Denbury Reports 2022 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 2022 results.
|
|
|
4Q 2022 |
|
|
FY 2022 |
||||
|
(in thousands, except per-share and volume data) |
|
Total |
|
Per Diluted |
|
|
Total |
|
Per Diluted |
|
Net Income |
|
$75,115 |
|
$1.39 |
|
|
$480,160 |
|
$8.83 |
|
Adjusted net income(1)(2) (non-GAAP) |
|
79,960 |
|
1.48 |
|
|
368,302 |
|
6.78 |
|
Adjusted EBITDAX(1) (non-GAAP) |
|
140,042 |
|
|
|
|
586,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flows from operations |
|
124,336 |
|
|
|
|
520,745 |
|
|
|
Adjusted cash flows from operations(1) (non-GAAP) |
|
137,088 |
|
|
|
|
568,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil & gas development capital expenditures |
|
120,971 |
|
|
|
|
364,198 |
|
|
|
CCUS capital expenditures – storage sites and related |
|
32,505 |
|
|
|
|
64,605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average daily sales volumes (BOE/d) |
|
46,641 |
|
|
|
|
46,809 |
|
|
|
Blue Oil (% oil volumes using industrial-sourced CO2) |
|
29% |
|
|
|
|
28% |
|
|
|
Industrial-sourced CO2 injected (million metric tons) |
|
1.15 |
|
|
|
|
4.35 |
|
|
|
Industrial-sourced CO2 injected (% of total CO2 used in EOR operations) |
|
40% |
|
|
|
|
40% |
|
|
2022 FULL-YEAR HIGHLIGHTS
- Generated $521 million in cash flow from operations and $136 million of free cash flow(1) (a non-GAAP measure).
- Repurchased $100 million of the Company’s outstanding shares (1.6 million shares or 3.2% of shares outstanding) at an average price of $61.92 per share.
- Exited 2022 with $29 million of debt and $711 million of financial liquidity (cash on hand and borrowing capacity under the Company’s existing credit facility).
- Utilized 4.4 million metric tons of industrial-sourced carbon dioxide (“CO2”) in enhanced oil recovery (“EOR”) operations in 2022, an increase of more than 33% from 2021.
- Commenced CO2 injection at the Cedar Creek Anticline (“CCA”) EOR project in early February 2022. The Company had 74 CO2 injection wells online at CCA at the end of 2022 and had injected a cumulative 1.4 million metric tons of CO2 in Phase 1 of the development.
- Estimated proved reserves at the end of 2022 totaled 202 million barrels of oil equivalent, a 5% increase from 2021. The PV-10 value(1)(a non-GAAP measure) of those reserves at that date was nearly $4.5 billion, representing a value uplift of 67% from the end of 2021.
2022 CCUS HIGHLIGHTS
- Executed multiple agreements with customers for future transportation and/or storage of industrial-sourced CO2 covering approximately 18 million metric tons of CO2 per year, including CO2 transport and storage associated with ammonia, biofuels, and hydrogen projects.
- Invested $10 million into a greenfield blue ammonia project through an investment in Clean Hydrogen Works, the developer of the proposed project near Donaldsonville, Louisiana. Initial production from this world-scale development is anticipated in 2027.
- Expanded Denbury’s dedicated CO2 storage portfolio to a total of 7 contracted sequestration sites along the U.S. Gulf Coast representing approximately 2 billion metric tons of potential CO2 storage capacity.
- Submitted the Company’s initial Class VI permit applications (3 wells) for dedicated CO2 storage at the Orion site in Alabama to the Environmental Protection Agency for review and approval.
EXECUTIVE COMMENT
Chris Kendall, Denbury’s President and CEO, commented, “2022 was an incredibly successful year for our Company. Starting with safety, we delivered another strong year, a testament to our highly skilled and focused employees. In addition, we executed well on each of our capital allocation priorities in 2022: to maintain our strong balance sheet; to enhance our oil and gas production base; to advance our leadership position in CCUS; and to return capital to shareholders from our free cash flow.”
“Our teams did an excellent job of executing on all fronts in 2022 with strong momentum I believe will carry into 2023. We are excitedly looking forward to the first production from the CCA CO2 flood in the second half of 2023. CCA represents the Company’s largest potential EOR resource, which we expect will significantly strengthen our production and cash flow for decades into the future with 100% carbon-negative blue oil. We also will continue the aggressive pursuit of new CCUS business opportunities, supported by new transportation and storage agreements. To buttress those efforts, we will consider additional investments in new carbon related ventures while expanding our network of dedicated CO2 storage sites. With two decades of CO2 expertise and our extensive infrastructure, I believe Denbury is uniquely positioned to execute on our mission to deliver carbon solutions that provide resources to meet today’s energy needs while working toward a sustainable future. I am tremendously proud of what we have built at Denbury and more excited about the transformational growth journey that lays ahead.”
FOURTH QUARTER 2022 FINANCIAL AND OPERATING RESULTS
Denbury’s fourth quarter 2022 total revenues and other income totaled $381 million, down from third quarter 2022 levels primarily as a result of lower oil prices. The Company’s fourth quarter 2022 average pre-hedge realized oil price was $82.54 per barrel (“Bbl”), down 11% from the third quarter of 2022. Denbury’s average realized oil price differential was nearly identical to benchmark West Texas Intermediate prices in the fourth quarter of 2022, but less favorable than the $0.82 positive differential the Company realized in the third quarter of 2022.
The Company’s sales volumes averaged 46,641 barrels of oil equivalent per day (“BOE/d”) during the fourth quarter of 2022, down modestly from third quarter 2022 levels primarily due to severe winter storm impacts. Fourth quarter volumes were impacted on average approximately 1,150 BOE/d due to production downtime associated with late December 2022 winter storms and approximately 500 BOE/d related to the temporary curtailment of production in certain areas of the CCA EOR flood where CO2 arrival has occurred in advance of the completion of CO2 recycle facilities.
Rocky Mountain region sales volumes were up 2% from the third quarter of the year, largely driven by the Wind River Basin volumes which established a quarterly high in the fourth quarter following 2022 development activities. Sales volumes in the Gulf Coast were down 3%, primarily related to the winter storm impacts and an inventory build at Tinsley. Oil represented 97% of the Company’s fourth quarter 2022 volumes, with 29% of the Company’s oil produced through the injection of industrial-sourced CO2, resulting in carbon-negative blue oil.
CO2 sales and transportation fee revenue in the fourth quarter of 2022 was higher than historical periods; however, lower than the third quarter of the year, due primarily to a short-term agreement that expired during the fourth quarter 2022.
Lease operating expense in the fourth quarter of 2022 was $126 million, or $29.31 per BOE. The 6% decrease on a per BOE basis from the third quarter 2022 was primarily related to lower power and fuel costs, which were benefitted by lower natural gas prices, along with lower workover expenses.
General and administrative expenses were $23 million in the fourth quarter of 2022, slightly higher than in the third quarter of the year, driven primarily by personnel costs and a performance-based adjustment to the Company’s annual bonus program. Depletion, depreciation, and amortization expense was $43 million during the fourth quarter of 2022, or $10.02 per BOE.
Commodity derivatives expense totaled $38 million in the final quarter of 2022, comprised primarily of cash payments on hedges that settled in the quarter. Other expense of $5 million for the quarter included CCUS costs of approximately $3 million.
The Company’s fourth quarter 2022 effective income tax rate was approximately 17%, lower than the Company’s 25% statutory rate due to a $12 million valuation allowance released during the fourth quarter of 2022. Current taxes provided a benefit of $1 million in the period, primarily resulting from lower than projected income due to oil price changes versus forecast, reducing full year 2022 current taxes to 7% of total income tax expense.
CAPITAL EXPENDITURES
Fourth quarter 2022 capital expenditures, excluding capitalized interest, totaled $153 million, with 79% related to oil & gas development and 21% related to CCUS business activities. During the fourth quarter, the Company spent $51 million on the CCA EOR project, primarily focused on the construction of four planned CO2 recycle facilities, well conversions, and drilling the Interlake Pennel CO2 pilot. The CCA project remains on plan to commence EOR production in the second half of 2023. Non-CCA oil & gas development capital was deployed principally for horizontal drilling activity at Webster, drilling of Mission Canyon and Charles wells in the Cedar Creek Anticline, and the Oyster Bayou A2 phase 2 development.
CCUS capital expenditures for the fourth quarter of 2022 were $33 million and included, among other things, lease acquisitions of two planned CO2 sequestration sites (one in Louisiana and one in Mississippi), costs associated with the preparation for the Company’s initial stratigraphic test well, and acquiring 3-D seismic data over multiple potential CO2 sequestration sites. During the fourth quarter, the Company submitted its initial Class VI permit applications for 3 wells associated with its Orion site located in Alabama.
2022 PROVED RESERVES
The Company’s total estimated proved oil and natural gas reserves as of December 31, 2022, were 202 million barrels of oil equivalent (MMBOE), consisting of 197 million barrels of crude oil and 30 billion cubic feet of natural gas. Proved reserve revisions during 2022 were 28 MMBOE, primarily resulting from higher commodity prices utilized in determining economic reserves and, to a lesser degree, positive field performance revisions. As of the end of 2022, 98% of proved reserves were proved developed.
Year-end 2022 estimated proved reserves, the standardized measure of future net cash flows, and the pre-tax discounted net present value of Denbury’s proved reserves, using a 10% per annum discount rate (“PV-10 Value”)(1), were computed using first-day-of-the-month 12-month average prices of $93.67 per Bbl for oil (based on NYMEX prices) and $6.36 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 2021 were $66.56 per Bbl of oil and $3.60 per MMBtu for natural gas, adjusted for prices received at the field. The tax-effected standardized measure of discounted future net cash flows (a GAAP measure) at year-end 2022 was nearly $3.5 billion. The PV-10 Value(1) of Denbury’s proved reserves (a non-GAAP measure) was nearly $4.5 billion at December 31, 2022, compared to $2.7 billion at December 31, 2021. These values are reconciled in the last two tables at the end of this release.
Denbury’s estimated proved CO2 reserves at year-end 2022 were 4.8 trillion cubic feet (“Tcf”), including 3.8 Tcf at Jackson Dome in Mississippi (on a gross basis) and 1.0 Tcf at LaBarge Field in Wyoming (overriding royalty interest).
|
(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 53.9 million and 54.4 million for the quarter and year ended December 31, 2022, respectively. |
WEBCAST INFORMATION
Denbury management will host a webcast to review and discuss fourth quarter and full-year 2022 financial and operating results, as well as its outlook for 2023, today, Thursday, February 23, at 11:00 a.m. Central Time (12:00 p.m. Eastern Time). Denbury will post additional supporting materials on its website before market open today. The presentation webcast will be available, both live and for replay, on the Investors page of the Company’s website at www.denbury.com.
ABOUT DENBURY
Denbury is an independent energy company with operations and assets focused on Carbon Capture, Utilization, 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 four million tons of captured industrial-sourced CO2 annually, with an objective to fully offset its Scope 1, 2, and 3 CO2 emissions by 2030, 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 detailed in the Company’s filings with the Securities and Exchange Commission, including Denbury’s 2022 Annual Report on Form 10-K to be filed with the SEC today. 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
The following tables include selected unaudited financial and operational information for the three month and annual periods ended December 31, 2022 and December 31, 2021, 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. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) 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, 2022 |
|
December 31, 2021 |
|||
|
Revenues and other income |
|
|
|
|
|||
|
Oil sales |
|
$ |
341,734 |
|
|
$ |
329,308 |
|
Natural gas sales |
|
|
4,844 |
|
|
|
4,040 |
|
CO2 sales and transportation fees |
|
|
15,952 |
|
|
|
12,576 |
|
Oil marketing revenues |
|
|
17,368 |
|
|
|
12,204 |
|
Other income |
|
|
1,259 |
|
|
|
3,770 |
|
Total revenues and other income |
|
|
381,157 |
|
|
|
361,898 |
|
Expenses |
|
|
|
|
|||
|
Lease operating expenses |
|
|
125,766 |
|
|
|
115,819 |
|
Transportation and marketing expenses |
|
|
5,474 |
|
|
|
6,513 |
|
CO2 operating and discovery expenses |
|
|
1,910 |
|
|
|
2,191 |
|
Taxes other than income |
|
|
30,015 |
|
|
|
25,891 |
|
Oil marketing purchases |
|
|
17,335 |
|
|
|
11,971 |
|
General and administrative expenses |
|
|
23,182 |
|
|
|
16,437 |
|
Interest, net of amounts capitalized of $1,060 and $1,085, respectively |
|
|
933 |
|
|
|
690 |
|
Depletion, depreciation, and amortization |
|
|
43,003 |
|
|
|
37,118 |
|
Commodity derivatives expense |
|
|
38,419 |
|
|
|
22,832 |
|
Other expenses |
|
|
4,825 |
|
|
|
903 |
|
Total expenses |
|
|
290,862 |
|
|
|
240,365 |
|
Income before income taxes |
|
|
90,295 |
|
|
|
121,533 |
|
Income tax provision (benefit) |
|
|
|
|
|||
|
Current income taxes |
|
|
(1,000 |
) |
|
|
504 |
|
Deferred income taxes |
|
|
16,180 |
|
|
|
398 |
|
Net income |
|
$ |
75,115 |
|
|
$ |
120,631 |
|
|
|
|
|
|
|||
|
Net income per common share |
|
|
|
|
|||
|
Basic |
|
$ |
1.47 |
|
|
$ |
2.35 |
|
Diluted |
|
$ |
1.39 |
|
|
$ |
2.19 |
|
|
|
|
|
|
|||
|
Weighted average common shares outstanding |
|
|
|
|
|||
|
Basic |
|
|
51,173 |
|
|
|
51,247 |
|
Diluted |
|
|
53,851 |
|
|
|
55,114 |
|
|
Year Ended |
|
Year Ended |
||||
|
In thousands, except per-share data |
|
|
|||||
|
Revenues and other income |
|
|
|
|
|||
|
Oil sales |
|
$ |
1,559,111 |
|
$ |
1,148,022 |
|
|
Natural gas sales |
|
|
19,571 |
|
|
11,933 |
|
|
CO2 sales and transportation fees |
|
|
60,570 |
|
|
44,175 |
|
|
Oil marketing revenues |
|
|
65,093 |
|
|
38,742 |
|
|
Other income |
|
|
10,314 |
|
|
15,288 |
|
|
Total revenues and other income |
|
|
1,714,659 |
|
|
1,258,160 |
|
|
Expenses |
|
|
|
|
|||
|
Lease operating expenses |
|
|
502,409 |
|
|
424,550 |
|
|
Transportation and marketing expenses |
|
|
20,112 |
|
|
28,817 |
|
|
CO2 operating and discovery expenses |
|
|
8,474 |
|
|
6,678 |
|
|
Taxes other than income |
|
|
131,502 |
|
|
91,390 |
|
|
Oil marketing purchases |
|
|
64,497 |
|
|
37,734 |
|
|
General and administrative expenses |
|
|
82,180 |
|
|
79,258 |
|
|
Interest, net of amounts capitalized of $4,237 and $4,585, respectively |
|
|
4,025 |
|
|
4,147 |
|
|
Depletion, depreciation, and amortization |
|
|
151,428 |
|
|
150,640 |
|
|
Commodity derivatives expense |
|
|
178,744 |
|
|
352,984 |
|
|
Write-down of oil and natural gas properties |
|
|
— |
|
|
14,377 |
|
|
Other expenses |
|
|
16,284 |
|
|
10,816 |
|
|
Total expenses |
|
|
1,159,655 |
|
|
1,201,391 |
|
|
Income before income taxes |
|
|
555,004 |
|
|
56,769 |
|
|
Income tax provision |
|
|
|
|
|||
|
Current income taxes |
|
|
5,363 |
|
|
403 |
|
|
Deferred income taxes |
|
|
69,481 |
|
|
364 |
|
|
Net income |
|
$ |
480,160 |
|
$ |
56,002 |
|
|
|
|
|
|
|
|||
|
Net income per common share |
|
|
|
|
|||
|
Basic |
|
$ |
9.34 |
|
$ |
1.10 |
|
|
Diluted |
|
$ |
8.83 |
|
$ |
1.04 |
|
|
|
|
|
|
|
|||
|
Weighted average common shares outstanding |
|
|
|
|
|||
|
Basic |
|
|
51,427 |
|
|
50,918 |
|
|
Diluted |
|
|
54,355 |
|
|
53,818 |
|
|
|
|
|
|
|
|||
| DENBURY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
|
|
Quarter Ended |
||||||
|
In thousands |
|
December 31, 2022 |
|
December 31, 2021 |
||||
|
Cash flows from operating activities |
|
|
|
|
||||
|
Net income |
|
$ |
75,115 |
|
|
$ |
120,631 |
|
|
Adjustments to reconcile net income to cash flows from operating activities |
|
|
|
|
||||
|
Depletion, depreciation, and amortization |
|
|
43,003 |
|
|
|
37,118 |
|
|
Deferred income taxes |
|
|
16,180 |
|
|
|
398 |
|
|
Stock-based compensation |
|
|
4,564 |
|
|
|
2,534 |
|
|
Commodity derivatives expense |
|
|
38,419 |
|
|
|
22,832 |
|
|
Payment on settlements of commodity derivatives |
|
|
(38,956 |
) |
|
|
(97,774 |
) |
|
Debt issuance costs and discounts |
|
|
531 |
|
|
|
685 |
|
|
Gain from asset sales and other |
|
|
(113 |
) |
|
|
(3,583 |
) |
|
Other, net |
|
|
(1,655 |
) |
|
|
(17 |
) |
|
Changes in assets and liabilities, net of effects from acquisitions |
|
|
|
|
||||
|
Accrued production receivable |
|
|
31,973 |
|
|
|
1,004 |
|
|
Trade and other receivables |
|
|
(8,307 |
) |
|
|
1,525 |
|
|
Other current and long-term assets |
|
|
12,070 |
|
|
|
3,053 |
|
|
Accounts payable and accrued liabilities |
|
|
(27,395 |
) |
|
|
(18,984 |
) |
|
Oil and natural gas production payable |
|
|
(8,943 |
) |
|
|
6,183 |
|
|
Asset retirement obligation settlements |
|
|
(12,106 |
) |
|
|
(4,152 |
) |
|
Other liabilities |
|
|
(44 |
) |
|
|
(1,852 |
) |
|
Net cash provided by operating activities |
|
|
124,336 |
|
|
|
69,601 |
|
|
|
|
|
|
|
||||
|
Cash flows from investing activities |
|
|
|
|
||||
|
Oil and natural gas capital expenditures |
|
|
(99,260 |
) |
|
|
(37,870 |
) |
|
CCUS storage sites and related capital expenditures |
|
|
(32,362 |
) |
|
|
— |
|
|
Acquisitions of oil and natural gas properties |
|
|
(102 |
) |
|
|
(52 |
) |
|
Pipeline capital expenditures |
|
|
(1,219 |
) |
|
|
(50,100 |
) |
|
Net proceeds from sales of oil and natural gas properties and equipment |
|
|
— |
|
|
|
— |
|
|
Equity investment |
|
|
(218 |
) |
|
|
— |
|
|
Other |
|
|
(6,775 |
) |
|
|
3,331 |
|
|
Net cash used in investing activities |
|
|
(139,936 |
) |
|
|
(84,691 |
) |
|
|
|
|
|
|
||||
|
Cash flows from financing activities |
|
|
|
|
||||
|
Bank repayments |
|
|
(207,000 |
) |
|
|
(236,000 |
) |
|
Bank borrowings |
|
|
221,000 |
|
|
|
271,000 |
|
|
Pipeline financing repayments |
|
|
— |
|
|
|
(17,332 |
) |
|
Other |
|
|
1,328 |
|
|
|
(696 |
) |
|
Net cash provided by financing activities |
|
|
15,328 |
|
|
|
16,972 |
|
|
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
(272 |
) |
|
|
1,882 |
|
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
48,152 |
|
|
|
48,462 |
|
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
47,880 |
$ |
50,344 |
||||
| In thousands |
|
Year Ended |
|
Year Ended |
||||
|
Cash flows from operating activities |
|
|
|
|
||||
|
Net income |
|
$ |
480,160 |
|
|
$ |
56,002 |
|
|
Adjustments to reconcile net income to cash flows from operating activities |
|
|
|
|
||||
|
Noncash reorganization items, net |
|
|
— |
|
|
|
— |
|
|
Depletion, depreciation, and amortization |
|
|
151,428 |
|
|
|
150,640 |
|
|
Write-down of oil and natural gas properties |
|
|
— |
|
|
|
14,377 |
|
|
Deferred income taxes |
|
|
69,481 |
|
|
|
364 |
|
|
Stock-based compensation |
|
|
16,055 |
|
|
|
25,322 |
|
|
Commodity derivatives expense |
|
|
178,744 |
|
|
|
352,984 |
|
|
Payment on settlements of commodity derivatives |
|
|
(315,752 |
) |
|
|
(277,240 |
) |
|
Gain on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
Debt issuance costs and discounts |
|
|
2,996 |
|
|
|
2,740 |
|
|
Gain from asset sales and other |
|
|
(1,232 |
) |
|
|
(10,609 |
) |
|
Other, net |
|
|
(13,198 |
) |
|
|
(2,465 |
) |
|
Changes in assets and liabilities, net of effects from acquisitions |
|
|
|
|
||||
|
Accrued production receivable |
|
|
(911 |
) |
|
|
(51,944 |
) |
|
Trade and other receivables |
|
|
(8,241 |
) |
|
|
(284 |
) |
|
Other current and long-term assets |
|
|
(9,659 |
) |
|
|
10,390 |
|
|
Accounts payable and accrued liabilities |
|
|
964 |
|
|
|
28,500 |
|
|
Oil and natural gas production payable |
|
|
4,469 |
|
|
|
29,351 |
|
|
Asset retirement obligation settlements |
|
|
(34,260 |
) |
|
|
(10,185 |
) |
|
Other liabilities |
|
|
(299 |
) |
|
|
(785 |
) |
|
Net cash provided by operating activities |
|
|
520,745 |
|
|
|
317,158 |
|
|
|
|
|
|
|
||||
|
Cash flows from investing activities |
|
|
|
|
||||
|
Oil and natural gas capital expenditures |
|
|
(317,094 |
) |
|
|
(150,911 |
) |
|
CCUS storage sites and related capital expenditures |
|
|
(59,880 |
) |
|
|
— |
|
|
Acquisitions of oil and natural gas properties |
|
|
(976 |
) |
|
|
(10,979 |
) |
|
Pipeline capital expenditures |
|
|
(23,478 |
) |
|
|
(69,223 |
) |
|
Net proceeds from sales of oil and natural gas properties and equipment |
|
|
237 |
|
|
|
19,053 |
|
|
Equity investment |
|
|
(10,218 |
) |
|
|
— |
|
|
Other |
|
|
(16,521 |
) |
|
|
9,128 |
|
|
Net cash used in investing activities |
|
|
(427,930 |
) |
|
|
(202,932 |
) |
|
|
|
|
|
|
||||
|
Cash flows from financing activities |
|
|
|
|
||||
|
Bank repayments |
|
|
(1,015,000 |
) |
|
|
(933,000 |
) |
|
Bank borrowings |
|
|
1,009,000 |
|
|
|
898,000 |
|
|
Common stock repurchase program |
|
|
(100,028 |
) |
|
|
— |
|
|
Pipeline financing repayments |
|
|
— |
|
|
|
(68,008 |
) |
|
Other |
|
|
10,749 |
|
|
|
(3,122 |
) |
|
Net cash used in financing activities |
|
|
(95,279 |
) |
|
|
(106,130 |
) |
|
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
(2,464 |
) |
|
|
8,096 |
|
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
50,344 |
|
|
|
42,248 |
|
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
47,880 |
|
|
$ |
50,344 |
|
| DENBURY INC.
CONSOLIDATED BALANCE SHEETS |
||||||||
|
In thousands, except par value and share data |
|
December 31, 2022 |
|
December 31, 2021 |
||||
|
Assets |
|
|
|
|
||||
|
Current assets |
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
521 |
|
|
$ |
3,671 |
|
|
Accrued production receivable |
|
|
144,277 |
|
|
|
143,365 |
|
|
Trade and other receivables, net |
|
|
27,343 |
|
|
|
19,270 |
|
|
Derivative assets |
|
|
15,517 |
|
|
|
— |
|
|
Prepaids |
|
|
18,572 |
|
|
|
9,099 |
|
|
Total current assets |
|
|
206,230 |
|
|
|
175,405 |
|
|
Property and equipment |
|
|
|
|
||||
|
Oil and natural gas properties (using full cost accounting) |
|
|
|
|
||||
|
Proved properties |
|
|
1,414,779 |
|
|
|
1,109,011 |
|
|
Unevaluated properties |
|
|
240,435 |
|
|
|
112,169 |
|
|
CO2 properties |
|
|
190,985 |
|
|
|
183,369 |
|
|
Pipelines |
|
|
220,125 |
|
|
|
224,394 |
|
|
CCUS storage sites and related assets |
|
|
64,971 |
|
|
|
— |
|
|
Other property and equipment |
|
|
107,133 |
|
|
|
93,950 |
|
|
Less accumulated depletion, depreciation, amortization and impairment |
|
|
(306,743 |
) |
|
|
(181,393 |
) |
|
Net property and equipment |
|
|
1,931,685 |
|
|
|
1,541,500 |
|
|
Operating lease right-of-use assets |
|
|
18,017 |
|
|
|
19,502 |
|
|
Intangible assets, net |
|
|
79,128 |
|
|
|
88,248 |
|
|
Restricted cash for future asset retirement obligations |
|
|
47,359 |
|
|
|
46,673 |
|
|
Other assets |
|
|
45,080 |
|
|
|
31,625 |
|
|
Total assets |
|
$ |
2,327,499 |
|
|
$ |
1,902,953 |
|
|
Liabilities and Stockholders’ Equity |
|
|
||||||
|
Current liabilities |
|
|
|
|
||||
|
Accounts payable and accrued liabilities |
|
$ |
248,800 |
|
|
$ |
191,598 |
|
|
Oil and gas production payable |
|
|
80,368 |
|
|
|
75,899 |
|
|
Derivative liabilities |
|
|
13,018 |
|
|
|
134,509 |
|
|
Operating lease liabilities |
|
|
4,676 |
|
|
|
4,677 |
|
|
Total current liabilities |
|
|
346,862 |
|
|
|
406,683 |
|
|
Long-term liabilities |
|
|
|
|
||||
|
Long-term debt, net of current portion |
|
|
29,000 |
|
|
|
35,000 |
|
|
Asset retirement obligations |
|
|
315,942 |
|
|
|
284,238 |
|
|
Deferred tax liabilities, net |
|
|
71,120 |
|
|
|
1,638 |
|
|
Operating lease liabilities |
|
|
15,431 |
|
|
|
17,094 |
|
|
Other liabilities |
|
|
16,527 |
|
|
|
22,910 |
|
|
Total long-term liabilities |
|
|
448,020 |
|
|
|
360,880 |
|
|
Commitments and contingencies |
|
|
|
|
||||
|
Stockholders’ equity |
|
|
|
|
||||
|
Preferred stock, $.001 par value, 50,000,000 shares authorized, none issued and outstanding |
|
|
— |
|
|
|
— |
|
|
Common stock, $.001 par value, 250,000,000 shares authorized; 49,814,874 and 50,193,656 shares issued, respectively |
|
|
50 |
|
|
|
50 |
|
|
Paid-in capital in excess of par |
|
|
1,047,063 |
|
|
|
1,129,996 |
|
|
Retained earnings |
|
|
485,504 |
|
|
|
5,344 |
|
|
Total stockholders’ equity |
|
|
1,532,617 |
|
|
|
1,135,390 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
2,327,499 |
|
|
$ |
1,902,953 |
|
Contacts
DENBURY IR CONTACTS
Brad Whitmarsh, 972.673.2020, brad.whitmarsh@denbury.com
Beth Palmer, 972.673.2554, beth.palmer@denbury.com
