Denbury Announces Key Takeaways from CCUS Business Outlook Event

PLANO, Texas--(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.

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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 EBITDA¹ is expected to range between $650 million and $900 million.

Denbury targets achieving Scope 1, 2, and 3² 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.

Source: Denbury Inc.