Denbury Announces Key Takeaways from CCUS Business Outlook Event
13 Dezember 2022 - 1:30PM
Business Wire
Denbury Inc. (NYSE: DEN) (“Denbury” or the “Company”) is hosting
a live webcast at 10:00 a.m. C.T. today to review its carbon
capture, utilization, and storage (“CCUS”) strategy, growth plans,
and financial projections. Registration for the webcast can be
found on the Company’s Investor Relations website, where
presentation materials are currently available. A replay of the
event will be available shortly following the conclusion of the
broadcast on the same website.
Key Highlights from the CCUS Business Outlook include:
- Denbury is uniquely positioned to lead the deployment of CCUS
in the U.S. based on its extensive technical expertise and
dedicated CO2 assets.
- The Company’s greater than 1,300 mile dedicated CO2 pipeline
network represents ~25% of the total CO2 pipelines in the U.S. With
strategic pipeline extensions and the addition of CO2 sequestration
sites, Denbury estimates it can expand its Gulf Coast CO2 network
capacity to more than 150 million metric tons per year (“Mmtpa”) of
CO2.
- For more than 20 years, Denbury has been transporting and
utilizing CO2 in association with its enhanced oil recovery (EOR)
operations. Cumulatively, the associated storage of CO2 underground
through its EOR operations totals more than 225 million metric tons
to date.
- The Company’s sequestration portfolio spans the U.S. Gulf Coast
with planned sites in Alabama, Mississippi, Louisiana, and Texas.
Denbury’s contracted CO2 sequestration potential has increased to
approximately 2 billion metric tons following the addition of two
new storage sites (one in Mississippi and one in Louisiana).
- Denbury estimates that its CO2 transportation & storage
service volumes will grow to between 15 and 25 Mmtpa on average in
2026, 30 – 40 Mmtpa in 2028, and 50 – 70 Mmtpa in 2030.
- The Company’s current CO2 transportation & storage
agreements total 20 Mmtpa.
- The Company’s CCUS business is anticipated to be self-funding
beginning as early as 2026/2027.
- CCUS capital expenditures are projected to average $200 to $250
million from 2023 to 2030, with the highest investment periods
expected in 2024 and 2025 as the Company expands its pipeline
network and builds out multiple CO2 sequestration sites.
- 2030 EBITDA(1) is expected to range between $650 million and
$900 million.
- Denbury targets achieving Scope 1, 2, and 3(2) net negative
status by the end of 2030 through increasing amounts of associated
and dedicated storage of industrial-sourced CO2. The Company is
currently Scope 1 and 2 net negative through storage associated
with its use of industrial CO2 in its EOR operations.
(1) A Non-GAAP financial measure. See “Statement regarding
Non-GAAP Financial Measures” below.
(2)Scope 3 refers to Scope 3 Category 11 (Use of Sold
Products)
ABOUT DENBURY
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 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.
The Denbury Carbon Solutions team was formed in January 2020 to
advance Denbury’s leadership in the anticipated high-growth CCUS
industry, leveraging Denbury’s unique capabilities and assets that
were developed over the last 20-plus years through its focus on CO2
EOR.
Follow Denbury on Twitter and LinkedIn.
Forward-Looking Statements: The data and/or statements contained
in today’s CCUS Business Outlook presentation materials and the
accompanying webcast that are not historical facts, including, but
not limited to, statements regarding possible or assumed future
cash flows and EBITDA (a non-GAAP measure, see Statement Regarding
Non-GAAP Financial Measures below), volumes of CO2 expected to be
transported, stored, or utilized, capital expenditures, and other
plans and objectives for Denbury’s future carbon capture, use and
storage activities (“CCUS”) are all forward-looking statements, as
that term is defined in Section 21E of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), that involve a number of
risks and uncertainties.
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 be affected by
various factors discussed below, many of which are beyond our
control. 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 of our CCUS
activities to differ materially from the projections herein are the
successful completion of technical and feasibility evaluations; in
certain cases raising of funds sufficient to build and operate such
projects; the construction or installation of add-on or new
facilities being built and brought into functioning operational
status; and receipt of required regulatory approvals or
classifications, along with the other variables and timing
considerations and the risks and uncertainties set forth from time
to time in the Company’s public reports, filings and public
statements including, without limitation, the Company’s most recent
periodic reports on Form 10-K and 10-Q.
Statement Regarding CCUS “Agreements”: References in this
presentation to CCUS “Agreements” refers to both executed
definitive agreements and executed term sheets or letters of intent
covering various CCUS arrangements. In the case of arrangements
covered by term sheets or letters of intent, those arrangements are
subject to the negotiation and execution of definitive enforceable
agreements.
Statement Regarding Non-GAAP Financial Measures: This
presentation also contains certain non-GAAP financial measures,
particularly those pertaining to EBITDA (earnings before interest,
taxes, depreciation and amortization). The projections of EBITDA
contained herein are not reconciled to any GAAP measure given that
no comparable future GAAP measure currently exists. Management
believes EBITDA projections may be helpful to investors in order to
assess the Company’s future CCUS activities as compared to that of
other companies in the industry. Future EBITDA projections should
not be considered in isolation, as a substitute for, or more
meaningful than GAAP measures of net income (loss), cash flow from
operations, or any other measure reported in accordance with
GAAP.
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version on businesswire.com: https://www.businesswire.com/news/home/20221213005354/en/
DENBURY CONTACTS: Brad Whitmarsh, 972.673.2020,
brad.whitmarsh@denbury.com Beth Bierhaus, 972.673.2554,
beth.bierhaus@denbury.com
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