Denbury (DNRWW) 4 Nov 212021 Q3 Earnings call transcript

Greetings and welcome to Denbury's Third Quarter 2021 Results Conference Call. My name is Garel, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [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. sir. ahead, go Please

They reasonable and numerous our as remarks. had for our a We materials may this on and everyone today's at our that I forward-looking and include will are denbury.com actual prepared earnings us hope differ supporting we want morning. released we based you've chance that certain results are today's that available make materially is thank statements morning, best our information. on joining could cause website slides you reference most today. from release are we and call Good to factors discussed to remind There call. that to everyone on what review

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

watch Nik, Mark, key provide I to will on brief towards us shareholders more call. In where today's propelling company morning, detail. exciting areas value on last year will each David an future. would the Good update Brad. substantial joining our of I This a be and and thank for everyone morning, and noted call, for then Thanks unlocking Denbury provide second our the three you and quarter's half in

on EOR quarterly all the borrowings with deliver been. zero it the results The exceeding is exited base next operating first business. expectations was continued in Safety and pleased with plan incredibly meeting to our balance on debt our no on board. we early We've having key results sheet on facility than has we our focused or Further, ever across quarter areas. I'm year. credit and with the strong execution performance financial the those catalysts of better anticipate

flagship The was detail David ahead initial development executing project. first catalyst or second quarter schedule, next on below but for our budget on share is is CCA project more and will COX year. at of is track in injection of the the

be enhanced planet. carbon all remarkable which zero safety. will to blue incidents from the the Importantly, a produces underscores utilize of the industrial recordable by most continue crude COX the we barrel date, core oil have our safety team, and that emphasis our over on incurred this achievement oil project believe on project to entire production sourced emissions, business friendly we recovery environmentally negative All

We that oil are CEI end. quarter's progressing party call planned process completion verification project last third mentioned year around score I of with to on and blue that

as well to that catalyst as to each key with CCUS with sites, have in with the progressing agreements carbon COX agreements The we noted third for solutions our was owners potential their I value storage companies quarter unlocking seeking capture potential massive the business. of last begin emissions, case

continued and that and another opportunity, there work do magnitude will that to company these of providing provide. ranging agreements. Gulf joint the ammonia our package carbon midstream opportunity anticipate more location with project. of economic, of have the We're even we will first up year. just am leading the are midstream low landscape provide today, Coast in COX volume a and These are could to am to COX area. customers. complete quarter, being partners be negotiating and of this be services, storage our in will competitors Coast agreements that on work number Total I with the excited system by this our our competitive the third the transport the storage the and proximity asked working underground of the the of technical be the footprint, who at executed our storing storage I encouraged our infrastructure the million deep to secure thrilled in including about to network CCUS. certainty cumulative as also and our to this access with well I transporting That Mitsui. confident what of our our infrastructure for provide tons, we Houston agreement the I XXX of as many pipeline During metric Mitsubishi, expertise the sheets Denbury the potential many time, end sites these flexible long evaluation COX and project COX CCUS the we’ve storage and sequestration potential carbon along see safe across spectrum transport COX potential. said, we're for will with agreement by this team I storage initial working get COX storage announced expect operating I term I same currently expect locations solutions solution The for for capable provides Gulf customers. previously agreements infrastructure to very maybe the complete executed Considering industry At from our we that market. not for and term morning reliable system announced providing substantial of represents enter sites, partners can often a first add the solutions

briefly to reconciliation latest to package, XXQ I the Before includes to of handing credit. house on the draft over the Mark, comment wanted which enhancements tax

post from combustion enhancements reduction extension qualifies CCUS a direct structure and a to other the incentivize significant capture industries in steel and both emissions. The and congressional credit as of our While emissions. of is to credit should shift cement are storage credit for these dedicated COX details the higher language the tax will XXQ, there support subject increased work emission period, size COX I begin pay. to leading industrial The for capture incentives in the passed, and expectations enhancements package entire tax of of the are changes accelerate EOR consistent increased US manufacturer, the through many an course minimum certain such that as proposed with other to the approval, also If cost in reductions storage. to and like capture expand facility package includes these the believe construction with growth for well draft as greater to industry levels

being site, haven't Before our our you mitigating we September, I up, that to a on indirect if and we over read in dedicated issued to ESG available unique now in future. wrap and direct chance we turn emissions Mark, you. to new and sustainability safety and our report well as Web had a and has strategy leader all to work corporate is it I'll impactful Denbury and as are progress highlighting a in it governance. enhancements create responsibility a energy

David results before provide Today handing morning, of the over for detailed good to a a financial Denbury’s everyone. review and review. the quarter more operations for brief I'll third Chris, call Thanks,

quarter basis, the $XX third in executed was diluted cash hedges. increased operating of $X.XX our primary a quarter. the oil the compared $XX $XX million operations to highs our being by cash BOE net were capital net as mentioned, prices, $XX liquidity changes positive to this end income sales quarter per oil from on million our for flow. the quarter. and was quarter during of adjusted to third our contributed and operating margin income the facility. our quarter revenue, no pre-hedged and with borrowings cash GAAP million Financial for to third million to flow volumes to the third bolstered over year higher for of which working quarter realized at results the or million $XX.XX $XXX cash Adjusted As On the credit quarterly million we Operating net as per or change mark increased share with $XXX Chris the weights flow income difference third market

final of our was was on debt outstanding the the obligations payment at month. million only pipeline last made which Our end financing, $XX NEJD the quarter

quarter, for total area sale surface of nonproductive the that area additional planned on million. of company's closed acreage the Houston $XX development some the proceeds we was During outside of

COX Looking pipeline in half forward, we up expansion we on will with Greencore million the CCA million we spend current anticipate in free as $XX to I pricing, exit $XX to borrowings of quarter. of the being the oil year. project for debt first capital Based next fourth the the year wrap bank

various XX,XXX barrels equivalent are in widening guidance, us crude, of the Sales even is quarter. extremely assess and sheet per CCUS. with expected, development third to expansion, potential second a the increase the non-EOR the balance Gulf opportunities of third with prices. volumes slight we from in strong ahead approximately pipeline with our in value growth as us provides were Our the oil to valuable weaker Coast new primarily CCUS, create flexibility storage and average and Differentials quarter WTI EOR massive consistent as including great quarter more day respect relative which to

a the various third continue supply at prices. for regions, Coast For driving of we to pricing. Gulf our to cushing the It's This and historically, guide difficult our now, always region Whereas higher expect Gulf and supply on differentials tight to were near term Coast receives our Rockies with balances same. reflective our QX, in differentials. into similar the be demand differentials Rockies the the strength essentially for results. crude But quarter to is in

the to to quarter was third during Our prices hedges QX strengthen during last cash compared as million WTI oil $XX quarter. million continue $XX

facility. recall in year the most our under place will of in were positions quarter that You bank our put fourth as credit last hedge required of

and under off credit which operating the operating of of the to we less we We the have our including expected activity our that we items move commodity we into other favorable expenses our and right prices requirements costs, the additional quarter for of colors, fairway we over down impact with in roll amount Needless seasonal utility greater considering the hedging on facility. power forward more have hedge are looking as XXXX for totaled as our provides some well hedged the prices, Leased hedges. BOE mix have on XXXX, And price line work to and natural expectations. are of production per the of at costs. rising as impact the more say expectations no a are with third quarter typically $XX.XX bank All gas upside. in

CCA. at quarter, consider potential to working million reserves $X of through booking plans fourth to on expect cash It's still $X million capital initial our provide early we as or the by will too planning the as XXXX are increase specifics impact we approved process. For flow of that DD&A the tertiary we

it's provide CCUS progress CCA first a you business. be of our ongoing relatively to maximizing a think flow production, we in expect flat continue as to perspective and for focus we to However, our our base I reasonable generation as XXXX cash from on business capital with our to evaluation our framework, holding towards tertiary volume needs grow

strategy I base in significant Before David, and a executing into growing can oil a business. XXXX. balance want gives us place our no generate debt move we strong great our over David? in hedges off rolling with funding what I term great it confidence turn financially lot favor cash a in are It that optionality long on we for to to the our CCUS as essentially of business are and free reemphasize that sheet,

an before levels quarter term to safe XXXX. the everyone. outstanding. throughout at efficient want increasing I morning, projects. have want most operations have Oyster track our which was core and quarter. great third focus momentum discussion It's expenses certainly date, Good on One our to you, we accomplishment and been the that Mark. on of comments some progress always performance. be built closing to we safety, Year year doing towards project I out morning operations activity as job a and exciting recent to development long Denbury that are the with wrapping up are rate time our my we have continuing share low CCA volumes a with as and will Thanks, our and near with as this development at total record start to operational our teams recordable I best to sits front. with is on Effective incident Bayou and

recordable employees done. and company the between CCA operations hours focus development teams with have the safety XXX,XXX tremendous a this On for effort no we year Denbury project, incidents. job I man well and the and of project by accumulated contractors activity acknowledge

execution. to on an project update on Moving

pattern finalized the Oyster Texas. producer third the one During converting AX Southeast the initial quarter, drilling additional field AX under first our producing previously to injectors design project September, The resource producers swept the new Late of currently above to reservoir. two the well plan. AX in area wells in at optimize of and is we and the to wells Bayou development seeing while and expansion a began included respond recovery we in two

the Results also expansion expect the capacity. continued to evaluating expanded strong expansion. was recall approximately in development This Oyster we At AXs for therefore, ahead AX Bayou we highest facility of patterns reservoir. since barrels Denbury, spend capital very quarter end the was the the went are Oyster have response, development positive in fourth quarter before towards which X,XXX is and we seeing our XXXX respond result of progressing Approximately additional year. XX% executed the compression producing day, third AX two that's the additional Bayou, We deeper field tertiary potential the will AX encouraging producers of CCA plan. injection level where to of our of that a project, Continuing third early with you show consider quarter, is future the the XXXX. as the end our in per in two

project a underway all mechanical COX extension, two XXX completion As in of the year. within And of XX and believe operator today, COX pipeline I testing expected we States in weeks. of is have the this installation next This with final Greencore COX become US. will only the with pipeline largest significant the inch United this installed extension, Denbury mileage pipelines miles the

field completed COX South CCA at injectors. XX water where pipeline injector Butte should Hills of development the it's workover extension be phase month to wells teams East the of this operating the begin have converting end by end tertiary and first targeting Greencore COX our and rigs Lookout the by landfill year. units, The to the is of Cedar the multiple expected in

production first accelerated the quarter injection Our and is response in of now COX the subsurface expected XXXX has since half XXXX. X of second Phase

X produced. CCA EOR number the than me make of benefit resource of really stand means total With total one, have the the development installed, than XXX increasing BOE. development recoverable Two, will which LOE ground The phases we've future we long we barrel million XXX $XX our blue tertiary sourced are, things the scale place inject to opportunity. multi-decade every the development cost oil undertaken. XX% into development. potential will estimate this pipeline BOE million all And admit. three, ever barrels COX equivalent targeting of less CCA will incremental production CCA a for We put three significantly will fully CCA Phase a CCA our resource drive of per of industrial the increase key $XX, in the as infrastructure they will at negative that to ever thereby, of have the about to is oil down that combustion operations. potential, largest development the margins carbon out operating is with more our and

offset from we COX the to where volumes, in AXdevelopment. on temporarily as will costs. nearly capital contribution injection. CCA Oyster our being anticipate day. anticipated quarter some equivalent to from near wells quarter This quarter barrels anticipated third from We volumes sales four shutting water volumes Bayou are additional term lower to and give thoughts four is convert increase guidance we to per for Now operating XX,XXX should from see field

certain in negatively rise at which are addition, prices fields CCA, profitable. sales impacts holds party the In net volumes our a fields third the profits and oil insurance, as more

completion And with the quarter related from natural on capital again guidance fewer year field level. pipeline spin the XQ peak fourth our spin quarter to per and quarter the be majority remain maintenance third midpoint on will we the and the to projects third come Greencore the some On workovers the are commodity consistent be full both prices, as the below at will of impacts front, activities. costs, increased range. relatively LOE gas preventative million all quarter setting variable oil down plan some Fourth COX, should BOE and utilities. vast COX The of of CCA such slightly and as $XXX and power accordingly,

our As some we suppliers the when and up, cost them performance working now of term things to goods our assets where the Denbury are fair business. strengthening developments, we proactively pleased off need, to the but for for I are need execution on teams, want operations the at and just hand Wrapping along foundation our our the seeing it our and so supply by with even our how positioning which tremendous near am inflation comment more long the With services, update ourselves Nik we to with I teams. I'll and CCUS pressures stands incremental on planning chain, certain future. get we are an on and prices.

be the share the to exciting David. today of team's It's Thanks, call progress. some to great on

multiple tons representing as million X potential. as sequestration of transport year, than metric discussed focused last quarter's the increase, carbon continues deals quarter, teams final on and solution moving well negotiations minimum than industrial partners momentum past stages. the COX tons billion are call, agreements to Denbury XX with COX owners, port with Over metric ongoing of negotiations more to and to laser store our we per we more In space

MOU since long coast to with jointly to offtake negative evaluate This project, are we're term newbuild thrilled ammonia as together blue call. from opportunities announce agreement new Mitsui Mitsubishi to produce carbon EOR we Gulf The the two as excited that work well We to morning, oil. with two disclosed agreements. that agreements

a significant inject with a today request expected agreements. significant to million of storage readiness ultimately tons project located the competitive most achieve first the rights plant transport on project [planned] Proximity Development of infrastructure wells metric second to extending milestone of a Green COX the time in first transportation right storage this from capacity is storage new intent partners in additional potential to on their in the plant also by store as We Coast. for develop edge the in and footprint deal XXX At COX The storage to storage time. We our permitting emissions. benefit my I'll in preparations be agreement. biofuel This store first our XX% exclusive southwest per of significant site our site to sharing of injection upto located COX storage renewable pipeline be western dedicated we several to limited the call our injection Southeast for to Texas portfolio but will of share Houston infrastructure significant million X is are pipeline. forward continue Gulf our that will with Coast miles that the area. we underway tons. can sites industrial we the the ownership. development improve industrial site will Also and up to at most The early from appropriate is planning XX across plan of of these we with year this is Partners. the site we to about COX with Midstream emission looking this captured is options our build our dedicated from and first and store provide the year what on offtake metric ideal, that Texas, option spend on XX already XXXX. new customers. talking Class a site we are reached for in will with a progress storage by expect believe for infrastructure access this jointly equity our signed more for to now, up very the a the and We the just do is a participate VI Gulf Separately, for ensuring the infrastructure about site, owner, to we've agreement locations,

existing area combination We scale newbuild continue the and the wrap strong ideal plants I'll regulatory Coast few ports access encouraged policy by further geology with unmatched up thoughts. which key to support, of to for infrastructure. extensive COX validates be an Gulf of a deepwater for storage, activity, and

enhancements The XXQ we solutions of can pipeline million has carbon opportunities of within team XXQ the market we potential orders needs put current space up engagements. for there in substantially miles believe the CCUS tax footprint timing to new investment storage the XX permit serve greater has scale particular momentum decades. region innings. the the under I'm great the To accelerating The First, early great provide COX of vital strategic that that initial the we storage, especially to an extensive The our CCUS, and to credit that proud Ultimately, uncertain make a decisions to capacity permits because is see the see package optimistic EOR. than not this abundance COX the to large subject partners of that addressable made has abundance will an magnitude certainty in bulk over term allows access infrastructure. Gulf of Denbury existing perspective, the knowing of primarily have we storage optics Coast dedicated advancing priorities. success believe EOR that of and reconciliation of capture potential today approvals. our in EOR I'm market. of regulation in the that storage XX industrial provides safe progress provides long solution acres opened from is Denbury's is we an is industry's increase

storage call of our a will flexibility we a solution portfolio have provide our strategy storage secure provide Operator, superior any open and for today. When to capture reliability questions. near term project. like operating Our that we’d a diverse combined the network extensive economic with currently to solution to options pipeline gate to front of build customers now

Our first has line Rice. Charles Meade come from Instructions] Johnson [Operator of question the with

on of months? about actually the to us six I'd question you like a -- ask -- the the business give If last CCUS to a back and about signed look -- six and you've if three with would four now. think go accomplished you or were you to back months from How go were guys have arc first the what ago perspective even if deals you your characterize kind give expectations, that months out anticipated you kind or still way are the fish six to share, there surprised your And a in you are way versus could not big there ago? then track, progress us maybe land? is there And are have anything that that evolving of sense. any of on you also would you opportunities so that is these

both great and we're about Actually, actually we those. think of about Nik's parts that I are the I that today that when at disclosed that come, other I certainly has linked. think but made, the beginning the two parts we'd imagined are be And to yet of think kind I parts are ahead where of the progress where team of we've

that carbon and huge And going, role to here. and just what needs recognition much of activity, so play the where tailwinds are much there's companies the going where so capture so in enthusiasm society's happen

We of is the that not is say interesting is or I the just on off already not the is think with would ammonia whole in current associated be of we of what new is the emitters around, the second the what feel seen, me. or and have for energy support regulatory any the way will we're we've ground great their relationships that last the surprise developments there only of optimize question system What the support newbuild. ideas that really that to really new and can administration, we access of and the COX anything those I and terms the I that just but use transition the So surprised administration that example, these great to take breadth several and the What's that's most saw and optimize and And benefits in your will that's have up from them. policy about about taking all have developments the biofuels, mean in of that. costs and know connect we surprising great system. accelerating

to expansion a that it the We When little this the think at in talked that So excited XXQ, I and meet the just place. the about about enhance We $XX first positives some we were to continues of upside. makes that had better. bit XXQ. there $XX the works potential it much

we great is really it's feel think and that coming technique that as be own about recognized And I So a a going it. to is its into big business.

Chris. That’s really interesting,

I first… think I was -- likewise, I wasn't your looking plant as for new-build blue ammonia

Exactly…

there. described kind me You of actually

talk talking couple ground the CCA and ground. are we between COX pipe actually and here literally really are from mean in We've first in this could the the the getting about there's that of pipe many question line couple pipeline. Second, months in the It's I first next [Indiscernible] for meaningful been the And being the injected [field] and field of about it? I distribution. year? if weeks about steps remarkable. obstacles so getting project ask But any if years. you what all the the a Can of is

we’ve not really just safely. tell been on And it's and progress has execution, now. I the I'll execution right executed by teams just the core our that the it's tremendous you in tenant gone success really that's the field, think that just an that our to

completely pipe the is Just for underground. clarity,

week [indiscernible] here January. second look month. hydro of have station The prior to probably that being finished we're complete work this pump of Line be segment weeks. on final point week. start the seeing one will that the within or will end have the at next pump be mechanical completed pipeline we testing station ongoing the this first We field There will the two the that here in by completion final of

pipe expect get and We that ahead. to field progress

short distribution quarter very impediment of direct, question see in XXXX. I your to and So do the COX answer any occurring first to not

of come Our Markets. line Capital Mariani from next with Leo question KeyBanc the

I heads guys those Gulf I some economics down the announced with the of would more project by forming to on And kind to guys equity couple in completely build point Gulf here? into process of they've the this at years? is deal make the is in wanted morning guys, coast. over to and of sharing secured questions just ask kind a of just of you got this would or with of are guess, additionally, you just this deal already handful I this guys that to here guys, locked kind the get capital this this interest of next as any for be you Coast it up be fully a kind sense, kind type the payments of of of upfront sort wanted out

GCMP thoughts when met about go take details it that that we going and more. can't first just at we be in sure point, into it can share the I and a can where up to agreements part to little are team And last your the you of there might some with that into, I'll think are. go the we and Nik nature this them to but the we I'm of where then understand bit the on talk Nick generally was certainly

are steps you port Texas already to progressed, which space around And the they of in of passed state we the lockdown as site to what the the that, get had into jump storage part around question a the here I'd see site first hurdles like guess a entered negotiations, into is storage I the aspect. that ownership. necessary in So I'll on Texas lot

And already in so getting acreage for put place. was something prepared that development that they'd

our where was so site both Texas, a able it's to And being for emitters get at close there to on great infrastructure in win parties. a

And so that forward working and we starting agreement course the past over through of getting to that months. that coming and look see to

area think for that lot that story, Houston. I'd story is And add in that midstream Gulf Southwest and the a then a we storage the particularly think Coast we the just lot to to to team with that team brings the bring we

continue right details And through so at that we’ll the time. share working and more

maybe clearly both have kind be this could guess line capability, giant versus particular yours guys GCMP little I trunk a you with and the would but you lots role obviously know role. don't level have around. from those perspective, project just talk group a volumes I what midstream but about of And high in of

be So maybe you bit that can little get helpful. would that into a more

a time. to be on a that on will we on exact working just and nature lot Again, interest of JV the so look to lot partnership. bringing and out together. the over secured. But pipeline this will party the will the site. steps that be generally, will address the that be a will percentage acres commission be site that working a that developing are already to that take emitters And the in will actually the lot they will with revenue bring ongoing they COX to that It own kind GCMP jointly forward either JV of figured of

Just of in the to And to I as kind would in of deals you deals should of package of guess guys size guys deals that GCMP sense this signing be on that dynamic? well? would offering just you potentially emitters, So you or be with get signed? side trying a kind that a [scopes] part the their as pursuing pulled emitter are other also this

COX There think one for is will a reason, is industrial their EOR so sites from be of whether folded way. or of fields on have the is now other, we mean, the breadth that right I that be the along we targets in the for technical many really great storage whatever storms, where storage give first Nik and options storage -- this that into supplemented puzzle they to needs or it mentioned that we're that And other entire the provide number picture is can on working of that end partners we an earlier it's end. way one us to network we about this package what The that sites know I that existing operational, with about met are offering if piece be this can’t steadily will that they as great them, dedicated to needed the The talked is we for some that pipeline a have. time.

right part as it see of we that time story So bigger a now. in we're real building

Doug of the from question Leggett Bank with next line of Our comes America.

IV stand Because a know this to in country? Class but who’s only that does I Guys, this don’t morning? [indiscernible] one, a is that best those answer permitting. Where our understanding active couple of

with underway, EPA exactly X the Class get submit like So to the Class IV actual has there that permitting progressing permit the again. been GCMP to but is hasn't application say what I'd interactions been

relates deal do specific then projects presenters? any you to that or And for economics potential or under know

few can storage we What to we Doug, haven't it competitive So will of think is kind it'll it, yet will be echoing a that and that at any access. develop purposefully. take this with what what out be Nik's just comments say that, be that where when of would anything will earlier minutes is shared we there look emissions it I

and ground? I the I you that market one, think to this this how how context the our the flash replacement infrastructure on I you what’s ownership topic. the mind particular to of of there about want If this for think utilization, know In time? cost anything how getting of also our the you do publicly, see in of before. so [value] the that get how evolve about and might might last you Is maybe recognition release and the infrastructure. over infrastructure, But recognize there maximum the your structural think to pipes in one value can not, have talked on both I everyone Chris, the you can your

that our question, think and emissions in it's great value the of provide, key what today the and that that is that's touching Obviously, of quite and Yes, ground just a areas. think not a these the it and all Doug, operating network incredible we infrastructure we value fact is it industrial about can and the bit. but replacement

It has in It expandability. the the place. right has the it's capacity. right So right

we the hear that so And continue repeatedly about think we we it's talk value that flexibility variety to we move customers, system, of is incredible. and efficient to and to think industrial And think you'll us the and the what the their that about different have exist type that want system obviously, can most grow that of COX to flexible reliable destinations. a presents we

we do your as we just So business run we're this we winner I how you in build And see, and well a long value really the out. think get way, To we is as question going realized? that's doing can. what to not now, the ultimately want as build as and underlying to the to around keep that in working think of right large process do we're that. of

Denbury some parts be on could to what different investors that think about own. there road think ways down opportunities its providing different and get like further I to does invest would have we mean, business that to that on a stand structures, of for the in truly I a like does. look big

it’s something thinking So that’s about. to come but certainly we're that

Our next Stifel. of line comes of from the Scialla Michael question

would the give guess, required, steps, there costs, wondering those storage early at of thinking wondering discuss understand permit, there? vertical in obviously? that Class the the idea be any area of mentioned re economics about, steps getting But least I'm if remediation I if there I could you to ready along that given are an that's the just sense just wells Is worried need initial next what but what able the on work you'd VI lines? any be capital or site, to you're maybe or not you

we’re into yet the that jump we're of XX the green capital costs. I ready a point at obviously, the extent Western about pipeline. mean, we're where So of you’d miles off to not see

is some it well having CapEx do I’d work we've to storage that disclose work So about and I some Otherwise, think got apply it that. fits that we'll report in any What publicly, a on to about we've Petroleum before pipeline National of just interconnect costs you ready the pipeline of have when out to. can that we're talked very we that publicly. that, on all say laid about CCUS, I the think Council’s been with typical

bit feel talk And about good it, just premature we little any so more details. a to

need to on, in vertical here? that work be over is area that In needs to wells the do year remediation a acquired any terms there of or the seismic

that VI these MRV, and And towards so permit or that, point. all so of like aware the any nothing and from I costly at that's our just of not working both baked to site think, but be this that's confidence, secure I'm to we're of not you this we are remediation sure for expenses any putting level is, Seismic, the wanting other just as needed there Class that aware places. sites we're that and regulators the provide on as planning, that, for extensive that COX in into of that things will work make the into the public on we're can very site, that highest

seeing those change proposed your any more storage for have and you've terms ton, door more that any the same changed to And capture. to may mentioned goes customers XX Are with if is table that of to industrial at legislation, secured do the door Chris, carbon And per fee you [folding] the potential for and opens the you open and you all site, charge in for guess contemplate XX discussions we go that new customers. potential permanent companies companies the that negotiations? now your at I of a come

So of what's today, of partners when were look about we're where is where could and we to where talking excitement business compared interesting are to these credits was those at number different this had that they incentivized go the that based the we've levels. credits at were, the all, on then first

that even the the get honestly XXQ, primary I great say would that’s that big others into are conversations that how been plants I have -- to there steel what industries electricity up is gas know fired, that are that first cement natural or or the example. money outside start set so were are, we've for And that examples having. And they of on of like generating known

some flattens more. toward to out I curve So that get part of to higher capture that it to it these the as door, think you that move we cost also opens levels, a starts

captured. think gives outsized so, that can improvement you And the of that emissions an every that you just I gain total dollar amount be in

about excited that. So

that least whether or be reconciliation it comes see exciting. of it's this likelihood the think really but we catch comes at it achieved package reconciliation it highest support that, that see this the can bipartisan we I CCUS, right from plenty the just whether package in underscores the but here through pathways now act, during

to the is to me on your I think significant there higher So you is economics. to mean Denbury I primarily and that but scale want of what to is capture that industry want what biggest realize I building think sale. us you be attract and do we those general build of will win CCUS in and question industries win improvements cost to term that for here. the do scale is in able some allows for negotiations think this the building long huge

next Capital [Operator Our One Instructions] line Richard Tullis come with questions from the of Securities.

how have you may us South just approached Louisiana. of just overview an recently hydrogen air I in if project was maybe may give wondering was or and can have negotiations you announced any that you products aggressively had the

for there lot likely it or be any know, participate us that moved just shot themselves, did to have potential were almost a at a you any COX way of let maybe, to they it's eventually, like, in big going a forward? keep of project, So and trying just project just and all to

us first, years. Richard, of partner and we're into in Port their been their system year for taking of of with are, so with that about They together many thinking doing COX off ours. source a tons our plant they're great about products, have XXX,XXX hydrogen industrial a plant Arthur,

that of a And was it of at the is in the product for have we been the last have considering out, I this provided, least a project. And that to from compare that, you destination. of more knew it the to that a reliable, to firmly working we working that known actually carries this Any their could that, way. point, to on themselves, said we that be And we course a COX their in And at year, volumes was those we've that, effect think they numbers we because of into to something the possibilities along would emitter and wanted So relationship. more there carved day. as in Having we terms what segments keep more network move mentioned. choice I say that play, when along great you risk any ultimately, believe COX our be long a all just products. to run, effective, single on

project product move forward As we the network. we air see our to and as continue develop

at I you're expanding XX you was to little place, at know in maybe year. Looking per the it to of discussions look tons expand the bit in capacity projects, have one system. the of the to it just even both ability the earlier any in brought direction million but a move I at potential pipeline ways, in know caller's to up backlog with green question, looking

you If increased $XX tax a skip particularly credit XX if XXQ ton. have is the the to

portion And think traffic high this on ways multiple ways expand we adding the $XX a In by infrastructure. talked that at loops that. capacity areas. a see pump pathway And of either extend year can we we good I or million system. stations this way, we overall of past, about or other of the to doing growing pipeline line the of expanding in-place And tons see

to with much we're be associated area other even reaching Gulf emissions Coast the to. that are in of that them sites, closer midstream Some that pipeline the

an Baton high and a into would that more much think that and so areas tie again, Orleans, really sense of based. of an we emissions make think moving or towards that this lot emissions about. of down Rouge area just lake Charles about segments We And integrated system that's into

base And starting are system we're through it that million So, to what it. continuing year I we work tons a is about a love that. $XX from that's

then that we're that go. working start provide as essentially build and real-time a great we base that them had incrementally We and have way as to from comes, a can right we we solutions with demand of

then, just I lastly me. guess for And

didn't the XX catch to the that remarks comments Nik recap I all mentioning? could you If that. made contract related year during of was opening the

build that agreement there plant agreement new we the for agreement XX a new long-term have with we have that Gulf a in years. So Coast biofuel

we asked Richard, mentioned opportunities we situation anything infrastructure it, had have new year there up. weren't to we for that but that not further. before are into evidence beyond that with a partner time our more it's And element earlier, it's detail. out together investments a to and system for as even going them that's and been We're us the one of types here disclose of opens the ideas And just by XXQ To Charles can great that you more all about be me uh, across I excited now. these bit combined of reasons ago, several see to coming really the, the go but

And storage, just transportation it time? this are you to and lastly related not both able that, at say is to

maybe it Yes, storage. and transportation

next comes Our question Scialla Michael Stifel. from the line of with

you're guess. What flow? anticipating well, follow-ups. guess, Mark, do haven't Are year? you was the free debt-free kind formal cash assuming expect have You spending be next mentioned, guidance know, or that I Just half equals to asking given in thinking a first to -- I'm cash generating couple to comment that a yet. of of you of just don't you based flow free But you be on? I'm I

was we’ve which maybe as about of kind in of think At we year, comment with of couple made of terms this the of on or you flattish up point, kind close knowing got to a aligned on the from CCA but next us production that into require the production, million that so standpoint basis, think here just the overarching holding know you build year. and kind standpoint, before about XXX most an we're or a capital that average to continuing for guidance

production, that cash if obviously recent hedge look hedge benefit that And neighborhood in from our of higher lot our in more you us looked year, that on half of prices, at based prices. based a our that's probably significant book to we're or prices current free on of say, year Beyond able plus position, prices that the puts this recent position. XXX at so million targeting flow I around we would somewhere and as next

next the we So if we significant sight entail is CCUS we business, kind opportunistic have you fund anticipate out think might building and of generating before line of said, here that good remain that couple to some start as today, to distribution of we the making want considering with what over as free of we years, amount sure program. cash that cash. And about

next we year, see share once of to comments that now. bit will it now, do So we that's and how as to as right that's I broad and normally this we say some people kind you continue the planning little work hopefully would for process early

reading to you funding next anticipating least with right, sounds you're Mark, flow it external of combat the funding at like all I'm this internal for CCS If cash point? couple requirements years at

consider that obstacles money became the growth necessary, thing too. that's the into capital of best flexibility say toward that, things more to would us raising that's is this a vehicle, definitely we we options means need want the extent faster, option because CCUS faster and us. as requires and we'll think great in I an cash the we gives issues or some be we pool that today, believe have it to having an if it think I’d don't also or free and to this to opportunities moving but front move other

how last that gets COX? Cold bearing or well that unit on one just release kind press I'm could was unit. Creek a wondering, horizontal a of at with that exploitation well did just the And just you mention development one-off that have any developed

well mission just an two add to producing our the outcome. a drill an there, inventory of extension had that and with That do a years good throughout three to program we occasional where solid to well we've and previous was to like the of executed we'll rig Canyon nice that opportunity

you. questions at Whitmarsh Thank for any the no remarks. like this over turn are time. would back Brad closing I further call to There to

for Thank helping all joining with a and have for you follow-up Garel, you. Should and love everyone day. us speak I some are all afternoon. questions, around to have I great we'd I investors us. want to Susan hope the you. analysts today. thank Thanks,

your conclude Thank you teleconference. does for today's participation. This

You time. great at may Have disconnect day. this a your lines