den-20230630

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2023

☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from _______ to ________

Commission file number: 001-12935

DENBURY INC.

(Exact name of registrant as specified in its charter)

Delaware

20-0467835

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

5851 Legacy Circle,

Plano,

75024

(Address of principal executive offices)

(Zip Code)


Registrant’s telephone number, including area code:						(972)			673-2000

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class:	Trading Symbol:	Name of Each Exchange on Which Registered:
Common Stock $.001 Par Value	DEN	New York Stock Exchange

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☑ No ☐

The number of shares outstanding of the registrant’s Common Stock, $.001 par value, as of July 31, 2023, was 50,902,023.

Denbury Inc.

Table of Contents

Page

PART I. FINANCIAL INFORMATION

Item 1.

Financial Statements

Unaudited Condensed Consolidated Balance Sheets

Unaudited Condensed Consolidated Statements of Operations

Unaudited Condensed Consolidated Statements of Cash Flows

Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity

Notes to Unaudited Condensed Consolidated Financial Statements

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Item 4.

Controls and Procedures

PART II. OTHER INFORMATION

Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.

Defaults Upon Senior Securities

Item 4.

Mine Safety Disclosures

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Denbury Inc.

Unaudited Condensed Consolidated Balance Sheets

(In thousands, except par value and share data)



	June 30, 2023		December 31, 2022
Assets
Current assets
Cash and cash equivalents	$	531	$	521
Accrued production receivable	131,422		144,277
Trade and other receivables, net	21,800		27,343
Derivative assets	36,809		15,517
Prepaids	20,117		18,572
Total current assets	210,679		206,230
Property and equipment
Oil and natural gas properties (using full cost accounting)
Proved properties	1,751,158		1,414,779
Unevaluated properties	114,320		240,435
CO2 properties	193,432		190,985
Pipelines	219,748		220,125
CCUS storage sites and related assets	114,190		64,971
Other property and equipment	115,086		107,133
Less accumulated depletion, depreciation, amortization and impairment	(382,591)		(306,743)
Net property and equipment	2,125,343		1,931,685
Operating lease right-of-use assets	19,425		18,017
Derivative assets	1,269		—

Intangible assets, net	74,571		79,128
Restricted cash for future asset retirement obligations	48,405		47,359
Other assets	61,927		45,080
Total assets	$	2,541,619	$	2,327,499
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable and accrued liabilities	$	221,173	$	248,800
Oil and gas production payable	70,455		80,368
Derivative liabilities	—		13,018

Operating lease liabilities	5,098		4,676
Total current liabilities	296,726		346,862
Long-term liabilities
Long-term debt, net of current portion	85,153		29,000
Asset retirement obligations	312,372		315,942

Deferred tax liabilities, net	118,171		71,120
Operating lease liabilities	16,075		15,431
Other liabilities	12,969		16,527
Total long-term liabilities	544,740		448,020
Commitments and contingencies (Note 9)
Stockholders’ equity
Preferred stock, $.001 par value, 50,000,000 shares authorized, none issued and outstanding	—		—
Common stock, $.001 par value, 250,000,000 shares authorized; 50,473,001 and 49,814,874 shares issued, respectively	50		50
Paid-in capital in excess of par	1,058,119		1,047,063
Retained earnings	641,984		485,504

Total stockholders’ equity	1,700,153		1,532,617
Total liabilities and stockholders’ equity	$	2,541,619	$	2,327,499

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

Table of Contents

Denbury Inc.

Unaudited Condensed Consolidated Statements of Operations

(In thousands, except per-share data)


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023	2022
Revenues and other income
Oil, natural gas, and related product sales	$	302,946	$	451,970	$

SEC Form 10-Q filed by Denbury Inc.