Denbury Inc.

Good day ladies and gentlemen and welcome to Denbury's 2022 results and 2023 Outlook webcast. My name is Tia and I'll be your operator for today's call. At this time all participants are in listen only mode. Later we will conduct a question and answer session. To ask a question at this time please use the raise hand functionality to ask a question. If you have joined via the audio line please press star nine. I would like to now turn the conference call over to your host, Brad Whitmarsh, Head of Investor Relations. Please proceed, sir.

Good morning, everyone, and thank you for joining us today. This morning, we've provided three news releases covering our fourth quarter earnings, 2023 outlook, and an exciting CCUS update, as well as a supplemental presentation for your consumption. All of these items are available on our website at denberry.com, and I hope you've had a chance to review them. I want to remind everyone that today's event will include forward-looking statements that are based on our best and most reasonable information. There are numerous factors that can cause actual results to differ materially from what is discussed on today's call. You can read our full disclosures on forward-looking statements and the risk factors associated with our business in the slides accompanying today's presentation, our most recent SEC filings, and today's news releases. Also, please note that during the course of today's event, we may reference certain non-GAAP measures. Reconciliation disclosure relative to those measures is provided in today's earnings release and slide deck as well. This morning, our prepared comments will come from Chris Kendall, President and CEO, Mark Allen, CFO, David Shepard, COO, and Nick Wood, SVP of Carbon Solutions. Matt Dahan, SVP of Business Development and Technology, is also here to participate in the Q&A. With that, I'll turn it over to Chris.

Thanks, Brad. Good morning, everyone, and thank you for joining us on today's call. Denbury is an amazing position as we enter 2023. US policy support for CCUS has never been greater, and we're just scratching the surface of the scale we'll see in CCUS. The combination of the 45Q CCUS tax credit and significant improvements in carbon capture technology is opening the door for a vast portion of current and future US emissions to be captured economically. It is also clear today that the world's need for secure sources of energy of all types continues to grow. The past several years of underinvestment in global oil production have begun to put stress on the industry's ability to supply the world's recovering oil demand, resulting in a stronger price environment than we've seen for many years, and an imbalance that I believe could exist for some time. Considering that backdrop, Denbury could not be in a better place. Our unique carbon dioxide infrastructure and expertise put us in the center of the exciting high growth CCUS story, and we are just in the first chapter. Our long-lived CO2 EOR focused oil business is providing an ever greater proportion of carbon negative blue oil And our multi-year path toward development of the massive Cedar Creek anti-climb EOR resource will reach a key milestone with first EOR production this year, beginning the first of many decades of significant production of carbon negative high margin oil from this great asset. Our extensive use of industrial source CO2 in our operations, which increased to 4.3 million tons in 2022, helped the company once again achieve net negative scope one and two emissions for the year. Denver is uniquely situated to play an important part in meaningfully reducing carbon emissions while also providing a valuable, essential, low carbon intensity energy source. This is an incredibly exciting time for the company. We believe that CCUS will be a high-growth industry and a high-growth business for Denver. Underscoring that conviction, our results more than doubled our key CCUS goals for 2022, exceeding 20 million tons per year in cumulative transport and storage agreements and over 2 billion tons in pore space agreements. We also believe that oil will be a vital part of the global energy mix for many decades and that Denbury's blue oil produced through EOR using industrial source CO2 should be preferred as it is the lowest carbon intensity oil produced today. In 2022, we made investments in multiple attractive oil focused development projects and progressed our crown jewel CCA EOR project, which we expect to drive company production growth beginning this year as that flood ramps up, delivering 100% blue oil. In reaching these achievements, we have never lost sight of the business fundamentals. David will touch on this more, but keeping people safe remains our top priority. I've long said that excellent safety performance is the foundation for excellent operations, and our teams are proving this year after year. Our priorities for 2023 build on our 2022 successes. At CCA, we're preparing for our largest ever EOR development to start up in just a few months. We're investing in multiple high return oil focus projects across our portfolio, and we've more than doubled CCUS capital in line with our plans to rapidly grow that business. I am more confident than ever that Denbury has the right strategy, the right people, and the right assets to deliver transformational growth for our shareholders. I will now turn it over to Mark, who will go over our 2022 financial results and our 2023 outlook.