Denbury Enters Into CO2 Sequestration Agreement With Natural Resource Partners L.P.

Opportunity to develop a world-class CO₂ sequestration hub on Alabama’s Gulf Coast

PLANO, Texas–(BUSINESS WIRE)–#Blueoil–Denbury Inc. (NYSE: DEN) (“Denbury”) today announced that its wholly-owned subsidiary, Denbury Carbon Solutions, LLC, and a subsidiary of Natural Resource Partners L.P. (NYSE:NRP) (“NRP”), have executed a CO₂ Sequestration Agreement for the evaluation and potential development of a permanent CO₂ sequestration site located on Alabama’s Gulf Coast.

The agreement provides Denbury with the exclusive rights to develop a CO₂ sequestration site on approximately 75,000 acres of pore space controlled by NRP in Baldwin County, near Mobile, Alabama. Denbury estimates the total CO₂ storage potential of this site to be over 300 million metric tons. Depending on the pace and scale of regional CCUS development, Denbury may consider expanding its existing Gulf Coast CO₂ pipeline network to connect to this site.

Chris Kendall, Denbury’s President and Chief Executive Officer, commented, “We are excited to announce this agreement with NRP, which further expands Denbury’s industry-leading Gulf Coast CO₂ infrastructure position in a region with high volumes of existing industrial CO₂ emissions. In addition, the combination of this site’s significant expected CO₂ storage capacity and its proximity to deep-water ports should enhance the region’s appeal for newbuild industrial development with carbon capture. We look forward to working with the team at NRP on this exciting project.”

Craig Nunez, NRP’s President and Chief Operating Officer, stated, “We are very pleased to partner with Denbury on this world-class carbon sequestration project, which has the potential to provide important benefits to the environment and add significant value to NRP. Denbury’s extensive experience with CO₂ transportation, underground injection and understanding of Gulf Coast geology, will enable us to maximize the value of our Baldwin County acreage. We expect this 75,000-acre project to be the first of what will potentially be numerous carbon sequestration projects conducted on the approximately 3.5 million acres where we own the rights to sequester CO₂ across the United States.”

Subject to satisfactory title diligence, Denbury plans to complete a technical evaluation of the site to ensure its suitability for CO₂ sequestration, while simultaneously pursuing agreements to transport and store CO₂ emissions from nearby existing or planned industrial facilities. Denbury estimates that the site could be ready to receive CO₂ injection by 2026.

ABOUT DENBURY

Denbury is an independent energy company with operations and assets focused on Carbon Capture, Use and Storage (CCUS) and Enhanced Oil Recovery (EOR) in the Gulf Coast and Rocky Mountain regions. For over two decades, the Company has maintained a unique strategic focus on utilizing CO₂ in its EOR operations and since 2013 has been active in CCUS through the injection of captured industrial-sourced CO₂. The Company currently injects over three million tons of captured industrial-sourced CO₂ annually, and its objective is to fully offset its Scope 1, 2, and 3 CO₂ emissions within this decade, primarily through increasing the amount of captured industrial-sourced CO₂ used in its operations. For more information about Denbury, visit www.denbury.com.

The Denbury Carbon Solutions team was formed in January 2020 to advance Denbury’s leadership in the anticipated high-growth CCUS industry, leveraging its unique capabilities and assets that were developed over the last 20-plus years through its focus on CO₂ EOR.

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ABOUT NATURAL RESOURCE PARTNERS

Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns, manages and leases a diversified portfolio of properties in the United States including coal, industrial minerals and other natural resources, as well as rights to conduct carbon sequestration and renewable energy activities. NRP also owns an equity investment in Ciner Wyoming LLC, one of the world’s lowest-cost producers of soda ash. Further information about NRP is available on the partnership’s website at https://nrplp.com.

This press release contains forward looking statements that involve risks and uncertainties, including the nature and extent of agreements reached with nearby emission capture facilities, along with the results of Denbury’s pre-injection period tests and assessments. These statements are based on engineering, geological, financial and operating assumptions that management of both parties believe are reasonable based on currently available information; however, their achievement are subject to a wide range of business risks, and there is no assurance that these goals and projections can or will be met. Actual results may vary materially. In addition, any forward-looking statements represent the parties’ estimates only as of today and should not be relied upon as representing its estimates as of any future date. The parties assume no obligation to update these forward-looking statements.

Contacts

DENBURY CONTACTS:
Brad Whitmarsh, Vice President, Investor Relations, 972.673.2020, brad.whitmarsh@denbury.com
Beth Bierhaus, 972.673.2554, beth.bierhaus@denbury.com

NRP CONTACTS:
Tiffany Sammis, Investor Relations, 713.751.7515, tsammis@nrplp.com