Interactive 2009 Annual Report (PDF 7.56 MB) - Denbury Resources ...

4 Denbury Resources Inc. 2009 Annual ReportFinancial HighlightsYear Ended December 31,In thousands, unless otherwise noted 2009 2008 2007 2006 (2) 2005AverageAnnualGrowth (1)Consolidated Statements of Operations Data:Revenues $ 882,493 $ 1,365,702 $ 973,060 $ 731,536 $ 560,392 12%Net income (loss) (3) (75,156) 388,396 253,147 202,457 166,471 -Net income (loss) per common share (4) :Basic (0.30) 1.59 1.05 0.87 0.74 -Diluted (0.30) 1.54 1.00 0.82 0.70 -Weighted average number ofcommon shares outstanding (4) :Basic 246,917 243,935 240,065 233,101 223,485 3%Diluted 246,917 252,530 252,101 247,547 239,267 1%Consolidated Statements of Cash Flow Data:Cash provided by (used by):Operating activities $ 530,599 $ 774,519 $ 570,214 $ 461,810 $ 360,960 10%Investing activities (5) (969,714) (994,659) (762,513) (856,627) (383,687) 26%Financing activities (6) 442,637 177,102 198,533 283,601 154,777 30%Production (daily):Oil (Bbls) 36,951 31,436 27,925 22,936 20,013 17%Natural gas (Mcf) 68,086 89,442 97,141 83,075 58,696 4%BOE (6:1) 48,299 46,343 44,115 36,782 29,795 13%Unit Sales Price (excluding hedges):Oil (per Bbl) $ 57.75 $ 92.73 $ 69.80 $ 59.87 $ 50.30 4%Natural gas (per Mcf) 3.54 8.56 6.81 7.10 8.48 (20%)Unit Sales Price (including hedges):Oil (per Bbl) $ 68.63 $ 90.04 $ 68.84 $ 59.23 $ 50.30 8%Natural gas (per Mcf) 3.54 7.74 7.66 7.10 7.70 (18%)Costs per BOE:Lease operating expenses $ 18.50 $ 18.13 $ 14.34 $ 12.46 $ 9.98 17%Production taxes and marketing expenses 2.41 3.76 3.05 2.71 2.54 (1%)General and administrative (7) 6.59 3.56 3.04 3.20 2.62 26%Depletion, depreciation and amortization 13.52 13.08 12.17 11.11 9.09 10%Proved Reserves:Oil (MBbls) 192,879 179,126 134,978 126,185 106,173 16%Natural gas (MMcf) (8) 87,975 427,955 358,608 288,826 278,367 (25%)MBOE (6:1) 207,542 250,452 194,746 174,322 152,568 8%Carbon dioxide (MMcf) (9) 6,302,836 5,612,167 5,641,054 5,525,948 4,645,702 8%Consolidated Balance Sheet Data:Total assets $ 4,269,978 $ 3,589,674 $ 2,771,077 $ 2,139,837 $ 1,505,069 30%Total long-term liabilities 1,903,951 1,363,539 1,102,066 833,380 617,343 33%Stockholders’ equity (10) 1,972,237 1,840,068 1,404,378 1,106,059 733,662 28%(1)Four-year compounded average annual growth rate computed using 2005 as a base year.(2)Effective January 1, 2006, Denbury adopted new guidance issued by the Financial Accounting Standards Board (“FASB”) in the “Compensation-StockCompensation” topic of the FASB Accounting Standards Codification TM (“FASC”) which prospectively required Denbury to record compensationexpense for stock incentive awards.(3)In 2008, we had a full cost ceiling test write-down of $226 million ($140.1 million net of tax) and pretax expense of $30.6 million associated with acanceled acquisition. These charges were partially offset by pretax income of $200.1 million on our commodity derivative contracts. In 2009, we had apretax charge of $236.2 million associated with our commodity derivative contracts.(4)On December 5, 2007, and October 31, 2005, we split our common stock on a 2-for-1 basis. Information relating to all prior years’ shares andearnings per share has been retroactively restated to reflect the stock splits.(5)During February 2009, we closed our $201 million purchase of Hastings Field, and in December 2009, we closed our $430.7 million purchase of ConroeField (for $269.8 million in cash and the issuance of 11,620,000 shares of common stock). We sold our Barnett Shale natural gas assets in 2009.(6)In February 2009, we issued $420 million of 9.75% Senior Subordinated notes due 2016.(7)In June 2009, we recorded $10.0 million of expense related to a Founder’s Retirement Agreement. During 2009, we recorded $14.2 million relatedto incentive compensation awards for the management of Genesis. During the fourth quarter of 2009, we recorded $8.7 million in acquisition-relatedexpenses in conjunction the Encore Merger Agreement.(8)In December 2007 and February 2008, we sold our Louisiana natural gas assets, and during 2009 we sold our Barnett Shale natural gas assets.(9)Based on a gross working interests basis and includes reserves dedicated to volumetric production payments of 127.1 Bcf at December 31, 2009,153.8 Bcf at December 31, 2008, 182.3 Bcf at December 31, 2007, 210.5 Bcf at December 31, 2006, and 237.1 Bcf at December 31, 2005. (See Note16 to the Consolidated Financial Statements).(10) We have never paid any dividends on our common stock.Reporting Format: Unless otherwise noted, the disclosures in this report have (i) production volumes expressed on a net revenue interest basis, and(ii) gas volumes converted to equivalent barrels at 6:1.See table of contents page regarding cautionary notes about forward-looking statements and unproved reserves referenced herein.