Denbury : May Corporate Presentation

Corporate Presentation

May 2021

Cautionary Statements

Forward-LookingStatements: The data and/or statements contained in this presentation that are not historical facts are forward-looking statements, as that term is defined in Section 21E of the Securities Exchange Act of 1934, as amended, that involve a number of risks and uncertainties. Such forward-looking statements may be or may concern, among other things, the timing and sustainability of the recent recovery in worldwide oil prices from their COVID-19 coronavirus caused downturn, financial forecasts, future hydrocarbon prices and their volatility, current or future liquidity sources or their adequacy to support our anticipated future activities, statements or predictions related to the scope, timing and economic aspects of the anticipated carbon capture, use and storage industry, possible future write-downs of oil and natural gas reserves, together with assumptions based on current and projected production levels, oil and gas prices and oilfield costs, current or future expectations or estimations of our cash flows or the impact of changes in commodity prices on cash flows, availability of capital, borrowing capacity, price and availability of advantageous commodity derivative contracts or the predicted cash flow benefits therefrom, forecasted capital expenditures, drilling activity or methods, including the timing and location thereof, the nature of any future asset purchases or sales or the timing or proceeds thereof, estimated timing of commencement of CO2 flooding of particular fields or areas, including Cedar Creek Anticline ("CCA"), or the availability of capital for CCA pipeline construction, or its ultimate cost or date of completion, timing of CO2 injections and initial production responses in tertiary flooding projects, development activities, finding costs, anticipated future cost savings, capital budgets, interpretation or prediction of formation details, production rates and volumes or forecasts thereof, hydrocarbon reserve quantities and values, CO2 reserves and supply and their availability, potential reserves, barrels or percentages of recoverable original oil in place, the impact of regulatory rulings or changes, outcomes of pending litigation, prospective legislation affecting the oil and gas industry, environmental regulations, mark-to-market values, competition, rates of return, estimated costs, changes in costs, future capital expenditures and overall economics, worldwide economic conditions, and other variables surrounding operations and future plans. Such forward-looking statements generally are accompanied by words such as "plan," "estimate," "expect," "predict," "forecast," "to our knowledge," "anticipate," "projected," "preliminary," "should," "assume," "believe," "may" or other words that convey, or are intended to convey, the uncertainty of future events or outcomes. Such forward-looking information is based upon management's current plans, expectations, estimates, and assumptions and is subject to a number of risks and uncertainties that could significantly and adversely affect current plans, anticipated actions, the timing of such actions and our financial condition and results of operations. As a consequence, actual results may differ materially from expectations, estimates or assumptions expressed in or implied by any forward-looking statements made by us or on our behalf. Among the factors that could cause actual results to differ materially are fluctuations in worldwide oil prices or in U.S. oil prices and consequently in the prices received or demand for our oil and natural gas; decisions as to production levels and/or pricing by OPEC or production levels by U.S. shale producers in future periods; levels of future capital expenditures; success of our risk management techniques; accuracy of our cost estimates; access to and terms of credit in the commercial banking or other debt markets; fluctuations in the prices of goods and services; the uncertainty of drilling results and reserve estimates; operating hazards and remediation costs; disruption of operations and damages from well incidents, hurricanes, tropical storms, floods, forest fires, or other natural occurrences; acquisition risks; requirements for capital or its availability; conditions in the worldwide financial, trade and credit markets; general economic conditions; competition; government regulations, including changes in tax or environmental laws or regulations; and unexpected delays, as well as the risks and uncertainties inherent in oil and gas drilling and production activities or that are otherwise discussed in this presentation, including, without limitation, the portions referenced above, and the uncertainties set forth from time to time in our other public reports, filings and public statements.

Statement Regarding CO2 Storage Associated with EOR: Our CO2 EOR operations provide an environmentally responsible method of utilizing CO2 for the primary purpose of oil recovery that also results in the associated underground storage of CO2. Any reference in this presentation to storage of CO2 associated with our EOR operations is not meant to encompass CO2 stored for the primary purpose of carbon sequestration.

Statement Regarding Non-GAAPFinancial Measures: This presentation also contains certain non-GAAP financial measures. Any non-GAAP measure included herein is accompanied by a reconciliation to the most directly comparable U.S. GAAP measure along with a statement on why the Company believes the measure is beneficial to investors, which statements are included at the end of this presentation.

Note to U.S. Investors: Current SEC rules regarding oil and gas reserves information allow oil and gas companies to disclose in filings with the SEC not only proved reserves, but also probable and possible reserves that meet the SEC's definitions of such terms. We disclose only proved reserves in our filings with the SEC. Denbury's proved reserves as of December 31, 2019 and December 31, 2020 were estimated by DeGolyer and MacNaughton, an independent petroleum engineering firm. In this presentation, we may make reference to probable and possible reserves, some of which have been estimated by our independent engineers and some of which have been estimated by Denbury's internal staff of engineers. In this presentation, we also may refer to one or more of estimates of original oil in place, resource or reserves "potential," barrels recoverable, "risked" and "unrisked" resource potential, estimated ultimate recovery (EUR) or other descriptions of volumes potentially recoverable, which in addition to reserves generally classifiable as probable and possible (2P and 3P reserves), include estimates of resources that do not rise to the standards for possible reserves, and which SEC guidelines strictly prohibit us from including in filings with the SEC. These estimates, as well as the estimates of probable and possible reserves, are by their nature more speculative than estimates of proved reserves and are subject to greater uncertainties, and accordingly the likelihood of recovering those reserves is subject to substantially greater risk.

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Denbury Overview

A Unique

Energy Business

NYSE: DEN	Strategically
Market Cap: $2.7B
Enterprise Value: $2.8B	Advantaged Operations

• CO2 Enhanced Oil Recovery (EOR) is our primary focus
•	Low base decline rate and low capital intensity
•	CO2 expertise and assets position Denbury to lead in
	Carbon Capture, Use and Storage (CCUS)

Fundamentally

Geared to Crude Oil

• Industry-leading97% oil production
• Superior crude quality (mid-30s API gravity, low sulfur)

Industry Leader in

Reducing CO2 Emissions

• Annually injecting ~3 million tons of industrial sourced CO2 into our reservoirs
• Potential to reach full carbon neutrality this decade with CCUS, including downstream Scope 3 emissions

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Rocky Mountain

Region

YE20 Proved O&G Reserves

1Q21 Production 143 MMBOE

47,357 BOE/d

YE20 Proved CO2 Reserves

5.7 Tcf

Plano HQ

Gulf Coast		Current CO2 Pipelines
Region		Planned CO2 Pipelines
	Denbury Owned Fields

CO2 Sources

• Vertically integrated CO2 supply and distribution network with > 1,000 miles of CO2 pipelines
• Cost structure largely independent from industry
• Asset base diversity mitigates single basin risk

Value Sustaining

Organic Growth Upside

• Over 1 billion BOE proved + EOR and exploitation potential
• Ability to generate significant free cash flow at a low $40s oil price

Positioned for the Future

• Delevered balance sheet provides significant flexibility
• Strategic focus aligned with the Energy Transition

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Powering the Energy Transition With World-Leading Carbon Solutions

Strategic

Focus

Leading in

Carbon Capture, Use and Storage, including Enhanced Oil Recovery

20+ years	1000+ miles	Scope 3	Financial
Carbon
Experience	of CO2	Strength and
Negative
Managing CO2	Pipelines	Flexibility
By 2030
Safely transporting,	Owned and operated,	Through increasing our	Maintain strong
injecting and	strategically located in	financial position,
use of captured
monitoring large-scale	the Gulf Coast and	disciplined capital
industrial-sourced CO2
volumes of CO2	Rocky Mountain areas	allocation

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An Industry Leader in Reducing CO2 Emissions

Environment

The only U.S. public company of scale where injecting CO2 into the ground to produce oil is our primary business

Natural CO2

Industrial CO2

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Combined Scope 1 and Scope 2 CO2 Emissions Net Negative

		Average of 2018 and 2019
Combined		Captured		Net Negative
Scope 1 & 2 Emissions		Industrial-Sourced CO2		CO2 Emissions
1.8 million	-	3.2 million	=	- 1.4 million
metric tons	metric tons	metric tons

~30% of our CO2

is industrial sourced

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