- Earnings call transcript Q3 2022

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Operator

Good day ladies and gentlemen and welcome to Denbury's Third Quarter 2022 Results Conference Call. My name is Glenn and I will be your moderator 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. Please proceed sir.

Brad Whitmarsh

Good morning, everyone and thank you for joining us today.

we've and news earnings this week significant two release. last agreements CCUS morning the issued releases: three announcing Over our QX in at denbury.com. I review that a had available the all are website hope materials supporting our chance on earnings you've them to again third flow expectations. for strong the as generated were quarter Results strong very we cash above I remind everyone most forward-looking based are that best want that and include to on information. reasonable statements today's call our will materially cause There is from are differ that results what could on actual numerous call. today's discussed to factors

in can on non-GAAP Mark of release. and You news our COO; the call today's forward-looking Chris. and call today's Reconciliation the come and that recent accompanying well. all read measures. the today's most reference relative Kendall, will disclosure With as Carbon and course Development today's in of and SVP Also measures Chris President Matt with to we participate morning may here associated please to statements SEC our full filings these our presentation note disclosures risk the CFO; that are Q&A. is certain business comments slides I'll the factors prepared provided Solutions; Dahan Allen, over of This our earnings turn Wood, SVP release Business and Technology to David CEO; from in Nik Sheppard, during

Chris Kendall

hard we end already are It's believe in closing to morning. XXXX. of the good in and and on Brad Thanks November

XXXX the And This and outlook be have then back business I'll touch I'll may we could on remainder the transformational As with now opening for quarter overview of I year highlights the by the and Denbury. our impactful with that brief a for finish morning call just this begin the looking be. outlook. Starting quarter how the our questions. begin some underestimated of and a we'll believe year mentioned year for I would I

keep we've our continued First people to and foremost safe.

delivered metrics nurturing of efforts and our fantastic very the a last are doing tracking with both team. $XXX quarter Mountain and are Coast our in cash million testament job better-than-expected well volumes the we safety results the third We in culture sustained Rocky great flow Gulf teams Our robust a and in sales low to safety regions. and with financial slightly record operating of operating year's

expect be Soso and XX to of Grieve we've of the projects of XXXX before drilling than nine have our to were the at generated first momentum. Creek CCA; Through this development priorities addition development capital fourth strong company rigs our develop on pipeline support years oil we've capital. full year should to of are: the out across Due close EOR fund after and and with to said to top-tier sheet challenges rig significant pushed some balance a expect build business which expand Our prices Fourth our original second our production the to we activity operations third to growing maintaining storage sites at EOR but the response of capital our several first the capital network; and had at we putting grow We strong quarter and fully as CCUS to next allocation $XXX needs our months resource COX over program the EOR we with return thirds mature near-term About repurchase expect share the operating our this anticipated quarter split reduction key in in guidance cash done have year shareholders two us abandonment between fields. with third quarter rigs debt we supply full evenly this in drivers the plan this we cash our guidance. million the midpoint Beaver more remaining somewhat years. capital we've needs to Consistent free our what many to to outperformance. year of beyond three year. to and currently close we've highest has capital free be of the flow along level year chain were in to enter and still our just allocated generated workover cash additional our higher third we with projects provide activities as been as

less bringing to operational be EOR providing and fundamental the exciting and EOR first incredible oil first project resource EOR handle a very of XXXX. for business production on year. to now, so To our progress Anticline of and completed capacity CCA is progress be it's oil to the CCUS. vision nicely and Denbury's the time technical is Cedar expected expected is in major recycle Our that the two first first focused to grow to of been execution that us the in there. half Creek substantially in CCUS to installation to in financial, continues project than from COX facilities at a We've close long for

for expected tons is produce our than annually. participation which project tons pipeline. tons with two The of our Turning by works business. massive commercialization blue clean projected on million and capture and million transported It from ACE this progress with less to thereafter, Denbury. CCUS shortly XX CCUS COX exporting stored million Earlier XXXX of tremendous of annually miles by hydrogen Ascension Clean the is expand Energy seven of week or the along COX project. ammonia ammonia largest Mississippi be the location The and will we to over to all the six complex made blue our the we of ammonia U.S. ACE facility to planned ultimately to is River have activity, is plans ACE in announced ideal end our the

Lake supporting Charles COX with designed per into one plan secured extend a and near four Methanol in working tons emissions nearly this initial feel our beginning ammonia COX nearby million project. year and existing whose the this concentration to is excited XXXX, to pipeline year for we with capture land COX tons of industrial million good per of would innovative high very of agreements the while both agreement we Charles place year producing In project new estimated blue network new a offtake With of Lake also which production, potential strong methanol. tons planned from in XX% continue million benefit over about to per projects connection heavy we area XX with infrastructure. build that We're

pipeline the customers XXX-mile unique are is expansive place COX network in and Coast a far capacity recent supplemented network, COX. today Coast a benefits by Gulf nameplate certainty beginning the in injection of for us effect of unmatched to service that The system joining pipeline and than locations with reach locations our flexibility capacity. system agreements Our COX multiple a strategically and more network that this highlight storing our dozen amplify with of our a EOR broad allows of beyond reliability incredible located the with originating system Gulf transporting sequestration the and

It's use the emissions existing generates scale that of already little providing on As two for massive this the our unbeatable customers ACE reliability. from moving these project, expect nearby network captured are million example, the options least capacity would XX COX annually sites pipelines. an we that while tons of if options effect including plant. sequestration with at for to Several planned the secured have five any

The for announcements process target not well set including tons. a market. XXQ COX tons stratigraphic those and XXXX billion a goal getting our now goal. year started. is pore for recent Class With A agreements we tons with a supporting build-out week. in permitting multiple a expansion our offtake year CCUS year that to this even metric EPA By detailed exciting new our arising certain double we the recall have for over our we every agreements even incentives before see the CCUS market we opportunities of pore cumulative drilling in totaling additional increase significant we've potential opens new offtake our a heat You'll negotiations XX were executed cumulative have X.X the annual million execute very various more in space tons a end that just was per others. opportunities space the per with capture well industrial first million previously pore start program increases. expect we cement, totaling agreements under And steel, capture very agreements offtake along economic the recent XX number metric to agreements year the with that space of in significantly and tax up billion business and above X.X and exciting metric carbon Denbury. of And opportunities generation, XXQ power It's at industries test already VI our time of

joining nicely virtually our business our that challenge need again place, we and positioned the all perfectly the today questions. now EOR time, EOR industry-leading making the first Question-and-Answer we the rapid right balance sheet cash delivering in at for for we'll we Our business. this an is in is same the strong on lead Thanks CCUS flow, your generating time, to building have progressing the I right production. us of are company to believe debt toward decarbonizing the and future. At towards today energy open call is progress CCA no while continue project Session

Operator

Markets. first question Tim, Tim Rezvan line comes is Instructions] now KeyBanc [Operator our Thank your you. from Capital We open. from have

Tim Rezvan

everybody. Good Hi. morning

Chris Kendall

Good morning Tim.

Tim Rezvan

it's more like request. question, sounds for almost pretty everybody. quarter My been of It first a it's a calm

business. the media like thing. to do the of reports may community, be grasping same to All trying CCUS entities at the straws investment it the understand really for us here we've And been sounds trying value other of proposition in

Now in embedded to per doubled investors of appreciate of your economics more little back you plan threshold, the pull to annum curtain agreements XX or help that the when million a than tons that place bit how do CCUS? on value you've

Chris Kendall

investors something agree we the at and for you that build-out scale of a we're like more that decent And broadly analysts. a that's you business is And steps this with be an get the have I certainly working hold something mentioned with is a we're of at where to that. our the event to we could come that that think that now one actually to we out Tim. we towards. shared point needed point deserved with where be as question, and And Thanks

So we're right of process that planning now. in the

We our approval haven't say thing Board. focus do think business the yet for do we along is we CCUS needs that. share a point this way the at we'll budget that set We cycle and plan the the broader when by to be to wait date sure specifically to business. One I'd and on

the towards the on in we'll on now I'd February. to side so and soon CCUS when that. quarter know we're let and fourth our as And we we're piece, earnings EOR look others you schedule for ready get business working But more outlook as our right to

Tim Rezvan

guess, as point. to good a underappreciated get Thank bit a is know to And not new massive for days Anticline these this then, That's taken much but to know. I Cedar second is it's I you Okay. Creek project. or question years discussed that.

You slide took release on color Phase here work in X the starting about deck the and already.

clearly you're Phase on by see the color more X that production Are we what medium-term? at X need from point you over will seeing. So look this might you're as what willing the you of years? project any the next encouraged And couple capital over and give response to

David Sheppard

us X just Yeah, a production half in Sheppard. It's there reality to morning EOR about specific. good out continue the potential is really This XXXX soon great Tim. and a second of question. calling that response that take I'll as we becoming that is thanks Phase Hey, for CCA. our David asset from for anticipate excited

X going Phase particular, test the They You field our that Phase we X is working now. well had in a just up asked actively pilot operations there. rig about right wrapped in drilling have CCA drilling to

there'll wells a and there that involved of project. injector facilities with install couple an be So in producer recycle we'll that

a going I we flood responds. big those tailor really It's resource begin Phase think And injection how midyear XXXX time to we'll see to though. results that custom are plan how frame X.

XXX in Phase that our million-barrel million to a currently target is it's XX there. barrel recall target you If the compared under X flood

ongoing excited since really been what nine has seeing We're right that. with we're now months into Phase So in February. X. Injection

supply accelerated some adjustments. as there. some coming are want making we We're that We've XXXX there the are facilities XXXX chain into that. that our recycle and capital accelerate Now some to learnings out of and impacts manage of some are out

want don't to yet. definitely I capital on projections in anchor Now any just

earnings that roll said, more in update. timeframe February be fourth As we're right Chris working has during and our plans those now quarter looking we'll those out to

Chris Kendall

that Thanks, EOR it now, actually opportunities of up resource this Phase great through asset then David. having floods. many on panorama we've X there -- and just as and right years it new X and that gone Tim, opens Yes. now And I'd at not just it working we're behind working David where Phase said right to it's starting the with right just add the how be with is up

come lot And so it's several that. for reasons, in very to on future but exciting a the

Tim Rezvan

color. appreciate Thank you. I Okay.

Chris Kendall

Tim. Thanks,

Operator

Thank you.

our question have next comes line open. Pendleton Nate, We from Nate that now from your is Stifel.

Nate Pendleton

Good for taking morning. Thanks my question.

Chris Kendall

morning, Good Nate.

Nate Pendleton

to and question indication stratigraphic first well converted speak Class injection the regarding stand VI test that share of you'll when And to be well Class network projects there your time? your sites, for you designed maybe submissions? My on Nik able be those over a regarding is where results VI upcoming the is to can if any to sequestration well permit

Nik Wood

for Yes. question. Thanks the

going VI December. Expect Class in completed our operating submittal The see we're sites. progressing spud is well expect in great the very we first the sequestration all a on test sites to stratigraphic near all to right process future. So permit the that We're now. application

quarter expect first give probably in first that We'll We couple months. earnings. from some that in details of results to on the see the

So good continue come we drill sequence stratigraphic additional on to as in our we results up. there expect to and they wells have sites will

Chris Kendall

whether that would just And likely development of as wells. in to well. that that pay as something utility an -- monitor will those well. then what as utilization have is add would that the injector some a those site see expenditure just of it's or wells in I'd so We future Nate they construct off field the We the the

Nate Pendleton

appreciate I detail. Great. the

continued approach other are the to that regarding COX enhancements those applied fields? to slide can follow-up, whether results you enhanced speak from X, my on Grieve flood As can strong using what and be design

Matt Dahan

taking Matt more at very really that's we Basically is specific We're with to happy Nate. Dahan. the about as -- did Yes, really place taken COX and is This putting given Grieve come. potential And injection to it's to is top. bottom we what's Yes, reservoir. us. for off there reconfigured really what the

other Yes, places? not does to So apply it but everywhere.

Nate Pendleton

Got it. Thanks detail. for the

Matt Dahan

Nate. Thanks,

Operator

you. Thank

our have from Charles from now question We open. comes Meade line Charles, your Rice. is Johnson next

Charles Meade

of and team Good morning, Yes. Chris, rest you there. the Mark and the

Chris Kendall

Good morning

Charles Meade

is this a big Chris, picture question. I wanted -- of kind

and for I you the -- you were year, have guys course mean mean, to point I you your As or targets the over doubled made look back I the guys guys at you've XXXX. stock price deals capture do your sequestration over last you've what of on going

You've kinds seen deals. of new

lot putting that's seems the milestones. You've in that has a the of shares And same great time, diminished. CCUS the XXQ. doubled deal your it But whatever was hit value at lot of a for even we like after the market the

right probably What structure are it your And the thoughts and some tied dealing so price or in to-date. you about you really of I will several right years. -- have the a with imagine thinking the to the CCUS of business just now made what's guys accomplishments long-term? is Board and how can I share mean, and the intimately about the for be response kind EOR are for unsatisfactory next setting your that? share for But Board to it's the you you give how the

Chris Kendall

Charles. Sure,

how that is with that. And I'd say, it's share how eventually what price can't continue in market? company share drive thing about reflect about it first this can over we the and just the think to So price we so to we when our is change and the something I think going control value time

us to sync are of and repurchase But already we and announced in certainly suggested we're share to as best to it be future Now, when will in more. think does and well to what out I program structure making toward a There And the put separately gave the We see drive buy the we entity and be you see attract think ready two Board's this through we're like evaluate that we the yet. beyond the opportunities business what huge. already. will today. set that along a investors more that honestly the combination where the will many, believe huge there can that's we quite and to potential look But they we're opportunity out create to see building you even working up we the keep there do the where is we talk there. there. many And thing continue there. about this are and investable for most want an good continue below CCUS. composite will company just we've going it the what continue thrilled be we've way for could do in a to opportunity I us did shares the announced incredible businesses it a But well way as authorized we When And investments get honestly value way potential not do the along to to with business. this how of

Charles Meade

while. it's bone helpful. have Chris. That's to to is XXXX. we're be specifically to But means to -- That's on -- specific it a -- to gnaw well what and guess it. all we And and going Got this have all helpful, I second more for XQ going question a for

will rate Is projects if some rate XQ in be CapEx XQ that you the a indication the XQ. sense from some sense you rate had good into for makes -- XQ for it quarterly CapEx the slip makes So basically run had XXXX? what

Christian Kendall

Charles. not Probably

just was equipment availability of We some now activity and of of have because pushed of lot bit which right a a services.

pretty heavy us gives that a XQ. so And

going good necessarily don't that's number forward. a I think So,

and a or of going planning to drive going like at through we're David out three nice the get in for lot course just our that has year Coast. activities rigs we But up here in and now the Mission North see right next he's drilling roll those right the production that Of at type time. is wells of are to process at some from whole what Webster Canyon working Gulf

keep will results going rig intend don't So, activity to level year. throughout of program necessarily deliver that but we some that next

Charles Meade

someone is you. helpful Thank Is a That Chris. detail else? there

David Sheppard

going well recycled just in the of was that provide I as Phase key as payments We fourth David. milestone that X on. well that expect is several facilities will with this continue Charles to there some CCA associated too add are in quarter. Yes. our some that uplift to project don't

Charles Meade

detail. good. That’s Appreciate Thank the you.

Christian Kendall

Thanks Charles.

Operator

you. Thank

next Brian Capital is One. open. our comes from have question We Velie your from line Brian, now

Brian Velie

Good morning everybody.

Christian Kendall

Brian. morning Good

Brian Velie

you triple to opportunities me couple the CCUS capacity amplifies capacity higher business. or think walk for year. per modest $XX million than for how even effect am quick to the are ways year understand pipe. through you could I I stated I those $XX or guys network Pipeline to relatively is on that expand capacity the better there that stated Can pipe? A to I COX the And also know questions of double significantly based be from believe the Green CapEx right that comments nameplate guess. of the on last that with I capacity trying stated I'm -- know million? the capacity

Christian Kendall

right. You're absolutely

with that And should that so Brian. I things that described of couple there's help a

you are actually point stops, it same the come you a in the how off a you end can The It's could to of But the of where to other. the to have people riding applies to on where next you at are people getting a they just that come people any one getting and the of at And multiples from stop, fit the of subway don't in instead And have the it stored, going time. people for and us. system. on just -- and system, have analogous to need subway emissions first is as result, subway as train stop. many the next I is where sourced they and think and on subway

that ultimately the site is have amplify example give So that for even to now in East near I'll really or right anything And doing will further, year massive be storage NEJD of able would the of to we the line. to But the New system. it allows million That's anyhow. we think and capacity, up there that's Orleans itself see from without us be XX a a And east. system even pipeline to that the would not that you tons an the a draw the Line be Green on our capacity to going junction connection a you just plans emissions the of so. can in about new itself, of

And to thing at having we do adds redundancy can does up do into the the west, so and We we that's with system that but locations. to in parts being as that things Texas. still way. the new. COX Louisiana as optionality of other same thing capacity, the of look you And And connected further several to Mississippi. provide in along other that draw same can it same the We time can do

The So on Again, to molecule last out of other. COX system. fungibility important move end what just we is the thing, on system. doing this the all to of is COX the we think that point I move that a I'd whole need amplifies one in from don't of can that, Brian

have power if to broad that allocated a It's The green specific are Just not green there's in in home. power, of power principle want COX. applies home, as same green you your electrons you'd with your to coming system. being

in line our So, the COX storage system long interchangeably, regulations. balances the we sites are moving with XXQ sites use in can system, as when as EOR overall appropriately and we

of at of the system just one expand the beyond think you you'd that far, looking lets what pipeline. far capacity all combined, So by

Brian Velie

agreements XX agreements I and to size quarter. nothing is the negotiation that, of that exactly you're That's I aiming that already has up really what and understood make last or pipe think sign on to in trying do that, you're I as of the extremely to sure of the nameplate capacity number was this helpful, with of

are those certain two appreciate to the I wanted everybody. got. That's numbers the analogy. very I explanation. but subway like be Thanks So I all much, independent. I pretty about that,

Chris Kendall

Brian. Thanks,

Operator

Thank you, Brian.

Sam Jefferies. line your open. next from from now Our Burwell Sam, question comes is

Sam Burwell

Hey, good afternoon, guys.

project, First number doubles a large target. like of congrats ACE large the required large build winning CapEx very it. the that obviously with your that, off, on a is But off-take amount like from a to project seems

I'm curious, funded? most advantages of available there's of project? and a give what mean, equity the to that, And to even I characteristics confidence amount just probably degree, that you be So, that. what presumably specific financing on that be required will capital good can debt but be subsidized projects some going

your how take So, just funded that so to taken as FID XXXX? in curious gets can the be project on

Chris Kendall

start blue for what future of is at potential we the or market blue the looking captured look for this When guess, ammonia, injected. I And Sam, clean just by and with utilization is this I'd not agricultural that the just ammonia, ammonia produced Sure. purposes. at where is COX

shy these the about, year can it fact, of a as could the it perspective hydrogen would then Put be expect over hydrogen And can hubs moved and carrier would worldwide, most actually that providing in coal marine be as into used where co-fired to other years we and used by some hydrogen would or fuel, it dissociated see and easily in be of of a plants carrier. world. end transportation, In it a XXX hydrogen of see hydrogen on with around for triple mid-century. the coming we'd demand be ammonia power today its more million as XX a tons that than gas the components, fuel be growth that

that's So huge numbers.

we of last Mitsubishi, demand now future. needed that lot Works Nutrien or we seen blue fraction in agreements whether will you've was think already there's are be what ammonia the a for just number So with a small in Clean of the think two and years, it Hydrogen one, us from the

project, how so financing a when about project -- to you on think itself together think the we that COX to like have a you for how of type this question have come want about the strong building of, any the and the the me, And this? -- of To blocks want project gives demand project, offtake. putting together you tailwind. you're close a I when boxes security proximity -- a project full Now, you cited. your do And And I we're does you the that then, able will super pipeline where to and whether key from when system together, the all end the tick provide on fortunately, financing to And the is think point then side to our side. the be debt offtake offtake. on with easier have it's committed, equity once much is pull or those you tail in

energy good and an we've investments, energy. we’re convinced just is -- think we'd here, upwards that many these like expect that I of of I'd clean in coming awful And now for progress. what that there of years so, a been investments the clean see And chasing of months Sam, we're project that, is couple a to so in will continue project. good looking lot And this capital at it's

Sam Burwell

Got of And on sense. good point certainly going a ammonia makes the uses it. too. All forward

way, curious if bid terms and them carbon high like hit I'm facilities Because the of for any emitters in it ammonia, about announcements blue who outfitting in of new like yet. industrial this on you've that Sort are builds had instance, been most discussions seems like with haven't a retrofitting are with capture? thinking existing of

industrial sensed market you've demand a an is and existing emitters facility guys? retrofit to looking there that that are who So you from offtake to

Nik Wood

question. this Nik. be I'll This Hi. is answering

chemical call And have. is what project, we agreement yes signed So already actually a we've yes, we brownfield in one plant It's Louisiana. with them. a

kind is of portfolio of agreement. in -- fair development they on. future to end the generating steps where whole greenfield capture you between kind new a your includes to accommodate the we're to to to development, process. projects kind can place that up. projects rearrange the projects We currently The a terms now, building the coming those that on and of of of take take processes it's that are our are pretty sign if a like house prepared So our working of a brownfield the the of There's a front all is, brownfield host producing to reason versus longer getting that development brownfield it's remodeling split pipeline on want completion house. little get have think They few of a are in products place that

We finish engaged our So partners. look brownfield great line. projects, remain to with to the them highly we forward getting

Sam Burwell

the Appreciate it. color, for guys. Thanks Okay.

Nik Wood

Thanks, Sam.

Operator

next from Thank Doug Doug, you, comes BofA. Sam. And line Leggate question open. is now our from your

Clay DeMarcus

good Clay Hey, Doug. is This on for morning.

taking for the thanks questions. So

my your question not meaningful up conversations, And on intentions, going Tim's a for Based public to is would there but the question. that want investors to strategic do CCUS and the M&A to out of is something. I'd thoughts you So confirm understanding you there what without gap players valuation? difference bogey consider proper do you on allows ask your M&A first think a between And versus have having that have? that get to I any on to I'm on like Chris follow your now

Chris Kendall

a put these focused company I'd doing think That's scale what think together When is first We in won't this comment that ability the is value. squarely just massive unique. our where needed like Okay. so projects is we interesting do about uniquely something rumors I I say, guess, speculation. have starting to Well, think far, can Denbury you've going, that of on point. that's an we unique just and that business. think all, We what building this in question. are is we is what on and seen we are we

the primarily new. something earlier understand, very capture that's again, because off little for market is so sequestration It carbon world world. there. the harder say, very question, that it's just We're little in actually of Tim's with taking building place what about and rapidly the quite sure as focused the business going keep up and to as I'm picked not valuation ahead on the doing bogey driving excited it completely can. on very we're the as we going to and is I'd it's in So, on fully we're I a question we're

XX half whole what's Just perspective in the today. we done being putting it is million to of world tons equivalent have in the announced

the long So it. participants. forward. looks in what And it us And as potential something what the and I'd everybody and it's we when and for important and certainly it's we dynamic that for at for excited market emitters, we it's about all what it's we way like we that to though, I think say dynamic that go, and go it's we Clay that the dynamic have this educate think a for is, the what to to just investors we're and have this we work have is, look business extremely build as

Clay DeMarcus

I appreciate that Chris.

be just that you is, Your in can -- any comes answer. Louisiana, projects passion see that question given region. the talk like just would that and this of targeting imagine in business the there hard across My second really so systems in to are player that CCUS for opportunities scale maybe opportunity? you one Exxon about in also between partnership It's your

Chris Kendall

what And least that that the is States would million ultimately player. larger the barrels see, be It enormous. about XX in I just if in potential bit than produced that bit about, back oil the States the I think a we ammonia, And can for to there CCUS today. and just step is volume be imagine moved of think will the general, you but at being just CCUS. think United a United I talked be quite that in will hard one of COX are what be

being it's that and thoughtful the partnerships. think different opportunity a companies. huge and for space this you certainly today many mentioned. And that, lot We produced barrels So oil I others think about in for be there of by I produced million be there points do is ones those will being pretty to of a want XX partnerships. are

of -- makes equal that years, those for working last there more and be than partnerships one So couple just that We'll the partnerships. on bit two. to we we plus the one see that that. can the we And expect the at go and We've and conversations a with continue. where where always I'd operate expansiveness about system doing will sense been think of been really look where talked system can it

Clay DeMarcus

Thank it. appreciate I you.

Chris Kendall

you. Thank

Operator

you. Thank

now comes next our question open. line Jacob, have your Jacob Roberts from We is from TPH.

Jacob Roberts

think… I Chris, morning. Good

Chris Kendall

Good morning, Jacob.

Jacob Roberts

the the new call, months? have how XX the the these post of about passage next at maybe are IRA? to the just targets kind is And you and I'm thinking we're conversations, discussions Just opening the to over subsequent changed XX negotiations of evolved curious are of really high-priority about what And conversations? revisiting has that this

Nik Wood

again. is Hi, Jacob, Yes. this Nik

as negotiations with the in say a difference have changed on new that's I of of terms pricing, the bit the that side offtake how well. So necessary there's would pricing

some goes have obviously into come bucket pricing as costs that change our that we So, different up.

IRA floor based increases. There's the example, increase. sometimes For liability as actually payments more

well. goes up of costs go so some and as So pricing our up those

terms to every come additional of we emitters see market, week. into the our In portfolio continue

IRA think, out. I since came up it's sped the

a I period think, it of for grow will longer time. continue to

were weren't there will framework. previously great for that two We for into years. will partners prioritization, long But we've Hydrogen Works earlier, lot with now. greenfield of Clean projects of -- been mentioned partners new think, working I we've and in come nearly great a that be working with we terms working of been for time a economic with lot a

safe. our long We lot working time have And want of a a for completion. been to we've of lot a to priorities agreements stayed so that those get

to top list staff raising also adding we're just so are priorities And the on up. place that have adding accommodate in staying our and additional priorities of we the and to we're the to

Chris Kendall

Nik the credit about that tax $XX to whole is, shared, this it's Jacob, as that happening appreciated of interesting we of incentivizing I the maybe What what broadly I'd DOE And something not a some see lot a is funding actually Infrastructure preceded think think that just is industry. IRA add and really Bill XXQ lot that that provides in of changes we of for alongside projects. these

projects you those capture, the but them of Nik's well within as to capital at would that were place or find even that loans think DOE cost execute in supplemented get $XX not you to be to you'd if team, are look to being -- by grants what the help capture So projects. they working are

that things think just even there's you might bigger different than makes value. face work the expect actually a from I pie that again few So,

Jacob Roberts

just Great. if sense? back at think, current levels? stays circle brownfield-greenfield I a question, you I that is long that XX-XX, I want how similar me to Appreciate to correctly, those of Does I guidepost could roughly give And hear that. mix a on that can did confirm make heard. I to the mix kind previous And if

Nik Wood

this Yes, again. is Nik And does. it

half so kind and And correctly. the we're heard It's half that the And on weekly and basis. you how a almost give to data on address the picking of you me yes, question stay long partners incoming best about our half still half. to is will for way industrial that up

So we of the just rate greenfield portfolio see development be at the about development. some point, see as in brownfield at And will there coming slowing don't because course, it general, -- we'll to continue same to right additional now we now run down. place just emissions to forever. right in or But out that of brownfield we see many on there's development, not plants go

Chris Kendall

I Jacob that to when their sources that we of we're Yes. in Similar when own there's have in to team well go their that that that the right he's back but a economically can. could about I pipe another what in said, Lake about was doing to again, neighborhood COX, effect talked for they just not what on before Alabama, close Charles pipe add with is not talked on maybe Nik's that that aspect gets what as point And But there. example, build there to well. now network a Nik pipeline capture that new emissions I'll

the emitters into for add of that of that to want just the capacity on come more a top effect So that builds to We Nik network cycle it. creates shared. and system what the opportunity

Jacob Roberts

guys. it. Thanks time Appreciate for the

Chris Kendall

Thanks, Jacob.

Operator

Jacob. you, Thank

We follow-up from is from Tim, have Tim question KeyBanc open. Capital a your line Rezvan Markets. now

Tim Rezvan

folks for letting me back Thanks Hi. in.

had Just here. quickies a couple of

front next them thinking all like bigger what are of were where quarter. about much they you backlog on medium aggressive sense? are the the in third on a years, couple repurchases projects the shares repurchase much over weakness looks how the make over term? You And of now With and how

Mark Allen

Hey, that free the buyback look Tim, to it. year at moved first up. Mark. this a our obviously, of cash mean, of lot has at We're half is continue the and time. Good we executed going generated question. to in And share price I our the

more you quarter we balanced. forward here As quarter look probably as especially this saw and next

and repurchases. to discipline going about remain about we opportunistic be future we're how so And think

Tim Rezvan

Thanks.

Okay.

make know lot And I mentioned gas sense. them a to I makes natural has then, people That COX. retrofitting think earlier. EnLink Okay. EnLink pipes talked about accommodate have

I'm But look have in pipelines a the metallurgy expert not like Thank you also that quite all you. You that all. defer your so area. work? general, in is natural I'll possible as something gas to on the thoughts bit of a can of bolt-on at a you and that feasibility

Chris Kendall

in we network and requires a the gas And way super pressure run phase at that's cases in about what the our which network done think COX certain the most I operating that that, efficient to we've see of is rated that the in When thought natural history ourselves. we've a certainly pressure. Sure. with pipeline and the some we beyond critical typically something Tim, even to looked it smaller about. do it's want

of specific cases to there's So an just we the different to that think regimes pressure optionality just would have the described, that because we I said and be not this of but what to we'd system it's the for flexibility on you ability that to in us Having look COX I broadly do in. the and do pipelines something do that, think higher system with the things have. lot the opportunity, like a always rated

Tim Rezvan

Okay. Thank you.

Chris Kendall

Thanks, Tim.

Operator

Tim. you, Thank

from I closing will no Q&A now have remarks. End further more of for questions hand Brad back line. We the to Whitmarsh,

Brad Whitmarsh

in joining everybody for thanks to your and Denbury. interest Thanks Sure. today, and us for

have concludes any to Beth the for days, please out this to reach [Ph] or you follow-up this over And morning. our other If myself. call coming don't hesitate

Operator

call. and Ladies joining. Thank for this gentlemen, today's you. Thank concludes you

You may lines. now disconnect your

Denbury (DNRWW) 3 Nov 222022 Q3 Earnings call transcript