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Texas-based Denbury Resources Inc. (DNR - Analyst Report) reported its preliminary fourth quarter as well as full year 2012 production. The company also disclosed its 2012 proved reserves.

Production from the continuing operations jumped 7% sequentially to 60,052 barrels of oil equivalent per day (Boe/d) in the fourth quarter. The figures for both the periods are adjusted for the 2012 property sales.

Tertiary production in the fourth quarter increased 8% sequentially buoyed by robust contributions from the company's latest CO2 floods at Hastings and Oyster Bayou fields and the expansion of the existing CO2 floods at Delhi and Tinsley fields. On the other hand, non-tertiary production increased 6% sequentially mainly due to the assets acquired from the U.S. energy giant ExxonMobil Corporation (XOM - Analyst Report). The properties contributed approximately 1,200 Boe/d to production.

For 2012, the company achieved 14% year-over-year production growth from its core business, CO2 EOR. The company has been able to realize the level in the upper half of its guided range.

At year-end 2012, Denbury had estimated approximately 409 million oil-equivalent barrels (MMBOE) in proved reserves, of which 80% was oil, 60% was proved developed and 49% was proved tertiary oil reserves.

Denbury is the leading carbon dioxide (CO2) Enhanced Oil Recovery (EOR) company in the U.S. with a unique profile. Its proved carbon dioxide reserves were 9.6 trillion cubic feet (Tcf) as of Dec 31, 2012, an 8% increase over the year-end 2011 level.

The current Zacks Consensus Estimates for Denbury are $1.39 and $1.17 per share for fiscal years 2012 and 2013, respectively. The estimates represent a year-over-year decrease of 2.9% for 2012 and 16.1% for 2013. For the fourth quarter of 2012, the Zacks Consensus Estimate is 30 cents, which represents a 34.4% decrease over the prior-year quarter.

Recently, Denbury closed the second and final phase of its previously announced divestiture program to ExxonMobil and its wholly owned subsidiary, XTO Energy. The company plans to use most of the proceeds raised from its asset sale to work out a purchase deal with ConocoPhillips (COP - Analyst Report).

Last month, Denbury inked an agreement with a wholly owned subsidiary of ConocoPhillips to purchase the producing property interests in Cedar Creek Anticline (CCA) for $1.05 billion in cash. The CAA acreage matches Denbury’s existing portfolio. Also, recovery from these fields requires supply of carbon dioxide – a process in which Denbury excels in the Gulf of Mexico.

Denbury is scheduled to report its fourth quarter as well as full-year earnings results on Feb 21. The company holds a Zacks Rank #3 (short-term Hold rating).

However, there are other companies in the oil and gas industry like Cabot Oil & Gas Corporation (COG - Analyst Report) that offer value and are worth buying now. Cabot sports a Zacks Rank #1 (Strong Buy).

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