Barely two months after emerging from Chapter 11 bankruptcy, Plano, Texas-based Denbury Resources—the nation’s only publicly traded company focused exclusively on CO2 enhanced oil recovery—has repurchased two CO2 pipelines the company originally sold in 2008. Reese Energy Consulting today is following news from Denbury, which has reacquired the 183-mile Northeast Jackson Dome (NEJD) pipeline for $70 million, and the 86-mile Free State Pipeline for $22.5 million. Both pipelines connect with its Jackson Dome—the Gulf Coast’s only significant, naturally occurring deposit of CO2. Over the years, the company snatched up mature oilfields in Texas, La., Miss., and the Rocky Mountains to apply EOR flooding, acquired one of the largest CO2 platforms in the country, bought 3 million tons of CO2 a year, and sold its supplies for a fee. But debt, COVID, crushed demand, and 2020 crude prices quickly collided. Denbury looked out of the game. But not so fast. With a financial restructuring and prepackaged Chapter 11 plan, Denbury now has slashed its debt by $2.1 billion, creating a clear path forward. That’s good news we can all use.
Denbury Resources is a company engaged in hydrocarbon exploration. It is organized in Delaware and headquartered in Plano, Texas. The company extracts petroleum via enhanced oil recovery, which utilizes carbon dioxide to extract petroleum from fields that have been previously exploited.