A month has gone by since the last earnings report for Denbury Resources Inc. . Shares have lost about 18.6% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Fourth-Quarter 2016 Results
Denbury Resources reported a loss of $0.02 per share in fourth-quarter 2016 (excluding one-time items), in line with the Zacks Consensus Estimate. The company had incurred loss of $0.01 per share a year ago.
Fourth-quarter total revenue of $271.6 million increased from $269.6 million a year ago. The top line also beat the Zacks Consensus Estimate of $235 million.
Operational Performance
During the reported quarter, production averaged 60,685 barrels of oil equivalent per day (Boe/d) compared with 72,002Boe/d in the prior-year quarter.
Oil production averaged 58,429 barrels per day (96.3% of the total volume), down 14.6% from the year-ago level. Natural gas production inched up 1% and averaged 13,538 thousand cubic feet/Mcf, on a daily basis.
The company’s production from tertiary operations averaged 37,346 barrels of oil equivalent per day, down 9.3% year over year.
Oil price realization (including the impact of hedges) averaged $41.93 per barrel in the quarter, down 20.4% year over year. Gas prices jumped 27.5% year over year to $2.55 per Mcf. On an oil equivalent basis, overall price realization plunged 19.5% from the year-earlier level of $50.83 to $40.94 per barrel.
Total Expense
During the quarter, the company witnessed 47.8% year-over-year decrease in total expense to $868.9 million.
Financials
Cash flow from operations for the fourth quarter was $60 million as against $165 million in the comparable period a year ago. Oil and natural gas capital investments for the reported period were approximately $61.4 million compared with the year-earlier level of $109 million. As of Dec 31, 2016, cash balance was $1.6 million and total debt was $2.8 billion.
Guidance
Denbury – a predominantly oil exploration and production company – expects full-year 2017 production in the range of 58,000–62,000 barrels of oil equivalent per day (BOE/d). The mid-point of this range is likely to be almost flat with the company’s 2016 exit rate of just below 60,000 BOE/d. Full-year capital expenditure is expected at $300 million, up 44% from the 2016 capital spending level.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There has been one revision higher for the current quarter In the past month, the consensus estimate has shifted by 33.3% due to these changes.
VGM Scores
At this time, Denbury's stock has a poor Growth Score of 'F', however its Momentum is doing a bit better with a 'D'. Charting a somewhat similar path, the stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stocks has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is solely suitable for value investors.
Outlook
While estimates have been trending upward for the stock, the magnitude of this revision has been net zero. Interestingly, shares of the company have a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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Why Is Denbury (DNR) Down 18.6% Since the Last Earnings Report?
A month has gone by since the last earnings report for Denbury Resources Inc. . Shares have lost about 18.6% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Fourth-Quarter 2016 Results
Denbury Resources reported a loss of $0.02 per share in fourth-quarter 2016 (excluding one-time items), in line with the Zacks Consensus Estimate. The company had incurred loss of $0.01 per share a year ago.
Fourth-quarter total revenue of $271.6 million increased from $269.6 million a year ago. The top line also beat the Zacks Consensus Estimate of $235 million.
Operational Performance
During the reported quarter, production averaged 60,685 barrels of oil equivalent per day (Boe/d) compared with 72,002Boe/d in the prior-year quarter.
Oil production averaged 58,429 barrels per day (96.3% of the total volume), down 14.6% from the year-ago level. Natural gas production inched up 1% and averaged 13,538 thousand cubic feet/Mcf, on a daily basis.
The company’s production from tertiary operations averaged 37,346 barrels of oil equivalent per day, down 9.3% year over year.
Oil price realization (including the impact of hedges) averaged $41.93 per barrel in the quarter, down 20.4% year over year. Gas prices jumped 27.5% year over year to $2.55 per Mcf. On an oil equivalent basis, overall price realization plunged 19.5% from the year-earlier level of $50.83 to $40.94 per barrel.
Total Expense
During the quarter, the company witnessed 47.8% year-over-year decrease in total expense to $868.9 million.
Financials
Cash flow from operations for the fourth quarter was $60 million as against $165 million in the comparable period a year ago. Oil and natural gas capital investments for the reported period were approximately $61.4 million compared with the year-earlier level of $109 million. As of Dec 31, 2016, cash balance was $1.6 million and total debt was $2.8 billion.
Guidance
Denbury – a predominantly oil exploration and production company – expects full-year 2017 production in the range of 58,000–62,000 barrels of oil equivalent per day (BOE/d). The mid-point of this range is likely to be almost flat with the company’s 2016 exit rate of just below 60,000 BOE/d. Full-year capital expenditure is expected at $300 million, up 44% from the 2016 capital spending level.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There has been one revision higher for the current quarter In the past month, the consensus estimate has shifted by 33.3% due to these changes.
Denbury Resources Inc. Price and Consensus
Denbury Resources Inc. Price and Consensus | Denbury Resources Inc. Quote
VGM Scores
At this time, Denbury's stock has a poor Growth Score of 'F', however its Momentum is doing a bit better with a 'D'. Charting a somewhat similar path, the stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stocks has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is solely suitable for value investors.
Outlook
While estimates have been trending upward for the stock, the magnitude of this revision has been net zero. Interestingly, shares of the company have a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.