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) Q1 Earnings Beat, Sales Lag, Stock Down 5.8%
Read MoreHide Full Article
Denbury Resources Inc. reported earnings of 10 cents per share in first-quarter 2019 (excluding one-time items), beating the Zacks Consensus Estimate of 8 cents on the back of higher commodity price realizations. However, the bottom line declined from the year-ago figure of 12 cents, primarily due to higher expenses.
Total revenues were $305.5 million, down from $353.2 million in the year-ago quarter. Also, the top line missed the Zacks Consensus Estimate of $312 million. Notably, sales were affected by lower production volumes.
The stock tumbled 5.8% yesterday following the company’s earnings release, as overall results failed to impress investors.
Denbury Resources Inc. Price, Consensus and EPS Surprise
During the quarter, production averaged 59,218 barrels of oil equivalent per day (Boe/d) compared with 60,338 Boe/d in the prior-year period.
Oil production averaged 57,414 barrels per day (BPD), down from the year-ago level of 58,354 BPD. Natural gas daily production averaged 10,827 thousand cubic feet (Mcf/d), lower than the year-ago period’s 11,904 Mcf/d.
The company’s production from tertiary operations averaged 37,073 Boe/d, down from 38,262 Boe/d in the year-ago quarter.
Price Realization Marginally Up
Oil price realization (including the impact of hedges) averaged $58.09 per barrel in the quarter, marginally increasing from the year-ago level of $57.89. Gas prices rose to $2.68 per Mcf from $2.44 in the year-ago quarter. On an oil-equivalent basis, overall price realization was $56.81 per barrel, slightly higher than the year-earlier level of $56.47.
Total Expenses Rise
During the quarter, total expenses were $341.9 million, up from $299.6 million in the year-ago period. The surge can be attributed to higher lease operating expenses, which resulted from increased CO2 costs.
Capital Expenditure
Oil and natural gas capital investments were approximately $59.6 million compared with $47.3 million in the year-ago quarter. Total capital spending (excluding capitalized interest) was $61.2 million, higher than $47.7 million in first-quarter 2018.
Financials
Cash flow from operations was $64.4 million, down from $91.6 million in the year-ago quarter.
As of Mar 31, 2019, cash balance was $5.7 million and total debt was $2,525.7 million. It also had a bank credit facility of $615 million.
Guidance
Denbury expects to generate more than $150 million of free cash flow in full-year 2019. The company reiterated its 2019 production guidance in the range of 56,000-60,000 Boe/d. Capital expenditure is estimated in the range of $240-$260 million, down 20-25% from the 2018 capital spending level.
Cactus’ earnings growth is projected at 11.8% through 2019.
Hess’ earnings are expected to grow 90.5% through 2019.
Apache beat the Zacks Consensus Estimate in each of the last four quarters, with average positive earnings surprise of 31%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
Image: Bigstock
Denbury (DNR) Q1 Earnings Beat, Sales Lag, Stock Down 5.8%
Denbury Resources Inc. reported earnings of 10 cents per share in first-quarter 2019 (excluding one-time items), beating the Zacks Consensus Estimate of 8 cents on the back of higher commodity price realizations. However, the bottom line declined from the year-ago figure of 12 cents, primarily due to higher expenses.
Total revenues were $305.5 million, down from $353.2 million in the year-ago quarter. Also, the top line missed the Zacks Consensus Estimate of $312 million. Notably, sales were affected by lower production volumes.
The stock tumbled 5.8% yesterday following the company’s earnings release, as overall results failed to impress investors.
Denbury Resources Inc. Price, Consensus and EPS Surprise
Denbury Resources Inc. Price, Consensus and EPS Surprise | Denbury Resources Inc. Quote
Operational Performance
Production Declines
During the quarter, production averaged 59,218 barrels of oil equivalent per day (Boe/d) compared with 60,338 Boe/d in the prior-year period.
Oil production averaged 57,414 barrels per day (BPD), down from the year-ago level of 58,354 BPD. Natural gas daily production averaged 10,827 thousand cubic feet (Mcf/d), lower than the year-ago period’s 11,904 Mcf/d.
The company’s production from tertiary operations averaged 37,073 Boe/d, down from 38,262 Boe/d in the year-ago quarter.
Price Realization Marginally Up
Oil price realization (including the impact of hedges) averaged $58.09 per barrel in the quarter, marginally increasing from the year-ago level of $57.89. Gas prices rose to $2.68 per Mcf from $2.44 in the year-ago quarter. On an oil-equivalent basis, overall price realization was $56.81 per barrel, slightly higher than the year-earlier level of $56.47.
Total Expenses Rise
During the quarter, total expenses were $341.9 million, up from $299.6 million in the year-ago period. The surge can be attributed to higher lease operating expenses, which resulted from increased CO2 costs.
Capital Expenditure
Oil and natural gas capital investments were approximately $59.6 million compared with $47.3 million in the year-ago quarter. Total capital spending (excluding capitalized interest) was $61.2 million, higher than $47.7 million in first-quarter 2018.
Financials
Cash flow from operations was $64.4 million, down from $91.6 million in the year-ago quarter.
As of Mar 31, 2019, cash balance was $5.7 million and total debt was $2,525.7 million. It also had a bank credit facility of $615 million.
Guidance
Denbury expects to generate more than $150 million of free cash flow in full-year 2019. The company reiterated its 2019 production guidance in the range of 56,000-60,000 Boe/d. Capital expenditure is estimated in the range of $240-$260 million, down 20-25% from the 2018 capital spending level.
Zacks Rank and Stocks to Consider
Currently, Denbury carries a Zacks Rank #3 (Hold). Prospective players in the energy space worth considering include Cactus, Inc. (WHD - Free Report) , Hess Corporation (HES - Free Report) and Apache Corporation (APA - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cactus’ earnings growth is projected at 11.8% through 2019.
Hess’ earnings are expected to grow 90.5% through 2019.
Apache beat the Zacks Consensus Estimate in each of the last four quarters, with average positive earnings surprise of 31%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>