It has been about a month since the last earnings report for Denbury Resources Inc. . Shares have lost about 17.6% 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.
Denbury Q1 Loss Wider Than Expected, Revenues Beat
Denbury Resources Inc. incurred first-quarter 2017 loss of $0.02 per share (excluding one-time items), wider than the Zacks Consensus Estimate of a loss of $0.01 per share. The bottom-line, however, came narrower than the loss of $0.03 in the first quarter of 2016.
First-quarter total revenue of $275.4 million increased from $194.8 million a year ago. The top line also beat the Zacks Consensus Estimate of $251.3 million.
Operational Performance
During the reported quarter, production averaged 59,933 barrels of oil equivalent per day (Boe/d) compared with 69,351 Boe/d in the prior-year quarter.
Oil production averaged 58,303 barrels per day (approximately 97.3% of the total volume), down 11.8% from the year-ago level. Natural gas production averaged 9,778 thousand cubic feet/Mcf (down 49.3%), on a daily basis.
The company’s production from tertiary operations averaged 37,070 barrels per day, down 8.4% year over year.
Oil price realization (including the impact of hedges) averaged $45.17 per barrel in the quarter, up 5.8% year over year. Gas prices also rose 47.1% year over year to $2.50 per Mcf. On an oil equivalent basis, the overall price realization was $44.35 per barrel, up 7.6% from the year-earlier level of $41.20 per barrel.
Financials
Cash flow from operations was $24.3 million in the reported quarter compared with $2.0 million in the prior year. Oil and natural gas capital investments for the reported period were approximately $53.3 million compared with the year-earlier level of $52.3 million. As of Mar 31, 2017, cash balance was $1.7 million and total debt was $2,826.2 million.
Guidance
Denbury expects full-year 2017 production in the range of 58,000–62,000 Boe/d. Full-year capital expenditure is still expected at $300 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been three revisions lower for the current quarter. In the past month, the consensus estimate has shifted downward by 100% due to these changes.
VGM Scores
At this time, Denbury's stock has a nice Growth Score of 'B', though it is lagging a lot on the momentum front with an 'F'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. 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 more suitable for value investors than growth investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Why Is Denbury (DNR) Down 17.6% Since the Last Earnings Report?
It has been about a month since the last earnings report for Denbury Resources Inc. . Shares have lost about 17.6% 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.
Denbury Q1 Loss Wider Than Expected, Revenues Beat
Denbury Resources Inc. incurred first-quarter 2017 loss of $0.02 per share (excluding one-time items), wider than the Zacks Consensus Estimate of a loss of $0.01 per share. The bottom-line, however, came narrower than the loss of $0.03 in the first quarter of 2016.
First-quarter total revenue of $275.4 million increased from $194.8 million a year ago. The top line also beat the Zacks Consensus Estimate of $251.3 million.
Operational Performance
During the reported quarter, production averaged 59,933 barrels of oil equivalent per day (Boe/d) compared with 69,351 Boe/d in the prior-year quarter.
Oil production averaged 58,303 barrels per day (approximately 97.3% of the total volume), down 11.8% from the year-ago level. Natural gas production averaged 9,778 thousand cubic feet/Mcf (down 49.3%), on a daily basis.
The company’s production from tertiary operations averaged 37,070 barrels per day, down 8.4% year over year.
Oil price realization (including the impact of hedges) averaged $45.17 per barrel in the quarter, up 5.8% year over year. Gas prices also rose 47.1% year over year to $2.50 per Mcf. On an oil equivalent basis, the overall price realization was $44.35 per barrel, up 7.6% from the year-earlier level of $41.20 per barrel.
Financials
Cash flow from operations was $24.3 million in the reported quarter compared with $2.0 million in the prior year. Oil and natural gas capital investments for the reported period were approximately $53.3 million compared with the year-earlier level of $52.3 million. As of Mar 31, 2017, cash balance was $1.7 million and total debt was $2,826.2 million.
Guidance
Denbury expects full-year 2017 production in the range of 58,000–62,000 Boe/d. Full-year capital expenditure is still expected at $300 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been three revisions lower for the current quarter. In the past month, the consensus estimate has shifted downward by 100% 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 nice Growth Score of 'B', though it is lagging a lot on the momentum front with an 'F'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. 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 more suitable for value investors than growth investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.