Denbury : J.P. Morgan 2022 Energy Conference

J.P. Morgan 2022 Energy Conference

June 2022

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 (the "Exchange Act"), and are statements that involve a number of risks and uncertainties. Such forward-looking statements may be or may concern, among other things, the level and sustainability of the recent increases in worldwide oil prices, financial forecasts, the extent of future oil price volatility, current or future liquidity sources or their adequacy to support our anticipated future activities, statements or predictions related to the ultimate nature, timing and economic aspects of our current or proposed carbon capture, use and storage arrangements (included potential metric tons of CO2 made available for our transport, storage, use or sequestration activities and the potential capacity of new acquired or prospective sequestration sites), together with assumptions based on current and projected production levels, oil and natural gas revenues, oil and gas prices and oilfield costs, the impact of current supply chain and inflationary pressures or expectations on our operations or costs, current or future expectations or estimations of our cash flows or the impact of changes in commodity prices on cash flows, price and availability of advantageous commodity derivative contracts or their predicted downside cash flow protection or cash settlement payments required, forecasted drilling activity or methods, including the timing and location thereof, estimated timing of commencement of CO2 injections in particular fields or areas, or initial production responses in tertiary flooding projects, other development activities, finding costs, interpretation or prediction of formation details, 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 changes or proposed changes in Federal or state tax or environmental laws or regulations or outcomes of any pending litigation, and overall worldwide or U.S. 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 that could significantly and adversely affect current plans, anticipated outcomes, 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, especially as oil prices are affected by the war in Ukraine, and consequently on the prices received or demand for our produced oil; geopolitical actions and economic consequences of such war and recently imposed financial sanctions; decisions as to production levels and/or pricing by OPEC or U.S. producers in future periods; the impact of COVID-19 on oil demand and economic activity levels; to what degree inflation impacts our future expenses or U.S. or worldwide oil demand or levels of economic activity; success of our risk management techniques; the uncertainty of drilling results and reserve estimates; operating hazards and remediation costs; disruption of operations and damages from cybersecurity breaches, or from well incidents, climate events such as hurricanes, tropical storms, floods, forest fires, or other natural occurrences; conditions in the worldwide financial, trade and credit markets; the risks and uncertainties inherent in oil and gas drilling and production activities or that are otherwise discussed in this quarterly report, 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 including, without limitation, the Company's most recent Form 10-K.

Statement Regarding CCUS Agreements: References in this presentation to CCUS "Agreements" refers to both executed definitive agreements and executed term sheets covering various CCUS arrangements. These arrangements are subject to technical and feasibility evaluations, and in the case of certain of the CO2 transportation, utilization and storage term sheets, the expansion or building of new industrial facilities in future years.

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 (or location of such statement which are exhibits to Company SEC periodic reports) 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, 2020 and December 31, 2021 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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Powering the Energy Transition With World-Leading Carbon Solutions

Strategic Focus

Leading in Carbon Capture, Use and Storage (CCUS), including Enhanced Oil Recovery

20+ years Experience Managing CO2

Safely transporting, injecting and monitoring large-scale volumes of CO2

1300+ miles of CO2 Pipelines

Largest owned and operated CO2 pipeline network in the United States

Scope 3 Carbon Negative Goal By 2030

ROCKY MOUNTAIN REGION

Market Cap: $3.2B

Enterprise Value: $3.2B

YE21 Proved O&G Reserves

192 MMBoe

2022E Sales Volumes

46-49 MBoe/d; 97% oil

2022E Total CO2 Managed

~14 Mmtpa; 30% Industrial

GULF COAST REGION

Through increasing our use of captured industrial-sourced CO2

Financial Strength and Flexibility

Maintain strong financial position, disciplined capital allocation

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Denbury CO2 Pipelines

CO2 Pipelines Owned by Others

Naturally-Occurring CO2 Source

Industrial CO2 Sources

Denbury Owned Fields - Current CO2 Floods

Denbury Owned Fields - Potential CO2 Floods

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A Leading Producer of Low-Carbon Oil

~25% of Denbury's production is Scope 3 carbon negativethrough the use of industrial-sourced CO2

CO2 Emissions per Barrel of Oil Produced

		Industrial
		CO2 Injected
		1,700 lbs/Bbl	For every barrel of oil we produce using
		-1,700	industrial-sourced CO2
			we are injecting 1,700 lbs of CO2
			that would otherwise be released
		+1,000	into the atmosphere
			Annually injecting over 3 million
	+90		metric tons of captured CO2(1)
+70
Scope 1	Scope 2	Scope 3	Net Negative
70 lbs/Bbl	90 lbs/Bbl	1,000 lbs/Bbl	Carbon Emissions
Indirect Emissions,	Transportation,
Direct Development	>500 per Bbl
	Utilities & Electricity	Petroleum Products
& Operations		Combustion of	lbs CO2

Scope 1+2+3

1,100 lbs/Bbl

Conventional

Oil

Producer

1. Based on a 3-year average of the years ending December 31, 2018, 2019 and 2020. Source: Clean Air Task Force, IEA and Denbury internal information.

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2022 Cash Flow Outlook and Capital Allocation Priorities

Cash Flow From Operations

($MM) Pre-Working Capital

Substantially Higher		$630
Cash Flow Driven by
Increasing Oil Price
	$590
	$500

	$450	Expected
$312		Capex

$214

2020	2021	2022E @ $70 2022E @ May
		Strip (1)

1. 2022 strip price scenario as of 05/2/2022. 2022 hedge settlements expected to negatively impact cash flows from operations by approximately $335 million.

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Capital Allocation / Free Cash Flow Priorities

1 Maintain Strong Balance Sheet

❑ Currently <0.1X net leverage

1. Sustain Production / Deliver CCA
2. • Modest long-term oil growth
3. Fund CCUS Development / Growth
4. • Storage & pipeline buildout beginning 2023
5. Return Capital to Shareholders
6. • Authorized $250 MM share repurchase program

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