Denbury Inc. (DEN): history, ownership, mission, how it works & makes money

A Brief History of Denbury Inc. (DEN)

Founding and Early Years

Denbury Inc. was founded in 1958 as a small oil and natural gas company. Initially, it operated primarily in Mississippi and Louisiana. The company became known for its involvement in enhanced oil recovery (EOR) techniques, significantly impacting production rates. By 1999, Denbury focused on the burgeoning field of CO2 flooding, which enhanced oil recovery.

Public Offering and Expansion

In 2003, Denbury went public with an initial public offering (IPO) on the New York Stock Exchange under the ticker symbol DEN. The IPO raised approximately $118 million. The early 2000s saw significant expansion as Denbury acquired several key assets, including the Bell Creek Field in Montana.

Growth Through Acquisitions

Denbury's growth strategy heavily relied on acquisitions, with one of the most notable being the acquisition of Encore Acquisition Company in 2010 for $1.5 billion. This strategic move positioned Denbury as a leading player in the EOR market.

Financial Performance

In 2021, Denbury reported revenue of approximately $942 million. The company's operational focus on CO2 EOR and carbon capture technologies has generated significant interest from investors, particularly in the context of environmental sustainability.

Recent Developments

In recent years, Denbury has focused on aligning with trends in carbon management. As of October 2023, the company's market capitalization was approximately $1.3 billion. Denbury has invested heavily in carbon capture and storage projects, indicating a strategic pivot towards sustainable practices.

Sustainability Initiatives

• CO2 injection projects in Texas and Mississippi
• Partnerships with various environmental organizations
• Long-term plans for carbon management technology

Stock Performance

As of the end of September 2023, Denbury's stock was trading at approximately $80 per share. The company has shown a remarkable recovery since its lows in previous years, reflecting its improved financial performance and investor confidence.

Looking Ahead

Denbury's projections indicate a continued focus on sustainable oil production and carbon management, with plans to expand its CO2 pipeline infrastructure significantly. The company aims to increase its CO2 production by over 50% in the next five years.

A Who Owns Denbury Inc. (DEN)

Corporate Ownership Structure

Denbury Inc. (DEN), a prominent player in the oil and natural gas industry, has a diversified ownership structure. As of the latest reports, the following entities and individuals hold significant stakes in the company:

Top Institutional Shareholders

The majority of Denbury's shares are held by institutional investors. The top three institutional shareholders include:

• BlackRock, Inc.: 9.8%
• The Vanguard Group, Inc.: 7.8%
• State Street Corporation: 6.0%

Insider Ownership

Insider ownership represents a critical aspect of Denbury's governance. The following details reflect the ownership by key executives:

Recent Stock Performance

As of October 2023, Denbury Inc. has experienced fluctuations in its stock price:

• Current Stock Price: $35.75
• 52-Week High: $40.00
• 52-Week Low: $28.50

Market Capitalization

Denbury Inc.'s market capitalization is an essential indicator of the company's size and investor perception. As of the latest financial data:

• Market Capitalization: $2.39 billion

Shareholder Meetings and Voting

Shareholder engagement is crucial for governance. Denbury Inc. conducts annual meetings where votes are cast on several important issues:

Denbury Inc. (DEN) Mission Statement

Corporate Vision and Values

Denbury Inc. is committed to enhancing shareholder value through the sustainable development of its assets. The company's mission emphasizes its focus on environmental responsibility and innovation.

Core Objectives

The following core objectives align with Denbury's mission statement:

• Maximize revenue growth through strategic acquisitions and asset optimization.
• Enhance operational efficiency by leveraging advanced technologies.
• Commit to sustainable practices in all exploration and production activities.
• Engage with local communities and stakeholders for mutual benefit.

Financial Performance

For the third quarter of 2023, Denbury reported:

• Net Income: $90 million
• Revenue: $260 million
• EBITDA: $150 million
• Adjusted Free Cash Flow: $70 million

Operational Focus Areas

Denbury’s operational focus includes:

• CO2 Enhanced Oil Recovery (EOR): Utilizing CO2 for maximizing oil recovery
• Carbon Management: Leading initiatives to sequester carbon dioxide
• Exploration & Production: Focusing on high-quality reserves in the Gulf Coast region

Latest Key Performance Indicators (KPIs)

Commitment to Sustainability

Denbury's mission extends to environmental stewardship, with strategies including:

• Investment in technologies for reducing greenhouse gas emissions.
• Partnerships with environmental organizations to promote carbon capture.
• Awareness programs for communities regarding environmental impact.

Community Engagement Strategy

The mission statement reflects Denbury's aim for positive community relations, which includes:

• Regular community meetings to discuss projects and impacts.
• Investment in local infrastructure and educational programs.
• Transparency in operations to foster trust and collaboration.

Summary of Key Financial Metrics

How Denbury Inc. (DEN) Works

Business Model

Denbury Inc. operates primarily in the fields of oil and natural gas, focusing heavily on enhanced oil recovery (EOR) techniques utilizing CO2. The company’s operations are primarily split between the Gulf Coast and Rocky Mountain regions of the United States. In 2022, Denbury produced approximately 67,000 barrels of oil equivalent per day.

Financial Performance

As of the end of 2022, Denbury reported the following financial data:

Production and Reserves

Denbury’s production strategies heavily focus on CO2 enhanced oil recovery. The company has a significant amount of proved oil reserves. As of year-end 2022, Denbury had:

• Proved reserves of approximately 165 million barrels of oil equivalent
• Approximately 91% of reserves located in the Gulf Coast region
• Reserves replacement ratio in 2022 of 280%

CO2 Supply and Utilization

Denbury is one of the largest CO2 suppliers in the United States, with an extensive pipeline network. In 2022, the company transported approximately 6.5 million tons of CO2. The company has:

• Over 1,300 miles of CO2 pipeline
• Annual CO2 sourcing capacity of 7 million tons
• Major CO2 sources including natural reservoirs and industrial capture

Market Position and Competitors

Denbury competes with various companies in the oil and gas sector. Key competitors include:

• Occidental Petroleum
• Pioneer Natural Resources
• Devon Energy

As of 2022, Denbury held a market capitalization of approximately $2.5 billion.

Environmental, Social, and Governance (ESG) Initiatives

Denbury emphasizes the importance of ESG criteria. The company has made commitments to reduce its carbon footprint and implement sustainable practices. Key initiatives include:

• Investment in carbon capture technology
• Reduction of methane emissions by 20% by 2025
• Community engagement programs in operational areas

Recent Developments

In 2023, Denbury announced its intention to expand its CO2 pipeline network by an additional 200 miles, aimed at supporting new EOR projects. The company also reported a 10% increase in average realized prices for oil in Q1 2023 compared to the previous quarter. Key metrics from Q1 2023 include:

How Denbury Inc. (DEN) Makes Money

Core Business Segments

Denbury Inc. primarily generates revenue through its Enhanced Oil Recovery (EOR) operations, which involve the use of carbon dioxide (CO2) injection to increase oil production from existing fields. The company operates in the Gulf Coast and Rocky Mountain regions, leveraging its extensive CO2 pipeline infrastructure.

Revenue Sources

• Sales of oil, primarily from EOR techniques
• Sales of CO2, which is injected into oil fields
• Natural gas production and sales
• Transportation and marketing of crude oil

Financial Performance

As of the latest fiscal year, Denbury reported the following financial figures:

Production Metrics

Denbury's production metrics from recent reports include:

Operational Efficiencies

Denbury focuses on enhancing operational efficiencies through:

• Utilization of advanced CO2 injection techniques
• Investment in technology to improve production rates
• Strategic acquisitions of oil fields with high EOR potential

Market Conditions

The price of West Texas Intermediate (WTI) crude oil, a key driver for Denbury's revenue, averaged approximately $70 per barrel in the most recent quarter, which has a significant impact on their profitability.

Future Projections

Denbury is strategically positioned to benefit from the increase in demand for carbon capture and storage (CCS) projects, with investments aimed at reducing carbon emissions while boosting oil output. The company plans to expand its CO2 pipeline network to facilitate these efforts.

Carbon Dioxide Sales

In addition to oil production, Denbury generates revenue through the sale of CO2, which is a critical component in their EOR processes. The company has projected a revenue contribution of approximately $100 million from CO2 sales in the upcoming fiscal year.

Investment Strategy

Denbury has employed a disciplined capital investment strategy with a focus on:

• Funding high-return oil projects
• Enhancing reserves through strategic acquisitions
• Maintaining a balanced approach to debt management

Conclusion of Financials

As of the latest financial statements, Denbury's commitment to its core operations and strategic initiatives positions the company well in the competitive oil and gas market.