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8-K - FORM 8-K - DENBURY INC | d81882e8vk.htm |
Exhibit 99.1
DENBURY RESOURCES INC.
P R E S S R E L E A S E
P R E S S R E L E A S E
Denbury Resources Announces First Quarter Results
News Release
Released at 7:30 AM CDT
Released at 7:30 AM CDT
DALLAS May 5, 2011 Denbury Resources Inc. (NYSE: DNR) (Denbury or the Company) today
announced its first quarter 2011 financial and operating results.
The Company recognized a net loss during the first quarter of 2011 of $14.2 million, or
($0.04) per basic common share, as compared to net income of $96.9 million, or $0.33 per basic
common share, in the first quarter of 2010. Net income adjusted to exclude non-cash derivative
losses and other unusual items would have been approximately $103.9 million, or $0.26 per basic
common share, in the first quarter of 2011. For the first quarter of 2010, net income adjusted to
exclude unusual or non-cash items was $17.4 million, or $0.06 per basic common share. First
quarter 2011 results included the following unusual or non-cash items:
| non-cash losses on the change in fair value of derivatives of $172.3 million ($106.9 million net of taxes); | ||
| a loss on the early extinguishment of debt of $15.8 million ($9.8 million net of taxes) related to the repurchase of the Companys 2013 and 2015 senior subordinated notes; and | ||
| merger and other related expenses associated with the acquisition of Encore Acquisition Company (Encore) of $2.4 million ($1.5 million net of taxes). |
See the accompanying schedules for a reconciliation of net income as defined by generally
accepted accounting principles (GAAP) to the non-GAAP measure adjusted net income. The Company
completed the acquisition of Encore on March 9, 2010; therefore, the operating results for the
comparative first quarter of 2010 only include amounts associated with Encore for the period from
March 9, 2010 to March 31, 2010.
Adjusted cash flow from operations (cash flow from operations before changes in assets and
liabilities, a non-GAAP measure) for the first quarter of 2011 was $271.2 million, as compared to
adjusted cash flow from operations of $66.0 million in the first quarter of 2010, with the increase
due primarily to higher oil prices and higher oil production during the first quarter of 2011. Cash
flow from operations, the GAAP measure, totaled $124.8 million during the first quarter of 2011, as
compared to $113.2 million during the first quarter of 2010. Adjusted cash flow from operations and
cash flow from operations differ in that the latter measure includes the changes in receivables,
accounts payable and accrued liabilities during the quarter (see the accompanying schedules for a
reconciliation of the GAAP measure net cash flow from operations, to adjusted cash flow from
operations, which is the non-GAAP measure discussed above). Net decreases in operating assets and
liabilities of $146.4 million during the first quarter of 2011 were primarily due to decreases in
accrued compensation, interest and taxes and an increase in accrued production receivable due to
higher oil prices.
Production
During the first quarter of 2011, the Companys oil and natural gas production averaged 63,604
barrels of oil equivalent per day (BOE/d) compared to 53,125 BOE/d during the first quarter of
2010. This 10,479 BOE/d of additional production is primarily attributable to (1) incremental
average production of 14,400 BOE/d from properties acquired and retained in the Encore merger,
which is impacted by the fact that 2010 production only reflected a partial period in the first
quarter of 2010, (2) increased tertiary production of 3,802 barrels per day (Bbls/d) between the
two quarters, offset by (3) a decrease of 6,750 BOE/d due to the sales of non-strategic Encore
properties and our interests in Encore Energy Partners LP (ENP) after the first quarter of 2010.
Excluding the production attributable to properties sold in 2010, the Companys continuing
production increased 17,229 BOE/d, or 37%, on a comparative first quarter basis. On a pro forma
basis, adjusting first quarter 2010 continuing production to include a full quarter of production
for the retained Encore properties, the Companys continuing production between the comparative
first quarters of 2011 and 2010 increased 3,913 BOE/d, or 7%.
Production from the Companys tertiary operations averaged 30,825 Bbls/d in the first quarter
of 2011, a 14% increase over the 27,023 Bbls/d of average production in the first quarter of 2010.
The quarter-to-quarter increase in production is primarily due to production growth in response to
continued expansion of the tertiary floods in Tinsley, Heidelberg and Delhi Fields. Offsetting
these production gains were production declines in the Companys mature tertiary fields, production
from which has most likely peaked and will likely continue to decline in the future. First quarter
2011 average tertiary production decreased slightly from the 31,139 Bbls/d average tertiary
production in the fourth quarter of 2010. The lack of production growth since the fourth quarter
of 2010 is primarily due to a temporary normal plateau in the life cycle of Tinsley and Heidelberg
Fields, two fields that have exhibited strong production growth in recent quarters, and tertiary
production is expected to resume its growth at these fields later this year.
The Companys Bakken production for the first quarter of 2011 averaged 5,728 BOE/d, a 10%
increase over fourth quarter of 2010 Bakken production levels. The Company currently has five rigs
operating in the Bakken, anticipates adding a sixth operated rig in the third quarter of 2011 to
test the Almond area, and plans to add a seventh rig by year-end.
Review of First Quarter 2011 Financial Results
The Companys first quarter oil and natural gas revenues, excluding any impact of derivative
contracts, increased 53% as compared to revenues in the prior year first quarter, as the higher
production levels discussed above increased revenues by 20%, while higher commodity prices
increased revenues by 33%. Oil and natural gas revenues per barrel of oil equivalent (BOE),
excluding the impact of any derivative contracts, were 28% higher in the first quarter of 2011 than
in the first quarter of 2010 ($88.42 per BOE as compared to $69.21 per BOE) and were 56% higher
when derivative settlements are included ($88.70 per BOE as compared to $56.70 per BOE).
The Company received net settlements of $1.6 million on its derivative contracts in the first
quarter of 2011, as compared to cash payments of $59.8 million during the first quarter of 2010.
The Company recorded a $172.3 million non-cash fair value charge to earnings in the first quarter
of 2011 on the change in fair value of its derivative contracts, as compared to a $101.0 million
non-cash gain for fair value
changes in the first quarter of 2010, a swing of $273.3 million in the non-cash effect of
derivative contracts when comparing the two quarters.
Company-wide oil price differentials (Denburys net oil price received as compared to NYMEX
prices) in the first quarter of 2011 were $0.59 per barrel of oil below NYMEX, a significantly
better differential than the $3.54 average negative differential during 2010, primarily due to the
favorable differential for crude oil sold under Light Louisiana Sweet (LLS) index prices, on
which approximately 40% of the Companys oil production is priced. During the latter part of the
first quarter, the LLS index price increased significantly more than the NYMEX West Texas
Intermediate crude oil price, trading as high as $20 over NYMEX. For the first quarter of 2011
this LLS-to-NYMEX differential averaged a positive $9.52 per barrel on a trade-month basis, as
compared to a $4.07 differential in the fourth quarter of 2010 and a more typical $2.06 in the
first quarter of 2010. While this differential is a significant portion of the pricing formula for
approximately 40% of the Companys oil production, there are other pricing components in the
formula that may prevent the Company from realizing the full differential. It is uncertain how
long this LLS-to-NYMEX differential will remain at this level. The Companys oil price
differential in the first quarter of 2010 was $2.08 per Bbl below NYMEX, which reflected only a
partial period of ownership of the acquired Encore properties, the production from which typically
sells at lower oil prices than the Companys legacy production.
Lease operating expenses increased 32% on an absolute basis between the two first quarters and
increased 10% on a per BOE basis. The increase in lease operating expenses on an absolute basis is
primarily due to the March 2010 Encore acquisition, further expansion of the Companys tertiary
operations, and increased personnel and related costs. The overall increase on a per BOE basis was
primarily due to increases in lease operating expenses for our tertiary operations due to increases
in utilities, in CO2 costs (which are variable and partially tied to oil
prices), and workover expenses. Denburys tertiary operating expense averaged $25.40 per Bbl in the
first quarter of 2011, as compared to $22.67 per Bbl in the prior-year first quarter, and as
compared to $22.26 per Bbl in the fourth quarter of 2010. Production taxes and marketing expenses
increased during the first quarter of 2011 as compared to first quarter 2010 levels, primarily as a
result of higher oil prices, higher production, and the Rocky Mountain properties acquired in the
Encore merger generally having higher production tax rates.
General and administrative (G&A) expenses totaled $43.8 million in the first quarter of
2011, compared to $32.7 million in the prior-year first quarter. On a BOE basis, G&A expense was
$7.66 per BOE in the first quarter of 2011, compared to $6.84 in the prior year quarter.
Compensation increases effective at the beginning of 2011 and additional compensation and
personnel-related costs associated with the increased headcount resulting from the Encore merger
contributed to the higher G&A expense, as these costs associated with the Encore employees in the
prior year quarter were only included in our G&A expense beginning March 9, 2010, the date of the
Encore merger. Also, incremental expense attributable to the legacy Encore office leases and the
new Denbury headquarters lease, together with related expenses of moving to the Companys new
headquarters, contributed to the higher G&A expense during the first quarter of 2011. During the
quarter, the Company incurred $2.4 million of transaction and other expenses associated with the
Encore acquisition, primarily associated with employee severance. These merger-related fees are
included in the Companys income statement under the caption Transaction and other costs related
to the Encore merger.
During the first quarter of 2011, the Company capitalized approximately $11.0 million of
interest expense, as compared to $21.3 million capitalized during the first quarter of 2010. The
48% decrease between the two quarters is primarily attributable to the completion of the Green
Pipeline during the second half of 2010, after which interest capitalization ceased. Interest
expense also increased significantly between the respective first quarters due to an increase in
average debt outstanding during the 2011 period as a result of the Encore merger in March 2010.
Depletion, depreciation and amortization (DD&A) expense for the first quarter of 2011 was
$16.35 per BOE as compared to $17.12 per BOE in the prior year quarter, primarily due to asset
dispositions during 2010, the acquisition of Riley Ridge in 2010, and lower DD&A per BOE on our
CO2 and other assets due to the incremental CO2 proved reserves recognized in
2010.
Outlook
As a result of higher oil prices and a projected increase in the Companys estimated cash flow
for 2011, the Company recently increased its capital expenditure budget for 2011 from $1.1 billion
to $1.3 billion, excluding approximately $100 million in estimated capitalized interest and
tertiary start-up costs, and excluding any acquisitions. This capital expenditure budget increase
was allocated to almost all investment areas.
Phil Rykhoek, Chief Executive Officer, said, We were pleased with our strong adjusted net
income of $103.9 million and adjusted cash flow from operations of $271.2 million. This
demonstrates that our strategy is working, and although we would have preferred to report strong
production growth as well, the first quarter came in much as expected and as we suggested in our
fourth quarter conference call. Two of our better tertiary floods temporarily plateaued in the
same quarter and our Bakken program struggled with a harsh winter which impeded operations. We
believe that we can still meet our tertiary production target of 32,500 Bbls/d for 2011 and we are
leaving that guidance unchanged. We expect our tertiary production to resume its growth around
mid-year, particularly at Tinsley and Heidelberg, two fields that have exhibited strong growth for
us in recent quarters. Delhi continues to perform well and we are still hopeful we will have
initial tertiary production from Hastings Field late this year, an event that is largely dependent
on the facility construction schedule which is currently on target.
Likewise, we are leaving our Bakken production target unchanged at 8,700 BOE/d for 2011,
although we have some catching up to do in order to meet the forecast. Weather continues to be an
issue, with another storm in that area this week, and although we have made some great strides in
accessing services, they are still very tight and can cause unexpected delays. At some point it may
become impossible to catch up to the original plan if we continue to experience such delays. We
are planning to accelerate our drilling program in the Bakken, adding a sixth rig to test the
Almond area late third quarter and anticipate a seventh operated rig before year-end, both of which
could set us up for strong growth in 2012. Our 2011 production forecast does not include any
production from the Almond area. We continue to expand our CO2 sources, having added
the two recently announced anthropogenic contracts, plus a third source located near our Green
Pipeline, which to date is unnamed and is expected to add approximately 50 MMcf/d within the next
two years. We also recently signed a small joint venture covering our Tuscaloosa Marine Shale
acreage wherein the partner will complete one well and drill another at no cost to us, leaving us
with a small retained interest in future activities. We continue on our oil-focused program and
expect many good things in the near future.
Organizational Changes
The Company is pleased to announce that Craig McPherson joined Denburys senior management
team this week in the newly created position of Senior Vice President of Production Operations.
With the growth of the Company and operating complexities, the Company decided to split the Senior
Vice President of Operations role into two positions. Mr. McPherson will be overseeing the
operations of the Companys East, West and Rocky Mountain regions (excluding the Bakken), and
Robert Cornelius, previously the only Senior Vice President of Operations, will become Senior Vice
President of CO2 Operations, overseeing the Companys drilling operations,
CO2 supply and pipelines, Bakken operations, HSE (Health, Safety, and Environment), and
procurement functions. Mr. McPherson comes to Denbury with 30 years of experience with
ConocoPhillips, most recently as General Manager Gulf Coast Business Unit, where he directed
ConocoPhillips technical, operational and business activities in the Gulf Coast region of the U.S.
Conference Call
The public is invited to listen to the Companys conference call set for today, May 5, 2011,
at 10:00 A.M. CDT. The call will be broadcast live over the Internet at our website:
www.denbury.com. If you are unable to participate during the live broadcast, the call will be
archived on our website for approximately 30 days and will also be available for playback for one
month after the call by dialing (800) 475-6701 or (320) 365-3844 and entering access code 189714.
Analyst Conferences
Denbury will be hosting conferences for analysts and asset managers on Monday, May
23rd in New York and Tuesday, May 24th in Boston. The presentation in New
York will be webcast live on Denburys website, www.denbury.com, from 8:00 AM ET to approximately
10:00 AM ET, and will be available on the same website for approximately 30 days following the
conference. The slide presentation that will be used for the conferences will be available on
Denburys website the evening of May 22nd. Registration for the conferences is ongoing.
For additional information, please contact Laurie Burkes, Investor Relations Manager, at (972)
673-2166 or laurie.burkes@denbury.com.
Financial and Statistical Data Tables
Following are unaudited financial highlights for the three month periods ended March 31, 2011
and 2010. All production volumes and dollars are expressed on a net revenue interest basis with
gas volumes converted to equivalent barrels at 6:1.
THREE MONTH FINANCIAL HIGHLIGHTS
(Amounts in thousands of U.S. dollars, except per share and unit data)
(Unaudited)
(Amounts in thousands of U.S. dollars, except per share and unit data)
(Unaudited)
Three Months Ended | ||||||||||||||||
March 31, | Percentage | |||||||||||||||
2011 | 2010 | Change | ||||||||||||||
Revenues: |
||||||||||||||||
Oil sales |
492,838 | 305,204 | + | 61 | % | |||||||||||
Natural gas sales |
13,354 | 25,682 | - | 48 | % | |||||||||||
CO2 sales and transportation fees |
4,924 | 4,497 | + | 9 | % | |||||||||||
Interest income and other income |
3,049 | 1,870 | + | 63 | % | |||||||||||
Gain on sale of interest in Genesis |
| 101,568 | - | 100 | % | |||||||||||
Total revenues |
514,165 | 438,821 | + | 17 | % | |||||||||||
Expenses: |
||||||||||||||||
Lease operating expenses |
127,097 | 96,220 | + | 32 | % | |||||||||||
Production taxes and marketing expenses |
32,751 | 19,317 | + | 70 | % | |||||||||||
CO2 discovery and operating expenses |
2,154 | 1,368 | + | 57 | % | |||||||||||
General and administrative |
43,846 | 32,709 | + | 34 | % | |||||||||||
Interest, net |
48,777 | 26,416 | + | 85 | % | |||||||||||
Depletion, depreciation, and amortization |
93,594 | 81,872 | + | 14 | % | |||||||||||
Derivatives (income) expense |
170,750 | (41,225 | ) | + | >100 | % | ||||||||||
Loss on early extinguishment of debt |
15,783 | | N/A | |||||||||||||
Transaction and other costs related to the Encore merger |
2,359 | 44,999 | - | 95 | % | |||||||||||
Total expenses |
537,111 | 261,676 | + | >100 | % | |||||||||||
Income (loss) before income taxes |
(22,946 | ) | 177,145 | - | >100 | % | ||||||||||
Income tax provision (benefit) |
||||||||||||||||
Current income taxes |
(848 | ) | 669 | - | >100 | % | ||||||||||
Deferred income taxes |
(7,908 | ) | 76,272 | - | >100 | % | ||||||||||
Consolidated net income (loss) |
(14,190 | ) | 100,204 | - | >100 | % | ||||||||||
Less: net income attributable to noncontrolling interest |
| (3,316 | ) | - | 100 | % | ||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO DENBURY STOCKHOLDERS |
(14,190 | ) | 96,888 | - | >100 | % | ||||||||||
Net income (loss) per common share: |
||||||||||||||||
Basic |
(0.04 | ) | 0.33 | - | >100 | % | ||||||||||
Diluted |
(0.04 | ) | 0.32 | - | >100 | % | ||||||||||
Weighted average common shares outstanding: |
||||||||||||||||
Basic |
397,386 | 294,143 | + | 35 | % | |||||||||||
Diluted |
397,386 | 299,224 | + | 33 | % | |||||||||||
Production (daily net of royalties): |
||||||||||||||||
Oil (barrels) |
58,460 | 44,309 | + | 32 | % | |||||||||||
Gas (mcf) |
30,866 | 52,892 | - | 42 | % | |||||||||||
BOE (6:1) |
63,604 | 53,125 | + | 20 | % | |||||||||||
Unit sales price (including derivative settlements): |
||||||||||||||||
Oil (per barrel) |
92.72 | 60.60 | + | 53 | % | |||||||||||
Gas (per mcf) |
7.19 | 6.18 | + | 16 | % | |||||||||||
BOE (6:1) |
88.70 | 56.70 | + | 56 | % | |||||||||||
Unit sales price (excluding derivative settlements): |
||||||||||||||||
Oil (per barrel) |
93.67 | 76.53 | + | 22 | % | |||||||||||
Gas (per mcf) |
4.81 | 5.40 | - | 11 | % | |||||||||||
BOE (6:1) |
88.42 | 69.21 | + | 28 | % |
Three Months Ended | ||||||||||||||||
March 31, | Percentage | |||||||||||||||
2011 | 2010 | Change | ||||||||||||||
Derivative contracts |
||||||||||||||||
Cash receipt (payment) on settlements |
1,588 | (59,801 | ) | + | >100 | % | ||||||||||
Non-cash fair value adjustment income (expense) |
(172,338 | ) | 101,026 | - | >100 | % | ||||||||||
Total income (expense) from derivative contracts |
(170,750 | ) | 41,225 | - | >100 | % | ||||||||||
Non-GAAP financial measure (1) |
||||||||||||||||
Net income (loss) attributable to Denbury stockholders (GAAP measure) |
(14,190 | ) | 96,888 | - | >100 | % | ||||||||||
Non-cash fair value adjustments on derivative contracts (net of taxes) |
106,850 | (62,636 | ) | - | >100 | % | ||||||||||
Loss on early extinguishment of debt (net of taxes) |
9,785 | | N/A | |||||||||||||
Transaction and other costs related to the Encore merger (net of taxes) |
1,463 | 30,752 | - | 95 | % | |||||||||||
Gain on sale of interest in Genesis (net of taxes) |
| (62,972 | ) | - | 100 | % | ||||||||||
Deferred tax adjustment resulting from rate increase |
| 10,033 | - | 100 | % | |||||||||||
Interest on newly issued debt one month prior to merger (net of taxes) |
| 4,263 | - | 100 | % | |||||||||||
Adjustments attributable to noncontrolling interest |
| 1,039 | - | 100 | % | |||||||||||
Adjusted net income excluding certain items (non-GAAP measure) |
103,908 | 17,367 | + | >100 | % | |||||||||||
Non-GAAP financial measure (1) |
||||||||||||||||
Consolidated net income (loss) (GAAP measure) |
(14,190 | ) | 100,204 | - | >100 | % | ||||||||||
Adjustments to reconcile to cash flow from operations: |
||||||||||||||||
Depletion, depreciation and amortization |
93,594 | 81,872 | + | 14 | % | |||||||||||
Deferred income taxes |
(7,908 | ) | 76,272 | - | >100 | % | ||||||||||
Non-cash fair value derivative adjustments |
172,338 | (101,026 | ) | - | >100 | % | ||||||||||
Loss on early extinguishment of debt |
15,783 | | N/A | |||||||||||||
Gain on sale of interest in Genesis |
| (101,568 | ) | - | 100 | % | ||||||||||
Other |
11,600 | 10,216 | + | 14 | % | |||||||||||
Adjusted cash flow from operations (non-GAAP measure) |
271,217 | 65,970 | + | >100 | % | |||||||||||
Net change in assets and liabilities relating to operations |
(146,385 | ) | 47,198 | - | >100 | % | ||||||||||
Cash flow from operations (GAAP measure) |
124,832 | 113,168 | + | 10 | % | |||||||||||
Oil and natural gas capital investments (excluding Encore Merger) |
220,097 | 92,987 | + | >100 | % | |||||||||||
Cash paid in Encore Merger, net of cash acquired |
| 801,489 | - | 100 | % | |||||||||||
CO2 capital investments |
66,157 | 72,647 | - | 9 | % | |||||||||||
Proceeds from sale of interest in Genesis |
| 162,622 | - | 100 | % | |||||||||||
Cash and cash equivalents |
127,857 | 109,185 | + | 17 | % | |||||||||||
Total assets |
9,111,419 | 10,540,003 | - | 14 | % | |||||||||||
Total debt (principal amount excluding capital leases and pipeline financings) |
2,106,797 | 3,325,818 | - | 37 | % | |||||||||||
Financing leases |
247,431 | 250,512 | - | 1 | % | |||||||||||
Total Denbury stockholders equity |
4,381,365 | 4,162,016 | + | 5 | % | |||||||||||
BOE data (6:1) |
||||||||||||||||
Oil and natural gas revenues |
88.42 | 69.21 | + | 28 | % | |||||||||||
Gain (loss) on settlements of derivative contracts |
0.28 | (12.51 | ) | + | >100 | % | ||||||||||
Lease operating expenses |
(22.20 | ) | (20.12 | ) | + | 10 | % | |||||||||
Production taxes and marketing expense |
(5.72 | ) | (4.04 | ) | + | 42 | % | |||||||||
Production netback |
60.78 | 32.54 | + | 87 | % | |||||||||||
Non-tertiary CO2 operating margin |
0.48 | 0.65 | - | 26 | % | |||||||||||
General and administrative |
(7.66 | ) | (6.84 | ) | + | 12 | % | |||||||||
Transaction and other costs related to the Encore merger |
(0.41 | ) | (9.41 | ) | - | 96 | % | |||||||||
Net cash interest expense and other income |
(7.10 | ) | (4.67 | ) | + | 52 | % | |||||||||
Current income taxes and other |
1.29 | 1.53 | - | 16 | % | |||||||||||
Changes in assets and liabilities relating to operations |
(25.57 | ) | 9.87 | - | >100 | % | ||||||||||
Cash flow from operations |
21.81 | 23.67 | - | 8 | % | |||||||||||
(1) | See Non-GAAP Measures at the end of this report. |
Non-GAAP Measures
Adjusted net income excluding certain items is a non-GAAP measure. This measure reflects net
income without regard to the fair value adjustments on the Companys derivative contracts or other
certain items. The Company believes that it is important to consider this measure separately as it
is a better reflection of the ongoing comparable results of the Company, without regard to changes
in the market value of the Companys derivative contracts during the period or other certain items.
Adjusted cash flow from operations is a non-GAAP measure that represents cash flow provided by
operations before changes in assets and liabilities, as summarized from the Companys Consolidated
Statements of Cash Flows. Adjusted cash flow from operations measures the cash flow earned or
incurred from operating activities without regard to the collection or payment of associated
receivables or payables. The Company believes that it is important to consider this measure
separately, as it believes it can often be an important way to discuss changes in operating trends
in its business caused by changes in production, prices, operating costs and so forth, without
regard to whether the earned or incurred item was collected or paid during that period.
Denbury Resources Inc. (www.denbury.com) is a growing independent oil and natural gas company.
The Company is the largest oil and natural gas producer in both Mississippi and Montana, owns the
largest reserves of CO2 used for tertiary oil recovery east of the Mississippi River,
and holds significant operating acreage in the Rocky Mountain and Gulf Coast regions. The Companys
goal is to increase the value of acquired properties through a combination of exploitation,
drilling and proven engineering extraction practices, with the most significant emphasis on our
CO2 tertiary recovery operations.
This press release, other than historical financial information, contains forward-looking
statements that involve risks and uncertainties, including forecasted 2011 production levels
relating to the Companys tertiary operations and overall production, estimated capital
expenditures for 2011 or future years and other risks and uncertainties detailed in the Companys
filings with the Securities and Exchange Commission, including Denburys most recent reports on
Form 10-K and Form 10-Q. These risks and uncertainties are incorporated by this reference as though
fully set forth herein. These statements are based on engineering, geological, financial and
operating assumptions that management believes are reasonable based on currently available
information; however, managements assumptions and the Companys future performance are both
subject to a wide range of business risks, and there is no assurance that these goals and
projections can or will be met. Actual results may vary materially.
For further information contact:
Phil Rykhoek, CEO, 972-673-2000
Mark Allen, Senior VP and Chief Financial Officer, 972-673-2000
www.denbury.com
Mark Allen, Senior VP and Chief Financial Officer, 972-673-2000
www.denbury.com