Denbury (DNRWW) 10-K 1 Mar 10 2009 FY Annual report Financial data

Document and Company Informatio

Document and Company Information (USD $)
	12 Months Ended Dec. 31, 2009	Jan. 31, 2010	Jun. 30, 2009
Document and Company Information [Abstract]
Entity Registrant Name	DENBURY RESOURCES INC
Entity Central Index Key	0000945764
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$2,625,591,935
Entity Common Stock, Shares Outstanding		262,364,085

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Thousands	Dec. 31, 2009	Dec. 31, 2008
Current assets
Cash and cash equivalents	$20,591	$17,069
Accrued production receivable	120,667	67,805
Trade and other receivables, net of allowance of $414 and $377	67,874	80,579
Derivative assets	309	249,746
Current deferred tax assets	46,321	0
Total current assets	255,762	415,199
Oil and natural gas properties (using full cost accounting)
Proved	3,595,726	3,386,606
Unevaluated	320,356	235,403
CO2 properties, equipment and pipelines	1,529,781	899,542
Other	82,537	70,328
Less accumulated depletion, depreciation and impairment	(1,825,528)	(1,589,682)
Net property and equipment	3,702,872	3,002,197
Deposits on property under option or contract	0	48,917
Other assets	66,810	43,357
Goodwill	169,517	0
Investment in Genesis	75,017	80,004
Total assets	4,269,978	3,589,674
Current liabilities
Accounts payable and accrued liabilities	169,874	202,633
Oil and gas production payable	90,218	85,833
Derivative liabilities	124,320	0
Deferred revenue - Genesis	4,070	4,070
Deferred tax liability	0	89,024
Current maturities of long-term debt	5,308	4,507
Total current liabilities	393,790	386,067
Long-term liabilities
Long-term debt - Genesis	249,762	251,047
Long-term debt	1,051,306	601,720
Asset retirement obligations	53,251	43,352
Deferred revenue - Genesis	15,749	19,957
Deferred tax liability	515,516	433,210
Derivative liabilities	5,239	0
Other	13,128	14,253
Total long-term liabilities	1,903,951	1,363,539
Stockholders' equity
Preferred stock, $.001 par value, 25,000,000 shares authorized, none issued and outstanding	0	0
Common stock, $.001 par value, 600,000,000 shares authorized; 261,929,292 and 248,005,874 shares issued at December 31, 2009 and 2008, respectively	262	248
Paid-in capital in excess of par	910,540	707,702
Retained earnings	1,064,419	1,139,575
Accumulated other comprehensive loss	(557)	(627)
Treasury stock, at cost, 156,284 and 446,287 shares at December 31, 2009 and 2008, respectively	(2,427)	(6,830)
Total stockholders' equity	1,972,237	1,840,068
Total liabilities and stockholders' equity	$4,269,978	$3,589,674

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data	Dec. 31, 2009	Dec. 31, 2008
Current assets
Allowances for trade and other receivable	$414	$377
Stockholders' equity
Preferred stock, par value	0.001	0.001
Preferred stock, shares authorized (actual number)	25,000,000	25,000,000
Preferred stock, share issued	0	0
Preferred stock, share outstanding	0	0
Common stock, par value	0.001	0.001
Common stock, share authorized (actual number)	600,000,000	600,000,000
Common stock, share issued (actual number)	261,929,292	248,005,874
Treasury stock, shares (actual number)	156,284	446,287

Consolidated Statements of Oper

Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues and other income
Oil, natural gas and related product sales	$866,709	$1,347,010	$952,788
CO2 sales and transportation fees	13,422	13,858	13,630
Interest income and other	2,362	4,834	6,642
Total revenues	882,493	1,365,702	973,060
Expenses
Lease operating expenses	326,132	307,550	230,932
Production taxes and marketing expenses	34,580	55,770	43,130
Transportation expense - Genesis	7,904	7,982	5,961
CO2 operating expenses	4,649	4,216	4,214
General and administrative	116,095	60,374	48,972
Interest, net of amounts capitalized of $68,596, $29,161, and $20,385, respectively	47,430	32,596	30,830
Depletion, depreciation and amortization	238,323	221,792	195,900
Commodity derivative expense (income)	236,226	(200,053)	18,597
Abandoned acquisition costs	0	30,601	0
Write-down of oil and natural gas properties	0	226,000	0
Total expenses	1,011,339	746,828	578,536
Equity in net income (loss) of Genesis	6,657	5,354	(1,110)
Income (loss) before income taxes	(122,189)	624,228	393,414
Income tax provision (benefit)
Current income taxes	4,611	40,812	30,074
Deferred income taxes	(51,644)	195,020	110,193
Net income (loss)	($75,156)	$388,396	$253,147
Net income (loss) per common share - basic	-0.3	1.59	1.05
Net income (loss) per common share - diluted	-0.3	1.54	$1
Weighted average common shares outstanding
Basic	246,917	243,935	240,065
Diluted	246,917	252,530	252,101

1_Consolidated Statements of Op

Consolidated Statements of Operations (Parenthetical) (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Expenses
Interest capitalized	$68,596	$29,161	$20,385

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash flow from operating activities:
Net income (loss)	($75,156)	$388,396	$253,147
Adjustments needed to reconcile to net cash flow provided by operations:
Depletion, depreciation and amortization	238,323	221,792	195,900
Write-down of oil and natural gas properties	0	226,000	0
Deferred income taxes	(51,644)	195,020	110,193
Deferred revenue - Genesis	(4,208)	(4,466)	(4,419)
Stock-based compensation	35,581	14,068	10,595
Non-cash fair value derivative adjustments	383,072	(257,502)	38,952
Founder's retirement compensation	6,350	0	0
Other	7,719	(3,499)	4,149
Changes in assets and liabilities related to operations:
Accrued production receivable	(52,863)	68,479	(63,886)
Trade and other receivables	12,548	(58,236)	(10,409)
Derivative assets	0	(15,471)	0
Other assets	(426)	348	(819)
Accounts payable and accrued liabilities	25,673	254	1,576
Oil and gas production payable	4,385	1,683	31,906
Other liabilities	1,245	(2,347)	3,329
Net cash provided by operating activities	530,599	774,519	570,214
Cash flow used for investing activities:
Oil and natural gas capital expenditures	(343,351)	(587,968)	(621,187)
Acquisitions of oil and natural gas properties	(452,795)	(31,367)	(49,077)
CO2 capital expenditures, including pipelines	(666,372)	(407,103)	(164,075)
Investment in Genesis	4,975	6,623	(47,738)
Purchases of other assets	(13,591)	(23,799)	(13,672)
Proceeds from sales of oil and gas properties and equipment	516,814	51,684	142,667
Other	(15,394)	(2,729)	(9,431)
Net cash used for investing activities	(969,714)	(994,659)	(762,513)
Cash flow from financing activities:
Bank repayments	(856,000)	(222,000)	(265,000)
Bank borrowings	906,000	147,000	281,000
Income tax benefit from equity awards	3,913	19,665	19,181
Issuance of subordinated debt	389,827	0	150,750
Pipeline financing - Genesis	369	225,252	0
Issuance of common stock	12,991	13,972	18,222
Costs of debt financing	(10,080)	(2,288)	(1,988)
Other	(4,383)	(4,499)	(3,632)
Net cash provided by financing activities	442,637	177,102	198,533
Net increase (decrease) in cash and cash equivalents	3,522	(43,038)	6,234
Cash and cash equivalents at beginning of year	17,069	60,107	53,873
Cash and cash equivalents at end of year	$20,591	$17,069	$60,107

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity (USD $)
In Thousands, except Share data	Common Stock ($.001 Par Value)	Paid-In Capital in Excess of par	Retained Earnings	Accumulated Other Comprehensive Income (loss)	Treasury Stock (at cost)	Total
Beginning balance, shares at Dec. 31, 2006	120,506,815				370,327
Beginning balance at Dec. 31, 2006	$121	$616,046	$498,032		($8,140)	$1,106,059
Repurchase of common stock, value					(2,960)	(2,960)
Repurchase of common stock, shares					74,130
Issued pursuant to employee stock purchase plan, value		2,099			2,947	5,046
Issued pursuant to employee stock purchase plan, shares					(149,360)
Issued pursuant to employee stock option plan, value	2	13,174				13,176
Issued pursuant to employee stock option plan, shares	2,071,940
Issued pursuant to directors' compensation plan, value		136				136
Issued pursuant to directors' compensation plan, shares	3,981
Two-for-one stock split, value	122	(122)
Two-for-one stock split, shares	122,626,451				342,698
Restricted stock grants	198,354
Restricted stock grants - forfeited	(20,590)
Stock based compensation		12,184				12,184
Income tax benefit from equity awards		19,181				19,181
Derivative contracts, net				(1,591)		(1,591)
Net income (loss)			253,147			253,147
Ending balance, shares at Dec. 31, 2007	245,386,951				637,795
Ending balance at Dec. 31, 2007	245	662,698	751,179	(1,591)	(8,153)	1,404,378
Repurchase of common stock, value					(3,762)	(3,762)
Repurchase of common stock, shares					155,297
Issued pursuant to employee stock purchase plan, value		1,176			5,085	6,261
Issued pursuant to employee stock purchase plan, shares					(346,805)
Issued pursuant to employee stock option plan, value	3	7,708				7,711
Issued pursuant to employee stock option plan, shares	2,578,563
Issued pursuant to directors' compensation plan, value		212				212
Issued pursuant to directors' compensation plan, shares	12,753
Restricted stock grants	278,973
Restricted stock grants - forfeited	(251,366)
Stock based compensation		16,243				16,243
Income tax benefit from equity awards		19,665				19,665
Derivative contracts, net				964		964
Net income (loss)			388,396			388,396
Ending balance, shares at Dec. 31, 2008	248,005,874				446,287
Ending balance at Dec. 31, 2008	248	707,702	1,139,575	(627)	(6,830)	1,840,068
Repurchase of common stock, value					(3,014)	(3,014)
Repurchase of common stock, shares					194,943
Issued pursuant to employee stock purchase plan, value		(81)			7,417	7,336
Issued pursuant to employee stock purchase plan, shares					(484,946)
Issued pursuant to employee stock option plan, value	2	5,651				5,653
Issued pursuant to employee stock option plan, shares	1,312,714
Issued pursuant to directors' compensation plan, value		322				322
Issued pursuant to directors' compensation plan, shares	21,658
Issued pursuant to Conroe Field acquisition, value	12	168,711				168,723
Issued pursuant to Conroe Field acquisition, shares	11,620,000
Restricted stock grants	1,032,895
Restricted stock grants - forfeited	(63,849)
Stock based compensation		24,322				24,322
Income tax benefit from equity awards		3,913				3,913
Derivative contracts, net				70		70
Net income (loss)			(75,156)			(75,156)
Ending balance, shares at Dec. 31, 2009	261,929,292				156,284
Ending balance at Dec. 31, 2009	$262	$910,540	$1,064,419	($557)	($2,427)	$1,972,237

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Operations (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Statements of Comprehensive Operations [Abstract]
Net income (loss)	($75,156)	$388,396	$253,147
Other comprehensive income (loss), net of income tax:
Change in fair value of interest rate lock contracts designated as a hedge, net of tax of $-, $49 and $1,017, respectively	0	12	(1,591)
Interest rate lock derivative contracts reclassified to income, net of taxes of $43, $583 and $-, respectively	70	952	0
Comprehensive income (loss)	($75,086)	$389,360	$251,556

2_Consolidated Statements of Co

Consolidated Statements of Comprehensive Operations (Parenthetical) (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Other comprehensive income (loss), net of income tax:
Tax for change in fair value of interest rate lock derivative contracts designated as a hedge	$0	$49	$1,017
Tax for Interest rate lock derivative contracts reclassified to income	$43	$583	$0

Significant Accounting Policies

Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Significant Accounting Policies [Abstract]
Significant Accounting Policies	Note 1. Significant Accounting Policies Organization and Nature of Operations Denbury Resources Inc. is a Delaware corporation, organized under Delaware General Corporation Law, engaged in the acquisition, development, operation and exploration of oil and natural gas properties. We have one primary business segment, which is the exploration, development and production of oil and natural gas in the U.S. Gulf Coast region. We also own the rights to a natural source of carbon dioxide (CO2) reserves that we use for injection in our tertiary oil recovery operations. We also sell some of the CO2 we produce to Genesis Energy, L.P. (Genesis) (see Note 3) and to third party industrial users. Principles of Reporting and Consolidation The consolidated financial statements herein have been prepared in accordance with generally accepted accounting principles (GAAP) and include the accounts of Denbury and its subsidiaries, all of which are wholly owned. A former Denbury subsidiary, Genesis Energy, LLC is the general partner of, and together with Denburys other subsidiaries, owned an aggregate 12% interest in Genesis at December31, 2009, a publicly traded master limited partnership. We accounted for our 12% ownership interest in Genesis under the equity method of accounting. Even though we had significant influence over the limited partnership in our role as general partner, because our control was limited by the Genesis limited partnership agreement we did not consolidate Genesis. On February5, 2010, we sold our interest in Genesis Energy, LLC, but we still retain an approximate 10% limited partner interest in Genesis (for which a resale registration statement was filed in January 2010) in which we continue to account for under the equity method of accounting. See Note 3, Related Party Transactions Genesis for more information regarding our related party transactions with Genesis and see Note 15, Subsequent Events for more information about the sale of our general partnership interest. All material intercompany balances and transactions have been eliminated. We have evaluated our consolidation of variable interest entities in accordance with Consolidation topic of the Financial Accounting Standards Board Codification (FASC), and have concluded that we do not have any variable interest entities that would require consolidation. Stock Split On November19, 2007, stockholders of Denbury Resources Inc. approved an amendment to our Restated Certificate of Incorporation to increase the number of shares of our authorized common stock from 250,000,000 shares to 600,000,000 shares and to split our common stock on a 2-for-1 basis. Stockholders of record on December5, 2007, received one additional share of Denbury common stock for each share of common stock held at that time. Information pertaining to shares and earnings per share has been retroactively adjusted in the accompanying financial statements and related notes thereto to reflect the stock split, except for the share amounts included on our Consolidated Balance Sheets and Consolidated Statements of Changes in Stockholders Equity, which reflect the actual shares outstanding at each pe

Acquisitions and Divestitures

Acquisitions and Divestitures
	12 Months Ended Dec. 31, 2009 USD / shares
Acquisitions and Divestitures [Abstract]
Acquisitions and Divestitures	Note 2. Acquisitions and Divestitures 2009 Acquisitions Conroe Field Acquisition. In August2008, we entered into an agreement with a privately owned company to purchase a 91.4% interest in Conroe Field, a significant potential tertiary flood north of Houston, Texas, for $600million, plus additional potential consideration if oil prices were to exceed $121 per barrel during the next three years. Closing was provided for in early October 2008. Based on capital market conditions in early October, and a desire to refrain from increasing our leverage in that environment, we cancelled the contract to purchase the Conroe Field, forfeiting a $30million non-refundable deposit. The $30million deposit plus miscellaneous acquisition costs of $0.6million are included in Abandoned acquisition costs in our Consolidated Statement of Operations for the year ended December31, 2008. On December18, 2009, we purchased Conroe Field for consideration consisting of approximately $254.2million in cash (before closing adjustments) and 11,620,000 shares of our common stock. The common stock was valued at $168.7million based on the closing date price of our stock on December 18, 2009 of $14.52. The effective date of purchase was December1, 2009, and consequently operating net revenues, net of capital expenditures, from December1, 2009 through December18, 2009 will be accounted for as adjustments to the ultimate purchase price. The cash amount paid at closing was $269.8million, which reflects $15.6million for amounts in escrow accounts reserved for plugging and abandonment and other adjustments. We believe the acquisition includes significant opportunities for enhanced oil recovery using our available sources of CO2, which we have recorded as unevaluated oil and gas properties as determined under the FASC Fair Value Measurement topic (see Purchase Price Allocations below). During the year ended December 31, 2009, we recognized $2.3million and $1.4million of revenues and net field operating income (revenues less production taxes and lease operating expenses), respectively, related to our acquisition of Conroe Field. Acquisition-related costs (legal, accounting, due diligence, etc.) have been expensed. Denbury shares issued to Wapiti in conjunction with the purchase of Conroe Field are subject to a registration rights agreement whereby Denbury has agreed to register the shares with the SEC and maintain the effectiveness of the shares for a period of time which we currently estimate to be one year. The shares were registered with the SEC on February2, 2010. Hastings Field Acquisition. During November2006, we entered into an agreement with a subsidiary of Venoco, Inc., that gave us an option to purchase their interest in Hastings Field, a strategically significant potential tertiary flood candidate located near Houston, Texas. We exercised the purchase option prior to September2008, and closed the acquisition during February2009. As consideration for the option agreement, during 2006 through 2008, we made cash payments totaling $50million which we recorded as a deposit. The remaining purchase price of approximately $196million was paid in cash, and was de

Related Party Transactions Gene

Related Party Transactions Genesis
	12 Months Ended Dec. 31, 2009 USD / shares
Related Party Transactions Genesis [Abstract]
Related Party Transactions - Genesis	Note 3. Related Party Transactions Genesis Interest in and Transactions with Genesis Denburys former subsidiary, Genesis Energy, LLC, is the general partner of, and together with Denburys other subsidiaries, at December31, 2009, owned an aggregate 12% interest in Genesis, a publicly traded master limited partnership. On February5, 2010, we sold our interest in Genesis Energy, LLC (see Note 15, Subsequent Events). Genesis business is focused on the mid stream segment of the oil and gas industry in the Gulf Coast area of the United States, and its activities include gathering, marketing and transportation of crude oil and natural gas, refinery services, wholesale marketing of CO2, and supply and logistic services. Prior to the sale, we accounted for our 12% ownership in Genesis under the equity method of accounting as we had significant influence over the limited partnership; however, our control was limited under the limited partnership agreement and therefore we did not consolidate Genesis. Denbury received cash distributions from Genesis of $11.6million in 2009, $7.1million in 2008, and $1.7million in 2007. We also received $0.2million in 2009 and 2008 and $0.1 million in 2007, in directors fees for certain officers of Denbury that were board members of Genesis prior to the February5, 2010 sale of our General Partner ownership. There are no guarantees by Denbury or any of our other subsidiaries of the debt of Genesis or of Genesis Energy, LLC. We continue to own an aggregate of 4,028,096 common units of Genesis, representing an approximate 10% limited partnership interest, for which a resale registration statement was filed in January2010. We also continue to account for our remaining 10% ownership interest in Genesis under the equity method of accounting. Our cumulative investments in Genesis of $85.5million exceeded our percentage of net equity in the limited partnership at the time of acquisition by approximately $15.7million, which represents goodwill and is not subject to amortization. At December31, 2009, the balance of our total equity investment in Genesis was $75.0million (see Note 15, Subsequent Events Sale of General Partner Ownership in Genesis). Based on quoted market values of Genesis publicly traded limited partnership units at December31, 2009, the estimated market value of our publicly traded common units of Genesis was approximately $76.1 million. Incentive Compensation Agreement In late December2008, our subsidiary, Genesis Energy, LLC, entered into agreements with three members of Genesis management, for the purpose of providing them incentive compensation, which agreements make them ClassB Members in Genesis Energy, LLC, and each an owner of a ClassB ownership interest. The awards are mandatorily redeemable upon a change in control and require the membership interests of the holders of the awards to be redeemed for cash (or in certain circumstances Genesis limited partnership units) by Genesis Energy, LLC. Upon the sale by Denbury of our interest in Genesis Energy, LLC in February2010, the change in control provision of each members compensation agreement was triggered. As such, the awards were s

Asset Retirement Obligations

Asset Retirement Obligations
	12 Months Ended Dec. 31, 2009 USD / shares
Asset Retirement Obligations [Abstract]
Asset Retirement Obligations	Note 4. Asset Retirement Obligations In general, our future asset retirement obligations relate to future costs associated with plugging and abandonment of our oil, natural gas and CO2 wells, removal of equipment and facilities from leased acreage and land restoration. The fair value of a liability for an asset retirement is recorded in the period in which it is incurred, discounted to its present value using our credit adjusted risk-free interest rate, and a corresponding amount capitalized by increasing the carrying amount of the related long-lived asset. The liability is accreted each period, and the capitalized cost is depreciated over the useful life of the related asset. The following table summarizes the changes in our asset retirement obligations for the years ended December31, 2009 and 2008. Year Ended December 31, In thousands 2009 2008 Beginning asset retirement obligation $ 45,064 $ 41,258 Liabilities incurred and assumed during period 8,911 1,382 Revisions in estimated retirement obligations 2,357 4,456 Liabilities settled during period (3,478 ) (4,711 ) Accretion expense 3,280 3,048 Sales (1,796 ) (369 ) Ending asset retirement obligation $ 54,338 $ 45,064 At December31, 2009 and 2008, $1.1million and $1.7million, respectively, of our asset retirement obligation was classified in Accounts payable and accrued liabilities under current liabilities in our Consolidated Balance Sheets. Liabilities incurred and assumed during 2009 are primarily related to the acquisition of Hastings Field and Conroe Field. Liabilities incurred and assumed during 2008 were primarily for new wells drilled. Liabilities sold during 2009 are primarily related to our Barnett Shale natural gas properties (see Note 2, Acquisitions and Divestitures). Liabilities sold in 2008 were primarily associated with the sale of our Louisiana natural gas properties in February2008. The reversal of these asset retirement obligations, which were assumed by the purchasers, was recorded as an adjustment to the full cost pool with no gain or loss recognized, in accordance with the full cost method of accounting. We have escrow accounts that are legally restricted for certain of our asset retirement obligations. The balances of these escrow accounts were $22.8million and $7.4million at December31, 2009 and 2008, respectively, and are included in Other assets in our Consolidated Balance Sheets. The increase in the escrow balance is related to escrow accounts acquired in the Conroe Field acquisition.

Property And Equipment

Property And Equipment
	12 Months Ended Dec. 31, 2009 USD / shares
Property and Equipment [Abstract]
Property and Equipment	Note 5. Property and Equipment December 31, In thousands 2009 2008 Oil and natural gas properties Proved properties $ 3,595,726 $ 3,386,606 Unevaluated properties 320,356 235,403 Total 3,916,082 3,622,009 Accumulated depletion and depreciation (1,685,171 ) (1,481,801 ) Net oil and natural gas properties 2,230,911 2,140,208 CO2 properties and equipment 438,045 377,711 Accumulated depletion and depreciation (79,196 ) (60,758 ) Net CO2 properties 358,849 316,953 CO2 pipelines in service 312,656 119,819 CO2 pipelines under construction 779,080 402,012 Accumulated depletion and depreciation (22,426 ) (16,392 ) Net CO2 pipelines 1,069,310 505,439 Capital leases 9,857 9,565 Accumulated depletion and depreciation (4,787 ) (3,333 ) Net capital leases 5,070 6,232 Other 72,680 60,763 Accumulated depletion and depreciation (33,948 ) (27,398 ) Net other 38,732 33,365 Net property and equipment $ 3,702,872 $ 3,002,197 At December31, 2009 and 2008, we had $779.1million and $402.0million of costs, respectively, related to pipelines under construction, and as such, were not being depreciated at December31, 2009 or December31, 2008, respectively. Depreciation will commence when the pipelines are placed into service. The Green Pipeline, which had $766.9million in cost, including capitalized interest, at December31, 2009, is expected to be placed into service during 2010. The Company capitalizes interest on its CO2 pipelines during the construction period. Interest capitalized on these CO2 pipelines was $54.2million in 2009 and $11.5million in 2008. Unevaluated Oil and Natural Gas Properties Excluded From Depletion Under full cost accounting, we may exclude certain unevaluated costs from the amortization base pending determination of whether proved reserves can be assigned to such properties. We assign the purchase price of oil and natural gas properties we acquire to proved and unevaluated properties based on the estimated fair values as defined in the FASC Fair Value Measurements and Disclosures topic. The costs classified as unevaluated are transferred to the full cost amortization base as the properties are developed, tested and evaluated. A summary of the unevaluated properties excluded from oil and natural gas properties being amortized at December31, 2009, and the year in which they were incurred follows: December 31, 2009 Costs Incurred During: 2006 and In thousands 2009 2008 2007 prior Total Property acquisition costs $ 95,477 $ 2,573 $ 31,042 $ 70,350 $ 199,442 Exploration and development 68,530 21,898 2,645 93,073 Capitalized inter

Long Term Debt

Long Term Debt
	12 Months Ended Dec. 31, 2009 USD / shares
Long-term Debt [Abstract]
Long-term Debt [Text Block]	Note 6. Long-Term Debt December 31, In thousands 2009 2008 9.75% Senior Subordinated Notes due 2016 $ 426,350 $ Discount on Senior Subordinated Notes due 2016 (26,424 ) 7.5% Senior Subordinated Notes due 2015 300,000 300,000 Premium on Senior Subordinated Notes due 2015 513 599 7.5% Senior Subordinated Notes due 2013 225,000 225,000 Discount on Senior Subordinated Notes due 2013 (631 ) (826 ) NEJD financing Genesis 170,633 173,618 Free State financing Genesis 79,987 76,634 Senior bank loan 125,000 75,000 Capital lease obligations Genesis 3,780 4,544 Capital lease obligations 2,168 2,705 Total 1,306,376 857,274 Less current obligations 5,308 4,507 Long-term debt and capital lease obligations $ 1,301,068 $ 852,767 9.75% Senior Subordinated Notes due 2016 On February13, 2009, we issued $420million of 9.75% Senior Subordinated Notes due 2016 (2016 Notes). The 2016 Notes, which carry a coupon rate of 9.75%, were sold at a discount (92.816% of par), which equates to an effective yield to maturity of approximately 11.25%. The net proceeds of $381.4million were used to repay most of our then-outstanding borrowings under our bank credit facility, which increased from the December31, 2008 balance, primarily associated with the funding of the Hastings Field acquisition (see Note 2, Acquisitions and Divestitures). In conjunction with this debt offering we amended our bank credit facility in early February2009, which, among other things, allowed us to issue these senior subordinated notes. In June2009, we issued an additional $6.35million of 2016 Notes to our founder, Gareth Roberts, as part of a Founders Retirement Agreement. In connection with this issuance, we recorded compensation expense of $6.35million in General and administrative expense in our Consolidated Statement of Operations during the year ended December31, 2009. The 2016 Notes mature on March1, 2016, and interest on the 2016 Notes is payable March 1 and September 1 of each year. We may redeem the 2016 Notes in whole or in part at our option beginning March1, 2013, at the following redemption prices: 104.875% after March1, 2013, 102.4375% after March1, 2014, and 100% after March1, 2015. In addition, we may at our option, redeem up to an aggregate of 35% of the 2016 Notes before March1, 2012, at a price of 109.75%. The indenture contains certain restrictions on our ability to incur additional debt, pay dividends on our common stock, make investments, create liens on our assets, engage in transactions with our affiliates, transfer or sell assets, consolidate or merge, or sell substantially all of our assets. The 2016 Notes are not subject to any sinking fund requirements. All of our significant subsidiaries fully and unconditionally guarantee this debt. NEJD Financing and Free State Financing On May30, 2008, we closed on two transactions with Genesis involving two of our pipelines. The two transactions have been rec

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	Note 7. Income Taxes Our income tax provision (benefit)is as follows: Year Ended December 31, In thousands 2009 2008 2007 Current income tax expense (benefit) Federal $ 7,090 $ 32,475 $ 21,948 State (2,479 ) 8,337 8,126 Total current income tax expense 4,611 40,812 30,074 Deferred income tax expense (benefit) Federal (50,457 ) 184,630 113,868 State (1,187 ) 10,390 (3,675 ) Total deferred income tax expense (benefit) (51,644 ) 195,020 110,193 Total income tax expense (benefit) $ (47,033 ) $ 235,832 $ 140,267 At December31, 2009, we had tax effected state net operating loss carryforwards (NOLs) totaling $4.4million and an estimated $38.9million of enhanced oil recovery credits to carry forward related to our tertiary operations. Our state NOLs expire in 2024. Our enhanced oil recovery credits will begin to expire in 2024. During the third quarter of 2008, we obtained approval from the Internal Revenue Service (IRS) to change our method of tax accounting for certain assets used in our tertiary oilfield recovery operations. Previously, we had capitalized and depreciated these costs, but now we can deduct these costs once the assets are placed into service. As a result, we expect to receive tax refunds of approximately $10.6million for tax years through 2007, along with other tax benefits, and we have reduced our current income tax expense and increased our deferred income tax expense in 2008 to adjust for the impact of this change. This change is not expected to have a significant impact on our overall tax rate; however, it will allow for a quicker deduction of costs for tax purposes. Deferred income taxes relate to temporary differences based on tax laws and statutory rates in effect at the December31, 2009 and 2008 balance sheet dates. We believe that we will be able to realize all of our deferred tax assets at December31, 2009, and therefore have provided no valuation allowance against our deferred tax assets. At December31, 2009 and 2008, our deferred tax assets and liabilities were as follows: December 31, In thousands 2009 2008 Deferred tax assets: Loss carryforwards state $ 4,394 $ 152 Tax credit carryover 32,156 32,156 Derivative contracts 47,056 Enhanced oil recovery credit carryforwards 38,929 43,772 Stock based compensation 23,840 16,216 Other 6,150 Total deferred tax assets 152,525 92,296 Deferred tax liabilities: Property and equipment (619,621 ) (520,455 ) Derivative contracts (91,080 ) Other (2,099 ) (2,995 ) Total deferred tax liabilities (621,720 ) (614,530 ) Total net deferred tax liability $ (469,195 ) $ (522,234 )

Stockholders' Equity

Stockholders' Equity
	1/1/2009 - 12/31/2009 USD / shares
Stockholders' Equity [Abstract]
Stockholders' Equity	Note 8. Stockholders Equity Authorized We are authorized to issue 600million shares of common stock, par value $.001 per share, and 25million shares of preferred stock, par value $.001 per share. The preferred shares may be issued in one or more series with rights and conditions determined by the Board of Directors. Stock Split On November19, 2007, stockholders of Denbury Resources Inc. approved an amendment to our Restated Certificate of Incorporation to increase the number of shares of our authorized common stock from 250,000,000 shares to 600,000,000 shares and to split our common stock on a 2-for-1 basis. Stockholders of record on December5, 2007, received one additional share of Denbury common stock for each share of common stock held at that time. Information pertaining to shares and earnings per share has been retroactively adjusted in the accompanying financial statements and related notes thereto to reflect the stock splits, except for the share amounts included on our Consolidated Balance Sheets and Consolidated Statements of Changes in Stockholders Equity, which reflect the actual shares outstanding at each period end. Stock Issuance In December2009, the Company issued 11,620,000 shares of common stock to Wapiti in conjunction with our purchase of oil and gas assets in the Conroe Field (see Note 2, Acquisitions and Divestitures). Stock Repurchases In 2007, 2008 and 2009, all of our share repurchases were from employees of Denbury that delivered shares to the Company to satisfy their minimum tax withholding requirements as provided for under Denburys stock compensation plans and were not part of a formal stock repurchase plan. Employee Stock Purchase Plan We have an Employee Stock Purchase Plan that is authorized to issue up to 8,900,000 shares of common stock. As of December31, 2009, there were 1,447,342 authorized shares remaining to be issued under the plan. In accordance with the plan, eligible employees may contribute up to 10% of their base salary and Denbury matches 75% of their contribution. The combined funds are used to purchase previously unissued Denbury common stock or treasury stock purchased by the Company in the open market for that purpose, in either case, based on the market value of Denburys common stock at the end of each quarter. We recognize compensation expense for the 75% company match portion, which totaled $3.1million, $2.7million and $2.2million for the years ended December31, 2009, 2008 and 2007, respectively. This plan is administered by the Compensation Committee of Denburys Board of Directors. 401(k) Plan Denbury offers a 401(k) plan to which employees may contribute tax deferred earnings subject to Internal Revenue Service limitations. Effective January1, 2008, Denbury increased its match to 100% of an employees contribution, up to 6% of compensation, as defined by the plan. Previously, up to 3% of an employees compensation was matched by Denbury at 100%, and an employees contribution between 3% and 6% of compensation was matched by Denbury at 50%. Denburys match is vested immediately. During 2009, 2008 and 2007, Denburys matching contributions were appr

Stock Compensation Plans

Stock Compensation Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Stock Compensation Plans [Abstract]
Stock Compensation Plans	Note 9. Stock Compensation Plans Stock Incentive Plans Denbury has two stock compensation plans. The first plan has been in existence since 1995 (the 1995 Plan) and expired in August2005 (although options granted under the 1995 Plan prior to that time can remain outstanding for up to 10years). The 1995 Plan only provided for the issuance of stock options, and in January2005, we issued stock options under the 1995 Plan that utilized substantially all of the remaining authorized shares. The second plan, the 2004 Omnibus Stock and Incentive Plan (the 2004 Plan), has a 10-year term and was approved by the stockholders in May 2004. In May2007, shareholders approved an increase to the number of shares that may be used under our 2004 Plan, from 10.0million to 14.0million shares. In May2009, the shareholders approved an additional increase from 14.0million to 21.5million shares. The 2004 Plan provides for the issuance of incentive and non-qualified stock options, restricted stock awards, stock appreciation rights (SARs) settled in stock, and performance awards that may be issued to officers, employees, directors and consultants. Awards covering a total of 21.5million shares of common stock are authorized for issuance pursuant to the 2004 Plan, of which awards covering no more than 14.2million shares may be issued in the form of restricted stock or performance vesting awards. At December31, 2009, a total of 7,565,963 shares were available for future issuance of awards, of which only 7,348,042 shares may be in the form of restricted stock or performance vesting awards. Denbury has historically granted incentive and non-qualified stock options to its employees. Effective January1, 2006, we completely replaced the use of stock options for employees with SARs settled in stock, as SARs are less dilutive to our stockholders while providing an employee with essentially the same economic benefits as stock options. The stock options and SARs generally become exercisable over a four-year vesting period with the specific terms of vesting determined at the time of grant based on guidelines established by the Board of Directors. The stock options and SARs expire over terms not to exceed 10years from the date of grant, 90days after termination of employment, and 90days or one year after permanent disability, depending on the plan, or one year after the death of the optionee. The stock options and SARs are granted at the fair market value at the time of grant, which is defined in the 2004 Plan as the closing price on the NYSE on the date of grant. The plan is administered by the Compensation Committee of Denburys Board of Directors. In 2004, Denbury began the use of restricted stock awards for its officers and independent directors, all granted under the 2004 Plan. The holders of these shares have all of the rights and privileges of owning the shares (including voting rights) except that the holders are not entitled to delivery of a portion thereof until certain requirements are met. With respect to the restricted stock granted to officers of Denbury in 2004, the vesting restrictions on those shares are as follows: i) 65% of the awards vest 20% per

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities
	12 Months Ended Dec. 31, 2009 USD / shares
Derivative Instruments and Hedging Activities [Abstract]
Derivative Instruments and Hedging Activities	Note 10. Derivative Instruments and Hedging Activities Oil and Natural Gas Derivative Contracts We do not apply hedge accounting treatment to our oil and natural gas derivative contracts and therefore the changes in the fair values of these instruments are recognized in income in the period of change. These fair value changes, along with the cash settlements of expired contracts are shown under Commodity derivative expense (income) in our Consolidated Statements of Operations. From time to time, we enter into various oil and natural gas derivative contracts to provide an economic hedge of our exposure to commodity price risk associated with anticipated future oil and natural gas production. We do not hold or issue derivative financial instruments for trading purposes. These contracts have consisted of price floors, collars and fixed price swaps. Historically, we have hedged up to 80% of our anticipated production for the following year to provide us with a reasonably certain amount of cash flow to cover most of our budgeted exploration and development expenditures without incurring significant debt. Also, in light of the recently announced acquisition of Encore, and our desire to protect our cash flows given the increased debt levels we expect in connection with the acquisition, in November2009 we entered into costless collar crude oil contracts covering 25,000 Bbls/d during 2011. All of the mark-to-market valuations used for our oil and natural gas derivative contracts are provided by external sources and are based on prices that are actively quoted. We manage and control market and counterparty credit risk through established internal control procedures that are reviewed on an ongoing basis. We attempt to minimize credit risk exposure to counterparties through formal credit policies, monitoring procedures and diversification. All of our derivative contracts are with parties that are lenders under our Senior Bank Loan. We have included an estimate of nonperformance risk in the fair value measurement of our derivative contracts as required by FASC guidance on fair value. At December31, 2009 and 2008, the fair value of our derivative contracts was reduced by $0.8million and $3.7million, respectively, for estimated nonperformance risk. The following is a summary of Commodity derivative income (expense), included in our Consolidated Statements of Operations: Year Ended December 31, In thousands 2009 2008 2007 Receipt (payment)on settlements of derivative contracts oil $ 146,734 $ (30,969 ) $ (9,833 ) Receipt (payment)on settlements of derivative contracts gas (26,584 ) 30,313 Fair value adjustments to derivative contracts income (expense) (382,960 ) 257,606 (39,077 ) Commodity derivative income (expense) $ (236,226 ) $ 200,053 $ (18,597 ) Fair Value of Commodity Derivative Contracts Not Classified as Hedging Instruments: Estimated Fair Value NYMEX Contract Prices Per Unit Asset (Liability)

Fair Value Measurements

Fair Value Measurements
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Value Measurements [Abstract]
Fair Value Measurements	Note 11. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best available information. Accordingly, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. We are able to classify fair value balances based on the observability of those inputs. The FASC establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement). The three levels of the fair value hierarchy are as follows: Level 1 Quoted prices in active markets for identical assets or liabilities as of the reporting date. For the years ended December31, 2009 and 2008, we had no level 1 recurring measurements. Level 2 Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category include non-exchange-traded oil and natural gas derivatives such as over-the-counter swaps. We have included an estimate of nonperformance risk in the fair value measurement of our oil and natural gas derivative contracts. We have measured nonperformance risk based upon credit default swaps or credit spreads. At December31, 2009 and 2008, the fair value of our oil and natural gas derivative contracts was reduced by $0.8million and $3.7million, respectively, for estimated nonperformance risk. Level 3 Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in managements best estimate of fair value. The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of

Commitments And Contingencies

Commitments And Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 12. Commitments and Contingencies We have operating leases for the rental of equipment, office space and vehicles that totaled $162.2million, $128.6million and $143.8million as of December31, 2009, 2008 and 2007, respectively. During the last seven years, we entered into lease financing agreements for equipment at certain of our oil and natural gas properties and CO2 source fields. These lease financings totaled $49.3million during 2009, $6.1million during 2008, and $27.1million during 2007 with associated required monthly payments of approximately $670,000 for the 2009 leases, $56,000 for the 2008 leases, and $257,000 for the 2007 leases. Leases entered into prior to 2006 have seven-year terms, leases entered into in 2006 through 2008 have 10-year terms, and leases entered into in 2009 have five to 10-year terms. Rental expense for operating leases totaled $37.6million in 2009, $32.3million in 2008, and $24.6million in 2007. We have subleased part of the office space where we have operating leases. The cash payments we will receive under these contracts total approximately $0.9million for 2010 through 2012. In 2005 and 2006, we entered into three agreements with Genesis to transport crude oil and CO2. These agreements are accounted for as capital leases and are discussed in detail in Note 3, Related Party Transactions-Genesis. In 2008, we entered into two transactions with Genesis involving our NEJD Pipeline system and Free State Pipeline, which included a long-term transportation service agreement for the Free State Pipeline and a 20-year financing lease for the NEJD Pipeline system. These two transactions are accounted for as financing leases and are discussed in detail in Note 3, Related Party Transactions-Genesis. At December31, 2009, long-term commitments for these items require the following future minimum rental payments: Pipeline Financing Capital Operating In thousands Leases Leases Leases 2010 $ 31,759 $ 1,974 $ 27,566 2011 33,205 1,974 26,621 2012 33,438 1,272 23,248 2013 33,518 700 20,544 2014 33,513 673 17,145 Thereafter 393,623 721 47,037 Total minimum lease payments 559,056 7,314 $ 162,161 Less: Amount representing interest (308,436 ) (1,366 ) Present value of minimum lease payments $ 250,620 $ 5,948 Long-term contracts require us to deliver CO2 to our industrial CO2 customers at various contracted prices, plus we have a CO2 delivery obligation to Genesis related to three CO2 volumetric production payments (VPPs) (see Note 3). Based upon the maximum amounts deliverable as stated in the industrial contracts and the volumetric production payments, we estimate that we may be obligated to deliver up to 433 Bcf of CO2 to these customers over the next 18years; however, since the group as a whole has historically purchased less CO2 than the maximum allowed in their contracts, based on the current level of deliverie

Supplemental Information

Supplemental Information
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Information [Abstract]
Supplemental Information	Note 13. Supplemental Information Significant Oil and Natural Gas Purchasers Oil and natural gas sales are made on a day-to-day basis or under short-term contracts at the current area market price. The loss of any purchaser would not be expected to have a material adverse effect upon our operations. For the year ended December31, 2009, two purchasers accounted for 10% or more of our oil and natural gas revenues: Marathon Petroleum Company LLC (52%) and Hunt Crude Oil Supply Co. (21%). For the year ended December31, 2008, we had three significant purchasers that each accounted for 10% or more of our oil and natural gas revenues: Marathon Petroleum Company LLC (49%), Hunt Crude Oil Supply Co. (20%) and Crosstex Energy Field Services Inc. (14%). For the year ended December31, 2007, three purchasers each accounted for 10% or more of our oil and natural gas revenues: Marathon Petroleum Company LLC (43%), Hunt Crude Oil Supply Co. (19%) and Crosstex Energy Field Services Inc. (16%). Accounts Payable and Accrued Liabilities December 31, In thousands 2009 2008 Accounts payable $ 40,140 $ 111,899 Accrued exploration and development costs 40,375 50,571 Accrued compensation 35,292 10,746 Accrued lease operating expense 14,512 10,014 Accrued interest 24,214 6,780 Taxes payable 5,358 6,282 Asset retirement obligations current 1,087 1,712 Other 8,896 4,629 Total $ 169,874 $ 202,633 Supplemental Cash Flow Information Year Ended December 31, In thousands, except shares 2009 2008 2007 Cash paid for interest, net of amounts capitalized $ 20,924 $ 26,997 $ 27,892 Cash paid for income taxes 241 70,349 10,277 Interest capitalized 68,596 29,161 20,385 Increase (decrease)in liabilities for capital expenditures (76,025 ) 59,183 (421 ) Common stock issued pursuant to Conroe Field Acquisition 168,723 Genesis common units received in lease financing 25,000 Market value of restricted stock issued $ 13,781 $ 8,749 $ 6,487 Shares of restricted stock issued 1,032,896 278,973 367,108

Condensed Consolidating Financi

Condensed Consolidating Financial Information
	12 Months Ended Dec. 31, 2009 USD / shares
Condensed Consolidating Financial Information [Abstract]
Condensed Consolidating Financial Information	Note 14. Condensed Consolidating Financial Information Our subordinated debt is fully and unconditionally guaranteed jointly and severally by all of Denbury Resources Inc.s subsidiaries other than minor subsidiaries, except that with respect to our $225million of 7.5% Senior Subordinated Notes due 2013, Denbury Resources Inc. and Denbury Onshore, LLC are co-obligors. Except as noted in the foregoing sentence, Denbury Resources Inc. is the sole issuer and Denbury Onshore, LLC is a subsidiary guarantor. The results of our equity interest in Genesis are reflected through the equity method by one of our subsidiaries, Denbury Gathering Marketing. Each subsidiary guarantor and the subsidiary co-obligor are 100% owned, directly or indirectly, by Denbury Resources Inc. The following is condensed consolidating financial information for Denbury Resources Inc., Denbury Onshore, LLC, and subsidiary guarantors: Condensed Consolidating Balance Sheets December 31, 2009 Denbury Denbury Resources Inc. Onshore, LLC Denbury (Parent and Co- (Issuer and Co- Guarantor Resources Inc. In thousands Obligor) Obligor) Subsidiaries Eliminations Consolidated Assets Current assets $ 637,334 $ 253,601 $ 20,718 $ (655,891 ) $ 255,762 Property and equipment 3,482,310 220,562 3,702,872 Investment in subsidiaries (equity method) 1,303,728 23,792 1,299,186 (2,551,689 ) 75,017 Other assets 746,442 225,938 6,078 (742,131 ) 236,327 Total assets $ 2,687,504 $ 3,985,641 $ 1,546,544 $ (3,949,711 ) $ 4,269,978 Liabilities and Stockholders Equity Current liabilities $ 14,827 $ 795,486 $ 239,368 $ (655,891 ) $ 393,790 Long-term liabilities 700,440 1,942,194 3,448 (742,131 ) 1,903,951 Stockholders equity 1,972,237 1,247,961 1,303,728 (2,551,689 ) 1,972,237 Total liabilities and stockholders equity $ 2,687,504 $ 3,985,641 $ 1,546,544 $ (3,949,711 ) $ 4,269,978 December 31, 2008 Denbury Denbury Resources Inc. Onshore, LLC Denbury (Parent and Co- (Issuer and Co- Guarantor Resources Inc. In thousands Obligor) Obligor) Subsidiaries Eliminations Consolidated Assets Current assets $ 458,051 $ 408,940 $ 14,992 $ (466,784 ) $ 415,199 Property and equipment 2,973,947 28,250 3,002,197 Investment in subsidiaries (equity method) 1,371,347 24,901 1,368,759 (2,685,003 ) 80,004 Other assets 312,239 89,471 899 (310,335 ) 92,274

Subsequent Event

Subsequent Event (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Subsequent Events (Unaudited) [Abstract]
Subsequent Events (Unaudited)	Note 15. Subsequent Events (Unaudited) Encore Merger On October31, 2009, the Company entered into a definitive merger agreement providing for Encore Acquisition Company (Encore) to merge with and into the Company. Under the terms of the definitive agreement, Encore stockholders will receive $50.00 per share for each share of Encore common stock, comprised of $15.00 in cash and $35.00 in Denbury common stock subject to both an election feature and a collar mechanism on the stock portion of the consideration. Consummation of the merger is subject to shareholder approval as well as other customary conditions. Denbury and Encore each scheduled March9, 2010 as the date for their respective upcoming special stockholder meetings, at which time shareholders will vote on, among other items, the merger of Encore with and into Denbury. New Senior Subordinated Notes On February10, 2010, Denbury issued $1.0billion of 8.25% Senior Subordinated Notes due 2020 (2020 Notes). The 2020 Notes, which carry a coupon rate of 8.25%, were sold at par. The net proceeds of approximately $980million were deposited into escrow. If the merger with Encore does not occur on or prior to May31, 2010, or if the merger agreement is terminated at any time, we will be required to redeem the 8.25% Senior Subordinated Notes at 100% of par, plus accrued and unpaid interest. After the merger, to the extent that fewer than $600.0million principal amount of Encore senior subordinated notes are tendered for repurchase by August1, 2010, we will be required to redeem an amount of the 2020 Notes equal to such shortfall. The 2020 Notes mature on February15, 2020, and interest is payable on February15 and August 15 of each year, beginning August15, 2010. We may redeem the 2020 Notes in whole or in part at our option beginning February15, 2015, at the following redemption prices: 104.125% after February 15, 2015, 102.75% after February15, 2016, 101.375% after February15, 2017, and 100% after February15, 2018. Prior to February15, 2013, we may at our option redeem up to an aggregate of 35% of the principal amount of the 2020 Notes at a price of 108.25% with the proceeds of certain equity offerings. In addition, at any time prior to February15, 2015, we may redeem 100% of the principal amount of the 2020 Notes at a price equal to 100% of the principal amount plus a make whole premium and accrued and unpaid interest. The indenture contains certain restrictions on our ability to incur additional debt, pay dividends on our common stock, make investments, create liens on our assets, engage in transactions with our affiliates, transfer or sell assets, consolidate or merge, or sell substantially all of our assets. The 2020 Notes are not subject to any sinking fund requirements. All of our significant subsidiaries fully and unconditionally guarantee this debt. Newly Committed Credit Facility On October31, 2009, Denbury received a financing commitment from JP Morgan, subject to customary conditions, to underwrite a new senior secured revolving credit facility. The newly committed credit facility, together with the proceeds from the 8.25% Senior Subordinated Notes, will be

Supplemental Oil And Natural Ga

Supplemental Oil And Natural Gas Disclosures (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Oil and Natural Gas Disclosures (Unaudited) [Abstract]
Supplemental Oil and Natural Gas Disclosures (Unaudited)	Note 16. Supplemental Oil and Natural Gas Disclosures (Unaudited) Costs Incurred The following table summarizes costs incurred and capitalized in oil and natural gas property acquisition, exploration and development activities. Property acquisition costs are those costs incurred to purchase, lease, or otherwise acquire property, including both undeveloped leasehold and the purchase of reserves in place. Exploration costs include costs of identifying areas that may warrant examination and examining specific areas that are considered to have prospects containing oil and natural gas reserves, including costs of drilling exploratory wells, geological and geophysical costs and carrying costs on undeveloped properties. Development costs are incurred to obtain access to proved reserves, including the cost of drilling development wells, and to provide facilities for extracting, treating, gathering and storing the oil and natural gas, and the cost of improved recovery systems. The Company capitalizes interest on unevaluated oil and gas properties that have ongoing development activities. Included in the costs incurred below are capitalized interest of $14.3 million in 2009, $17.6million in 2008 and $18.3million in 2007. Costs incurred also include new asset retirement obligations established, as well as changes to asset retirement obligations resulting from revisions in cost estimates or abandonment dates. Asset retirement obligations included in the table below were $11.2million in 2009, $5.8million in 2008 and $7.5million in 2007 (see Note 4, Asset Retirement Obligations). Costs incurred in oil and natural gas activities were as follows: Year Ended December 31, In thousands 2009 2008 2007 Property acquisitions: Proved $ 585,637 $ 32,781 $ 15,531 Unevaluated 104,772 16,129 60,079 Exploration 4,635 5,710 42,726 Development 292,545 575,947 553,315 Total costs incurred (1) $ 987,589 $ 630,567 $ 671,651 (1) Capitalized general and administrative costs that directly relate to exploration and development activities were $14.0 million, $12.5 million and $10.3million for the years ended December31, 2009, 2008, 2007, respectively. Oil and Natural Gas Operating Results Results of operations from oil and natural gas producing activities, excluding corporate overhead and interest costs, were as follows: Year Ended December 31, In thousands, except per BOE data 2009 2008 2007 Oil, natural gas and related product sales $ 866,709 $ 1,347,010 $ 952,788 Lease operating costs 326,132 307,550 230,932 Production taxes and marketing expenses 42,484 63,752 49,091 Depletion, depreciation and amortization 206,999 195,839 177,333 CO2 depletion, depreciation and amortization (1) 29,076 16,771 9,403 Write-down of oil and natural gas properties 226,000 Commodity derivative expense (income) 236,2

Unaudited Quarterly Information

Unaudited Quarterly Information
	12 Months Ended Dec. 31, 2009 USD / shares
Unaudited Quarterly Information [Abstract]
Unaudited Quarterly Information	Note 17. Unaudited Quarterly Information In thousands, except per share amounts March 31 June 30 September 30 December 31 2009 Revenues $ 171,821 $ 215,362 $ 225,415 $ 269,895 Expenses(1) 202,734 358,060 185,987 264,558 Net income (loss) (18,297 ) (87,240 ) 26,885 3,496 Net income (loss)per share: Basic (0.07 ) (0.35 ) 0.11 0.01 Diluted (0.07 ) (0.35 ) 0.11 0.01 Cash flow from operations 112,619 148,170 145,645 124,165 Cash flow used for investing activities(2) (509,539 ) (65,301 ) (161,550 ) (233,324 ) Cash flow provided by (used for) financing activities(3) 398,058 (41,117 ) (22,365 ) 108,061 2008 Revenues $ 317,255 $ 417,049 $ 407,474 $ 223,924 Expenses(4) 201,446 234,310 156,537 154,535 Net income 73,002 114,053 157,548 43,793 Net income per share: Basic 0.30 0.47 0.64 0.18 Diluted 0.29 0.45 0.63 0.18 Cash flow from operations 206,257 164,072 262,442 141,748 Cash flow used for investing activities(5) (163,688 ) (218,384 ) (235,605 ) (376,982 ) Cash flow provided by (used for) financing activities(6) (28,637 ) 127,282 1,464 76,993 (1) Includes commodity derivative expense (income)of $20.5million during the first quarter of 2009, $152.8million during the second quarter of 2009, $3.7million during the third quarter of 2009, and $59.2million during the fourth quarter of 2009. Also includes expenses related to the incentive compensation awards for the management of Genesis in the amount of $14.2million in 2009 (see Note 3, Related Party Transactions Genesis.). In June2009, we expensed a $10.0million ($3.65 million in cash and $6.35million of the Companys 9.75% Senior Subordinated Notes due 2016) compensation charge associated with retirement of Gareth Roberts as CEO and President of the Company. During the fourth quarter of 2009, we incurred $8.7million in expenses related to the Encore acquisition (see Note 2, Acquisitions and Divestitures.) (2) During the first quarter of 2009, we made cash payments of approximately $197.9million associated with the Hasting Field Acquisition. During June and July of 2009, we received cash payments of approximately $197.5million and $62.3million, respectively, for the sale of 60% of our Barnett Shale natural gas assets. During the fourth quarter of 2009, we received cash payments of approximately $210.0million for the sale of our remaining 40% interests in our Barnett Shale natural gas assets. During the fourth quarter of 2009, we acquired Conroe Field for a cash payment of approximately $254.2million and 11,620,000 shares of Denbury common stock (see Note 2, Acquisitions and Divestitures.) (3) In the first quarter of 2009, we iss