Denbury Reports First Quarter 2022 Results
Denbury reported strong first quarter 2022 results, with cash flows from operations at $90 million and adjusted cash flows rising 62% year-over-year to nearly $131 million. The company generated $51 million in free cash flow and commenced CO2 injection at its Cedar Creek Anticline project. Denbury also signed a new term sheet for CO2 transportation and authorized a $250 million share repurchase program. Despite a net loss of $872,000, total revenues increased by 64% to $412 million, driven by higher oil prices. The company maintains a solid financial position with $529 million in liquidity.
- Cash flows from operations reached $90 million.
- Adjusted cash flows from operations increased by 62% year-over-year to nearly $131 million.
- Generated $51 million in free cash flow.
- Total revenues increased by 64% year-over-year to $412 million.
- Authorized a $250 million share repurchase program.
- Net loss of $872,000 reported for the first quarter.
- Sales volumes lower than the previous quarter due to production declines and severe winter weather.
Generates Cash Flow Well Above Plan; Authorizes Share Repurchase Program
Carbon Solutions Agreements Solidify CCUS Leadership Position
FIRST QUARTER AND RECENT HIGHLIGHTS
-
First quarter 2022 cash flows provided by operating activities totaled
. Adjusted cash flows from operations(1) of nearly$90 million represent a$131 million 62% increase from the first quarter of 2021.
-
Generated
in free cash flow(1) during the first quarter of 2022.$51 million
- Commenced carbon dioxide (“CO2”) injection at the Cedar Creek Anticline (“CCA”) enhanced oil recovery (“EOR”) project, with 55 wells currently injecting more than 115 million cubic feet per day of industrial-sourced CO2.
-
Signed a new term sheet for transportation and dedicated storage of approximately 2 million metric tons per year (“mmtpa”) of CO2 captured from a chemicals facility to be constructed in southeast
Louisiana . The facility is anticipated to be built in close proximity to Denbury’s CO2 infrastructure and the arrangement covers a 12-year period.
-
Amended the Company’s senior secured bank credit facility, increasing the borrowing base and lender commitments to
, extending the maturity to 2027, and relaxing various covenants.$750 million
-
Authorized a
share repurchase program.$250 million
(1) |
A non-GAAP measure. See accompanying schedules that reconcile GAAP to non-GAAP measures along with a statement indicating why the Company believes the non-GAAP measures provide useful information for investors. |
|
(2) |
Calculated using weighted average diluted shares outstanding of 55.0 million and 51.2 million for the three months ended |
EXECUTIVE COMMENT
“I am extremely excited about our successes in the Carbon Solutions business so far this year, and I believe we are on track to substantially exceed our goals for CO2 offtake and storage agreements established at the beginning of the year. Denbury’s proven track record in providing highly reliable transportation and secure underground injection of CO2 emissions from our industrial partners, combined with our ideally positioned infrastructure, is unmatched in the industry and positions us well for continued success and growth in CCUS.”
“I am also pleased that Denbury’s Board of Directors has authorized a
FIRST QUARTER FINANCIAL AND OPERATIONAL RESULTS
|
|
1Q 2022 |
||
(in thousands, except per-share and volume data) |
|
Total |
|
Per Diluted
|
Net loss |
|
|
|
|
Adjusted net income(1)(2) (non-GAAP) |
|
93,122 |
|
1.69 |
Adjusted EBITDAX(1) (non-GAAP) |
|
130,847 |
|
|
Cash flows from operations |
|
90,143 |
|
|
Adjusted cash flows from operations(1) (non-GAAP) |
|
130,580 |
|
|
Development capital expenditures - Oil & Gas |
|
57,606 |
|
|
Capital expenditures - CCUS storage sites and related assets |
|
20,949 |
|
|
|
|
|
|
|
Average daily sales volumes (BOE/d) |
|
46,925 |
|
|
Blue Oil (% oil volumes using industrial-sourced CO2) |
|
|
|
|
Industrial-sourced CO2 injected (thousand metric tons) |
|
936 |
|
|
Total revenues and other income in the first quarter of 2022 were
Denbury’s oil and natural gas sales volumes averaged 46,925 barrels of oil equivalent per day (“BOE/d”) during the first quarter of 2022, generally in line with expectations. Oil represented
Lease operating expenses (“LOE”) in the first quarter of 2022 totaled
Transportation and marketing expenses totaled
Commodity derivatives expense totaled
The Company’s first quarter 2022 income tax benefit of
INVESTING ACTIVITIES
First quarter 2022 oil & gas development capital expenditures totaled
FINANCIAL POSITION AND LIQUIDITY
Denbury’s total debt at the end of the first quarter 2022 was
On
As separately announced today, Denbury’s Board of Directors has authorized a share repurchase program under which the Company may repurchase up to
RECENT CCUS HIGHLIGHTS
Inclusive of the new term sheet announced today,
OUTLOOK
As a result of the increased outlook for commodity prices and recent inflationary pressures (in comparison to the Company’s originally-provided guidance at
For the second quarter, the Company anticipates sales volumes to be slightly lower than the first quarter of 2022 as a result of the timing of workover and development activities, with production volumes anticipated to grow through the second half of 2022. LOE per BOE is anticipated to increase in the second quarter primarily as a result of higher commodity prices and increased seasonal workover operations. Oil & gas development capital expenditures are anticipated to increase in the second quarter over the first quarter, driven by continued activity at CCA, including purchase of equipment for the EOR recycle facilities, as well as additional drilling and development activities across the Company’s
The Company has determined that it expects to fully utilize all of its federal and certain of its state tax benefits and therefore a valuation allowance against these tax benefits is no longer necessary. Approximately
Further details on the Company’s 2022 guidance can be found in the supporting materials on Denbury’s website.
CONFERENCE CALL AND WEBCAST
ABOUT
This press release, other than historical information, contains forward-looking statements that involve risks and uncertainties including: expectations as to future oil prices, operating costs, production levels and cash flows; anticipated levels of 2022 capital expenditures, lease operating expenses and general and administrative expenses, along with other financial forecasts; future tax benefits and tax rates; the expected timing of first tertiary production at CCA; statements or predictions related to the ultimate economics of proposed carbon capture, use and storage arrangements and the CO2 volumes covered by such arrangements; and other risks and uncertainties detailed in the Company’s filings with the
FINANCIAL AND STATISTICAL DATA TABLES AND RECONCILIATION SCHEDULES
The following tables include selected unaudited financial and operational information for the comparative three-month periods ended
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
||||||||
The following information is based on GAAP reporting earnings (along with additional required disclosures) included or to be included in the Company’s periodic reports: |
||||||||
|
|
Quarter Ended |
||||||
|
|
|
||||||
In thousands, except per-share data |
|
2022 |
|
2021 |
||||
Revenues and other income |
|
|
|
|
||||
Oil sales |
|
$ |
381,242 |
|
|
$ |
233,044 |
|
Natural gas sales |
|
|
3,669 |
|
|
|
2,401 |
|
CO2 sales and transportation fees |
|
|
13,422 |
|
|
|
9,228 |
|
Oil marketing revenues |
|
|
13,276 |
|
|
|
6,126 |
|
Other income |
|
|
250 |
|
|
|
360 |
|
Total revenues and other income |
|
|
411,859 |
|
|
|
251,159 |
|
Expenses |
|
|
|
|
||||
Lease operating expenses |
|
|
117,828 |
|
|
|
81,970 |
|
Transportation and marketing expenses |
|
|
4,645 |
|
|
|
7,797 |
|
CO2 operating and discovery expenses |
|
|
2,817 |
|
|
|
993 |
|
Taxes other than income |
|
|
31,381 |
|
|
|
18,963 |
|
Oil marketing purchases |
|
|
13,040 |
|
|
|
6,085 |
|
General and administrative expenses |
|
|
18,692 |
|
|
|
31,983 |
|
Interest, net of amounts capitalized of |
|
|
657 |
|
|
|
1,536 |
|
Depletion, depreciation, and amortization |
|
|
35,345 |
|
|
|
39,450 |
|
Commodity derivatives expense |
|
|
192,719 |
|
|
|
115,743 |
|
Write-down of oil and natural gas properties |
|
|
— |
|
|
|
14,377 |
|
Other expenses |
|
|
2,112 |
|
|
|
2,146 |
|
Total expenses |
|
|
419,236 |
|
|
|
321,043 |
|
Loss before income taxes |
|
|
(7,377 |
) |
|
|
(69,884 |
) |
Income tax benefit |
|
|
|
|
||||
Current income taxes |
|
|
(561 |
) |
|
|
(191 |
) |
Deferred income taxes |
|
|
(5,944 |
) |
|
|
(51 |
) |
Net loss |
|
$ |
(872 |
) |
|
$ |
(69,642 |
) |
|
|
|
|
|
||||
Net loss per common share |
|
|
|
|
||||
Basic |
|
$ |
(0.02 |
) |
|
$ |
(1.38 |
) |
Diluted |
|
$ |
(0.02 |
) |
|
$ |
(1.38 |
) |
|
|
|
|
|
||||
Weighted average common shares outstanding |
|
|
|
|
||||
Basic |
|
|
51,602 |
|
|
|
50,319 |
|
Diluted |
|
|
51,602 |
|
|
|
50,319 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||||
|
|
Quarter Ended |
||||||
|
|
|
||||||
In thousands |
|
2022 |
|
2021 |
||||
Cash flows from operating activities |
|
|
|
|
||||
Net loss |
|
$ |
(872 |
) |
|
$ |
(69,642 |
) |
Adjustments to reconcile net loss to cash flows from operating activities |
|
|
|
|
||||
Depletion, depreciation, and amortization |
|
|
35,345 |
|
|
|
39,450 |
|
Write-down of oil and natural gas properties |
|
|
— |
|
|
|
14,377 |
|
Deferred income taxes |
|
|
(5,944 |
) |
|
|
(51 |
) |
Stock-based compensation |
|
|
2,971 |
|
|
|
17,680 |
|
Commodity derivatives expense |
|
|
192,719 |
|
|
|
115,743 |
|
Payment on settlements of commodity derivatives |
|
|
(93,057 |
) |
|
|
(38,453 |
) |
Debt issuance costs |
|
|
685 |
|
|
|
685 |
|
Other, net |
|
|
(1,267 |
) |
|
|
727 |
|
Changes in assets and liabilities, net of effects from acquisitions |
|
|
|
|
||||
Accrued production receivable |
|
|
(72,795 |
) |
|
|
(36,750 |
) |
Trade and other receivables |
|
|
1,644 |
|
|
|
865 |
|
Other current and long-term assets |
|
|
189 |
|
|
|
(2,542 |
) |
Accounts payable and accrued liabilities |
|
|
11,410 |
|
|
|
(1,402 |
) |
Oil and natural gas production payable |
|
|
23,348 |
|
|
|
12,795 |
|
Other liabilities |
|
|
(4,233 |
) |
|
|
(826 |
) |
Net cash provided by operating activities |
|
|
90,143 |
|
|
|
52,656 |
|
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
||||
Oil and natural gas capital expenditures |
|
|
(58,707 |
) |
|
|
(19,627 |
) |
CCUS storage sites and related capital expenditures |
|
|
(14,900 |
) |
|
|
— |
|
Acquisitions of oil and natural gas properties |
|
|
— |
|
|
|
(10,665 |
) |
Pipelines and plants capital expenditures |
|
|
(15,204 |
) |
|
|
(458 |
) |
Other |
|
|
(1,396 |
) |
|
|
(2,913 |
) |
Net cash used in investing activities |
|
|
(90,207 |
) |
|
|
(33,663 |
) |
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
|
||||
Bank repayments |
|
|
(274,000 |
) |
|
|
(202,000 |
) |
Bank borrowings |
|
|
274,000 |
|
|
|
207,000 |
|
Pipeline financing repayments |
|
|
— |
|
|
|
(16,509 |
) |
Other |
|
|
(3,068 |
) |
|
|
(3,013 |
) |
Net cash used in financing activities |
|
|
(3,068 |
) |
|
|
(14,522 |
) |
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
(3,132 |
) |
|
|
4,471 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
50,344 |
|
|
|
42,248 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
47,212 |
|
|
$ |
46,719 |
|
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||||
In thousands, except par value and share data |
|
|
|
|
||||
Assets |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
517 |
|
|
$ |
3,671 |
|
Accrued production receivable |
|
|
216,161 |
|
|
|
143,365 |
|
Trade and other receivables, net |
|
|
17,571 |
|
|
|
19,270 |
|
Prepaids |
|
|
10,175 |
|
|
|
9,099 |
|
Total current assets |
|
|
244,424 |
|
|
|
175,405 |
|
Property and equipment |
|
|
|
|
||||
Oil and natural gas properties (using full cost accounting) |
|
|
|
|
||||
Proved properties |
|
|
1,149,762 |
|
|
|
1,109,011 |
|
Unevaluated properties |
|
|
131,677 |
|
|
|
112,169 |
|
CO2 properties |
|
|
184,043 |
|
|
|
183,369 |
|
Pipelines |
|
|
226,766 |
|
|
|
224,394 |
|
CCUS storage sites and related assets |
|
|
20,949 |
|
|
|
— |
|
Other property and equipment |
|
|
94,993 |
|
|
|
93,950 |
|
Less accumulated depletion, depreciation, amortization and impairment |
|
|
(210,537 |
) |
|
|
(181,393 |
) |
Net property and equipment |
|
|
1,597,653 |
|
|
|
1,541,500 |
|
Operating lease right-of-use assets |
|
|
18,595 |
|
|
|
19,502 |
|
Derivative assets |
|
|
265 |
|
|
|
— |
|
Deferred tax assets, net |
|
|
4,306 |
|
|
|
— |
|
Intangible assets, net |
|
|
85,966 |
|
|
|
88,248 |
|
Cash restricted for future asset retirement obligations |
|
|
46,695 |
|
|
|
46,673 |
|
Other assets |
|
|
33,445 |
|
|
|
31,625 |
|
Total assets |
|
$ |
2,031,349 |
|
|
$ |
1,902,953 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Accounts payable and accrued liabilities |
|
$ |
201,598 |
|
|
$ |
191,598 |
|
Oil and gas production payable |
|
|
99,247 |
|
|
|
75,899 |
|
Derivative liabilities |
|
|
223,598 |
|
|
|
134,509 |
|
Operating lease liabilities |
|
|
4,683 |
|
|
|
4,677 |
|
Total current liabilities |
|
|
529,126 |
|
|
|
406,683 |
|
Long-term liabilities |
|
|
|
|
||||
Long-term debt, net of current portion |
|
|
35,000 |
|
|
|
35,000 |
|
Asset retirement obligations |
|
|
282,792 |
|
|
|
284,238 |
|
Derivative liabilities |
|
|
10,837 |
|
|
|
— |
|
Deferred tax liabilities, net |
|
|
— |
|
|
|
1,638 |
|
Operating lease liabilities |
|
|
16,095 |
|
|
|
17,094 |
|
Other liabilities |
|
|
19,850 |
|
|
|
22,910 |
|
Total long-term liabilities |
|
|
364,574 |
|
|
|
360,880 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ equity |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
50 |
|
|
|
50 |
|
Paid-in capital in excess of par |
|
|
1,133,127 |
|
|
|
1,129,996 |
|
Retained earnings |
|
|
4,472 |
|
|
|
5,344 |
|
Total stockholders’ equity |
|
|
1,137,649 |
|
|
|
1,135,390 |
|
Total liabilities and stockholders’ equity |
|
$ |
2,031,349 |
|
|
$ |
1,902,953 |
|
OPERATING HIGHLIGHTS (UNAUDITED) |
||||||||
All sales volumes and dollars are expressed on a net revenue interest basis with gas volumes converted to equivalent barrels at 6:1. |
||||||||
|
|
Quarter Ended |
||||||
|
|
|
||||||
|
|
2022 |
|
2021 |
||||
Average daily sales (BOE/d) |
|
|
|
|
||||
Tertiary |
|
|
|
|
||||
|
|
|
23,016 |
|
|
24,281 |
||
|
|
|
9,220 |
|
|
|
7,187 |
|
Total tertiary sales |
|
|
32,236 |
|
|
|
31,468 |
|
|
|
|
|
|
||||
Non-tertiary |
|
|
|
|
||||
|
|
|
3,630 |
|
|
|
3,621 |
|
|
|
|
11,059 |
|
|
|
12,268 |
|
Total non-tertiary sales |
|
|
14,689 |
|
|
|
15,889 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
Oil (Bbls/d) |
|
|
45,466 |
|
|
|
46,007 |
|
Natural gas (Mcf/d) |
|
|
8,753 |
|
|
|
8,102 |
|
BOE/d (6:1) |
|
|
46,925 |
|
|
|
47,357 |
|
|
|
|
|
|
||||
Unit sales price (excluding derivative settlements) |
|
|
|
|
||||
|
|
|
|
|
||||
Oil (per Bbl) |
|
$ |
93.17 |
|
|
$ |
56.46 |
|
Natural gas (per mcf) |
|
|
4.71 |
|
|
|
3.39 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
Oil (per Bbl) |
|
$ |
93.16 |
|
|
$ |
56.03 |
|
Natural gas (per mcf) |
|
|
4.62 |
|
|
|
3.20 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
Oil (per Bbl)(1) |
|
$ |
93.17 |
|
|
$ |
56.28 |
|
Natural gas (per mcf) |
|
|
4.66 |
|
|
|
3.29 |
|
BOE (6:1) |
|
|
91.14 |
|
|
|
55.24 |
|
(1) |
Total company realized oil prices including derivative settlements were |
SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES (UNAUDITED) |
||||||||||||||||
Reconciliation of net loss (GAAP measure) to adjusted net income (non-GAAP measure) |
||||||||||||||||
Adjusted net income is a non-GAAP measure provided as a supplement to present an alternative net income (loss) measure which excludes expense and income items (and their related tax effects) not directly related to the Company’s ongoing operations. Management believes that adjusted net income may be helpful to investors by eliminating the impact of noncash and/or special items not indicative of the Company’s performance from period to period, and is widely used by the investment community, while also being used by management, in evaluating the comparability of the Company’s ongoing operational results and trends. Adjusted net income should not be considered in isolation, as a substitute for, or more meaningful than, net income (loss) or any other measure reported in accordance with GAAP, but rather to provide additional information useful in evaluating the Company’s operational trends and performance. |
||||||||||||||||
|
|
Quarter Ended |
|
Quarter Ended |
||||||||||||
|
|
|
|
|
||||||||||||
In thousands, except per-share data |
|
Amount |
|
Per Diluted
|
|
Amount |
|
Per Diluted
|
||||||||
Net loss (GAAP measure)(1) |
|
$ |
(872 |
) |
|
$ |
(0.02 |
) |
|
|
(69,642 |
) |
|
$ |
(1.38 |
) |
Adjustments to reconcile to adjusted net income (non-GAAP measure) |
|
|
|
|
|
|
|
|
||||||||
Noncash fair value losses on commodity derivatives(2) |
|
|
99,662 |
|
|
|
1.81 |
|
|
|
77,290 |
|
|
|
1.51 |
|
Write-down of oil and natural gas properties(3) |
|
|
— |
|
|
|
— |
|
|
|
14,377 |
|
|
|
0.28 |
|
Noncash fair value adjustment - contingent consideration(4) |
|
|
185 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
Other(5) |
|
|
— |
|
|
|
— |
|
|
|
325 |
|
|
|
0.03 |
|
Income taxes - valuation allowance reversal(6) |
|
|
(5,853 |
) |
|
|
(0.11 |
) |
|
|
— |
|
|
|
— |
|
Adjusted net income (non-GAAP measure) |
|
$ |
93,122 |
|
|
$ |
1.69 |
|
|
$ |
22,350 |
|
|
$ |
0.44 |
|
(1) |
Diluted net income (loss) per common share includes the impact of potentially dilutive securities including nonvested restricted stock, restricted stock units, performance stock units and warrants. |
|
(2) |
The net change between periods of the fair market values of open commodity derivative positions, excluding the impact of settlements on commodity derivatives during the period. |
|
(3) |
Full cost pool ceiling test write-downs related to the Company’s oil and natural gas properties. |
|
(4) |
Expense related to the change in fair value of the contingent consideration payments related to our |
|
(5) |
Other adjustments primarily include < |
|
(6) |
The income tax adjustment removes the impact of the valuation allowance reversed during the three months ended |
SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES (UNAUDITED) |
||||||||
Reconciliation of net loss (GAAP measure) to Adjusted EBITDAX (non-GAAP measure) |
||||||||
Adjusted EBITDAX is a non-GAAP measure which management uses and excludes certain items that are included in net loss, the most directly comparable GAAP financial measure. Items excluded include interest, income taxes, depletion, depreciation, and amortization, and items that the Company believes affect the comparability of operating results such as items whose timing and/or amount cannot be reasonably estimated or are nonrecurring. Management believes Adjusted EBITDAX may be helpful to investors in order to assess the Company’s operating performance as compared to that of other companies in the industry, without regard to financing methods, capital structure or historical costs basis. It is also commonly used by third parties to assess leverage and the Company’s ability to incur and service debt and fund capital expenditures. Adjusted EBITDAX should not be considered in isolation, as a substitute for, or more meaningful than, net loss, cash flow from operations, or any other measure reported in accordance with GAAP. The Company’s Adjusted EBITDAX may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted EBITDAX, EBITDAX or EBITDA in the same manner. The following table presents a reconciliation of the Company’s net loss to Adjusted EBITDAX. |
||||||||
In thousands |
|
Quarter Ended |
||||||
|
|
|||||||
|
2022 |
|
2021 |
|||||
Net loss (GAAP measure) |
|
$ |
(872 |
) |
|
$ |
(69,642 |
) |
Adjustments to reconcile to Adjusted EBITDAX |
|
|
|
|
||||
Interest expense |
|
|
657 |
|
|
|
1,536 |
|
Income tax expense (benefit) |
|
|
(6,505 |
) |
|
|
(242 |
) |
Depletion, depreciation, and amortization |
|
|
35,345 |
|
|
|
39,450 |
|
Noncash fair value losses on commodity derivatives |
|
|
99,662 |
|
|
|
77,290 |
|
Stock-based compensation |
|
|
2,971 |
|
|
|
17,680 |
|
Write-down of oil and natural gas properties |
|
|
— |
|
|
|
14,377 |
|
Noncash, non-recurring and other |
|
|
(411 |
) |
|
|
1,467 |
|
Adjusted EBITDAX (non-GAAP measure) |
|
$ |
130,847 |
|
|
$ |
81,916 |
|
SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES (UNAUDITED) |
||||||||
Reconciliation of cash flows from operations (GAAP measure) to adjusted cash flows from operations (non-GAAP measure) and free cash flow (non-GAAP measure) |
||||||||
Adjusted cash flows from operations is a non-GAAP measure that represents cash flows provided by operations before changes in assets and liabilities, as summarized from the Company’s Unaudited Condensed Consolidated Statements of Cash Flows. Adjusted cash flows from operations measures the cash flows earned or incurred from operating activities without regard to the collection or payment of associated receivables or payables. Free cash flow is a non-GAAP measure that represents adjusted cash flows from operations less oil and gas development expenditures, CCUS asset capital and capitalized interest, but before acquisitions. Management believes that it is important to consider these additional measures, along with cash flows from operations, as it believes the non-GAAP measures can often be a better way to discuss changes in operating trends in its business caused by changes in sales volumes, prices, operating costs and related factors, without regard to whether the earned or incurred item was collected or paid during that period. Adjusted cash flows from operations and free cash flow are not measures of financial performance under GAAP and should not be considered as alternatives to cash flows from operations, investing, or financing activities, nor as a liquidity measure or indicator of cash flows. |
||||||||
In thousands |
|
Quarter Ended |
||||||
|
|
|||||||
|
2022 |
|
2021 |
|||||
Cash flows from operations (GAAP measure) |
|
$ |
90,143 |
|
|
$ |
52,656 |
|
Net change in assets and liabilities relating to operations |
|
|
40,437 |
|
|
|
27,860 |
|
Adjusted cash flows from operations (non-GAAP measure)(2) |
|
|
130,580 |
|
|
|
80,516 |
|
Oil & gas development expenditures |
|
|
(57,606 |
) |
|
|
(20,079 |
) |
CCUS storage sites and related capital expenditures |
|
|
(20,949 |
) |
|
|
— |
|
Capitalized interest |
|
|
(1,158 |
) |
|
|
(1,083 |
) |
Free cash flow (non-GAAP measure) |
|
$ |
50,867 |
|
|
$ |
59,354 |
|
CAPITAL EXPENDITURE SUMMARY (UNAUDITED)(1) |
||||||||
|
|
Quarter Ended |
||||||
|
|
|
||||||
In thousands |
|
2022 |
|
2021 |
||||
Capital expenditure summary |
|
|
|
|
||||
CCA EOR field expenditures(2) |
|
$ |
17,722 |
|
$ |
9 |
||
CCA CO2 pipelines |
|
|
2,191 |
|
|
|
48 |
|
CCA tertiary development |
|
|
19,913 |
|
|
|
57 |
|
Non-CCA tertiary and non-tertiary fields |
|
|
29,363 |
|
|
|
12,422 |
|
CO2 sources and other CO2 pipelines |
|
|
730 |
|
|
|
— |
|
Capitalized internal costs(3) |
|
|
7,600 |
|
|
|
7,600 |
|
Oil & gas development capital expenditures |
|
|
57,606 |
|
|
|
20,079 |
|
CCUS storage sites and related capital expenditures |
|
|
20,949 |
|
|
|
— |
|
Acquisitions of oil and gas properties(4) |
|
|
371 |
|
|
|
10,665 |
|
Capitalized interest |
|
|
1,158 |
|
|
|
1,083 |
|
Total capital expenditures |
|
$ |
80,084 |
|
|
$ |
31,827 |
|
(1) |
Capital expenditure amounts incurred during the period, including accrued capital costs. |
|
(2) |
Includes pre-production CO2 costs associated with the CCA EOR development project totaling |
|
(3) |
Includes capitalized internal acquisition, exploration and development costs and pre-production tertiary startup costs. |
|
(4) |
Primarily consists of working interest positions in the |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220505005182/en/
Source:
FAQ
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