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Denbury Reports 2012 Fourth Quarter and Annual Results

Denbury Reports 2012 Fourth Quarter and Annual Results

PLANO, Texas, Feb. 21, 2013 (GLOBE NEWSWIRE) -- Denbury Resources Inc.
(NYSE:DNR) ("Denbury" or the "Company") today announced adjusted net income (a
non-GAAP measure)^(1) of $137 million for the fourth quarter of 2012, or $0.36
per diluted share. This compares to $127 million of adjusted net income, or
$0.33 per diluted share for the third quarter of 2012^(2), and $175 million of
adjusted net income, or $0.45 per diluted share, for the prior year fourth
quarter. Fourth quarter of 2012 net income (the GAAP measure) was $115
million, or $0.30 per diluted share, on quarterly revenues of $603 million.
This compares to net income of $85 million, or $0.22 per diluted share, on
revenues of $595 million for the third quarter of 2012, and net income of $53
million, or $0.13 per diluted share, on revenues of $612 million for the prior
year fourth quarter.

Adjusted cash flow from operations (a non-GAAP measure)^(1) for the fourth
quarter of 2012 was $316 million, but would have been $358 million if the
increase in current income taxes related to the Bakken transaction^(3) were
excluded. This compares to adjusted cash flow from operations of $350 million
for the third quarter of 2012^(2) and $387 million for the prior year fourth
quarter. Net cash provided by operating activities (the GAAP measure) was $385
million for the fourth quarter of 2012, compared to $294 million for the third
quarter of 2012 and $366 million for the prior year fourth quarter.

Key accomplishments in the fourth quarter of 2012 and early 2013 include:

  *Completed or entered into agreements on several tax efficient property
    transactions that, combined with the transactions completed in the first
    half of 2012: (i) further sharpened the Company's strategic focus on
    enhanced oil recovery with carbon dioxide ("CO[2] EOR" or "tertiary"
    operations); (ii) increased the Company's unproven CO[2] EOR potential
    reserves by 208 million barrels of oil equivalent (using the mid-point of
    the range of estimates) which resulted in a net increase in both the
    estimated volume and value of the Company's unproven potential reserves;
    (iii) nearly replaced the production of sold assets with that from the
    acquired or to-be-acquired assets; (iv) exchanged proved reserves with a
    high proved undeveloped component for reserves that are nearly all proved
    developed, which significantly increases free cash flow; and (v) increased
    Rocky Mountain region CO[2] reserves by 1.3 trillion cubic feet.
    
  *Increased average quarterly oil production from tertiary operations to a
    new record level of 37,550 barrels per day ("Bbls/d"), 21% higher than
    2011's fourth quarter level and 8% higher than the third quarter of 2012
    level.

^(^1) See accompanying Schedules that reconcile GAAP to non-GAAP measures
along with a statement indicating why the Company believes the non-GAAP
measures provide useful information for investors.
^(2) The GAAP to non-GAAP reconciliations for the third quarter of 2012 are
part of the Company's third quarter 2012 earnings release which is an exhibit
to its November 6, 2012 Form 8-K.
^(3) Full description of the Bakken transaction is provided in the Company's
September 20, 2012 Form 8-K as amended December 26, 2012 and January 18, 2013
on Forms 8-K/A.

  *Completed the initial 232-mile segment of the 20-inch Greencore pipeline,
    Denbury's first CO[2] pipeline in the Rocky Mountain region, which is
    scheduled to begin delivering CO[2] for injection into the
    Denbury-operated Bell Creek Field in Montana in the first half of 2013.
    
  *Continued the share repurchase program, acquiring a total of 20.5 million
    shares since recommencing share repurchases in September 2012 through
    yesterday to bring total purchases under such program since its
    commencement in October 2011 to 34.6 million shares, or about 9% of shares
    outstanding at September 30, 2011, at an average cost of just over $15 per
    share.
    
  *Completed a $1.2 billion offering of 4 5/8% senior subordinated notes due
    2023, with the planned use of proceeds to refinance approximately $651
    million principal amount of existing senior subordinated notes with
    interest rates of 9 1/2% and 9 3/4% and to repay bank debt.

Denbury's full year 2012 adjusted net income (a non-GAAP measure)^(1) was $563
million, or $1.45 per diluted share, compared to $574 million, or $1.43 per
diluted share for the prior year.Net income (the GAAP measure) for the full
year 2012 was $525 million, or $1.35 per diluted share, compared to $573
million, or $1.43 per diluted share for the prior year.Full year 2012
adjusted cash flow from operations (a non-GAAP measure)^(1) was $1.38 billion,
but would have been $1.42 billion if the increase in current income taxes
related to the Bakken transaction were excluded.This compared to $1.36
billion of the same measure for the prior year.Full year 2012 net cash
provided by operating activities (the GAAP measure) was $1.41 billion,
compared to $1.20 billion of the same measure for the prior year.

Management Comment

Phil Rykhoek, Denbury's President and CEO, commented, "We finished 2012 with
solid operational and financial performance as fourth quarter 2012 adjusted
net income per diluted share increased by 9% from that in the third quarter of
2012 despite the expected decline in production caused by the sale of our
Bakken area assets.The sequential improvement reflects continued strong
execution in our core tertiary operations, the benefit of our high exposure to
premium Gulf Coast region oil pricing, and a lower average diluted share count
as a result of the stock repurchases made during the third and fourth quarter.

"Our realized oil price premium in the fourth quarter was our best ever,
averaging more than $9.40 per barrel above NYMEX oil prices.The premium
exceeded the previous peak level attained in the fourth quarter of 2011
primarily as the result of the increased percentage of our oil production
coming from the Gulf Coast region following the Bakken transaction.Our Gulf
Coast region oil pricing continues to benefit from its proximity to major oil
consumers and pricing that continues to be more closely tied to international
(Brent) rather than domestic markets.

^(1) See accompanying Schedules that reconcile GAAP to non-GAAP measures along
with a statement indicating why the Company believes the non-GAAP measures
provide useful information for investors.

"Quarterly oil production from our core business, CO[2] EOR, also reached a
new record level in the fourth quarter due to growth related to both the
expansion of our existing CO[2] floods and continued steady production growth
at our two newest floods.With our strong production rates to-date in 2013, we
are off to a positive start to the year and optimistic about continuing to
deliver on our future production growth estimates.

"The series of transactions we completed or agreed to in 2012 and 2013 make us
a more purely focused CO[2] EOR company with excellent visibility on long-term
oil production growth in our two core areas, while our strong balance sheet
provides us tremendous financial flexibility and our workforce of highly
technical, dedicated, and motivated employees are focused on executing our
unique strategy.We look forward to more positive results in 2013 as we
continue to build on our highly profitable, low-risk oil platform."

Production

Production for the fourth quarter of 2012 averaged 70,116 BOE/d, which
included 37,550 Bbls/d from tertiary properties and 10,064 BOE/d from the
Bakken assets sold in the quarter.Fourth quarter continuing production, which
excludes the divested Bakken assets, was 60,052 BOE/d, up 7% from the prior
quarter continuing production level, driven by an 8% sequential increase in
tertiary production and a 6% sequential increase in non-tertiary
production.Compared to the fourth quarter of 2011, the current quarter's
continuing production was up approximately 14%, driven primarily by a 21%
increase in tertiary production.Full year 2012 tertiary production increased
by 14% from the full year 2011 level.The annual and sequential quarterly
tertiary production increases reflect growing production at the Company's
newest tertiary floods at Hastings and Oyster Bayou fields combined with
production gains from the expanding tertiary floods at Delhi and Tinsley
fields.

Review of Financial Results

Oil and natural gas revenues, excluding the impact of derivative contracts,
decreased 2% when comparing the fourth quarters of 2012 and 2011, as a
decrease in realized oil and natural gas prices more than offset an increase
in production.Denbury's average realized oil price, excluding derivative
contracts, was $97.61 in the fourth quarter of 2012, compared to $103.08 in
the prior year fourth quarter.Denbury's oil price differential (the
difference between the average price at which the Company sold its production
and the average NYMEX price) improved slightly from the prior year fourth
quarter level as a decline in the Light Louisiana Sweet (LLS) index premium
was more than offset by improving differentials in other areas and a greater
percentage of the Company's production coming from the Gulf Coast region
following the Bakken transaction.Company-wide oil price differentials in the
fourth quarter of 2012 were $9.43 per barrel ("Bbl") above NYMEX prices,
compared to $9.14 per Bbl above NYMEX in the prior year fourth quarter.During
the fourth quarter of 2012, the Company sold 44% of its crude oil at prices
based on the LLS index price, 23% at prices partially tied to the LLS index
price, and the balance at prices based on various other indexes tied to NYMEX
prices, primarily in the Rocky Mountain region.

Lease operating expenses increased 8% on a per BOE basis to $21.61 per BOE in
the fourth quarter of 2012 from $20.08 per BOE in the fourth quarter of 2011,
primarily due to the divestiture during the fourth quarter of 2012 of the
Company's Bakken area assets which had relatively low operating costs per
BOE.Tertiary operating expenses averaged $22.59 per Bbl in the fourth quarter
of 2012, down from $23.59 per Bbl in the prior year fourth quarter.The
decrease in tertiary operating expenses between the periods was primarily the
result of the 21% increase in tertiary production which more than offset the
additional costs related to operating new tertiary floods at Oyster Bayou and
Hastings fields.

General and administrative ("G&A") expenses totaled $34 million, or $5.33 per
BOE, in the fourth quarter of 2012, compared to $28 million, or $4.51 per BOE,
in the prior year fourth quarter.The increase in G&A expense was primarily
due to a higher headcount, which resulted in higher compensation and
employee-related costs along with a lower bonus accrual in the prior-year
period.

Interest expense, net of capitalized interest, in the fourth quarter of 2012
was $38 million, up slightly from the prior year fourth quarter level of $36
million.The impact of a $483 million increase in average debt outstanding
from the fourth quarter of 2011 to the fourth quarter of 2012 was mostly
offset by a reduction in average interest rate, to 7.0% from 7.8%, and a
slight increase in capitalized interest.

Denbury recorded a non-cash pre-tax charge of $33 million in the fourth
quarter of 2012 due to changes in the fair values of the Company's derivative
contracts, compared to a non-cash pre-tax charge of $167 million on fair value
changes in the prior year fourth quarter.

The Company's overall depletion, depreciation and amortization rate was $18.20
per BOE in the fourth quarter of 2012, compared to $17.80 per BOE in the prior
year fourth quarter.The small increase was due to the reduction caused by the
divestiture of the Company's Bakken area assets with relatively high future
development costs during the fourth quarter of 2012 being more than offset by
increased pipeline depreciation and a change in classification of equipment
leases from operating to capital during 2012.

Denbury's effective tax rate for the fourth quarter of 2012 of 41.3% exceeded
its estimated statutory tax rate of 38.5% as the Company increased its
estimated full year 2012 effective tax rate primarily due to the additional
state income tax expense recognized as a result of the Bakken transaction and
the impact of changes in the Company's estimate of certain other tax benefits.
Denbury's effective tax rate for full year 2012 of 38.7% was approximately the
same asits estimated statutory rate.

2013 Production Estimates and Capital Expenditures

As previously announced, Denbury has agreed to acquire producing property
interests in the Cedar Creek Anticline of Montana and North Dakota from
ConocoPhillips using $1.05 billion of the cash from the Bakken transaction in
a tax-efficient acquisition (the "CCA Acquisition"^(1)) expected to close near
the end of the first quarter of 2013. Denbury estimates recent average net
production from the properties to be acquired in this pending acquisition at
approximately 11,000 BOE/d, of which 99% is oil and natural gas
liquids.Assuming the CCA Acquisition closes as currently scheduled near the
end of the first quarter of 2013, Denbury estimates the properties would
contribute approximately 7,700 BOE/d to its full-year 2013 average daily
production.Including the estimated production contribution from the pending
CCA Acquisition, Denbury's average 2013 production estimates remain the same
as those previously announced and are shown in the following table:

                              2013 Estimated
Operating Area                Production
                              (BOE/d)
Tertiary                      36,500 - 39,500
Texas Non-Tertiary            6,300
Other Gulf Coast Non-Tertiary 4,300
Cedar Creek Anticline         8,500
Other Rockies Non-Tertiary    5,400
Pending CCA Acquisition       7,700
Total Production              68,700 - 71,700

Denbury's 2013 capital expenditure budget remains unchanged at $1 billion,
approximately 85% of which is for tertiary projects, with the remainder for
conventional projects, primarily in the Cedar Creek Anticline.The budgeted
amount excludes potential acquisitions, and approximately $125 million of
estimated capitalized costs (including geological and geophysical, overhead,
interest, and pre-production start-up costs associated with new tertiary
floods).Denbury expects its 2013 capital expenditure budget to be more than
fully funded with estimated cash generated from operations in 2013 assuming
NYMEX oil prices average in the low-to-mid $90-per-barrel range for the year
and the CCA Acquisition closes as expected near the end of the first quarter
of 2013.

Conference Call Information

Denbury will host a conference call to review and discuss fourth quarter 2012
financial and operating results and financial and operating guidance for 2013
today, Thursday, February 21, at 10:00 A.M. (Central).Individuals who would
like to participate should dial 800.230.1096 or 612.332.0725 ten minutes
before the scheduled start time and provide the confirmation number 260589 to
the operator. To access a live audio webcast of the conference call, please
visit the investor relations section of the Company's website at
www.denbury.com. The audio webcast will be archived on the website for at
least 30 days, and a telephonic replay will be accessible for one month after
the call by dialing 800.475.6701 or 320.365.3844 and entering confirmation
number 260589.

^(1) Full description of the pending CCA Acquisition is provided in the
Company's January 15, 2013 Form 8-K.

Annual Meeting Information

Denbury's 2013 Annual Meeting of Stockholders will be held on Wednesday, May
22, 2013, at 3:00 P.M. (Central), at The Westin Stonebriar Hotel located at
1549 Legacy Drive, Frisco, Texas.The record date for determination of
shareholders entitled to vote at the annual meeting is the close of business
on Thursday, March 28, 2013.

Denbury is a growing domestic independent oil and natural gas company. The
Company's primary focus is on enhanced oil recovery utilizing CO[2] and its
operations are focused in two key operating areas, the Gulf Coast region and
Rocky Mountain region.Denbury is the largest combined oil and natural gas
producer in both Mississippi and Montana, and owns the largest reserves of
CO[2] used for tertiary oil recovery east of the Mississippi River.The
Company's goal is to increase the value of acquired properties through a
combination of exploitation, drilling and proven engineering extraction
practices, with the most significant emphasis relating to tertiary recovery
operations.For more information about Denbury, please visit www.denbury.com.

The Denbury Resources Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=11385

This press release, other than historical financial information, contains
forward-looking statements that involve risks and uncertainties including
estimated 2013 production and capital expenditures, CO[2] EOR reserve
potential, estimated production from pending asset acquisitions, estimated
cash generated from operations in 2013 and other risks and uncertainties
detailed in the Company's filings with the Securities and Exchange Commission,
including Denbury's most recent reports on Form 10-K and Form 10-Q.These
risks and uncertainties are incorporated by this reference as though fully set
forth herein.These statements are based on engineering, geological, financial
and operating assumptions that management believes are reasonable based on
currently available information; however, management's assumptions and the
Company's future performance are both 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.This news release contains
estimates of potential reserves, substantially all of which are probable and
possible reserves, estimates of which are based on the most recent drilling
and technical data available to the Company, are more speculative than
estimates of proved reserves and are subject to greater uncertainties;
accordingly, the likelihood of recovering these reserves is subject to
substantially greater risk.

Financial and Statistical Data Tables and Reconciliation Schedules

Following are unaudited financial highlights for the comparative three and
twelve month periods ended December 31, 2012 and 2011.All production volumes
and dollars are expressed on a net revenue interest basis with gas volumes
converted to equivalent barrels at 6:1.

DENBURY RESOURCES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

The following information is based on GAAP reported earnings, with additional
required disclosures included in the Company's Form 10-K:

                       Quarter Ended             Year Ended
                       December 31,              December 31,
In thousands, except    2012         2011         2012           2011
per share data
Revenues and other                                            
income
Oil sales               $587,011   $596,482   $2,377,337   $2,217,529
Natural gas sales       9,058       9,855       32,530        51,622
CO[2] sales and         7,197       5,903       26,453        22,711
transportation fees
Interest income and     5,938       5,017       20,152        17,462
other income
Total revenues and      609,204     617,257     2,456,472     2,309,324
other income
Expenses                                                      
Lease operating         139,399     124,230     532,359       507,397
expenses
Marketing expenses      15,060      8,058       52,836        26,047
CO[2] discovery and     6,251       9,369       14,694        14,258
operating expenses
Taxes other than income 37,498      39,239      160,016       147,534
General and             34,388      27,884      144,019       125,525
administrative expenses
Interest expense, net   37,836      35,717      153,581       164,360
Depletion,
depreciation, and       117,419     110,129     507,538       409,196
amortization
Derivatives expense     27,369      159,811     (4,834)       (52,497)
(income)
Loss on early           —           —           —             16,131
extinguishment of debt
Transaction and other
costs related to the    —           —           —             4,377
Encore Merger
Impairment of assets    —           22,951      17,515        22,951
Other expenses          (1,381)     —           21,891        —
Total expenses          413,839     537,388     1,599,615     1,385,279
Income before income    195,365     79,869      856,857       924,045
taxes
Income tax provision                                          
Current income taxes    41,920      2,400       75,754        8,249
Deferred income taxes   38,784      24,862      255,743       342,463
Net income              $114,661   $52,607    $525,360     $573,333
                                                             
Net income per common                                         
share:
Basic                   $0.30      $0.14      $1.36        $1.45
Diluted                 0.30        0.13        1.35          1.43
Weighted average common                                       
shares outstanding:
Basic                   379,815     389,034     385,205       396,023
Diluted                 383,231     393,163     388,938       400,958
                                                             

DENBURY RESOURCES INC.
SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Reconciliation of net income (GAAP measure) to adjusted net income (non-GAAP
measure)^(1):
                                                              
                             Quarter Ended          Year Ended
                             December 31,           December 31,
In thousands                  2012        2011       2012         2011
Net income (GAAP measure)     $114,661  $52,607  $525,360   $573,333
Non-cash fair value
adjustments on commodity      32,888     166,972   13,046      (50,120)
derivatives
Impairment of assets          —          22,951    17,515      22,951
CO[2] discovery and operating
expenses – CO[2] exploration  4,609      7,513     9,534       7,513
costs
Other expenses – cumulative
effect of equipment lease     —          —         8,452       —
correction
Other expenses – reversal of  (8,000)    —         —           —
helium nonperformance accrual
Other expenses – allowance
for collectability on         —          —         3,683       —
outstanding loans
Other expenses – accrued      3,291      —         3,291       —
lease exit obligation
Other expenses – loss on sale —          —         3,137       —
of Vanguard common units
Other expenses – Bakken       2,828      —         2,828       —
transaction costs
Loss on early extinguishment  —          —         —           16,131
of debt
Transaction and other costs   —          —         —           4,377
related to the Encore Merger
Estimated income taxes on
above adjustments to net      (13,752)   (75,025)  (23,584)    (323)
income
Adjusted net income (non-GAAP $136,525  $175,018 $563,262   $573,862
measure)

^(1)See "Non-GAAP Measures" at the end of this report.


Reconciliation of cash flow from operations (GAAP measure) to adjusted cash
flow from operations (non-GAAP measure)^(1):

                             Quarter Ended          Year Ended
                             December 31,           December 31,
In thousands                  2012        2011       2012         2011
Net income (GAAP measure)     $114,661  $52,607  $525,360   $573,333
Adjustments to reconcile to
adjusted cash flow from                                        
operations:
Depletion, depreciation, and  117,419    110,129   507,538     409,196
amortization
Deferred income taxes         38,784     24,862    255,743     342,463
Stock-based compensation      6,648      5,670     29,310      33,190
Non-cash fair value
adjustments on commodity      32,888     166,972   13,046      (50,120)
derivatives
Impairment of assets          —          22,951    17,515      22,951
Loss on early extinguishment  —          —         —           16,131
of debt
Other                         5,419      3,740     31,612      12,764
Adjusted cash flow from       315,819    386,931   1,380,124   1,359,908
operations (non-GAAP measure)
Net change in assets and
liabilities relating to       68,946     (21,209)  30,767      (155,094)
operations
Cash flow from operations     $384,765  $365,722 $1,410,891 $1,204,814
(GAAP measure)

^(1)See "Non-GAAP Measures" at the end of this report.
                                                              

DENBURY RESOURCES INC.
OPERATING HIGHLIGHTS (UNAUDITED)

                                 Quarter Ended          Year Ended
                                 December 31,           December 31,
Average Daily Volumes (BOE/d)     2012       2011        2012       2011
(6:1)
Tertiary oil production                                          
Gulf Coast region                                                
Mature properties:                                               
Brookhaven                        2,520     3,121      2,692     3,255
Eucutta                           2,730     3,139      2,868     3,121
Mallalieu                         2,127     2,587      2,338     2,693
Other mature properties ^(1)      7,605     8,435      7,707     8,955
Delhi                             5,237     3,778      4,315     2,739
Hastings                          3,409     —          2,188     —
Heidelberg                        3,930     3,728      3,763     3,448
Oyster Bayou                      1,826     18         1,388     5
Tinsley                           8,166     6,338      7,947     6,743
Total tertiary oil production     37,550    31,144     35,206    30,959
Other non-tertiary oil and gas                                   
production
Gulf Coast region                                                
Mississippi                       3,663     4,746      3,930     5,486
Texas                             5,513     3,868      4,737     4,133
Other                             1,217     1,172      1,235     1,336
Total Gulf Coast region           10,393    9,786      9,902     10,955
Rocky Mountain region                                            
Cedar Creek Anticline             8,493     8,858      8,503     8,968
Other                             3,616     2,893      3,231     2,968
Total Rocky Mountain region       12,109    11,751     11,734    11,936
Total continuing production       60,052    52,681     56,842    53,850
Properties disposed:                                             
Bakken area assets                10,064    12,223     14,395    9,340
Non-core asset divestitures       —         2,330      452       2,470
Total production                  70,116    67,234     71,689    65,660

^(1) Other mature properties include Cranfield, Little Creek, Lockhart
Crossing, Martinville, McComb and Soso fields.

                                 Quarter Ended          Year Ended
                                 December 31,           December 31,
                                 2012       2011        2012       2011
Production (daily – net of                                       
royalties):
Oil (barrels)                     65,368    62,901     66,837    60,736
Gas (mcf)                         28,486    25,998     29,109    29,542
BOE (6:1)                         70,116    67,234     71,689    65,660
Unit sales price (including                                      
derivative settlements):
Oil (per barrel)                  $97.54   $102.86   $96.77   $98.90
Gas (per mcf)                     5.72      7.65       5.67      7.34
BOE (6:1)                         93.26     99.18      92.53     94.78
Unit sales price (excluding                                      
derivative settlements):
Oil (per barrel)                  $97.61   $103.08   $97.18   $100.03
Gas (per mcf)                     3.46      4.12       3.05      4.79
BOE (6:1)                         92.40     98.03      91.85     94.68
                                                                

DENBURY RESOURCES INC.
PER BOE DATA (UNAUDITED)

                                          Quarter Ended     Year Ended
                                          December 31,      December 31,
                                          2012     2011     2012     2011
Oil and natural gas revenues               $92.40 $98.03 $91.85 $94.68
Gain on settlements of derivative          0.86    1.15    0.68    0.10
contracts
Lease operating expenses                   (21.61) (20.08) (20.29) (21.17)
Production and ad valorem taxes            (5.46)  (5.96)  (5.71)  (5.81)
Marketing expenses, net of third party     (1.96)  (1.30)  (1.60)  (1.09)
purchases
Production netback                         64.23   71.84   64.93   66.71
CO[2] sales, net of operating expenses     0.15    (0.56)  0.45    0.36
General and administrative expenses        (5.33)  (4.51)  (5.49)  (5.24)
Interest expense, net                      (5.87)  (5.77)  (5.85)  (6.86)
Other                                      (4.22)  1.56    (1.44)  1.77
Changes in assets and liabilities relating 10.69   (3.43)  1.17    (6.47)
to operations
Cash flow from operations                  59.65   59.13   53.77   50.27
DD&A                                       (18.20) (17.80) (19.34) (17.07)
Deferred income taxes                      (6.01)  (4.02)  (9.75)  (14.29)
Loss on early extinguishment of debt       —       —       —       (0.67)
Non-cash commodity derivative adjustments  (5.10)  (26.99) (0.50)  2.09
Impairment of assets                       —       (3.71)  (0.67)  (0.96)
Other non-cash items                       (12.56) 1.89    (3.49)  4.55
Net income                                 $17.78 $8.50  $20.02 $23.92
                                                                  

DENBURY RESOURCES INC.
CAPITAL EXPENDITURE SUMMARY (UNAUDITED)

                      Quarter Ended             Year Ended
                      December 31,              December 31,
In thousands           2012         2011         2012           2011
Capital expenditures                                         
by project:
Tertiary oil fields    $127,630   $141,978   $468,328     $522,007
Bakken                 90,071      137,519     428,313       435,159
CO[2] pipelines        67,135      53,042      181,873       134,377
CO[2] sources ^(1)     51,777      28,332      238,613       103,541
Other areas            45,128      76,888      159,606       244,055
Capital expenditures
before acquisitions    381,741     437,759     1,476,733     1,439,139
and capitalized
interest
Less: recoveries from
sale/leaseback         —           (27,750)    (35,102)      (70,332)
transactions
Net capital
expenditures excluding 381,741     410,009     1,441,631     1,368,807
acquisitions and
capitalized interest
Property acquisitions  572,779     1,239       942,359       250,084
^(2)
Capitalized interest   20,075      19,582      77,432        61,586
Capital expenditures,
net of sale/leaseback  $974,595   $430,830   $2,461,422   $1,680,477
transactions
                                                            
^(1)Includes capital expenditures related to the Riley Ridge gas plant.
^(2)For the year ended December 31, 2012, includes $212.5 million related to
the Thompson Field acquisition which is not reflected as an Investing Activity
on our Consolidated Statement of Cash Flows due to the movement of proceeds
through a qualified intermediary in a like-kind-exchange transaction.For the
quarter and year ended December 31, 2012, includes $571.6 million representing
the aggregate GAAP-estimated preliminary fair value of net assets acquired in
the Bakken transaction.
                                                            

DENBURY RESOURCES INC.
CASH PROCEEDS FROM PROPERTY SALES (UNAUDITED)

                     Quarter Ended                Year Ended
                     December 31,                 December 31,
In thousands          2012            2011         2012            2011
Net proceeds from
sales of properties   $777          $21,772    $247,294      $69,370
and equipment ^(1)
Net proceeds from the
Bakken transaction    1,331,684      —           1,331,684      —
^(2)
Total                 $1,332,461    $21,772    $1,578,978    $69,370
                                                               
^(1)For the year ended December 31, 2012, includes $212.5 million of cash
from the sale of non-core assets in February and April 2012 which was held by
a qualified intermediary in support of a like-kind-exchange transaction to
fund a portion of the acquisition cost of Thompson Field.
^(2)For the quarter and year ended December 31, 2012, includes $1.05 billion
of cash which was held by a qualified intermediary at December 31, 2012 to
support a like-kind-exchange transaction.
                                                               

DENBURY RESOURCES INC.
SUMMARY OF INCOME (EXPENSE) FROM DERIVATIVE CONTRACTS (UNAUDITED)

                                 Quarter Ended            Year Ended
                                 December 31,             December 31,
In thousands                      2012        2011         2012      2011
Cash receipt on settlements       $5,519    $7,161     $17,880 $2,377
Non-cash fair value adjustments   (32,888)   (166,972)   (13,046) 50,120
on commodity derivatives
Total income (expense) from       $(27,369) $(159,811) $4,834  $52,497
derivative contracts
                                                                 

DENBURY RESOURCES INC.
SELECTED FINANCIAL DATA (UNAUDITED)

                                                    December 31,
In thousands                                         2012         2011
Cash and cash equivalents                            $98,511    $18,693
Restricted Cash                                      1,050,015   —
Total assets                                         11,139,342  10,184,424
                                                                
Borrowings under bank credit facility                $700,000   $385,000
Borrowings under senior subordinated notes           2,051,350   2,051,350
(principal only)
Financing and capital leases                         394,504     247,662
Total debt (principal only)                          $3,145,854 $2,684,012
                                                                
Total stockholders' equity                           $5,114,889 $4,806,498
                                                                
Cash provided by (used in):                                      
Operating activities                                 $1,410,891 $1,204,814
Investing activities                                 (1,376,841) (1,605,958)
Financing activities                                 45,768      37,968

Non-GAAP Measures

Adjusted net income is a non-GAAP measure provided as a supplement to present
an alternative net income measure which excludes expense and income items (and
their related tax effects) not directly related to the Company's ongoing
operations.The excluded items are those which reflect the fair value
adjustments on the Company's derivative contracts, impairment of assets, the
portion of CO[2] discovery and operating expenses attributable to exploration
costs, other expenses, and the 2011 costs of the Encore merger and debt
extinguishment.Management believes that adjusted net income may be helpful to
investors, and is widely used by the investment community, while also being
used by management in evaluating the comparability of the Company's ongoing
operational trends and results. Adjusted net income should not be considered
in isolation or as a substitute for net income reported in accordance with
GAAP, but rather to provide additional information useful in evaluating the
Company's operational trends and performance.

Adjusted cash flow from operations is a non-GAAP measure that represents cash
flow provided by operations before changes in assets and liabilities, as
summarized from the Company's Consolidated Statements of Cash Flows.Adjusted
cash flow from operations measures the cash flow earned or incurred from
operating activities without regard to the collection or payment of associated
receivables or payables.The Company believes that it is important to consider
this additional measure, along with cash flow from operations, as it believes
the non-GAAP measure can often be a better way to discuss changes in operating
trends in its business caused by changes in production, prices, operating
costs and so forth, without regard to whether the earned or incurred item was
collected or paid during that period.

CONTACT: DENBURY CONTACTS:
         Phil Rykhoek, President and CEO, 972.673.2000
         Mark Allen, Senior Vice President and CFO, 972.673.2000
         Jack Collins, Executive Director, Investor Relations,
         972.673.2028

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