(411,425 |
) |
|
|
(2,556 |
) |
|
|
(408,869 |
) |
|
Net income (loss) |
|
$ |
56,002 |
|
$ |
(1,483,236 |
) |
|
$ |
(50,658 |
) |
|
$ |
(1,432,578 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
1.10 |
|
|
|
$ |
(1.01 |
) |
|
$ |
(2.89 |
) |
|||
Diluted |
|
$ |
1.04 |
|
|
|
$ |
(1.01 |
) |
|
$ |
(2.89 |
) |
|||
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
50,918 |
|
|
|
|
50,000 |
|
|
|
495,560 |
|
|||
Diluted |
|
|
53,818 |
|
|
|
|
50,000 |
|
|
|
495,560 |
|
(1) |
Combined results for the year ended December 31, 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 Company’s 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 year ended December 31, 2020 reported in accordance with GAAP. |
DENBURY INC. |
||||||||
|
||||||||
|
|
Quarter Ended |
||||||
In thousands |
|
December 31, 2021 |
|
December 31, 2020 |
||||
Cash flows from operating activities |
|
|
|
|
||||
Net income (loss) |
|
$ |
120,631 |
|
|
$ |
(53,416 |
) |
Adjustments to reconcile net income (loss) to cash flows from operating activities |
|
|
|
|
||||
Depletion, depreciation, and amortization |
|
|
37,118 |
|
|
|
40,529 |
|
Write-down of oil and natural gas properties |
|
|
— |
|
|
|
1,006 |
|
Deferred income taxes |
|
|
398 |
|
|
|
(2,562 |
) |
Stock-based compensation |
|
|
2,534 |
|
|
|
8,212 |
|
Commodity derivatives expense |
|
|
22,832 |
|
|
|
65,937 |
|
Receipt (payment) on settlements of commodity derivatives |
|
|
(97,774 |
) |
|
|
14,429 |
|
Debt issuance costs and discounts |
|
|
685 |
|
|
|
685 |
|
Gain from asset sales and other |
|
|
(3,583 |
) |
|
|
(3,546 |
) |
Other, net |
|
|
(17 |
) |
|
|
608 |
|
Changes in assets and liabilities, net of effects from acquisitions |
|
|
|
|
||||
Accrued production receivable |
|
|
1,004 |
|
|
|
(17,126 |
) |
Trade and other receivables |
|
|
1,525 |
|
|
|
14,201 |
|
Other current and long-term assets |
|
|
3,053 |
|
|
|
(2,500 |
) |
Accounts payable and accrued liabilities |
|
|
(18,984 |
) |
|
|
(59,187 |
) |
Oil and natural gas production payable |
|
|
6,183 |
|
|
|
4,152 |
|
Other liabilities |
|
|
(6,004 |
) |
|
|
(4,006 |
) |
Net cash provided by operating activities |
|
|
69,601 |
|
|
|
7,416 |
|
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
||||
Oil and natural gas capital expenditures |
|
|
(37,870 |
) |
|
|
(15,839 |
) |
Acquisitions of oil and natural gas properties |
|
|
(52 |
) |
|
|
(81 |
) |
Pipeline capital expenditures |
|
|
(50,100 |
) |
|
|
(612 |
) |
Net proceeds from sales of oil and natural gas properties and equipment |
|
|
— |
|
|
|
58 |
|
Other |
|
|
3,331 |
|
|
|
16,150 |
|
Net cash used in investing activities |
|
|
(84,691 |
) |
|
|
(324 |
) |
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
|
||||
Bank repayments |
|
|
(236,000 |
) |
|
|
(135,000 |
) |
Bank borrowings |
|
|
271,000 |
|
|
|
120,000 |
|
Costs of debt financing |
|
|
— |
|
|
|
(8 |
) |
Pipeline financing repayments |
|
|
(17,332 |
) |
|
|
(22,884 |
) |
Other |
|
|
(696 |
) |
|
|
1,638 |
|
Net cash provided by (used in) financing activities |
|
|
16,972 |
|
|
|
(36,254 |
) |
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
1,882 |
|
|
|
(29,162 |
) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
48,462 |
|
|
|
71,410 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
50,344 |
|
|
$ |
42,248 |
|
|
|
Year Ended Dec. 31, 2021 |
|
Year Ended Dec. 31, 2020 |
|
Period from Sept. 19, 2020 through Dec. 31, 2020 |
|
Period from Jan. 1, 2020 through Sept. 18, 2020 |
||||||||
In thousands |
|
Successor |
|
Combined (Non-GAAP)(1) |
|
Successor |
|
Predecessor |
||||||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
$ |
56,002 |
|
|
$ |
(1,483,236 |
) |
|
$ |
(50,658 |
) |
|
$ |
(1,432,578 |
) |
Adjustments to reconcile net income (loss) to cash flows from operating activities |
|
|
|
|
|
|
|
|
||||||||
Noncash reorganization items, net |
|
|
— |
|
|
|
810,909 |
|
|
|
— |
|
|
|
810,909 |
|
Depletion, depreciation, and amortization |
|
|
150,640 |
|
|
|
234,405 |
|
|
|
45,812 |
|
|
|
188,593 |
|
Write-down of oil and natural gas properties |
|
|
14,377 |
|
|
|
997,664 |
|
|
|
1,006 |
|
|
|
996,658 |
|
Deferred income taxes |
|
|
364 |
|
|
|
(411,425 |
) |
|
|
(2,556 |
) |
|
|
(408,869 |
) |
Stock-based compensation |
|
|
25,322 |
|
|
|
12,323 |
|
|
|
8,212 |
|
|
|
4,111 |
|
Commodity derivatives expense (income) |
|
|
352,984 |
|
|
|
(40,130 |
) |
|
|
61,902 |
|
|
|
(102,032 |
) |
Receipt (payment) on settlements of commodity derivatives |
|
|
(277,240 |
) |
|
|
102,485 |
|
|
|
21,089 |
|
|
|
81,396 |
|
Gain on debt extinguishment |
|
|
— |
|
|
|
(18,994 |
) |
|
|
— |
|
|
|
(18,994 |
) |
Debt issuance costs and discounts |
|
|
2,740 |
|
|
|
12,370 |
|
|
|
799 |
|
|
|
11,571 |
|
Gain from asset sales and other |
|
|
(10,609 |
) |
|
|
(10,269 |
) |
|
|
(3,546 |
) |
|
|
(6,723 |
) |
Other, net |
|
|
(2,465 |
) |
|
|
8,359 |
|
|
|
1,197 |
|
|
|
7,162 |
|
Changes in assets and liabilities, net of effects from acquisitions |
|
|
|
|
|
|
|
|
||||||||
Accrued production receivable |
|
|
(51,944 |
) |
|
|
47,986 |
|
|
|
21,411 |
|
|
|
26,575 |
|
Trade and other receivables |
|
|
(284 |
) |
|
|
(6,776 |
) |
|
|
15,567 |
|
|
|
(22,343 |
) |
Other current and long-term assets |
|
|
10,390 |
|
|
|
(1,052 |
) |
|
|
(1,795 |
) |
|
|
743 |
|
Accounts payable and accrued liabilities(2) |
|
|
28,500 |
|
|
|
(83,269 |
) |
|
|
(67,167 |
) |
|
|
(16,102 |
) |
Oil and natural gas production payable |
|
|
29,351 |
|
|
|
(13,704 |
) |
|
|
(6,912 |
) |
|
|
(6,792 |
) |
Other liabilities |
|
|
(10,970 |
) |
|
|
(3,912 |
) |
|
|
(4,035 |
) |
|
|
123 |
|
Net cash provided by operating activities |
|
|
317,158 |
|
|
|
153,734 |
|
|
|
40,326 |
|
|
|
113,408 |
|
|
|
|
|
|
|
|
|
|
||||||||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
||||||||
Oil and natural gas capital expenditures |
|
|
(150,911 |
) |
|
|
(117,546 |
) |
|
|
(17,964 |
) |
|
|
(99,582 |
) |
Acquisitions of oil and natural gas properties |
|
|
(10,979 |
) |
|
|
(82 |
) |
|
|
(82 |
) |
|
|
— |
|
Pipeline capital expenditures |
|
|
(69,223 |
) |
|
|
(12,219 |
) |
|
|
(618 |
) |
|
|
(11,601 |
) |
Net proceeds from sales of oil and natural gas properties and equipment |
|
|
19,053 |
|
|
|
42,260 |
|
|
|
938 |
|
|
|
41,322 |
|
Other |
|
|
9,128 |
|
|
|
28,589 |
|
|
|
15,842 |
|
|
|
12,747 |
|
Net cash used in investing activities |
|
|
(202,932 |
) |
|
|
(58,998 |
) |
|
|
(1,884 |
) |
|
|
(57,114 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
||||||||
Bank repayments |
|
|
(933,000 |
) |
|
|
(741,000 |
) |
|
|
(190,000 |
) |
|
|
(551,000 |
) |
Bank borrowings |
|
|
898,000 |
|
|
|
811,000 |
|
|
|
120,000 |
|
|
|
691,000 |
|
Interest payments treated as a reduction of debt |
|
|
— |
|
|
|
(46,417 |
) |
|
|
— |
|
|
|
(46,417 |
) |
Cash paid in conjunction with debt repurchases |
|
|
— |
|
|
|
(14,171 |
) |
|
|
— |
|
|
|
(14,171 |
) |
Costs of debt financing |
|
|
— |
|
|
|
(12,490 |
) |
|
|
(8 |
) |
|
|
(12,482 |
) |
Pipeline financing repayments |
|
|
(68,008 |
) |
|
|
(74,730 |
) |
|
|
(22,938 |
) |
|
|
(51,792 |
) |
Other |
|
|
(3,122 |
) |
|
|
(7,725 |
) |
|
|
1,638 |
|
|
|
(9,363 |
) |
Net cash provided by (used in) financing activities |
|
|
(106,130 |
) |
|
|
(85,533 |
) |
|
|
(91,308 |
) |
|
|
5,775 |
|
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
8,096 |
|
|
|
9,203 |
|
|
|
(52,866 |
) |
|
|
62,069 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
42,248 |
|
|
|
33,045 |
|
|
|
95,114 |
|
|
|
33,045 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
50,344 |
|
|
$ |
42,248 |
|
|
$ |
42,248 |
|
|
$ |
95,114 |
|
Contacts
DENBURY IR CONTACTS:
Brad Whitmarsh, 972.673.2020, brad.whitmarsh@denbury.com
Beth Bierhaus, 972.673.2554, beth.bierhaus@denbury.com