DEN - Earnings call transcript Q2 2021

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Operator

Good day, ladies and gentlemen and welcome to Denbury's Second Quarter 2021 Results Conference Call. My name is Garel, and I will be your operator for today's call. [Operator instructions] I would now like to turn the conference call over to your host for today's call, Brad Whitmarsh, Head of Investor Relations, you may begin.

Brad Whitmarsh

Good morning, everyone and thank you for joining us today. I hope you've had a chance to review our earnings release and supporting materials that we released this morning. our as denbury.com remarks. we on reference we available slides certain make are website and at may They our prepared want on that statements everyone reasonable to will We forward-looking include information. today's that best our call based and most are remind numerous actual to There from factors differ call. could on discussed is today's that materially cause are results what

today's filings the Chris. non-GAAP With can and news most well. of these associated with release disclosure factors course measures call, read the Reconciliation to to and risk as our Also, supplement that, the we release. I'll our will You certain news relative today's presentation, business today's and full slides in measures. turn reference please statements is recent the during today's in disclosures SEC provided on over and forward-looking that accompanying call our note

Chris Kendall

the employees, also for here want well all and thanks our you work SVP want for families Dahan, well as that Matt healthy. to update you an be of and I everyone I of will contractors, of provide leader the morning then I begin year. the Good will you Brad. your quarter Q&A our vendors Mark, results that on in of off Carbon Operations have outlook second the my to all and year. and our call our hard with David wishing by our say start excited call. Thanks our comments business. to the joining today overview Technology and Development of remainder followed I'm and this your will who making an and thank to portion us review call. are today’s and SVP by the Denbury business hoping for to Nik on Sheppard, Business Solutions we're for are update Wood, of the on great an progress Denbury provide

focus intense the track an your performance. You on on have safety another company efforts, kept remains record through for of and year

scaled as update would a CCUS role provide in CCUS provide will industry. CCUS as I in to only nearly its potential Recent of and The has CCUS capacity has that our and is the on for CCUS Linden targeted today. year is particularly mitigate meet a widely it CCUS more XXXX, as industrial business, that the I emissions. show recognized Solar COX exciting industrial Nik recognized for working is It mitigating progressed. see to increased being utilizes improve opportunity only most well. this to emissions exists confidence With While, we the legislation My grown to support, incentives captured XXX-fold projections by reduction global today in in detailed massively increase volumes. second to needs can carbon emissions. Congress be technology bipartisan the targets. important few is CCUS have thoughts Denbury’s on of to like in

asked how is play well frequently be see future EOR key We this I EOR I fields. volume can that the COX of because captured COX majority EOR, of what will likely primarily is injected into believe be be sequestered of outside the to industrial greater captured far than very at and exciting CCUS. and in are extremely role. time of positioned Over industry the role to a time, Denbury I’m a

CCUS element sequestration industry development innings. these infrastructure be that evaluating we potential injected that Denbury’s especially big sites early into are As than of billion U.S. a will one more said, the critical successful to fields example, storage XXX volume the million while is the more estimated along tons. that in is the can in COX for our tons, non-EOR being be EOR an EOR volume That the number than a

and barrels we describe each our one, believe These oil, transition timeframe two three are industrial is today will recently expert provides barrel sequestration. offtake customers to working partners leases, this while more second sequestration. This EOR third-party we we pursue am the us carbon when are flexibility to COX sanctioned unique X quarter, in over permits that capture time. pricing an our the that that to XX% and carbon for for oil. initiated are EOR non-EOR the ultimately with agreements provide both foremost, COX. the and and emissions. produce regulations. flexibility will oil, our with project for source accounted to under our production. intensity And approval operations, oil in that blue transition for shorten pathway certainty to I negative position In blue oil, Class near premium energy total the to I negative other injecting our a EOR the fuel. important with sanction combined utilize be and confident existing scope of to use oil to CCUS COX we First To for of confidence blue of carbon potential term to a credits barrel’s gives then a term them this projects help providing off-take for we this be projects And permitting verify the non-EOR resource, option only sequestration and In

continue recycling XX there continued and plus as space CCUS. managing operations, to three we close and for Our process annually, XX times this another energy transition. as not our of to metric, U.S. EOR, captured the years in company million positioned Denbury each of COX for that currently well, amount sustained COX Through in positions the expertise relevance COX be Denbury and to leader through the nearly is injection tons year in extensive believe COX a I

remainder few and the year. accomplishments the I'll year-to-date highlight focus our a Next, for of

sites by CCUS deals the sequestration First, for business, for end to year. track reach transportation announce of well on on as the and storage, are as the and we the

then number growth the excited moment, scale company. will this color more incredibly my desk of hear for You'll agreement, crossing our drafts opportunity they me and in progressing, are negotiations how makes significant value these from of Nik about highlight a but and both

we're strong through commodity which flow operational environment the improved price quarter. enhanced execution, Second in solid generating our an by second cash was

Our teams and projects that which Oyster will and great recent the executing into a job benefit Bayou done have of in Tinsley, year the half next second year. production

progressing for barrels CCA will total progress generate times than recovery with Third, on planned injection means reserves. great from of we're carbon for Denbury’s the more the decades XXX development and EOR the in use first two production immense that XXX flow budget making COX business total and our the first strong with COX of is all project late half year. I current flagships in of project. extension will resource of as This development our CCA of potential oil. next source expected million industrial the Installation over that Pipeline Greencore positioning be this negative is completion proved on a our the COX expect blue fourth cash us mile quarter,

industry. now report by Finally, a I'll expect more quarter. Denbury we you. you what encourage learn to XXXX it end through out and over as read XXXX to I sustainability turn about differentiates story to the available Mark the to when the have unique ESG within the of our report

Mark Allen

of comment provide the remainder review year. quarter Chris. of a Denbury’s our results Thanks, on And for Today everyone. and for I'll good the the outlook morning,

changes compared As Chris changes, oil our assisted had great adjusted derivatives to by fair diluted share. net share, loss a the the we've as in commodity the start operational the of $X.XX income or mentioned, was net primarily quarter in $XX with a or $XX $X.XX adjusting million to After million GAAP per very a diluted value XXXX for for per strong mark-to-market improvement execution of prices. impact

price the the guided competing up in share fully XX.X and it quarter. shares per vary changes share second for share the share to The quarter for low-to-mid-XXs during dilutive diluted adjusted than Series B the Our count our will has prices with A our previously impact which higher our in exercised due ended warrants, price. in used million that's earnings increase totaled we

our this recommend other year. full million our Field. the in use due Tinsley oil capital Oyster per producing was Production third Approximately supported or cash Conroe of March winter primarily adjusted the in share well, downtime the XX,XXX quarter, in million quarter was the rates for income $XX million one I behind progressing the related spend contribution price assets X various production in and and is by XX up volumes or and due River projects, million was million Basin $XX changes the production. levels, quarter, averaged now is incurred the day, with projects. Greencore Creek higher this expectations equivalent capital first this the of capital quarter development to Phase Field of Bell above quarter, range working Revenues up now, development count and the oil realizations the CCA second were is from for to response year volumes. expected and X% $XX pipeline a in COX you Operating at and excess from associated a of For quarter. from including unplanned first related slower-than-expected Phase X Conroe and to at XX to for that a flow nicely the year. XX% Bayou currently highest at quarter barrels and EOR development Production extension, remaining strong second second its storms quarter's the of in that would the slightly acquired diluted production the half Wind at to reduced first early capital

$XX compared $XX improved resulting realized $XX price to pre-hedge on our second a compared barrel we over post in realized to barrel last per per hedge oil last barrel quarter, $XX.XX paid the quarter. price hedges, quarter. per oil price out $XX barrel per Our In of to oil million just

higher in in do We and we cash with Lease are likely hedges aware, participation. favorable was million half the at workover to result have upside increase a million our power of benefit with today's as in Basin in you full nonrecurring operating quarter winter Uri. hedging the of to the last facility new a BOE. oil provide and quarter, COX requirements XXXX some costs after not the a and acquisition and of connection Around expectations in about year, with last impact in $XX of River XX% COX the to oil due first disruption split curtailment price ongoing quarter's than expenses $XX.XX on due XXXX, is for September the to quarter entered first the additional the Wind facility The COX both credit the were March, as increase injection $XX our hedges higher price. expense storm have credit totaled was our impact LOE and considering per flow prices. the line and first quarter remainder of which significant have $XX or winter in the LOE by higher required certain during costs. volumes caused higher million for our our made at between from costs banks in are place This storms has million into under fields, As $XXX more injection we

in get BOE, in the $XX pre-hedge level sequential margin of of we typically over operating per cash quarter. costs. increase the the from our into Even an XX% the workover increases, with first uplift As higher workover months, warmer increased activity resulting LOE,

end with together flow, increased down cash in facility quarter prior strengthened the the sale the total of Draw acreage sheet from million, including proceeds the XX, our at undeveloped field, hand operating XX% further the to second company's strong Hartzog quarter. million of quarter. cash available credit Financial on was June balance At the from $XX $XX $XXX debt of and million, borrowings. liquidity cash Our second

I make of outlook few on for a additional the comments the our will year. remainder Now

year to Creek day, X in We quarter. to of Bell second with average Phase fourth oil variety Volumes to per are and expected expecting as quarter Oyster expected than slightly Bayou increase well production projects. production projects, including of Tinsley from third higher our around of a half equivalent the the the be as barrels are XX,XXX

to pricing Gulf by differentials to the has to For an WTI, the recent expect of average driven Coast correlating the relative below out WTI, WTI $X.XX second half of primarily to tightening spread. all the year, been which of our we weaker with $X price widen

quarters have being with expect the we midyear, year, half million $XXX fourth Consistent through and front, capital our to the of the On our $XX budget. relatively with third the $XXX capital increase million development of significantly plan, incurred equal. to in million second we

As COX primarily and CCA extension, a which the half development reminder, approximately XX% budget pipeline relates Greencore of second spend. project is to our associated EOR

the to price, BOE we the of for of commodity year half currently on projects guidance based to oil higher remains we economics. that expect with levels for XXXX, and $XX $XX activity in although full Our the have anticipated range LOE prices. workover today's many upper in great be per At range

We expect workover preventative quarter, third the quarter higher more and LOE somewhat but the than be including maintenance quarter fourth the to third projects.

came depreciation depletion, Our as in XX-month with reserves the our amortization and in oil the than increased expense lower improvement oil projected price. trailing

be year, per expect $XX be quarter. with other to All our consistent of in levels expected we items the For expense range million relatively to the remainder quarter DDA $XX of second are forward. cost to the going million

development the for I'll potential be opportunities available hand anticipate growth of for us pipeline This CCUS. as to of plenty and to expansion, create with potential an update sheet place business. various more CCUS, other even capacity balance an the value strong and exceptionally storage an attractive CCUS massive Nik? liquidity. it COX we is Nik ahead the have in off including now to We on

Nik Wood

It's team's our great the on progress. exciting to call today Mark. Thanks, of some share be to

five the of Denbury. time And our for on strategic quarter, and sites have Over spend on with COX agreements value been securing I'll we of past storage transportation most drive will along that emitters. believe second, my focused them, we infrastructure. intensely tremendous negotiating first, sequestration service two priorities today

carbon negotiations both credits Congress. contemplated of see the with in and like of many significant capture the pace and levels, said that, believe not amount potential discussions our for there if at end looking several share sooner. Congress at that current of XXQ take with being capture, by I'm current processing. while Chris of parties. for both for these XXQ on incredible natural pricing have advancing We on mentioned currently gas is will I credits about and or remitters, lower and the fronts we year, improve able are higher emissions. products an the our receive hydrogen, capture potential customers scale processes of place biofuels premium future incentives produce capture the potential primarily ethanol, Many we cost massively will to of expanding confident to multiple other progress be capturing will and ammonia, the we volumes the information made deals Having by the with

see also beyond economics. significant We motivation

with To For through on made some, operate, in is are to XX capture particularly a necessity engaged emitters reduce These carbon representing we deals in to significantly to be long-term year. range. tons COX our carbon continue to following XX have XX-year the COX XX color different capture some than to exceeding nature, footprint. on per commitments discussions, in going negotiations million volumes their more generally are provide currently they

capture installing be will with on projects parties others greenfield these capture. of planning carbon equipment are operations, existing Some while

provides system customer. to the of our facility takeaway existing side, the security immediacy On and

to This end potentially I exposure the we markets. is is diversity and a today, partner. think Denbury their and we participate existing access about gaining both are in to believe build solution, can new COX. and to scale. an the carbon significant along sets low in the combination have emissions storage a existing of significant optimal transport cases, our customers location to core with take presence key plant to any ideal as that facilities the customer We where with system opening assets, the and expertise get strategic beyond door and of skill where clear With capability is in storing of that market. EOR select the In generate provides value advantage our products pipeline services, [indiscernible] the when projects to ability EOR managing And security, reliability having takeaway, only some products to storage ready. in our benefit as see soon We opportunities operation can this the easy experience,

abundance side, sequestration opportunity. see the I an On of

scale, on storage, our of sites our and proximity providing of focused infrastructure, customers. certainty diversity necessary are reliability to in building thus We a storage portfolio close to

us team network. extensive Our Meanwhile, pipeline system the expansion will with ensure and efficiency demand. options allowing a storage the optimize continues substantial market goal our while to our we provide to to Coast, Gulf plan that in multiple capacity with pipeline for of can takeaway match the future

assets And that are with ideal volumes their of win-win with I'm our monitoring sequestration potential substantial Carbon We We storage negotiations than the we'd in experience open from in currently estimated solutions can tons. COX safely, total be them grow to one representing engaged an XXX emissions. billion creating and discussions tons years, from Denbury great and questions. XX million call that storage on Operator, over to over sites what ideal combined industry help more of build will injecting our I handling, with I fields, I'd confident coming start and we underground. started provide place CCUS emphasize Solutions for and We COX deep for like in highly will partners Denbury. in customers. of in EOR shareholders. up, significantly reliably value creating amazing think the now to our Wrapping significant like that reduce storage great have opportunity for level is confident am an to

Operator

from with your Thank the you. Please line questions. [Operator Instructions] KeyBanc. first Our Mariani of with comes question Leo proceed

Chris Kendall

Good morning, Leo.

Leo Mariani

a As of sounds lot I irons confidence lot little just getting here. wanted can have get carbon on of Hey, sense, announced it expected, a the around bit a in I a here. how move kind to you? are mean things sensing of I fire, capture you like

sizes of Is the of you on couple folks? a of think of injected on could the we whether EOR of some lot years idea transport? generally just out kind sequestration all kind would permitted million of you're of Are And some how you play annum to COX something the to to in of a is terms if bit you buying on? kind of to deal you that tons the volumes would timeline deals these And a kind right off talking were to can for what size EOR little to least of customers fully per off the are of when think you of and sites those you get to for into few you taking terms talk sequestration? sign you from of any customers in and just Just potential expect can at into a operational? kind talking when indications for And transport that buying not you new COX? transition first then permanent some of of later talk get year, waiting or say this deals do eventually the are think these more for that away

Chris Kendall

ask to Leo. Definitely to we're the bet, that your feeling exactly I'm it. questions about agreements. going on excited ask this progression bit right your thoughts a about You with Nik just asked. would seeing and I the I'll on we're you his how answer of And questions. that the set say specifics to is share of perception specific on Nik

Nik Wood

Nik. the Hi, Thanks this Leo, question. Sure. is for

will have first. move site. generally, to to to of of different COX would to this or a solid. year. the option sequestration, EOR say have time moving different COX wide generally evaluations emitters, a sequestration. look directly five in sequestration, of what need to timing volumes it to taking we each lot EOR place the early very In pure on early first pure it's sites, sites generally get are that in good to open evaluating three-year there's though amount tons into we've to million we sites acquire early. get it bring containment or When of on. And confidence comes decision, wanting steps in. of about I will the final one to per these see we terms we on to based variety When to to to capital go that from sequestration frame into is to through as lot that time Even million that the about But to sites, additional from some going is spent the have for to a containment to these are technical a our be actual invest injection two take of to further comes ranging in the EOR emissions a sites, groups the high is verify very into sites these And one our going investment And a want each

sites that so lead we permits, in that forward years. answered And able in these to two which or doing being parallel three then with the inject to look questions. to I will getting us about the classic hope in

Leo Mariani

on seeing in for that sites on competitive for sense And maybe of these the as to get that No, in choice both or are talk of deals right you to? infrastructure of I of guess that and was the transport wealth could are really storage. a these really you given discussions competition advantages of color kind as little of permanent to obvious terms parties talking a storage on a partner experience parties just landscape Denbury as that hone good folks COX? bit players the starting in Do in the more well the different you're sort just to the sure. and various then you're what talking you're lot of XX just

Chris Kendall

have. positive, that and the to will with different lot combination I the be of a to we is competition there, this would about room I take magnitude think I'll equation competition out experience there. work as certainly, people specifically of interest. will although of you, this there of Leo, you a for interest. say of take you're I'll level that as the in I view assets that one. is A the CCUS in that plenty what of is And There do lot tell a nature, just Yes, different the Chris. brings it Denbury just right be. described space. And of something

just to so bring potential site ability to good their into And bring infrastructure from storage, example we're mentioned the big when and storage range areas. of is, as talking a able we're a to you to on geography gather COX owners, the

advantage there's and that through So honestly, I And gives competition, on I plays not I put as say that transportation the think being is think not we able there not a advantage. going advantage the that EOR that and immediacy there's that an up. us to work definitely well. COX be think what leg to And have into to another but to have, of through the classic permits storage

those in us we All good happen. we to this puts a of but put hard together to all need make work place, still know

Leo Mariani

And would lastly, do on nearing allowed serious maybe guys Okay. That's one-year of balance the I to of guys. bankruptcy. you you Are consideration give helpful, your sheet, to are you capital of September starting in kind returning be anniversary guys very strength I to given think which exit think now? the the just more

Mark Allen

coming definitely Yes, prohibited we're noted, that. Leo, buybacks looking at. for first credit those of type our facility any this take restructuring, is of year things. Mark. or dividends I'll the you've it's doing as we're from bank out or something And

and out accumulator kind as doing cash evaluate And and Beyond on flow we say, sure what year for this element. we what we that, that round want if on for of make growth significant it's front, well some think are I opportunities capital a there's as have so we provide there's related, at and we that the meet, to a to that storage front. as be we're do looking this next we see CCUS, might likely year, I'd

the and think to top So be and able this more we'll But things we bit more. how together, that of of I a work see as through about mind. come, year talk that's come definitely something rest to

Leo Mariani

you. Thank

Operator

Thank you.

next question proceed Scialla the with line questions. of Stifel. Michael with your comes from Our Please

Michael Scialla

guys. good Hey, morning,

Chris Kendall

Good morning, Mike.

Michael Scialla

doing would of or have for, of When taking negotiation Green Green be line, what all potential on with COX capacity line, pumping to that that timeframe are be that the the in is you for for given stations? line? some than on what more least expansion you're expansion you stage looping done you've, the more And at thinking entail going about the just could the

Nik Wood

the next Hi, which through additional when of to we where it that that naturally COX about through when to sequence we I in Michael. mostly also years that will up just first thing it capital off actually want by capacity Nik. When on, we'll add and of a introducing that in with we be to ample COX have those the we expansion, comes take in line, additional COX comes online additional the these proximity. and that Talking can to useful you early expand the bring line emissions through becoming on comes comes line, the those of take add have When that line, line. having question. Green Green to on remind kind as will stations couple the our close we is line, it be stepping introduce This the pump capital to the to I here emitters. to additional want now reiterate capacity I'll actually is placement see right to it to COX lines

capital we'll chunks able sites. to emitter There time make them be to time. store adds So an where us our over it be have I'll that in to we but loops where expansion to they'll will which distribute of get to small the will loops, some small our line line, ability very call kind step as probably from line probably relatively be is some we through

Michael Scialla

to pipeline, of thinking sites. Got what at offshore offshore infrastructure have What any it. kind so That's You would are helpful. of And that you mentioned you're guys there? about storage sense a don't get obviously looking require? I you wanted

Chris Kendall

we and has and And from and You we're of Obviously, But additional progress looking we're coastline. gas both development we've and cost, looked both this that sites as some going we're sense is past here, being them there those see this makes for infrastructure structures Nik advantages at offshore. pursuing and disadvantages. space And least to so the good and as in to point, talking see the particular as we we options, for some and also across oil example. that waters, just Generally onshore ownership, progressing see state but those. shore, build that bet, we each Mike. onshore just most along good And but as We that at about. we some well, portfolio in also example simplicity work think was and the at there. offshore, those, good one onshore along to closer offshore the there's network think

Michael Scialla

your Chris, on require, acquire guess greenfield you convert transportation line? be be to and would that to I able would to Would part? a able Or that some COX pipeline something

Chris Kendall

It pressure like could COX at class a Mike. we which a XXX to either higher critical super the in lines, phase. run the and move be enhance Generally, keep COX

you near the too the out of think And, shore the, Coast from coastline not pipeline into about jumping the along is If the so where far it's is, there. not far. too green most Gulf

ways. well. at from do I way, existing think that's think the But along any primary at I other infrastructure so alternatives that looking as our it both And we're choice. you look

Michael Scialla

was, of to down gave Okay. to on going going you trying us that second where little down, it's that fourth I in or is than to how the know but back third And on quarter that. be with given it’s quarter. be detail a quickly the some you that bit detail more Mark, said don’t are LOE, last think given quarter the to going – step me to first higher get to workovers, And going I one kind for quarter

David Sheppard

this appreciate David is operations. it. looking that Sheppard, thing It’s question. I'll They're a Michael I at take the true

through be that out Now, calls if able historically up by LOE start with demand, we back is something and been as LOE the prices business. you down Tom, needs just saying to And too, may well. also, I'll commodity flex and business actively manage, look our we've to through as

year, make investment were in in you running to now obviously to LOE quality oil that has mentioned quite bring decisions a a XX capture XXXX, Right to time elective making really them not active us specifically. as And the few in year, that XX conditions. projects top the oil we're able barrels down we price recently now. with Just of This price all. rig top workovers some over that value to substantially, there climbed upwards LOE, all high margin once make last those running were able presenting rigs as market we at this good barely work decisions we're again, is right dial

a bit CCA the the going our there, coming end back of they're down as by barrels coming XX long well, Thinking first in of ebb the or incremental those about price into even our in About pipeline XXX% in more future are the flow oil too, $XX production active start bit the it watch little decisions range, source And half investments we'll year, COX to we As a They're into mix be be you see little well. top project injection later, to back now project, and XXXX. going they're to there as a the COX lower to the injection to that choose industrial dial going lifting of $XX installing question we're complete start those half there. cost. XXXX, much we throes at right as BOE no system, some ask months we we're make range. our through

really now, if that the A will well. I'm that too, about influence to $X in lifting the of cost as replacing industrial I in has we that sourced years sourced business, So our for wind excited naturally throughout timeframe. on restructured with across average contracts, as been our across And you help aggregated COX, our business. company in focus barrel just look time. overall lot about particular, COX that the cost expect CCUS see fall And up out a business prices COX right those materially

Michael Scialla

good. Thank you. Very

Operator

Thank you.

from with Tullis next Our your comes question of Capital questions. the Richard with line Please One. proceed

Richard Tullis

Thank morning, you. Good everyone.

Chris Kendall

Good morning, Richard.

Richard Tullis

cost ongoing or this Nik those cost trying available probably the a one, you plus negotiations along you the I lower of some now, of breakeven captured Gulf CapEx expected But ton OpEx sense of to Coast. with Chris. targeted speaking morning, some with with? lot of the your Chris Maybe of a for COX are and projects. the emitters as start get just what's range go emitters, rough ranges know the for for breakeven you're per Good through those

Chris Kendall

already first with about I'll I You it, way, certainly like, Richard, start great bet even But a the think, guess think about of great that. made look would I this start. have infrastructure when we're early the we the of investment all, of pipeline having a lot a what breakeven so in is the that this advantage days on we storage. on particularly

for infrastructure rate capital see balance least it standpoint, emitters, the on that at in seen National business. their we've there that But out revenues sense I'd stores we good. essentially return seem have the for helps really we look to numbers of think make study. way much cover And to how at CCUS at place the what with very those I transporters which are and forward their we're the when what Council line think are say out. reasonable make a now, the look Those and But we have breakeven that OpEx. and is that from they for MPC sense looking So, in we a in and numbers would Petroleum investments

Richard Tullis

option a the help Okay. project potential Denbury No, some the that some decisions, on along that's thoughts move possibly And potentially is point? sharing helpful. Denbury in of costs this initially, at CapEx for of

Chris Kendall

to as validation a about that about. work testing into look and sites Yes, needing some potentially year, as that we next I Mark we bit think start the get of Nik ahead towards some of years as talked storage capital even the talked into we

help capital next off. some that this that need I off what then growing thing of looking this very say very comes, we great, need certainly as there's see good. price I ESG-focused oil to that healthy time Along there. that to the And roll don't will way, have any continue is, can sources help spin as I year, EOR some environment, shortage current I One think, we'll that in business. will base Richard investments, we'll you especially that business cash, along levels. have I hedges is additional So pretty imagine develops, more this these to And think beginning just about about. think capital needs would when could to that these that When the think we're build going

Richard Tullis

days, it capture? or mentioned. Thank Do as agreements you're years do transportation transportation able do play skew as you see out year of will a know to you the this significant think you it's what over go? you. I toward in only, just But early next more as far kind two will storage think you play how and still or component plus

Chris Kendall

You bet.

be For us, that I transportation will piece think the the one. and storage really Richard greatest

looking be about to want of handled think that. capture can If the and these to have we and can a think emitters they you of the in their want solution. are what of provide security that they They nature I the them And in ways for, long-term want storage storage. confident they the reliability emissions, all

is transportation-only takes expectation say skewed of that the to but see think goes have I it that not be way. the we on where the what Denbury away agreements, as time my that be the the would again. emitter gate and that it some to one type say the COX at wouldn't I'd be would plant That's about that so it to And never takes has majority

Richard Tullis

they parties what of it are XXQ for spoken like waiting some higher XXQ a me actually a it's kind decision lastly, of roughly you've those, sort forward? already, the just or of think to And many do you sounds on maybe percentage number. right. with All move where good require and with How with

Chris Kendall

they're to folks are Richard, not talking us. today to I'll I why tell you, think, we're the talking waiting. That's

a a mentioned earlier. reasons the of of that all for focus enthusiasm, is there lot Nik so of lot And

And happen so do Washington that just and then I know what there's about XXQ of that levels. gas so is. And fired just think we're I see we'll in chance what higher we're coal a new excited extensively that talked talking I magnitude good different think the about that of it's right that steelmaking, that at being on. now. brings emitters a power, whole it's to, wave will whether power, is Richard

not the I think ones to in the waiting. And bringing the think scale whole there, more are So folks the wings certainly it's I just that now, equation. we're talking they're who to

Richard Tullis

I That's Thanks bunch, a appreciate Chris. it. helpful.

Chris Kendall

Richard. you, Thank

Operator

the to any are There like Whitmarsh questions call you. no to Thank at back Brad further this hand over I'd comments. for time. closing

Brad Whitmarsh

all a are And us joining hope through everybody Sure. the there. summer. you We got appreciate questions today. having great We

We'd If you. love don't you please, reach out with and Susan to myself. connect have follow-on, to hesitate to Thanks. any

Operator

today's Thank your teleconference. does for participation. Thank you. conclude That you

your great a You may disconnect lines time. Have day. at this

Brad Whitmarsh	Head-Investor Relations
Chris Kendall	President and Chief Executive Officer
Mark Allen	Executive Vice President, Chief Financial Officer, Treasurer and Assistant Secretary
Nik Wood	Senior Vice President-CCUS
David Sheppard	Senior Vice President-Operations
Leo Mariani	KeyBanc
Michael Scialla	Stifel
Richard Tullis	Capital One

Denbury (DNRWW) 6 Aug 212021 Q2 Earnings call transcript