We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Denbury (DNR) Q2 Earnings Beat Estimates on Higher Production
Read MoreHide Full Article
Denbury Resources Inc.’s second-quarter 2018 earnings per share of 13 cents (excluding one-time items) beat the Zacks Consensus Estimate of 10 cents and also improved from the year-ago quarter’s breakeven.
Total revenues of $387.1 million rose from $261.2 million a year ago. The top line also surpassed the Zacks Consensus Estimate of $329 million.
Increased production of oil along with higher realized crude price attributed to the strong quarterly results.
Operational Performance
During the reported quarter, production averaged 61,994 barrels of oil equivalent per day (Boe/d) compared with 59,774 Boe/d in the prior-year quarter.
Oil production averaged 60,109 barrels per day (bpd) (approximately 97% of the total volume), up from the year-ago quarter’s 57,867 bpd. However, natural gas production averaged 11,314 thousand cubic feet/Mcf (down 1.1%) on a daily basis.
The company’s production from tertiary operations averaged 38,514 barrels per day, up 5% year over year.
Oil price realization (including the impact of hedges) averaged $58.23 per barrel in the quarter, up 30% year over year. Gas prices fell 10% year over year to $2.21 per Mcf. On an oil equivalent basis, the overall price realization was $56.86 per barrel, up 29.4% from the year-earlier quarter’s level of $43.96 per barrel.
Financials
Adjusted cash flow from operations was $134 million in the reported quarter compared with $65 million in the year-ago quarter. The company’s capital spending plunged to $90.4 million from the year-earlier quarter’s $152.6 million. As of Jun 30, 2018, cash balance was $4.5 billion and total debt was $2.5 billion.
Guidance
Denbury continues to expect 2018 production in the range of 60,000-64,000 Boe/d.
Denbury Resources Inc. Price, Consensus and EPS Surprise
Denbury carries a Zacks Rank #2 (Buy). Other top-ranked players in the energy space are Northern Oil and Gas, Inc. (NOG - Free Report) , McDermott International, Inc. and Murphy Oil Corp. (MUR - Free Report) . While Murphy Oil carries a Zacks Rank #2, McDermott and Northern Oil sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Northern Oil beat the Zacks Consensus Estimate in three of the prior four quarters, the average positive earnings surprise being 160.4%.
McDermott’s earnings surpassed the Zacks Consensus Estimate in the last four quarters, the average positive surprise being 101.7%.
Murphy Oil’s bottom line surpassed the consensus mark in each of the last four quarters, the average positive surprise being 102.5%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Denbury (DNR) Q2 Earnings Beat Estimates on Higher Production
Denbury Resources Inc.’s second-quarter 2018 earnings per share of 13 cents (excluding one-time items) beat the Zacks Consensus Estimate of 10 cents and also improved from the year-ago quarter’s breakeven.
Total revenues of $387.1 million rose from $261.2 million a year ago. The top line also surpassed the Zacks Consensus Estimate of $329 million.
Increased production of oil along with higher realized crude price attributed to the strong quarterly results.
Operational Performance
During the reported quarter, production averaged 61,994 barrels of oil equivalent per day (Boe/d) compared with 59,774 Boe/d in the prior-year quarter.
Oil production averaged 60,109 barrels per day (bpd) (approximately 97% of the total volume), up from the year-ago quarter’s 57,867 bpd. However, natural gas production averaged 11,314 thousand cubic feet/Mcf (down 1.1%) on a daily basis.
The company’s production from tertiary operations averaged 38,514 barrels per day, up 5% year over year.
Oil price realization (including the impact of hedges) averaged $58.23 per barrel in the quarter, up 30% year over year. Gas prices fell 10% year over year to $2.21 per Mcf. On an oil equivalent basis, the overall price realization was $56.86 per barrel, up 29.4% from the year-earlier quarter’s level of $43.96 per barrel.
Financials
Adjusted cash flow from operations was $134 million in the reported quarter compared with $65 million in the year-ago quarter. The company’s capital spending plunged to $90.4 million from the year-earlier quarter’s $152.6 million. As of Jun 30, 2018, cash balance was $4.5 billion and total debt was $2.5 billion.
Guidance
Denbury continues to expect 2018 production in the range of 60,000-64,000 Boe/d.
Denbury Resources Inc. Price, Consensus and EPS Surprise
Denbury Resources Inc. Price, Consensus and EPS Surprise | Denbury Resources Inc. Quote
Zacks Rank & Other Stocks to Consider
Denbury carries a Zacks Rank #2 (Buy). Other top-ranked players in the energy space are Northern Oil and Gas, Inc. (NOG - Free Report) , McDermott International, Inc. and Murphy Oil Corp. (MUR - Free Report) . While Murphy Oil carries a Zacks Rank #2, McDermott and Northern Oil sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Northern Oil beat the Zacks Consensus Estimate in three of the prior four quarters, the average positive earnings surprise being 160.4%.
McDermott’s earnings surpassed the Zacks Consensus Estimate in the last four quarters, the average positive surprise being 101.7%.
Murphy Oil’s bottom line surpassed the consensus mark in each of the last four quarters, the average positive surprise being 102.5%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>