Corporate Presentation October 2015 NYSE: D DNR Click to edit - PowerPoint PPT Presentation

Corporate Presentation October 2015 NYSE: D DNR

Click to edit Master title style Click to edit title style About Forward-Looking Statements The data contained in this presentation that are not historical facts are forward-looking statements that involve a number of risks and uncertainties. Such statements may relate to, among other things: long-term strategy; the length or severity of the recent oil price downturn; forecasts of capital expenditures, drilling activity and developmental activities; timing of carbon dioxide (CO 2 ) injections and production response to such tertiary flooding projects; estimated timing of pipeline construction or completion or the cost thereof; anticipated dates of completion of industrial plants to be constructed or under construction and the initial date of capture and amount of anthropogenic CO 2 ; estimates of liquidity, costs, forecasted production rate or peak production rates and the growth thereof; estimates of hydrocarbon reserve quantities and values, including potential and recoverable reserves, CO 2 reserves, and helium reserves; projected future hydrocarbon prices or costs; estimated future cash flows, including from our hedging positions, or uses of cash; availability of capital or borrowing capacity; estimated rates of return and overall economics; and anticipated availability and cost of equipment and services. These forward-looking statements are generally accompanied by words such as “believe”, “estimated”, “preliminary”, “projected”, “potential”, “anticipated”, “forecasted”, “expected”, “assume” or other words that convey the uncertainty of future events or outcomes. These statements are based on management’s current plans and assumptions and are subject to a number of risk and uncertainties as further outlined in our most recent Form 10-K filed with the SEC. Therefore, actual results may differ materially from the expectations, estimates, forecasts, projections, or assumptions expressed in or implied by any forward-looking statement herein made by or on behalf of the Company. Cautionary 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, 2014 were estimated by DeGolyer and MacNaughton, an independent petroleum engineering firm. In this presentation, we 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 refer to estimates of original oil in place, resource or reserves “potential”, barrels recoverable, 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 reserves 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. Denbury.com | NYSE: DNR 2 2

Click to edit Master title style A Different Kind of Oil Company Click to edit title style • Proven process Long-Term • Lower-risk & long-life assets Visibility • Tremendous resource potential • Fund capex with cash flow Capital • Relatively low capital intensity Flexibility • Adjust to oil price environment • Strategic CO 2 supply Competitive • >1,100 miles of CO 2 pipelines Advantages • Large inventory of oil fields Denbury.com | NYSE: DNR 3

Click to edit Master title style What is CO 2 EOR & How Much Oil Does it Recover? Click to edit title style Transport Inject Secure via into CO 2 Supply Pipeline Oilfield Remaining Oil Primary ~20% CO 2 EOR Delivers Almost as Much Secondary Production as Primary (Waterfloods) ~18% or Secondary Recovery (1) Tertiary (CO 2 EOR) ~17% (1) Recovery of original oil in place based on history at Little Creek Field. Denbury.com | NYSE: DNR 4

Click to edit Master title style Click to edit title style Denbury at a Glance Total 3P Reserves (12/31/14) ~1.2 BBOE 437.7 MBOE Total Proved Reserves (12/31/14) 95% % Oil Production (2Q15) 73,716 Total Daily Production – BOE/d (2Q15) $8.7 billion Proved PV-10 (12/31/14) $94.99 NYMEX Oil Price $1.0 billion Market Cap (10/2/15) $3.5 billion Total Debt (6/30/15) CO 2 Supply 3P Reserves (12/31/14) ~17 Tcf CO 2 Pipelines Operated or Controlled >1,100 miles Credit Facility Availability (6/30/15) $1.2 billion Denbury.com | NYSE: DNR 5

Click to edit Master title style Click to edit title style Proactively Responding To a Lower Oil Price Environment ● Reduced capital spending by 50% for 2015 to $550MM (now est. at $520MM)  Expecting to generate free cash flow in 2015  Planning on utilizing liquidity to take advantage of potential opportunities  Building liquidity to further enhance our solid financial position  Resulting in relatively flat production targets for 2015 and likely 2016 ● Focusing on operational initiatives and increasing efficiency ● Restructured bank debt covenants to provide flexibility over the next several years ● Suspended quarterly dividend payment of $0.0625 beginning in 4Q 2015  Will free up ~$22 million of cash per quarter which can be directed for other uses, among other things, debt reduction, increases in CapEx, or share repurchases Denbury.com | NYSE: DNR 6

Click to edit Master title style Click to edit title style Innovation & Improvement Teams (IITs) Identify opportunities to significantly improve the economic value and profitability of Denbury’s fields. Increase Field PV-10 and Cash Flow Reduce LOE, CO 2 Purchases & CAPEX Process: ● Evaluate, improve operational processes ( Production forecasting; reservoir management; knowledge sharing; facility modularization; reserves; and tertiary alternatives)  Increase sweep efficiency  Use of 4D seismic to increase CO 2 flooding  Improve reservoir surveillance and geology descriptions  Increased awareness of potential above and below target zones Denbury.com | NYSE: DNR 7

Click to edit Master title style Click to edit title style U.S. Lower-48 CO 2 EOR Potential Technically Recoverable (1,2) (amounts in billions of barrels) Permian 9-21 East & Central Texas 6-15 Mid-Continent 6-13 California 3-7 South East Gulf Coast 3-7 Rockies 2-6 Other 0-5 Michigan/Illinois 2-4 Williston 1-3 Appalachia 1-2 Total: 33-83 (1) Source: 2013 DOE NETL Next Gen EOR (2) Total estimated recoveries on a gross basis utilizing CO 2 EOR. Denbury.com | NYSE: DNR 8

Up to 16 Billion Gross Barrels Recoverable (1) Click to edit Master title style Click to edit title style in Our Two CO 2 EOR Target Areas 2.8 to 6.6 MT ND Billion Barrels Estimated Recoverable in Rocky Mountain Region (2) WY Denbury-operated fields represent ~10% of total potential (3) AL MS LA TX Existing Denbury CO 2 Pipelines Proposed Denbury CO 2 Pipelines 3.7 to 9.1 Denbury owned fields Billion Barrels Existing or Proposed CO 2 Source Owned or Contracted Estimated Recoverable in (1) Total estimated recoveries on a gross basis utilizing CO 2 EOR, based on a variety of recovery factors. Gulf Coast Region (2) (2) Source: 2013 DOE NETL Next Gen EOR (3) Using approximate mid-points of ranges, based on a variety of recovery factors. Denbury.com | NYSE: DNR 9

CO 2 EOR in Gulf Coast Region: Click to edit Master title style Click to edit title style Control of CO 2 Sources & Pipeline Infrastructure Provides a Strategic Advantage Tinsley (3) Delhi (3) Summary (1) 46 MMBbls 45 MMBbls Tinsley Proved 179 Jackson Dome Potential 365 Delhi Free State Produced-to-Date (2) 99 Pipeline Davis Quitman (2) Heidelberg Total MMBOEs (3) Martinville 643 Sandersville Lake Sonat Summerland Soso Cypress Creek Eucutta St. John Yellow Creek MS Pipeline Brookhaven Cranfield Mallalieu Houston Area (3) Conroe (3) Olive Citronelle Little Creek Smithdale Hastings 60 - 80 MMBbls 130 MMBbls McComb Mature Area (3) Webster 60 - 75 MMBbls 170 MMBbls Thompson 30 - 60 MMBbls ~90 Miles Heidelberg (3) 150 - 215 MMBbls Cost: ~$220MM 44 MMBbls Lockhart Crossing Conroe Green Pipeline Donaldsonville ~325 Miles Oyster Webster Bayou Thompson Hastings Cumulative Production Oyster Bayou (3) 15 – 50 MMBoe 20 - 30 MMBbls 50 – 100 MMBoe > 100 MMBoe Denbury Owned Fields – Current CO 2 Floods Denbury Owned Fields – Future CO 2 Floods Fields Owned by Others – CO 2 EOR Candidates (1) Proved tertiary oil reserves based on year-end 12/31/14 SEC proved reserves. Potential includes probable and possible tertiary reserves estimated by the Pipelines Company as of 12/31/14, using mid-point of ranges, based on a variety of recovery factors. Denbury Operated Pipelines (2) Produced-to-date is cumulative tertiary production through 12/31/14. Denbury Proposed Pipelines (3) Field reserves shown are estimated total potential tertiary reserves, including cumulative tertiary production through 12/31/14. Denbury.com | NYSE: DNR 10