Market Newsdesk

NEW YORK, Nov. 16, 2020 (GLOBE NEWSWIRE) — Predictive Oncology (NASDAQ: POAI), a knowledge-driven company focused on applying artificial intelligence (“AI”) to personalized medicine and drug discovery, today reported financial results for the quarter ended September 30, 2020 and provided a business update.

Business Highlight
s

• Helomics Magee study completing early in Q4; Helomics presents viable model to Pharma
• Soluble Biotech moves into new office/lab space tripling capacity; new lab equipment installed
• Signed first contract with a pharmaceutical company for protein expression and solubility studies
• Licensed an additional 71 unique ovarian cancer cell lines from Ximbio, the world’s largest non-profit dedicated to life science reagents of all kinds, bringing its total number of unique patient derived cells to 96
• Completed the asset purchase of Quantitative Medicine (“QM”), a biomedical analytics and computational biology company, in an all-stock transaction valued at approximately $1.8 million
• Sold 15 STREAMWAY® systems, including eight to a large university hospital organization in Virginia

“During the third quarter, we continued our work of laying a foundation for our precision medicine business,” commented Dr. Carl Schwartz, Predictive Oncology CEO. “We are making steady progress in our Helomics division with the launch of a restructured clinical test offering to clinicians for ovarian cancer. Our project with UPMC-Magee Womens Hospital, analyzing the genomic and drug response profiles of women with ovarian cancer to build predictive models’ terms of therapy response, is close to completion. We are also in discussions with several pharmaceutical companies about partnerships that will monetize our efforts.

“At our Soluble Biotech division, which provides optimized FDA-approved formulations for vaccines, antibodies and other protein therapeutics faster and at a lower cost basis to its customers, we signed our first contract with a pharmaceutical company for protein expression and solubility studies,” continued Dr. Schwartz. “Importantly, this win validates our investment in state-of-the-art lab equipment and expanded facilities. We are working judiciously to secure additional contracts with other biotechnology and pharmaceutical companies.”

Dr. Schwartz continued, “In our TumorGenesis division, we introduced our Ovarian Cell Line Media at the BIO-Europe Digital Conference where numerous researchers learned from us how they can isolate and successfully culture ovarian cancer cells that previously could not be cultured. Cornell University (Weill) Medical School and TumorGenesis are collaborating to help identify the best culture media for the studying of mutations that increase the risk of ovarian, breast and other types of cancers.

“The Skyline Medical division continues to be self-sustaining, from an operating cash perspective, as sales of new waste fluid management systems and recurring sales of disposables to support those systems more than cover the operating expenses and capital needs of this segment of our business,” noted Dr. Schwartz. “Importantly, sustaining and even modestly growing this division provides us with cash we need as we accelerate the precision medicine components of our business. During the third quarter, we sold 15 STREAMWAY® Systems, including eight to a large university hospital organization in the state of Virginia.

“Our operating cash improved over the first nine months of 2020 as a result of an improvement in operating expenses, if the non-cash expense for goodwill impairment is excluded, continued new sales of our STREAMWAY Systems, which provide an annuity-like revenue stream from ongoing sales of disposables, and proceeds from equity offerings, indicating investor confidence in our emerging precision medicine business,” concluded Dr. Schwartz. “Concurrently, we are taking the necessary steps to manage our balance sheet, including reducing our accounts payable and reducing our derivative liability by amending a settlement provision for certain outstanding warrants.

“Management continues to focus the majority of its resources on the Company’s primary mission of applying artificial intelligence to precision medicine and to drug discovery. Our approach and the mediums used to replace rats and mice in preliminary cancer studies are working in three of our operating subsidiaries, Helomics, TumorGenesis and Soluble Biotech.”

Third
Quarter 2020 Financial Results

Revenues of $0.5 million were level with the third quarter of last year, primarily driven through the sale of Predictive Oncology’s proprietary STREAMWAY product line, of which 15 and 19 units were sold in the three months ended September 30, 2020 and 2019, respectively.

Gross margin was 64% in the third quarter of 2020 compared with 60% in the 2019 period. The increase in gross margin was driven by lower manufacturing costs. General & administrative expenses declined 15% to $2.2 million in the third quarter of 2020, primarily as a result of a decrease in penalties related to short-term notes issued in 2019, lower audit fees and share-based compensation expenses. This was partially offset by increases in salary and related expenses, investor relations costs and depreciation. Operations expenses slightly decreased in the third quarter of 2020 primarily due to lower costs related to staff, including share-based compensation.

Operating loss was $5.6 million in the third quarter of 2020 compared with $3.4 million in the 2019 period. General and administrative, operations and sales and marketing expenses were lower across all categories; a non-cash goodwill impairment charge of $3.0 million drove the 2020 operating loss above the 2019 third quarter period.

Net loss attributable to common shareholders was $6.9 million, or $(0.46) per diluted share in the third quarter of 2020, compared with a loss of $4.1 million, or $(1.31) per diluted share for the 2019 period. The loss in the third quarter of 2020 includes other expense of $2.1 million. This includes higher net interest expense, payment penalties, amortization of original issue discounts and a loss on debt extinguishment related to the Company’s notes payable. Additionally, a $0.6 million non-cash deemed dividend (to account for a warrant exercise price adjustment for warrants issued in June 2020) was recognized. These were partially offset by a non-cash gain of $1.4 million related to the revaluation of equity method investments.

About Predictive Oncology Inc.

Predictive Oncology (NASDAQ: POAI) operates through three segments (Skyline, Helomics and Soluble Biotech), which contain four subsidiaries: Helomics, TumorGenesis, Skyline Medical and Soluble Biotech.

Helomics applies artificial intelligence to its rich data gathered from patient tumors to both personalize cancer therapies for patients and drive the development of new targeted therapies in collaborations with pharmaceutical companies. TumorGenesis Inc. specializes in media that help cancer cells grow and retain their DNA/RNA and proteomic signatures, providing researchers with a tool to expand and study cancer cell types found in tumors of the blood and organ systems of all mammals, including humans. Skyline Medical markets its patented and FDA cleared STREAMWAY System, which automates the collection, measurement and disposal of waste fluid, including blood, irrigation fluid and others, within a medical facility, through both domestic and international divisions. Soluble Biotech is a provider of soluble and stable formulations for proteins including vaccines, antibodies, large and small proteins and protein complexes.

Forward-Looking Statements

Certain matters discussed in this release contain forward-looking statements. These forward-looking statements reflect our current expectations and projections about future events and are subject to substantial risks, uncertainties and assumptions about our operations and the investments we make. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenue and financial performance, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “would,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Our actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors including, among other things, factors discussed under the heading “Risk Factors” in our filings with the SEC. Except as expressly required by law, the Company disclaims any intent or obligation to update these forward-looking statements.

Investor Relations Contact:

Hayden IR
James Carbonara
(646)-755-7412
[email protected]

— Tables Follow
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PREDICTIVE ONCOLOGY INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

		September 30, 2020				December 31, 2019
		(unaudited)				(audited)
ASSETS
Current Assets:
Cash		$	2,474,312			$	150,831
Accounts Receivable			508,265				297,055
Inventories			205,908				190,156
Prepaid Expense and Other Assets			269,282				160,222
Total Current Assets			3,457,767				798,264
Fixed Assets, net			3,755,464				1,507,799
Intangibles, net			3,464,327				3,649,412
Lease Right-of-Use Assets			1,790,130				729,745
Goodwill			12,693,290				15,690,290
Total Assets		$	25,160,978			$	22,375,510
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts Payable		$	1,628,944			$	3,155,641
Notes Payable – Net of Discounts of $495,100 and $350,426			5,751,876				4,795,800
Accrued Expenses			2,530,385				2,371,633
Derivative Liability			1,052,494				50,989
Deferred Revenue			66,123				40,384
Lease Liability			577,505				459,481
Total Current Liabilities			11,607,327				10,873,928
Lease Liability – Net of current portion			1,221,806				270,264
Other long-term liabilities			95,079				–
Total Liabilities			12,924,212				11,144,192
Stockholders’ Equity:
Preferred Stock, 20,000,000 authorized inclusive of designated below
Series B Convertible Preferred Stock, $.01 par value, 2,300,000 shares authorized, 79,246 and 79,246 shares outstanding			792				792
Series D Convertible Preferred Stock, $.01 par value, 3,500,000 shares authorized, 0 and 3,500,000 outstanding			–				35,000
Series E Convertible Preferred Stock, $.01 par value, 350 shares authorized, 0 and 258 outstanding			–				3
Common Stock, $.01 par value, 100,000,000 shares authorized, 16,593,283 and 4,056,652 outstanding			165,932				40,567
Additional paid-in capital			108,983,174				93,653,667
Accumulated Deficit			(96,913,132	)			(82,498,711	)
Total Stockholders’ Equity			12,236,766				11,231,318
Total Liabilities and Stockholders’ Equity		$	25,160,978			$	22,375,510

PREDICTIVE ONCOLOGY INC.

CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS

(Unaudited)

	Three Months Ended September 30,								Nine Months Ended September 30,
	2020				2019				2020				2019
Revenue	$	480,757			$	522,696			$	958,484			$	1,064,088
Cost of goods sold		175,206				208,096				353,124				400,202
Gross margin		305,551				314,600				605,360				663,886
General and administrative expense		2,226,634				2,616,991				8,266,927				7,425,305
Operations expense		568,766				707,414				1,638,635				2,445,238
Sales and marketing expense		121,514				434,955				518,938				1,674,200
Loss on goodwill impairment		2,997,000				–				2,997,000				–
Total operating loss		(5,608,363	)			(3,444,760	)			( 12,816,140	)			(10,880,857	)
Gain on revaluation of cash advances to Helomics		–				–				–				1,222,244
Other income		44,926				15,084				97,894				65,293
Other expense		(2,147,057	)			(894,811	)			(3,993,969	)			(2,052,522	)
Gain (loss) on derivative instruments		1,402,768				315,975				1,007,794				84,627
Gain on notes receivables associated with asset purchase		–				–				1,290,000				–
Loss on equity method investment		–				–				–				439,637
Gain on revaluation of equity method in investment		–				–				–				6,164,260
Net (loss)	$	(6,307,726	)		$	(4,008,512	)		$	(14,414,421	)		$	(5,836,592	)
Deemed dividend		554,287				125,801				554,287				146,199
Net income (loss) attributable to common shareholders per common shares-basic and diluted	$	(6,862,013	)		$	(4,134,313	)		$	(14,968,708	)		$	(5,982,791	)
Gain (loss) per common share basic and diluted	$	(0.46	)		$	(1.31	)		$	(1.51	)		$	(2.32	)
Weighted average shared used in computation – basic and diluted		15,026,789				3,146,609				9,935,738				2,581,014

SHANGHAI, China, Nov. 17, 2020 (GLOBE NEWSWIRE) — Pinduoduo Inc. (“Pinduoduo” or the “Company”) (NASDAQ: PDD), an innovative and fast-growing technology platform and one of the leading Chinese e-commerce players, today announced the proposed registered underwritten public offering (the “Notes Offering”) by the Company of its convertible senior notes due 2025 (the “Notes”) and the proposed registered underwritten public offering (the “ADS Offering,” and together with the Notes Offering, the “Offerings”) of its American Depositary Shares (“ADSs”), each representing four Class A ordinary shares, par value $0.000005 per share.

The Company proposes to offer US$1,750 million in aggregate principal amount of the Notes, subject to market and other conditions. The Company also intends to grant the underwriters in the Notes Offering a 30-day option to purchase up to an additional US$250 million in aggregate principal amount of the Notes solely to cover over-allotments. The Notes will be senior, unsecured obligations of the Company. The Notes will mature on December 1, 2025, unless repurchased, redeemed or converted in accordance with their terms prior to such date. The Company may not redeem the Notes prior to December 6, 2023 unless certain tax-related events occur. On or after December 6, 2023, the Company may redeem for cash all or part of the Notes, at its option, if the last reported sale price of the Company’s ADSs has been at least 130% of the conversion price then in effect on (i) each of at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately prior to the date the Company provides notice of redemption, and (ii) the trading day immediately preceding the date the Company sends such notice. Holders of the Notes may require the Company to repurchase all or part of their Notes in cash on December 1, 2023 or in the event of certain fundamental changes. Prior to the close of business on the business day immediately preceding June 1, 2025, the Notes will be convertible at the option of the holders only upon satisfaction of certain conditions and during certain periods. Thereafter, the Notes will be convertible at the option of the holders at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the Company will pay or deliver to such converting holders, as the case may be, cash, the Company’s ADSs (plus cash in lieu of a fractional ADS), or a combination of cash and ADSs, at its election. The interest rate, initial conversion rate and other terms of the Notes will be determined at the time of pricing of the Notes.

Concurrently with the Notes Offering, the Company is offering an aggregate of 22,000,000 ADSs in the ADS Offering, subject to market and other conditions. The Company intends to grant the underwriters in the ADS Offering a 30-day option to purchase up to an aggregate of 3,300,000 additional ADSs. 

The Company plans to use the net proceeds from the Offerings to further strengthen its balance sheet, providing it more flexibility to fund its growth strategies.

The closing of the Notes Offering is not contingent upon the closing of the concurrent ADS Offering, and the closing of the concurrent ADS Offering is not contingent upon the closing of the Notes Offering.  

Goldman Sachs (Asia) L.L.C. and BofA Securities are acting as joint book-running managers for the Offerings. The Offerings will be made pursuant to an effective shelf registration statement on Form F-3 filed with the U.S. Securities and Exchange Commission (the “SEC”). Preliminary prospectus supplements and the accompanying prospectus related to the Offerings have been filed with the SEC and will be available on the SEC’s website at www.sec.gov.

Copies of the preliminary prospectus supplement and the accompanying prospectus related to the ADS Offering and the Notes Offering, respectively, may also be obtained from:

Goldman Sachs & Co. LLC
Prospectus Department
200 West Street
New York, NY 10282, United States
Tel: +1 (866) 471-2526
Email: [email protected]

BofA Securities, Inc.,
Prospectus Department,
NC1-004-03-43,
200 North College Street, 3rd floor,
Charlotte NC 28255-0001,
United States
Tel: +1 800 294 1322
Email: [email protected]

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any securities, nor shall there be a sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

This press release contains information about the pending offerings of the Notes and ADSs, and there can be no assurance that any of the offerings will be completed.

About


Pinduoduo


Inc.

Pinduoduo is an innovative and fast-growing technology platform that provides buyers with value-for-money merchandise and fun and interactive shopping experiences. The Pinduoduo mobile platform offers a comprehensive selection of attractively priced merchandise, featuring a dynamic social shopping experience that leverages social networks effectively.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue” or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as Pinduoduo’s strategic and operational plans, contain forward-looking statements. Pinduoduo may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Pinduoduo’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Pinduoduo’s growth strategies; its future business development, results of operations and financial condition; its ability to understand buyer needs and provide products and services to attract and retain buyers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to rely on merchants and third-party logistics service providers to provide delivery services to buyers; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with merchants; trends and competition in China’s e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of China’s e-commerce market; PRC governmental policies and regulations relating to Pinduoduo’s industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Pinduoduo’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Pinduoduo undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

Pinduoduo Inc.
[email protected]
[email protected]

PLANO, Texas, Nov. 16, 2020 (GLOBE NEWSWIRE) — Denbury Inc. (NYSE: DEN) (“Denbury” or the “Company”) today announced its third quarter 2020 financial and operating results.

FINANCIAL AND OPERATIONAL HIGHLIGHTS

• Successfully completed financial restructuring and emerged from Chapter 11 reorganization on September 18, 2020, with a strong balance sheet and strong liquidity position:
  • Reduced bond debt by $2.1 billion, resulting in $165 million annual interest savings
  • Established a new $575 million senior secured bank credit facility, with $437 million of availability at September 30, 2020 after borrowings of $85 million and outstanding letters of credit
  • Relocated corporate headquarters, resulting in $9 million in annual savings
  • Appointed a new board of directors consisting of four new independent members and three continuing members
  • Commenced trading of new common stock on the NYSE under the ticker symbol “DEN” on September 21, 2020
• Produced 49,686 barrels of oil equivalent (“BOE”) per day (“BOE/d”) during 3Q 2020, roughly flat with 2Q 2020
• Revenues and other income were $194 million for 3Q 2020, excluding $18 million in hedging receipts
• Adjusted EBITDAX (a non-GAAP measure) was $93 million for 3Q 2020
• Received $25 million of proceeds from the sale of two parcels of marketed Houston area surface acreage, with proceeds of $14 million in July 2020 and $11 million in October 2020
• Reacquired the NEJD and Free State CO₂ pipelines, reducing debt by $25 million and lowering interest expense while maximizing flexibility for future CCUS operations

Upon emergence from bankruptcy on September 18, 2020 (the “Emergence Date”), the Company applied fresh start accounting, which resulted in a new entity for financial reporting purposes. In applying fresh start accounting, the Company’s assets and liabilities were recorded at fair value as of the Emergence Date, which differs materially from historical values reflected on the Company’s balance sheet prior to the Emergence Date. As a result of the application of fresh start accounting and the effects of the Company’s Chapter 11 restructuring, the consolidated financial statements of the Company after September 18, 2020 are not comparable with its consolidated financial statements on or prior to that date. References to “Successor” refer to the new Denbury reporting entity after the Emergence Date, and references to “Successor Period” refer to the period from September 19, 2020 through September 30, 2020. References to “Predecessor” refer to the Denbury entity prior to emergence from bankruptcy, and references to “Predecessor Period” refer to periods (as specified herein) prior to and through September 18, 2020. Under GAAP, Denbury is required to report the Company’s financial results for the Successor Period separately from Predecessor Periods, making the information not comparable. In order to provide meaningful comparable results of certain information for the third quarter and year to date periods, the Company has combined the results for the third quarter’s Successor Period and Predecessor Period where appropriate, which the Company refers to as “Combined”.

SELECTED QUARTERLY COMPARATIVE DATA

Following are unaudited financial highlights for the Successor Period, certain Predecessor Periods and on a Combined basis for the third quarter ended September 30, 2020.

		Combined (Non-GAAP)(1)					Successor					Predecessor
		Quarter Ended					Period from Sept. 19, 2020 through					Period from July 1, 2020 through				Quarter Ended				Quarter Ended
(in millions, except per-share and per-unit data)		Sept. 30, 2020					Sept. 30, 2020					Sept. 18, 2020				June 30, 2020				Sept. 30, 2019
Net income (loss)		$	(806	)			$	3				$	(809	)		$	(697	)		$	73
Adjusted net income (loss)(2) (non-GAAP measure)		20														(32		)		41
Adjusted EBITDAX(2) (non-GAAP measure)		93														39				145
Net income (loss) per diluted share							0.06					(1.63		)		(1.41		)		0.14

		Combined (Non-GAAP)(1)					Predecessor
		Quarter Ended					Quarter Ended				Quarter Ended
(in millions)		Sept. 30, 2020					June 30, 2020				Sept. 30, 2019
Oil, natural gas, and related product sales		$	176				$	109			$	293
CO2, oil marketing sales and other		18					9				22
Total revenues and other income		$	194				$	118			$	315
Receipt on settlements of commodity derivatives		$	18				$	46			$	8
Cash flows from operations(1)		$	74				$	11			$	131
Adjusted cash flows from operations less special items(2) (non-GAAP measure)		68					9				126
Development capital expenditures		18					21				51

(1) Combined results for the three months ended September 30, 2020 are provided for illustrative purposes and are derived from the financial statement line items from the Successor and Predecessor periods.
(2) A non-GAAP measure. 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.

		Quarter Ended
		Sept. 30, 2020				June 30, 2020				Sept. 30, 2019
Average realized oil price per barrel (excluding derivative settlements)		$	39.23			$	24.39			$	57.64
Average realized oil price per barrel (including derivative settlements)		43.23				34.64				59.23
Total production (BOE/d)		49,686				50,190				56,441
Total continuing production (BOE/d)(1)		49,686				50,190				55,338

MANAGEMENT COMMENT

Chris Kendall, Denbury’s President and CEO, commented, “In less than two months during the third quarter we entered and exited our Chapter 11 restructuring process. As a result of this process, Denbury emerged with a strong balance sheet, a solid liquidity position, and a significantly reduced cost structure providing us with a breakeven oil price near $30 per barrel. Denbury’s low base production decline and the flexible, low capital intensity nature of our assets are particularly well suited for today’s environment. The industry-leading low carbon footprint of our CO₂ EOR-focused oil production sets us apart. Moreover, the potential of the emerging CCUS business presents a unique, exciting, and significant growth opportunity to leverage both our strategically advantaged asset base and our extensive CO₂ expertise developed during more than 20 years of CO₂ EOR operations.

“I want to thank the Denbury team for their focus, care, and diligence throughout 2020. Even in this challenging environment, the team is setting Company records for safety and efficiency, which is a testament to our employees’ professionalism, dedication, quality and resilience.

“Going forward, while ensuring a steadfast focus of building on our strong foundation of safety and operational excellence, our priorities will be to protect and maintain our balance sheet, to continue to invest within cash flow, to further build our EOR-focused business, and to continue to position the Company to be a leader in what we believe will be a high value CCUS business.”

(1) Continuing production excludes production from the Gulf Coast Working Interests Sale completed on March 4, 2020.

REVIEW OF OPERATING AND FINANCIAL RESULTS

Denbury’s oil and natural gas production averaged 49,686 BOE/d during third quarter 2020, relatively flat with second quarter of 2020 (the “prior quarter”) production and a decrease of 10% compared to continuing production in the third quarter of 2019 (the “prior-year third quarter”), which is adjusted for production from assets sold in the first quarter of 2020. Production during the second and third quarters of 2020 was impacted by approximately 4,300 BOE/d and 1,700 BOE/d, respectively, of production that was shut-in due to wells that were uneconomic to produce or repair. In addition to shut-in production, the year-over-year production decline was primarily due to production declines at Delhi Field which were mainly associated with the suspension of CO₂ purchases since late-February 2020 as a result of the Delta-Tinsley CO₂ pipeline being out of service for repairs, as well as reduced levels of workovers and capital investment due to actions taken by the Company to reduce costs in response to the significant decline in oil prices earlier in 2020. In late October 2020, repairs to the Delta-Tinsley pipeline were completed and the pipeline was brought back into service, allowing CO₂ purchases to resume at Delhi Field. Further production information is provided on page 18 of this press release.

Denbury’s third quarter 2020 average realized oil price, including derivative settlements, was $43.23 per barrel (“Bbl”), an increase of 25% from the prior quarter and a decrease of 27% from the prior-year third quarter. Denbury’s NYMEX differential for the third quarter 2020 was $1.64 per Bbl below NYMEX WTI oil prices, compared to $4.03 per Bbl below NYMEX WTI in the prior quarter and $1.30 per Bbl above NYMEX WTI in the prior-year third quarter.

Total revenues and other income in the third quarter of 2020 were $194 million, an increase of 64% from the prior quarter and a decrease of 39% from the prior-year third quarter. The sequential quarterly increase was primarily due to higher realized oil prices, and the decrease from the prior-year third quarter was primarily due to lower oil prices and to a lesser degree lower oil production levels.

Total lease operating expenses in third quarter 2020 were $71 million, or $15.57 per BOE, a decrease of $10 million, or 12%, compared to the prior quarter due primarily to a $15 million insurance reimbursement received in the current quarter related to a 2013 incident at Delhi Field, partially offset by higher workover expense during the current quarter as the Company resumed some repairs and maintenance activity. Compared to the prior-year third quarter, lease operating expenses decreased $47 million, or 40%, due primarily to reductions in all expense categories, with the largest decreases in workover expense, labor, and power and fuel costs, as well as the insurance reimbursement noted above.

Taxes other than income, which includes ad valorem, production and franchise taxes, increased $5 million, or 50%, from the prior quarter and decreased $6 million, or 29%, from the prior-year third quarter, generally due to changes in oil and natural gas revenues.

General and administrative (“G&A”) expenses were $17 million in third quarter 2020, a $7 million decrease from the prior quarter, primarily due to the prior quarter including higher than normal compensation-related expenses related to modifications of the Company’s 2020 employee compensation programs. During the prior quarter, the Company reinstated a bonus program for 2020 which had previously been suspended in the first quarter, resulting in a higher than normal bonus accrual in the second quarter. Compared to the prior-year third quarter, G&A expenses decreased $2 million, or 8%, due to lower overall employee compensation and related costs due to reduced headcount.

Interest expense, net of capitalized interest, totaled $8 million in third quarter 2020, a $13 million decrease from the prior quarter and a $15 million decrease from the prior-year third quarter. The decreases in both comparative periods were primarily due to the approximate $2.1 billion reduction in bond debt associated with the Company’s Chapter 11 restructuring during the third quarter of 2020. A schedule detailing the components of interest expense is included on page 20 of this press release.

The Company recognized a full cost pool ceiling test write-down of $262 million for the Predecessor Period from July 1, 2020 through September 18, 2020 as a result of the continued decline in first-day-of-the-month oil prices for the preceding 12 months. This write-down compares to full cost pool ceiling test write-downs of $662 million during the prior quarter and $73 million during the first quarter of 2020. As a result of fresh start accounting, oil and gas properties were recorded at fair value as of September 18, 2020, and there was no full cost pool ceiling test write-down for the Successor Period.

Depletion, depreciation, and amortization (“DD&A”) was $42 million during third quarter 2020, compared to $55 million in both the prior quarter and the prior-year third quarter. The decreases from the prior quarter and the prior-year third quarter were primarily due to the application of fresh start accounting resulting in lower asset balances.

Denbury’s effective tax rate for the Predecessor Period from January 1, 2020 through September 18, 2020 was 23%, slightly lower than the Company’s estimated statutory rate of 25%, due primarily to the establishment of a valuation allowance on the Company’s federal and state deferred tax assets after the application of fresh start accounting. Given the Company’s cumulative loss position and the continued low oil price environment, management recorded a total valuation allowance of $129 million on its underlying deferred tax assets as of September 18, 2020. For the Successor Period, the Company continues to offset its deferred tax assets with a valuation allowance. Thus, the income tax expense associated with the Successor’s pre-tax book income was offset by a change in valuation allowance.

BANK CREDIT FACILITY

In connection with the emergence from Chapter 11 bankruptcy proceedings, the Company entered into a new $575 million senior secured bank credit facility due January 30, 2024, with the lending group remaining consistent with that of the Predecessor’s bank credit facility. As of September 30, 2020, the Company had $85 million of outstanding borrowings on the senior secured bank credit facility, leaving $437 million of borrowing base availability after consideration of $53 million of outstanding letters of credit.

RECENT PIPELINE TRANSACTIONS

In late October 2020, the Company restructured its CO₂ pipeline financing arrangements with Genesis Energy, L.P. (“Genesis”), whereby (1) Denbury reacquired the NEJD Pipeline system from Genesis in exchange for $70 million to be paid in four equal payments during 2021, representing full settlement of all remaining obligations under the NEJD secured financing lease; and (2) Denbury reacquired the Free State Pipeline from Genesis in exchange for a one-time payment of $23 million made on October 30, 2020.

HEDGING UPDATE

Details of the Company’s hedging positions as of November 13, 2020 are included below.

			4Q 2020			2021			1H 2022
WTI NYMEX	Volumes Hedged (Bbls/d)			13,500			24,000			8,500
Fixed-Price Swaps	Swap Price(1)		$	40.52		$	42.22		$	43.55
Argus LLS	Volumes Hedged (Bbls/d)			7,500			—			—
Fixed-Price Swaps	Swap Price(1)		$	51.67			—			—
WTI NYMEX	Volumes Hedged (Bbls/d)			9,500			—			—
3-Way Collars	Sold Put Price / Floor / Ceiling Price(1)(2)		$47.93 / $57.00 / $63.25				—			—
Argus LLS	Volumes Hedged (Bbls/d)			5,000			—			—
3-Way Collars	Sold Put Price / Floor / Ceiling Price(1)(2)		$52.80 / $61.63 / $70.35				—			—
	Total Volumes Hedged (Bbls/d)			35,500			24,000			8,500

(1) Averages are volume weighted.
(2) If oil prices were to average less than the sold put, receipts on settlement would be limited to the difference between the floor price and the sold put price.

2020 CAPITAL BUDGET AND ESTIMATED PRODUCTION

The Company’s 2020 estimated development capital budget, excluding acquisitions and capitalized interest, remains unchanged from its previously estimated range of $95 million to $105 million. The capital budget consists of approximately $70 million for tertiary and non-tertiary field investments and CO₂ supply, plus approximately $30 million of estimated capitalized costs (including capitalized internal acquisition, exploration and development costs and pre-production tertiary startup costs). Of this combined capital expenditure amount, $78 million (78%) has been incurred through the first nine months of 2020. Based upon this capital spending level, Denbury’s estimated full-year 2020 production is currently expected to be within a range of 50,900 – 51,400 BOE/d.

THIRD QUARTER CONFERENCE CALL INFORMATION

Denbury management will host a conference call to review and discuss third quarter 2020 financial and operating results tomorrow, Tuesday, November 17, at 10:00 A.M. (Central). Additionally, Denbury will post presentation materials on its website which will be referenced during the conference call. Individuals who would like to participate should dial 877.705.6003 or 201.493.6725 ten minutes before the scheduled start time. To access a live webcast of the conference call and accompanying slide presentation, please visit the investor relations section of the Company’s website at www.denbury.com. The webcast will be archived on the website and a telephonic replay will be accessible for approximately one month after the call by dialing 844.512.2921 or 412.317.6671 and entering confirmation number 13696085.

Denbury is an independent oil and natural gas company with operations focused in two key operating areas: the Gulf Coast and Rocky Mountain regions. The Company’s goal is to increase the value of its properties through a combination of exploitation, drilling and proven engineering extraction practices, with the most significant emphasis relating to CO₂ enhanced oil recovery operations. For more information about Denbury, please visit www.denbury.com.

This press release, other than historical information, contains forward-looking statements that involve risks and uncertainties including estimated 2020 production and capital expenditures, and other risks and uncertainties detailed in the Company’s filings with the Securities and Exchange Commission, including Denbury’s most recent report on Form 10-K. These risks and uncertainties are incorporated by this reference as though fully set forth herein. These statements are based on financial and market, engineering, geological 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 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 Company’s estimates only as of today and should not be relied upon as representing its estimates as of any future date. Denbury assumes no obligation to update its forward-looking statements.

FINANCIAL AND STATISTICAL DATA TABLES AND RECONCILIATION SCHEDULES

The following tables include selected unaudited financial and operational information for the Successor Period, Predecessor Periods from July 1, 2020 through September 18, 2020 and January 1, 2020 through September 18, 2020, and certain Combined information for the three and nine months ended September 30, 2020, in order to assist investors in understanding the comparability of the Company’s financial and operational results for the applicable periods. All production volumes and dollars are expressed on a net revenue interest basis with gas volumes converted to equivalent barrels at 6:1.

DENBURY INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

		Combined (Non-GAAP)(1)					Successor					Predecessor
		Quarter Ended					Period from Sept. 19, 2020 through					Period from July 1, 2020 through				Quarter Ended				Quarter Ended
In thousands, except per-share data		Sept. 30, 2020					Sept. 30, 2020					Sept. 18, 2020				Sept. 30, 2019				June 30, 2020
Revenues and other income
Oil sales		$	174,447				$	22,311				$	152,136			$	292,100			$	108,538
Natural gas sales		964					10					954				1,092				849
CO2 sales and transportation fees		7,484					967					6,517				8,976				6,504
Oil marketing sales		3,483					151					3,332				5,468				1,490
Other income		7,191					94					7,097				7,817				494
Total revenues and other income		193,569					23,533					170,036				315,453				117,875
Expenses
Lease operating expenses		71,192					11,484					59,708				117,850				81,293
Transportation and marketing expenses		9,499					1,344					8,155				10,067				9,388
CO2 operating and discovery expenses		1,197					242					955				879				885
Taxes other than income		15,546					2,073					13,473				22,010				10,372
Oil marketing expenses		3,427					139					3,288				5,436				1,450
General and administrative expenses		16,748					1,735					15,013				18,266				23,776
Interest, net of amounts capitalized of $4,887, $183, $4,704, $8,773 and $8,729, respectively		8,038					334					7,704				22,858				20,617
Depletion, depreciation, and amortization		41,600					5,283					36,317				55,064				55,414
Commodity derivatives expense (income)		574					(4,035		)			4,609				(43,155		)		40,130
Gain on debt extinguishment		—					—					—				(5,874		)		—
Write-down of oil and natural gas properties		261,677					—					261,677				—				662,440
Restructuring items, net		849,980					—					849,980				—				—
Other expenses		24,248					2,164					22,084				2,140				11,290
Total expenses		1,303,726					20,763					1,282,963				205,541				917,055
Income (loss) before income taxes		(1,110,157		)			2,770					(1,112,927		)		109,912				(799,180		)
Income tax provision (benefit)
Current income taxes		(1,445		)			6					(1,451		)		(859		)		598
Deferred income taxes		(302,350		)			6					(302,356		)		37,909				(102,304		)
Net income (loss)		$	(806,362	)			$	2,758				$	(809,120	)		$	72,862			$	(697,474	)
Net income (loss) per common share
Basic							$	0.06				$	(1.63	)		$	0.16			$	(1.41	)
Diluted							$	0.06				$	(1.63	)		$	0.14			$	(1.41	)
Weighted average common shares outstanding
Basic							50,000					497,398				455,487				495,245
Diluted							50,000					497,398				547,205				495,245

(1) Combined results for the quarter ended September 30, 2020 are provided for illustrative purposes and are derived from the financial statement line items from the Successor and Predecessor periods. Because of the impact of various adjustments to the financial statements in connection with the application of fresh start accounting, including asset valuation adjustments and liability adjustments, certain results of operations for the Successor are not comparable to those of the Predecessor. Management believes that the combined results provide meaningful information to assist investors in understanding the Company’s financial results for the applicable period, but should not be considered in isolation, as a substitute for, or more meaningful than, independent results of the Predecessor and Successor periods for the quarter reported in accordance with GAAP.

		Combined (Non-GAAP)(1)					Successor					Predecessor
		Nine Months Ended					Period from Sept. 19, 2020 through					Period from Jan. 1, 2020 through				Nine Months Ended
In thousands, except per-share data		Sept. 30, 2020					Sept. 30, 2020					Sept. 18, 2020				Sept. 30, 2019
Revenues and other income
Oil sales		$	511,562				$	22,311				$	489,251			$	912,636
Natural gas sales		2,860					10					2,850				5,554
CO2 sales and transportation fees		22,016					967					21,049				25,532
Oil marketing sales		8,694					151					8,543				8,274
Other income		8,513					94					8,419				12,274
Total revenues and other income		553,645					23,533					530,112				964,270
Expenses
Lease operating expenses		261,755					11,484					250,271				361,205
Transportation and marketing expenses		28,508					1,344					27,164				32,076
CO2 operating and discovery expenses		2,834					242					2,592				2,016
Taxes other than income		45,604					2,073					43,531				71,312
Oil marketing expenses		8,538					139					8,399				8,213
General and administrative expenses		50,257					1,735					48,522				54,697
Interest, net of amounts capitalized of $23,068, $183, $22,885 and $27,545, respectively		48,601					334					48,267				60,672
Depletion, depreciation, and amortization		193,876					5,283					188,593				170,625
Commodity derivatives expense (income)		(106,067		)			(4,035		)			(102,032		)		15,462
Gain on debt extinguishment		(18,994		)			—					(18,994		)		(106,220		)
Write-down of oil and natural gas properties		996,658					—					996,658				—
Restructuring items, net		849,980					—					849,980				—
Other expenses		38,032					2,164					35,868				8,664
Total expenses		2,399,582					20,763					2,378,819				678,722
Income (loss) before income taxes		(1,845,937		)			2,770					(1,848,707		)		285,548
Income tax provision (benefit)
Current income taxes		(7,254		)			6					(7,260		)		1,214
Deferred income taxes		(408,863		)			6					(408,869		)		90,454
Net income (loss)		$	(1,429,820	)			$	2,758				$	(1,432,578	)		$	193,880
Net income (loss) per common share
Basic							$	0.06				$	(2.89	)		$	0.43
Diluted							$	0.06				$	(2.89	)		$	0.41
Weighted average common shares outstanding
Basic							50,000					495,560				453,287
Diluted							50,000					495,560				490,054

(1) Combined results for the nine months ended September 30, 2020 are provided for illustrative purposes and are derived from the financial statement line items from the Successor and Predecessor periods. Because of the impact of various adjustments to the financial statements in connection with the application of fresh start accounting, including asset valuation adjustments and liability adjustments, certain results of operations for the Successor are not comparable to those of the Predecessor. Management believes that the combined results provide meaningful information to assist investors in understanding the Company’s financial results for the applicable period, but should not be considered in isolation, as a substitute for, or more meaningful than, independent results of the Predecessor and Successor periods for the nine months ended reported in accordance with GAAP.

DENBURY INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

		Combined (Non-GAAP)(1)					Successor					Predecessor
		Nine Months Ended					Period from Sept. 19, 2020 through					Period from Jan. 1, 2020 through				Nine Months Ended
In thousands		Sept. 30, 2020					Sept. 30, 2020					Sept. 18, 2020				Sept. 30, 2019
Cash flows from operating activities
Net income (loss)		$	(1,429,820	)			$	2,758				$	(1,432,578	)		$	193,880
Adjustments to reconcile net income (loss) to cash flows from operating activities
Noncash reorganization items, net		810,909					—					810,909				—
Depletion, depreciation, and amortization		193,876					5,283					188,593				170,625
Write-down of oil and natural gas properties		996,658					—					996,658				—
Deferred income taxes		(408,863		)			6					(408,869		)		90,454
Stock-based compensation		4,111					—					4,111				9,866
Commodity derivatives expense (income)		(106,067		)			(4,035		)			(102,032		)		15,462
Receipt on settlements of commodity derivatives		88,056					6,660					81,396				14,714
Gain on debt extinguishment		(18,994		)			—					(18,994		)		(106,220		)
Debt issuance costs and discounts		11,685					114					11,571				7,607
Other, net		1,028					589					439				(6,862		)
Changes in assets and liabilities, net of effects from acquisitions
Accrued production receivable		65,112					38,537					26,575				(1,428		)
Trade and other receivables		(20,977		)			1,366					(22,343		)		(147		)
Other current and long-term assets		1,448					705					743				27
Accounts payable and accrued liabilities		(24,082		)			(7,980		)			(16,102		)		(33,167		)
Oil and natural gas production payable		(17,856		)			(11,064		)			(6,792		)		(1,819		)
Other liabilities		94					(29		)			123				(9,414		)
Net cash provided by operating activities		146,318					32,910					113,408				343,578
Cash flows from investing activities
Oil and natural gas capital expenditures		(101,707		)			(2,125		)			(99,582		)		(204,904		)
Pipelines and plants capital expenditures		(11,607		)			(6		)			(11,601		)		(25,965		)
Net proceeds from sales of oil and natural gas properties and equipment		42,202					880					41,322				10,494
Other		12,438					(309		)			12,747				5,797
Net cash used in investing activities		(58,674		)			(1,560		)			(57,114		)		(214,578		)
Cash flows from financing activities
Bank repayments		(606,000		)			(55,000		)			(551,000		)		(641,000		)
Bank borrowings		691,000					—					691,000				691,000
Interest payments treated as a reduction of debt		(46,417		)			—					(46,417		)		(59,808		)
Cash paid in conjunction with debt repurchases		(14,171		)			—					(14,171		)		—
Cash paid in conjunction with debt exchange		—					—					—				(125,268		)
Costs of debt financing		(12,482		)			—					(12,482		)		(11,017		)
Pipeline financing and capital lease debt repayments		(51,846		)			(54		)			(51,792		)		(10,279		)
Other		(9,363		)			—					(9,363		)		5,470
Net cash provided by (used in) financing activities		(49,279		)			(55,054		)			5,775				(150,902		)
Net increase (decrease) in cash, cash equivalents, and restricted cash		38,365					(23,704		)			62,069				(21,902		)
Cash, cash equivalents, and restricted cash at beginning of period		33,045					95,114					33,045				54,949
Cash, cash equivalents, and restricted cash at end of period		$	71,410				$	71,410				$	95,114			$	33,047

(1) Combined results for the nine months ended September 30, 2020 are provided for illustrative purposes and are derived from the financial statement line items from the Successor and Predecessor periods. Because of the impact of various adjustments to the financial statements in connection with the application of fresh start accounting, including asset valuation adjustments and liability adjustments, certain results of operations for the Successor are not comparable to those of the Predecessor. Management believes that the combined results provide meaningful information to assist investors in understanding the Company’s financial results for the applicable period, but should not be considered in isolation, as a substitute for, or more meaningful than, independent results of the Predecessor and Successor periods for the nine months ended reported in accordance with GAAP.

DENBURY INC.

SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Reconciliation of net income (loss) (GAAP measure) to adjusted net income (loss) (non-GAAP measure)

Adjusted net income (loss) is a non-GAAP measure provided as a supplement to present an alternative net income (loss) measure which excludes expense and income items (and their related tax effects) not directly related to the Company’s ongoing operations. Management believes that adjusted net income (loss) may be helpful to investors by eliminating the impact of noncash and/or special or unusual items not indicative of the Company’s performance from period to period, and is widely used by the investment community, while also being used by management, in evaluating the comparability of the Company’s ongoing operational results and trends. Adjusted net income (loss) should not be considered in isolation, as a substitute for, or more meaningful than, net income (loss) or any other measure reported in accordance with GAAP, but rather to provide additional information useful in evaluating the Company’s operational trends and performance.

		Combined (Non-GAAP)(1)					Predecessor
		Quarter Ended					Quarter Ended								Quarter Ended
		Sept. 30, 2020					Sept. 30, 2019								June 30, 2020
In thousands, except per-share data		Amount					Amount				Per Diluted Share				Amount				Per Diluted Share
Net income (loss) (GAAP measure) (2)		$	(806,362	)			$	72,862			$	0.14			$	(697,474	)		$	(1.41	)
Adjustments to reconcile to adjusted net income (loss) (non-GAAP measure)
Noncash fair value losses (gains) on commodity derivatives(3)		18,363					(35,098		)		(0.06		)		85,759				0.17
Reorganization items, net(4)		849,980					—				—				—				—
Write-down of oil and natural gas properties(5)		261,677					—				—				662,440				1.34
Accelerated depreciation charge(6)		1,791					—				—				—				—
Gain on debt extinguishment(7)		—					(5,874		)		(0.01		)		—				—
Severance-related expense included in general and administrative expenses(8)		—					—				—				2,361				0.00
Expense associated with restructuring(9)		16,232					—				—				7,875				0.02
Delhi Field insurance reimbursements(10)		(15,402		)			—				—				—				—
Other(11)		1,013					(5,247		)		(0.01		)		1,206				0.00
Estimated income taxes on above adjustments to net income (loss) and other discrete tax items(12)		(307,344		)			14,499				0.02				(94,529		)		(0.19		)
Adjusted net income (loss) (non-GAAP measure)		$	19,948				$	41,142			$	0.08			$	(32,362	)		$	(0.07	)

		Combined (Non-GAAP)(1)					Predecessor
		Nine Months Ended					Nine Months Ended
		Sept. 30, 2020					Sept. 30, 2019
In thousands, except per-share data		Amount					Amount				Per Diluted Share
Net income (loss) (GAAP measure) (2)		$	(1,429,820	)			$	193,880			$	0.41
Adjustments to reconcile to adjusted net income (loss) (non-GAAP measure)
Noncash fair value losses (gains) on commodity derivatives(3)		(18,011		)			30,176				0.06
Reorganization items, net(4)		849,980					—				—
Write-down of oil and natural gas properties(5)		996,658					—				—
Accelerated depreciation charge(6)		39,159					—				—
Gain on debt extinguishment(7)		(18,994		)			(106,220		)		(0.22		)
Severance-related expense included in general and administrative expenses(8)		2,361					—				—
Expense associated with restructuring(9)		24,107					—				—
Delhi Field insurance reimbursements(10)		(15,402		)			—				—
Other(11)		3,623					(793		)		0.00
Estimated income taxes on above adjustments to net income (loss) and other discrete tax items(12)		(418,655		)			28,483				0.06
Adjusted net income (loss) (non-GAAP measure)		$	15,006				$	145,526			$	0.31

(1) Combined results for the three and nine months ended September 30, 2020 are provided for illustrative purposes and are derived from the financial statement line items from the Successor and Predecessor periods. Because of the impact of various adjustments to the financial statements in connection with the application of fresh start accounting, including asset valuation adjustments and liability adjustments, certain results of operations for the Successor are not comparable to those of the Predecessor. Management believes that the combined results provide meaningful information to assist investors in understanding the Company’s financial results for the applicable period, but should not be considered in isolation, as a substitute for, or more meaningful than, independent results of the Predecessor and Successor periods for the quarter and nine months ended reported in accordance with GAAP.
(2) Diluted net income (loss) per common share includes the impact of potentially dilutive securities including nonvested restricted stock, nonvested performance-based equity awards, warrants, and shares into which the Company’s previous convertible senior notes were convertible. Basic and diluted earnings per share calculations for the GAAP reporting periods are included on page 13.
(3) The net change between periods of the fair market values of open commodity derivative positions, excluding the impact of settlements on commodity derivatives during the period.
(4) Reorganization items, net represent (a) expenses incurred subsequent to the filing petition for Chapter 11 as a direct result of the prepackaged joint plan of reorganization, (b) gains or losses from liabilities settled, and (c) fresh start accounting adjustments.
(5) Full cost pool ceiling test write-downs related to the Company’s oil and natural gas properties.
(6) Accelerated depreciation for an asset impairment during the three months ended September 30, 2020, and impaired unevaluated properties during the three months ended March 31, 2020.
(7) Gain on debt extinguishment related to the Company’s 2020 open market repurchases and June 2019 debt exchange.
(8) Severance-related expense associated with the Company’s May-2020 involuntary workforce reduction.
(9) Expenses incurred before the petition date and after the Emergence Date related to advisor and professional fees associated with review of strategic alternatives and comprehensive restructuring of the Company’s indebtedness.
(10) Insurance reimbursements associated with a 2013 incident at Delhi Field.
(11) Other includes the following adjustments: (a) for the three months ended September 20, 2020, $5.9 million gain on land sales, $4.2 million write-off of trade receivables, $2.2 million of expense associated with the Delta-Tinsley CO₂ pipeline incident and $0.5 million of expense associated with the helium supply contract trial court ruling, (b) for the three months ended September 30, 2019, a $6 million gain on land sales, <$1 million of transaction costs related to the Company’s privately negotiated debt exchanges, and <$1 million of expense associated with the helium supply contract trial court ruling, (c) for the three months ended June 30, 2020, $0.5 million of costs associated with the helium supply contract trial court ruling and $0.7 million of expense associated with the Delta-Tinsley CO₂ pipeline incident, (d) for the nine months ended September 30, 2020, $0.5 million of expense associated with the helium supply contract trial court ruling and $0.9 million of expense associated with the Delta-Tinsley CO₂ pipeline incident, and (e) for the nine months ended September 30, 2019, $1 million of expense related to an impairment of assets, $1 million of transaction costs related to the Company’s privately negotiated debt exchanges, and an additional $0.8 million of expense associated with the helium supply contract trial court ruling.
(12) The estimated income tax impacts on adjustments to net income for the nine months ended September 30, 2020 are computed based upon a rate of 25% applied to income before tax, which incorporates discrete tax adjustments primarily comprised of the tax effect of the ceiling test and accelerated depreciation, impacts of the CARES Act, valuation allowances, and the periodic tax impacts of a shortfall (benefit) on the stock-based compensation deduction.

DENBURY INC.

BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE

		Successor									Predecessor
		Period from Sept. 19, 2020 through									Period from July 1, 2020 through								Quarter Ended								Quarter Ended
		Sept. 30, 2020									Sept. 18, 2020								Sept. 30, 2019								June 30, 2020
In thousands, except per-share data		Amount				Per Share					Amount				Per Share				Amount				Per Share				Amount				Per Share
Numerator
Net income (loss) – basic		$	2,758			$	0.06				$	(809,120	)		$	(1.63	)		$	72,862			$	0.16			$	(697,474	)		$	(1.41	)
Effect of potentially dilutive securities
Interest on convertible senior notes, net of tax		—									—								5,101								—
Net income (loss) – diluted		$	2,758			$	0.06				$	(809,120	)		$	(1.63	)		$	77,963			$	0.14			$	(697,474	)		$	(1.41	)
Denominator
Weighted average common shares outstanding – basic		50,000									497,398								455,487								495,245
Effect of potentially dilutive securities
Restricted stock and performance-based equity awards		—									—								865								—
Convertible senior notes		—									—								90,853								—
Weighted average common shares outstanding – diluted		50,000									497,398								547,205								495,245

		Successor									Predecessor
		Period from Sept. 19, 2020 through									Period from Jan. 1, 2020 through								Nine Months Ended
		Sept. 30, 2020									Sept. 18, 2020								Sept. 30, 2019
In thousands, except per-share data		Amount				Per Share					Amount				Per Share				Amount				Per Share
Numerator
Net income (loss) – basic		$	2,758			$	0.06				$	(1,432,578	)		$	(2.89	)		$	193,880			$	0.43
Effect of potentially dilutive securities
Interest on convertible senior notes, net of tax		—									—								5,649
Net income (loss) – diluted		$	2,758			$	0.06				$	(1,432,578	)		$	(2.89	)		$	199,529			$	0.41
Denominator
Weighted average common shares outstanding – basic		50,000									495,560								453,287
Effect of potentially dilutive securities
Restricted stock and performance-based equity awards		—									—								2,489
Convertible senior notes		—									—								34,278
Weighted average common shares outstanding – diluted		50,000									495,560								490,054

DENBURY INC.

SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Reconciliation of cash flows from operations (GAAP measure) to adjusted cash flows from operations (non-GAAP measure) and free cash flow (non-GAAP measure)

Adjusted cash flows from operations is a non-GAAP measure that represents cash flows provided by operations before changes in assets and liabilities, as summarized from the Company’s Unaudited Condensed Consolidated Statements of Cash Flows. Adjusted cash flows from operations measures the cash flows earned or incurred from operating activities without regard to the collection or payment of associated receivables or payables. Adjusted cash flows from operations less special items is an additional non-GAAP measure that removes other special items. Free cash flow is a non-GAAP measure that represents adjusted cash flows from operations less special items and interest treated as debt reduction, development capital expenditures and capitalized interest, but before acquisitions. Management believes that it is important to consider these additional measures, along with cash flows from operations, as it believes the non-GAAP measures can often be a better way to discuss changes in operating trends in its business caused by changes in production, prices, operating costs and related factors, without regard to whether the earned or incurred item was collected or paid during that period.

		Combined (Non-GAAP)(1)					Predecessor									Combined (Non-GAAP)(1)					Predecessor
		Quarter Ended					Quarter Ended				Quarter Ended					Nine Months Ended					Nine Months Ended
In thousands		Sept. 30, 2020					Sept. 30, 2019				June 30, 2020					Sept. 30, 2020					Sept. 30, 2019
Net income (loss) (GAAP measure)		$	(806,362	)			$	72,862			$	(697,474	)			$	(1,429,820	)			$	193,880
Adjustments to reconcile to adjusted cash flows from operations
Depletion, depreciation, and amortization		41,600					55,064				55,414					193,876					170,625
Deferred income taxes		(302,350		)			37,909				(102,304		)			(408,863		)			90,454
Stock-based compensation		571					3,001				1,087					4,111					9,866
Noncash fair value losses (gains) on commodity derivatives		18,363					(35,098		)		85,759					(18,011		)			30,176
Gain on debt extinguishment		—					(5,874		)		—					(18,994		)			(106,220		)
Write-down of oil and natural gas properties		261,677					—				662,440					996,658					—
Noncash reorganization items, net		810,909					—				—					810,909					—
Other		4,434					(2,099		)		4,026					12,713					745
Adjusted cash flows from operations (non-GAAP measure)		28,842					125,765				8,948					142,579					389,526
Net change in assets and liabilities relating to operations		44,665					4,813				2,021					3,739					(45,948		)
Cash flows from operations (GAAP measure)		$	73,507				$	130,578			$	10,969				$	146,318				$	343,578
Adjusted cash flows from operations (non-GAAP measure)		$	28,842				$	125,765			$	8,948				$	142,579				$	389,526
Reorganization items settled in cash		39,071					—				—					39,071					—
Adjusted cash flows from operations less special items (non-GAAP measure)		67,913					125,765				8,948					181,650					389,526
Interest on notes treated as debt reduction		(3,911		)			(21,372		)		(20,912		)			(46,417		)			(64,006		)
Development capital expenditures		(17,522		)			(51,420		)		(21,259		)			(77,566		)			(189,439		)
Capitalized interest		(4,887		)			(8,773		)		(8,729		)			(23,068		)			(27,545		)
Free cash flow (deficit) (non-GAAP measure)		$	41,593				$	44,200			$	(41,952	)			$	34,599				$	108,536

(1) Combined results for the three and nine months ended September 30, 2020 are provided for illustrative purposes and are derived from the financial statement line items from the Successor and Predecessor periods. Because of the impact of various adjustments to the financial statements in connection with the application of fresh start accounting, including asset valuation adjustments and liability adjustments, certain results of operations for the Successor are not comparable to those of the Predecessor. Management believes that the combined results provide meaningful information to assist investors in understanding the Company’s financial results for the applicable period, but should not be considered in isolation, as a substitute for, or more meaningful than, independent results of the Predecessor and Successor periods for the quarter and nine months ended reported in accordance with GAAP.

DENBURY INC.

SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Reconciliation of commodity derivatives income (expense) (GAAP measure) to noncash fair value gains (losses) on commodity derivatives (non-GAAP measure)

Noncash fair value adjustments on commodity derivatives is a non-GAAP measure and is different from “Commodity derivatives expense (income)” in the Unaudited Condensed Consolidated Statements of Operations in that the noncash fair value gains (losses) on commodity derivatives represents only the net change between periods of the fair market values of open commodity derivative positions, and excludes the impact of settlements on commodity derivatives during the period. Management believes that noncash fair value gains (losses) on commodity derivatives is a useful supplemental disclosure to “Commodity derivatives expense (income)” because the GAAP measure also includes settlements on commodity derivatives during the period; the non-GAAP measure is widely used within the industry and by securities analysts, banks and credit rating agencies in calculating EBITDA and in adjusting net income (loss) to present those measures on a comparative basis across companies, as well as to assess compliance with certain debt covenants.

		Combined (Non-GAAP)(1)					Predecessor									Combined (Non-GAAP)(1)					Predecessor
		Quarter Ended					Quarter Ended				Quarter Ended					Nine Months Ended					Nine Months Ended
In thousands		Sept. 30, 2020					Sept. 30, 2019				June 30, 2020					Sept. 30, 2020					Sept. 30, 2019
Receipt on settlements of commodity derivatives		$	17,789				$	8,057			$	45,629				$	88,056				$	14,714
Noncash fair value gains (losses) on commodity derivatives (non-GAAP measure)		(18,363		)			35,098				(85,759		)			18,011					(30,176		)
Commodity derivatives income (expense) (GAAP measure)		$	(574	)			$	43,155			$	(40,130	)			$	106,067				$	(15,462	)

(1) Combined results for the three and nine months ended September 30, 2020 are provided for illustrative purposes and are derived from the financial statement line items from the Successor and Predecessor periods. Because of the impact of various adjustments to the financial statements in connection with the application of fresh start accounting, including asset valuation adjustments and liability adjustments, certain results of operations for the Successor are not comparable to those of the Predecessor. Management believes that the combined results provide meaningful information to assist investors in understanding the Company’s financial results for the applicable period, but should not be considered in isolation, as a substitute for, or more meaningful than, independent results of the Predecessor and Successor periods for the quarter and nine months ended reported in accordance with GAAP.

DENBURY INC.

SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Reconciliation of net income (loss) (GAAP measure) to Adjusted EBITDAX (non-GAAP measure)

Adjusted EBITDAX is a non-GAAP financial measure which management uses and is calculated based upon (but not identical to) a financial covenant related to “Consolidated EBITDAX” in the Company’s senior secured bank credit facility, which excludes certain items that are included in net income (loss), the most directly comparable GAAP financial measure. Items excluded include interest, income taxes, depletion, depreciation, and amortization, and items that the Company believes affect the comparability of operating results such as items whose timing and/or amount cannot be reasonably estimated or are nonrecurring. Management believes Adjusted EBITDAX may be helpful to investors in order to assess the Company’s operating performance as compared to that of other companies in the industry, without regard to financing methods, capital structure or historical costs basis. It is also commonly used by third parties to assess leverage and the Company’s ability to incur and service debt and fund capital expenditures. Adjusted EBITDAX should not be considered in isolation, as a substitute for, or more meaningful than, net income (loss), cash flow from operations, or any other measure reported in accordance with GAAP. The Company’s Adjusted EBITDAX may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted EBITDAX, EBITDAX or EBITDA in the same manner.  The following table presents a reconciliation of the Company’s net income (loss) to Adjusted EBITDAX.

		Combined (Non-GAAP)(1)					Predecessor									Combined (Non-GAAP)(1)					Predecessor
		Quarter Ended					Quarter Ended				Quarter Ended					Nine Months Ended					Nine Months Ended
In thousands		Sept. 30, 2020					Sept. 30, 2019				June 30, 2020					Sept. 30, 2020					Sept. 30, 2019
Net income (loss) (GAAP measure)		$	(806,362	)			$	72,862			$	(697,474	)			$	(1,429,820	)			$	193,880
Adjustments to reconcile to Adjusted EBITDAX
Interest expense		8,038					22,858				20,617					48,601					60,672
Income tax expense (benefit)		(303,795		)			37,050				(101,706		)			(416,117		)			91,668
Depletion, depreciation, and amortization		41,600					55,064				55,414					193,876					170,625
Noncash fair value losses (gains) on commodity derivatives		18,363					(35,098		)		85,759					(18,011		)			30,176
Stock-based compensation		571					3,001				1,087					4,111					9,866
Gain on debt extinguishment		—					(5,874		)		—					(18,994		)			(106,220		)
Write-down of oil and natural gas properties		261,677					—				662,440					996,658					—
Reorganization items, net		849,980					—				—					849,980					—
Severance-related expense		954					—				2,361					3,315					—
Noncash, non-recurring and other(2)		22,419					(4,744		)		10,231					35,014					1,459
Adjusted EBITDAX (non-GAAP measure)(3)		$	93,445				$	145,119			$	38,729				$	248,613				$	452,126

(1) Combined results for the three and nine months ended September 30, 2020 are provided for illustrative purposes and are derived from the financial statement line items from the Successor and Predecessor periods. Because of the impact of various adjustments to the financial statements in connection with the application of fresh start accounting, including asset valuation adjustments and liability adjustments, certain results of operations for the Successor are not comparable to those of the Predecessor. Management believes that the combined results provide meaningful information to assist investors in understanding the Company’s financial results for the applicable period, but should not be considered in isolation, as a substitute for, or more meaningful than, independent results of the Predecessor and Successor periods for the quarter and nine months ended reported in accordance with GAAP.
(2) Includes expenses incurred before the petition date and after the Emergence Date related to advisor and professional fees associated with review of strategic alternatives and comprehensive restructuring of the Company’s indebtedness of $16 million and $8 million during the three months ended September 30, 2020 and June 30, 2020, respectively.
(3) Excludes pro forma adjustments related to qualified acquisitions or dispositions under the Company’s senior secured bank credit facility. Third quarter of 2020 adjusted EBITDAX includes an insurance reimbursement of $15 million, as EBITDAX was not adjusted for the related expenses when originally incurred, and second quarter of 2020 adjusted EBITDAX includes $12 million of expense in connection with cash retention and incentive compensation resulting from modification of compensation arrangements for 21 of the Company’s executives and senior managers (See Note 6, Stock Compensation, in the Company’s Form 10-Q for the period ended June 30, 2020).

DENBURY INC.

OPERATING HIGHLIGHTS (UNAUDITED)

		Quarter Ended												Nine Months Ended
		September 30,								June 30,				September 30,
		2020				2019				2020				2020				2019
Production (daily – net of royalties)
Oil (barrels)		48,334				55,085				48,900				50,619				56,836
Gas (mcf)		8,110				8,135				7,737				7,916				9,681
BOE (6:1)		49,686				56,441				50,190				51,939				58,449
Unit sales price (excluding derivative settlements)
Oil (per barrel)		$	39.23			$	57.64			$	24.39			$	36.88			$	58.82
Gas (per mcf)		1.29				1.46				1.21				1.32				2.10
BOE (6:1)		38.37				56.46				23.95				36.15				57.54
Unit sales price (including derivative settlements)
Oil (per barrel)		$	43.23			$	59.23			$	34.64			$	43.23			$	59.77
Gas (per mcf)		1.29				1.46				1.21				1.32				2.10
BOE (6:1)		42.27				58.02				33.94				42.34				58.46
NYMEX differentials
Gulf Coast region
Oil (per barrel)		$	(1.38	)		$	3.11			$	(3.59	)		$	(0.86	)		$	4.08
Gas (per mcf)		(0.06		)		(0.24		)		(0.09		)		(0.07		)		(0.06		)
Rocky Mountain region
Oil (per barrel)		$	(2.03	)		$	(1.65	)		$	(4.68	)		$	(2.89	)		$	(1.85	)
Gas (per mcf)		(1.74		)		(1.61		)		(1.04		)		(1.25		)		(0.90		)
Total company
Oil (per barrel)		$	(1.64	)		$	1.30			$	(4.03	)		$	(1.67	)		$	1.79
Gas (per mcf)		(0.83		)		(0.87		)		(0.54		)		(0.60		)		(0.47		)

DENBURY INC.

OPERATING HIGHLIGHTS (UNAUDITED)

		Quarter Ended									Nine Months Ended
		September 30,						June 30,			September 30,
Average Daily Volumes (BOE/d) (6:1)		2020			2019			2020			2020			2019
Tertiary oil production
Gulf Coast region
Delhi		3,208			4,256			3,529			3,515			4,405
Hastings		4,473			5,513			4,722			4,808			5,506
Heidelberg		4,256			4,297			4,366			4,331			4,123
Oyster Bayou		3,526			3,995			3,871			3,798			4,373
Tinsley		4,042			4,541			3,788			4,061			4,697
West Yellow Creek		588			728			695			686			584
Mature properties(1)		5,683			6,415			5,249			5,772			6,448
Total Gulf Coast region		25,776			29,745			26,220			26,971			30,136
Rocky Mountain region
Bell Creek		5,551			4,686			5,715			5,665			5,096
Salt Creek		2,167			2,213			1,386			1,902			2,116
Other		—			58			7			19			50
Total Rocky Mountain region		7,718			6,957			7,108			7,586			7,262
Total tertiary oil production		33,494			36,702			33,328			34,557			37,398
Non-tertiary oil and gas production
Gulf Coast region
Mississippi		629			873			713			696			977
Texas		3,095			3,165			3,087			3,200			3,228
Other		4			6			5			6			7
Total Gulf Coast region		3,728			4,044			3,805			3,902			4,212
Rocky Mountain region
Cedar Creek Anticline		11,485			13,354			11,988			12,170			14,211
Other		979			1,238			1,069			1,051			1,285
Total Rocky Mountain region		12,464			14,592			13,057			13,221			15,496
Total non-tertiary production		16,192			18,636			16,862			17,123			19,708
Total continuing production		49,686			55,338			50,190			51,680			57,106
Property sales
Gulf Coast Working Interests Sale(2)		—			1,103			—			259			1,057
Citronelle(3)		—			—			—			—			286
Total production		49,686			56,441			50,190			51,939			58,449

(1) Mature properties include Brookhaven, Cranfield, Eucutta, Little Creek, Mallalieu, Martinville, McComb and Soso fields.
(2) Includes non-tertiary production related to the sale of 50% of our working interests in Webster, Thompson, Manvel, and East Hastings fields, sold in March 2020.
(3) Includes production from Citronelle Field sold in July 2019.

DENBURY INC.

PER-BOE DATA (UNAUDITED)

		Quarter Ended												Nine Months Ended
		September 30,								June 30,				September 30,
		2020				2019				2020				2020				2019
Oil and natural gas revenues		$	38.37			$	56.46			$	23.95			$	36.15			$	57.54
Receipt on settlements of commodity derivatives		3.90				1.56				9.99				6.19				0.92
Lease operating expenses		(15.57		)		(22.70		)		(17.80		)		(18.39		)		(22.64		)
Production and ad valorem taxes		(3.00		)		(3.89		)		(1.92		)		(2.84		)		(4.12		)
Transportation and marketing expenses		(2.08		)		(1.94		)		(2.06		)		(2.00		)		(2.01		)
Production netback		21.62				29.49				12.16				19.11				29.69
CO2 sales, net of operating and discovery expenses		1.38				1.56				1.23				1.35				1.47
General and administrative expenses		(3.66		)		(3.52		)		(5.21		)		(3.53		)		(3.43		)
Interest expense, net		(1.76		)		(4.40		)		(4.51		)		(3.42		)		(3.80		)
Reorganization items settled in cash		(8.55		)		—				—				(2.75		)		—
Other		(2.72		)		1.09				(1.71		)		(0.74		)		0.48
Changes in assets and liabilities relating to operations		9.77				0.93				0.44				0.26				(2.88		)
Cash flows from operations		16.08				25.15				2.40				10.28				21.53
DD&A – excluding accelerated depreciation charge		(8.71		)		(10.60		)		(12.13		)		(10.87		)		(10.69		)
DD&A – accelerated depreciation charge(1)		(0.39		)		—				—				(2.75		)		—
Write-down of oil and natural gas properties		(57.25		)		—				(145.04		)		(70.03		)		—
Deferred income taxes		66.14				(7.30		)		22.40				28.73				(5.67		)
Gain on debt extinguishment		—				1.13				—				1.33				6.66
Noncash fair value gains (losses) on commodity derivatives		(4.03		)		6.75				(18.78		)		1.26				(1.89		)
Noncash reorganization items, net		(177.40		)		—				—				(56.98		)		—
Other noncash items		(10.85		)		(1.10		)		(1.56		)		(1.44		)		2.21
Net income (loss)		$	(176.41	)		$	14.03			$	(152.71	)		$	(100.47	)		$	12.15

(1) Represents an accelerated depreciation charge related to assets associated with impaired unevaluated properties that were transferred to the full cost pool during the three months ended March 31, 2020.

CAPITAL EXPENDITURE SUMMARY (UNAUDITED)

⁽¹⁾

		Quarter Ended												Nine Months Ended
		September 30,								June 30,				September 30,
In thousands		2020				2019				2020				2020				2019
Capital expenditure summary
Tertiary oil fields		$	2,644			$	17,547			$	5,194			$	22,564			$	72,333
Non-tertiary fields		5,867				19,385				2,294				19,115				55,939
Capitalized internal costs(2)		8,351				11,175				9,463				26,695				35,389
Oil and natural gas capital expenditures		16,862				48,107				16,951				68,374				163,661
CO2 pipelines, sources and other		660				3,313				4,308				9,192				25,778
Capital expenditures, before acquisitions and capitalized interest		17,522				51,420				21,259				77,566				189,439
Acquisitions of oil and natural gas properties		15				25				38				95				122
Capital expenditures, before capitalized interest		17,537				51,445				21,297				77,661				189,561
Capitalized interest		4,887				8,773				8,729				23,068				27,545
Capital expenditures, total		$	22,424			$	60,218			$	30,026			$	100,729			$	217,106

(1) Capital expenditure amounts include accrued capital.
(2) Includes capitalized internal acquisition, exploration and development costs and pre-production tertiary startup costs.

DENBURY INC.

INTEREST AND FINANCING EXPENSES (UNAUDITED)

		Successor					Predecessor
		Period from Sept. 19, 2020 through					Period from July 1, 2020 through				Quarter Ended				Quarter Ended
In thousands		Sept. 30, 2020					Sept. 18, 2020				Sept. 30, 2019				June 30, 2020
Cash interest(1)		$	403				$	17,734			$	48,297			$	45,263
Interest not reflected as expense for financial reporting purposes(1)		—					(6,976		)		(21,372		)		(20,912		)
Noncash interest expense		114					347				1,060				1,061
Amortization of debt discount(2)		—					1,303				3,646				3,934
Less: capitalized interest		(183		)			(4,704		)		(8,773		)		(8,729		)
Interest expense, net		$	334				$	7,704			$	22,858			$	20,617

		Successor					Predecessor
		Period from Sept. 19, 2020 through					Period from Jan. 1, 2020 through				Nine Months Ended
In thousands		Sept. 30, 2020					Sept. 18, 2020				Sept. 30, 2019
Cash interest(1)		$	403				$	108,824			$	144,616
Interest not reflected as expense for financial reporting purposes(1)		—					(49,243		)		(64,006		)
Noncash interest expense		114					2,439				3,517
Amortization of debt discount(2)		—					9,132				4,090
Less: capitalized interest		(183		)			(22,885		)		(27,545		)
Interest expense, net		$	334				$	48,267			$	60,672

(1) Cash interest in Predecessor Periods includes interest which was paid semiannually on the Company’s previously outstanding 9% Senior Secured Second Lien Notes due 2021 and 9¼% Senior Secured Second Lien Notes due 2022. As a result of the accounting for certain exchange transactions in previous years, most of the future interest related to these notes was recorded as debt as of the debt issuance dates, which is reduced as semiannual interest payments are made, and therefore not reflected as interest for financial reporting purposes.
(2) Represents the amortization of debt discounts related to the Company’s previously outstanding 7¾% Senior Secured Second Lien Notes due 2024 (“7¾% Senior Secured Notes”) and 6⅜% Convertible Senior Notes due 2024 (“6⅜% Convertible Senior Notes”) issued in June 2019. In accordance with FASC 470-50, Modifications and Extinguishments, the 7¾% Senior Secured Notes and 6⅜% Convertible Senior Notes were recorded on the Company’s balance sheet at a discount of $30 million and $80 million, respectively, which was being amortized as interest expense over the term of the notes.

SELECTED BALANCE SHEET DATA (UNAUDITED)

		Successor					Predecessor
In thousands		Sept. 30, 2020					Dec. 31, 2019
Cash and cash equivalents		$	21,860				$	516
Total assets		1,677,870					4,691,867
Borrowings under senior secured bank credit facility		$	85,000				$	—
Borrowings under senior secured second lien notes (principal only)(1)		—					1,623,049
Borrowings under senior convertible notes (principal only)(2)		—					245,548
Borrowings under senior subordinated notes (principal only)		—					245,690
Financing and capital leases		90,967					167,439
Total debt (principal only)		$	175,967				$	2,281,726
Total stockholders’ equity		$	1,098,177				$	1,412,259

(1) Excludes $165 million of future interest payable on the notes as of December 31, 2019 accounted for as debt for financial reporting purposes and also excludes a $27 million discount to par on the 7¾% Senior Secured Notes as of December 31, 2019.
(2) Excludes a $75 million discount to par on the 6⅜% Convertible Senior Notes as of December 31, 2019.