Our Report

At Denbury, our corporate responsibility strategy focuses on four areas: Our Company, Our People, Our Environment and Our Communities. There are potential issues in each of these areas that are important, and could impact Denbury's success and the well-being of our stakeholders. These material issues provide the foundation of our 2019 Corporate Responsibility Report and are discussed in detail throughout the four sections of this Report.

Maximizing shareholder value through sound corporate strategies, fostering our core values and integrating good corporate governance standards and practices are the most material issues for our business and our stakeholders when considering the sustainability of our business.

The specific GRI topics that align with the material issues we discuss in this section of the Report are:

  • Reserves (GRI: G4 – OG1)
  • Ethics and Integrity (GRI: 102-16 & 102-17)

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This Report has been prepared in accordance with the Global Reporting Initiative's ("GRI") Sustainability Reporting Standards ("GRI Standards"). We have also consulted and included indicators from the Sustainability Accounting Standards Board’s (“SASB”) Oil and Gas Exploration and Production Sustainability Accounting Standards (“SASB Standards”) and recommendations from the Task Force on Climate-related Financial Disclosures (“TCFD”).

Message from Our CEO

I am immensely proud to introduce Denbury’s 2019 Corporate Responsibility Report, highlighting our continued focus on the four pillars of our sustainability strategy: Our Company, Our People, Our Environment, and Our Communities. Concentrating on sustained improvement in these areas has made Denbury stronger and better positioned for long-term success.

This Report illustrates our commitment to transparency regarding our economic, environmental, social and governance performance. We continually analyze our performance to both better understand the impacts of our projects and operations as well as to determine pertinent risks, their effects, and mitigation measures. This Report also contains significant information regarding our sustainability values, objectives and performance, reinforcing our desire to engage with our stakeholders in any one or more of these areas.

Our Company

We are committed to exemplifying Denbury’s core values of integrity, teamwork, respect, excellence, and innovation. Our desire to have a positive impact in everything we do is what drives us. This starts with our Board of Directors and management team, who champion sustainability and believe that it is fundamental to our corporate citizenship, enhancing investor value while ensuring the economic health and profitability of Denbury. We believe that operating a sustainable company is an essential part of being a responsible corporate citizen, and Denbury is committed to engaging on climate change and carbon emission reduction topics with our investors, policy makers, regulators, industry, and communities.

As the world demands more energy to fuel its economy and provide a better quality of life, it also demands a reduction in the atmospheric CO2 emissions resulting from the production of this vital energy source. Being an industry leader in carbon dioxide enhanced oil recovery (CO2 EOR), Denbury is in a key position to help solve this dual challenge. To seriously address and meet both of these challenges and to provide a sustainable path forward, we believe that Denbury, as well as all other oil and gas companies, should not only consider the Scope 1 and Scope 2 emissions associated with their operations when accounting for their carbon footprint, but also account for the Scope 3 emissions associated with the refining and combustion of the hydrocarbons they produce.

Our extensive use of industrial-sourced CO2 EOR in our operations prevents the release of this CO2 into the atmosphere while allowing us to reduce our use of naturally-occurring CO2. I’m pleased to share that the Scope 1 and Scope 2 emissions associated with Denbury’s operations are currently carbon negative, as we more than offset those emissions by annually injecting over three million tons of industrial-sourced CO2 into the ground as part of our CO2 EOR process. Importantly, we believe Denbury has the potential to also fully offset our Scope 3 emissions. We believe this can be accomplished through Denbury’s strategy of continually seeking to increase the proportion of industrial-sourced CO2 used in our CO2 EOR operations and by leveraging our expertise and our strategic assets into a growing carbon capture, use, and storage (CCUS) industry. As this new CCUS industry evolves, we have set a target to fully offset our emissions, including Scope 3 emissions, within this decade. We believe that reaching carbon negative emissions company-wide is both achievable and sustainable.

This Report focuses not only on our company, but also on how we positively impact the other areas we care about most: our people, our environment, and our communities. We understand that Denbury’s long-term success demands our focus and strong performance in these areas.

Our People

We have built an outstanding team of dedicated employees with the skills and expertise that enable us to pursue our unique strategy. Our employees are the engine that drives Denbury, and our results are directly attributable to their extraordinary efforts. We leverage the talents of our highly skilled, dedicated and motivated workforce in every aspect of our business. Our employees continue to identify innovative ways to improve our operating efficiency and reduce costs, making our business stronger. We are committed to supporting our employees, and their safety, training, professional development, and well-being are a key part of Denbury’s sustainability. I am privileged to have the opportunity to work with this exceptional group every day.

Our Environment

Driving strong environmental stewardship is not just a key component of our strategic vision; it is the right thing to do for our employees, their families and our communities. Denbury is not your typical oil company. We bring decades-old, legacy oilfields back to life through CO2 EOR. While doing so, we utilize the existing footprint and strive to leave the condition of each field significantly improved from how we found it, all while minimizing the impact we have on the surrounding environment.

Our Communities

Denbury is an integral part of the communities where we operate. We believe that by operating responsibly, both Denbury and our communities can mutually benefit. By applying our CO2 EOR process to otherwise depleted fields, we bring high-paying jobs and meaningful economic activity back to these local economies. We believe that being a good neighbor is a vital part of our business, and we take every opportunity to engage with and positively impact our communities.

I hope that this Report gives you relevant insight into Denbury and the values and principles that guide the way we do business. While we continue to seek to improve our economic, environmental, social, and governance performance, we also want to improve our reporting and transparency in these areas. Therefore, I invite you to engage with us and offer us comments and feedback regarding this Report and our performance. We believe that by reviewing and analyzing our past performance and striving for continual improvement, we can meet and exceed the expectations of all our stakeholders.

chris_kendall

Sincerely,
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Christian S. Kendall
President and Chief Executive Officer

March 2020

The Denbury Difference

Welcome to Denbury, a unique energy company. Our strategic focus on CO2 EOR and carbon capture, utilization and storage truly differentiates us in the energy industry. In 2018, through our significant use of industrial-sourced CO2 in our EOR operations, Denbury removed nearly twice the amount of CO2 from the atmosphere than we emitted to produce our oil. We have set a target to fully offset our emissions, including Scope 3 emissions associated with the refining and combustion of our produced hydrocarbons, within this decade.

As the only U.S. public company of scale where injecting CO2 into the ground to produce oil is our primary business, Denbury is a key part of the solution to reducing atmospheric CO2 emissions, while at the same time providing a vital energy source for the world’s economy. This is a solution that has broad and bipartisan appeal and we see great opportunities to expand our impact in the coming years. Carbon capture, transportation, and secure geologic storage will become an essential business, and Denbury’s assets and expertise position the Company to be a leader as this market develops.

Denbury is committed to performing safely, consistently delivering on our promises to deploy our differentiated carbon dioxide enhance oil recovery ("CO2 EOR") focused strategy, being good environmental stewards, and making steady progress every day toward securing our long-term success.

  • Denbury is focused on creating value for our investors while accomplishing our goals
  • Denbury has set a target to fully offset our emissions, including Scope 3 emissions associated with the refining and combustion of our produced hydrocarbons, within this decade
  • In 2018, through our significant use of industrial-sourced CO2 in our EOR operations, Denbury removed nearly twice the amount of CO2 from the atmosphere than we emitted to produce our oil
  • In 2020, Denbury formed a Carbon Solutions team, reporting directly to our Chief Executive Officer, tasked with accelerating progress toward realizing our goal of leading the industry in carbon capture, utilization and storage ("CCUS")
  • The CO2 captured from industrial sources used to support Denbury's EOR operations would otherwise be released into the atmosphere
  • Denbury has been purchasing and utilizing CO2 from industrial sources since 2012, totaling nearly 20 million metric tons at year-end 2019
  • Denbury’s focus on using CO2 more efficiently in operations means a higher proportion of industrial-sourced CO2 utilized in EOR in lieu of our natural CO2 source at Jackson Dome
  • Investments required to implement and operate Denbury's CO2 EOR projects generate high-paying jobs and tax revenues for local governments

Uncommon Company, Extraordinary Potential

enviroment

ESG – Capturing CO2 for Enhanced Oil Recovery & Sustainably Leveraging the Denbury Difference

Environment

We are a different kind of oil company – Denbury is the only U.S. public company of scale where injecting CO2 into the ground to produce oil is our primary business

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Social

We maintain a long-standing commitment to the highest standards for the safety and development of our employees, contractors and local communities

  • Achieved our best Total Recordable Incident Rate (“TRIR”) in 2019
  • Safety targets explicitly tied to executive compensation
  • Comprehensive training and development program including safety, leadership and diversity training
  • Matched >$250,000 employee charitable donations over last 5 years
  • Chaired 2019 Dallas Heart Walk for the American Heart Association
Governance

Strong corporate governance is essential to fulfilling our obligations to our stakeholders and to operating as a responsible corporate citizen

  • 7 out of 8 directors are independent, including independent Chairman of the Board
  • Female board representation
  • ISS Governance Rating of "1" (Best Possible)
  • Code of Conduct and Ethics Rated "A" by NYSE Governance Services (Top 1%)

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Report Content

At Denbury, our corporate responsibility strategy focuses on four areas: Our Company, Our People, Our Environment and Our Communities. There are potential issues in each of these areas that are important and could impact Denbury's success and the well-being of our Board of Directors, senior management, employees, investors, business partners and communities ("stakeholders"). These material issues provide the foundation of our 2019 Corporate Responsibility Report ("Report") and are discussed in detail throughout the four sections of this Report.

This Report has been prepared in accordance with the Global Reporting Initiative's ("GRI") Sustainability Reporting Standards ("GRI Standards"). We have also consulted and included indicators from the Sustainability Accounting Standards Board’s (“SASB”) Oil and Gas Exploration and Production Sustainability Accounting Standards (“SASB Standards”) and recommendations from the Task Force on Climate-related Financial Disclosures (“TCFD”).

Our Company

The sustainability of our business is critical to our investors, employees and communities—they depend on, and benefit from, our continued successful operations. We recognize that in order to run a sustainable company, we must have successful, ethical and responsible operations. Maximizing investor value through sound corporate strategies, fostering our core values and integrating good corporate governance standards and practices are the most material issues for our business and our stakeholders when considering the sustainability of our business.

The specific GRI topics that we discuss in this section of the Report are:

GRI:
G4-OG1
Reserves
GRI:
102-16 &
102-17
Ethics and
Integrity

Our People

Our employees are our greatest resource, and each individual helps shape Denbury into a unique and exceptional place to work. We recognize that our employees are crucial to Denbury’s future, and we care about our employees' and their families' well-being beyond the work environment. Safety, training and development, well-being and engagement and fostering a diverse work culture are the most material issues for our business and our stakeholders when considering our employees.

The specific GRI topics that we discuss in this section of the Report are:

GRI:
401-1 &
401-2
Employee
Well-being
GRI:
403-1 & 
403-2
Employee Health
& Safety
GRI:
404-3
Employee
Training &
Development
GRI:
405-1
Employee
Diversity & Equal
Opportunity

Our Environment

We and our stakeholders care about the environmental impact of our operations. We recognize that providing and integrating sound environmental policies, procedures and practices into our broader health, safety and environmental programs are key to our success as a company. We strive to be environmentally responsible in all aspects of our operations. Managing our carbon and environmental footprints, avoiding spills and releases, focusing on sound environmental policies, procedures and practices, and establishing Health, Safety and Environment (“HSE”) Management Systems are the most material issues for our business and our stakeholders when considering our environment.

The specific GRI topics that we discuss in this section of the Report are:

GRI:
305-1,
305-2
305-3,
305-4
Managing Our
Carbon Footprint
GRI:
306-3
Spill Prevention

Our Communities

We are honored and privileged to be a part of the communities in which we operate. Rather than merely being a dependable and ethical business presence in our communities, we feel obligated to find ways to give, volunteer and invest in community campaigns and philanthropic organizations that stimulate local economies. Additionally, we believe that community engagement through open dialogue and communication is an essential part of being a responsible corporate citizen. Local economic investments, charitable giving and community engagement are the most material issues for our business and our stakeholders when considering our communities.

The specific GRI topics that we discuss in this section of the Report are:

GRI:
201-1 &
203-2
  Economic
Investments & 
Impacts

Report Framework

Unless otherwise noted, this Report covers our operations during the 2017 and 2018 calendar years. Following the publication of our last four reports in 2014, 2015, 2016 and 2018, we received feedback and input from both internal and external stakeholders regarding our report and our sustainability initiatives which aided in our development of this Report. As a reflection of our commitment to economic, environmental, and social and governance issues, and in an effort to enhance our disclosure to our stakeholders, we currently intend to release an updated report at least biennially.

This is our fifth report to be prepared in accordance with the GRI Standards, a voluntary, internationally recognized framework for sustainability reporting that focuses on economic, environmental and social issues and efforts and enables all companies and organizations to measure, understand and communicate this information. GRI is a non-profit organization that promotes the use of sustainability reporting as a way for organizations to become more sustainable and contribute to sustainable development. We have continued to utilize GRI’s updated GRI Standards, including the G4 Oil and Gas Sector Disclosures, and have developed this Report in accordance with the GRI Standards' “Core” reporting option. However, we have included disclosures beyond the “Core” reporting requirements to increase our disclosures to our stakeholders. For example, we have addressed many of the GRI Standards' General Disclosure items related to corporate governance, which are only required under the “Comprehensive” reporting option.

This year, we have further expanded our sustainability reporting by consulting and including indicators from the SASB Standards and recommendations from the TCFD. SASB is a non-profit, independent standards-setting organization that establishes and maintains industry-specific standards which assist companies in providing voluntary disclosures to investors on environmental, social and governance issues that are financially material. TCFD is a global task force that developed a set of voluntary, consistent climate-related financial risk disclosures that enable companies to inform their investors and other stakeholders about the risks they face related to climate change.

Denbury Resources Inc. and its subsidiaries operate as “Denbury.” Throughout this Report, unless otherwise noted, “Denbury,” “Company,” “we,” “our” and “us” refer to Denbury Resources Inc. and its subsidiaries.

Reporting Principles

We prepared this Report in accordance with the reporting principles suggested in the GRI Standards. We also incorporated reporting principles suggested in the SASB Standards and recommendations from TCFD where applicable. The principles guided us both in defining the content of this Report and in defining the quality of this Report.

The principles for defining report content are:

  • Stakeholder Inclusiveness—We sought input from our key stakeholders and sought to report on issues which are important not only to our business, but also to our stakeholders;
  • Sustainability Context—This Report presents our performance in the wider context of sustainability issues, including our long-term organizational strategy;
  • Materiality—The issues discussed and disclosures included in this Report pertain to those economic, environmental, social and governance impacts which are most important to our business and key stakeholders; and
  • Completeness—In preparing this Report, we included issues and disclosures broad enough to reflect the significant economic, environmental, social and governance impacts of our Company, both inside and outside of our organization, and to enable our stakeholders to assess our performance.

The principles for defining report quality are:

  • Balance—This Report reflects our overall performance, including both the positive aspects of our performance and those areas in which we are striving for improvement;
  • Comparability—The issues discussed and disclosures included in this Report under the GRI Standards, SASB Standards, and TCFD-related disclosures will allow us to report on these issues consistently in the coming years which will enable comparison of our performance over time;
  • Accuracy—The information included in this Report is sufficiently accurate and detailed to allow for the proper assessment of our sustainability performance;
  • Timeliness—We will report at least on a biennial basis so that information will be available in sufficient time for stakeholders to make informed decisions;
  • Clarity—We have prepared this Report in such a way as to present information that is understandable, accessible and usable by our stakeholders; and
  • Reliability—We have gathered, recorded, compiled, analyzed and disclosed information in a way that establishes the quality and materiality of the information in this Report.

Materiality Assessment

This Report focuses on those sustainability issues and activities which are most material to Denbury as a company and to our stakeholders, as determined by a materiality analysis. Input was solicited and received from our key stakeholders, including interviews with investors and feedback from senior management and our Board of Directors. The data and comments received during the materiality analysis were then used to create lists of the most material issues where Denbury has a significant sustainability impact based on both the impact the issues have on our business success and the importance of those issues to our stakeholders. This Report includes the issues which are most important to our business success and which are most important to our stakeholders. For example, our employees indicated that safety of our employees and contractors is one of the most material issues of our business. We heard from various investors interested in learning about our carbon emissions. All of our stakeholders believed that avoiding spills and releases, and limiting the impact of any that do occur, is a material issue.

Those material issues are the foundation of this Report. Using the GRI Standards as our guide and including indicators from the SASB Standards and recommendations from the TCFD, we determined the topics that aligned with our material issues. This Report includes discussion, disclosures and analysis of our material sustainability issues and, to the extent those material issues dovetail with GRI, SASB, and/or TCFD topics, we have responded to the appropriate general disclosure or topic-specific standard. Our Index includes a list of all of our GRI Standards, SASB Standards, and TCFD-related disclosures and indicates the location in this Report where information about each disclosure can be found.

Feedback

We believe Denbury must seek to continuously improve in all areas of operations, implement high standards of environmental protection and ethical conduct, and work proactively to be a good corporate citizen by aligning our interests as a company with the interests of our stakeholders. Our Board of Directors and management teams, both local and at our headquarters in Plano, Texas, want to hear from you so we can address any concerns and continuously improve in the areas important to us and our stakeholders.

Please reach out to the appropriate contact if you have a concern about our operations, an idea about how we can improve, or anything you want to bring to our attention. Additionally, we would like to hear your thoughts on this Report. As we prepare future reports, we will consider input from a wide range of stakeholders with respect to their expectations for our sustainability reporting and performance.

Below are a few contacts but more can be found at Denbury.com.

Board of Directors of Denbury Resources Inc.

Please contact Denbury's Board of Directors at:

Denbury Resources Inc.
Attn: Corporate Secretary
5320 Legacy Drive
Plano, TX 75024
Email: secretary@denbury.com

Corporate Responsibility

Please contact Denbury’s Corporate Responsibility Team at:

Denbury Resources Inc.
Attn: Corporate Responsibility
5320 Legacy Drive
Plano, TX 75024
Email: responsibility@denbury.com

Investor Relations

Please contact Denbury's Investor Relations Team at:

Denbury Resources Inc.
Attn: Investor Relations

5320 Legacy Drive
Plano, TX 75024
Email:
IR@denbury.com

Forward-Looking Statements and Other Information

This Report contains, and references other documents (e.g., our Annual Report on Form 10-K) that contain, forward-looking statements that reflect Denbury Resources Inc.’s views about future events as of the date of this Report or the date of the referenced document. Such forward-looking information is based upon management’s current plans, expectations, estimates and assumptions and is subject to a number of risks and uncertainties that could significantly affect current plans, anticipated actions, the timing of such actions and our financial condition and results of operations. As a consequence, actual results may differ materially from expectations, estimates or assumptions expressed in or implied by any forward-looking statements made by us or on our behalf. We do not assume any obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.

Investors are urged to closely consider the disclosure and risk factors in our most recent Annual Report on
Form 10-K
and in other reports on file with the Securities and Exchange Commission, available at Denbury’s website, www.denbury.com.

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