Denbury Resources Inc.’s third-quarter 2018 earnings per share (EPS) of 13 cents (excluding one-time items) beat the Zacks Consensus Estimate of 11 cents and improved from the year-ago quarter’s earnings of 4 cents.
Total revenues of $395 million rose from $266.5 million in the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate of $357 million.
Higher realized crude price attributed to the strong quarterly results.
Operational Performance
During the quarter, production averaged 59,181 barrels of oil equivalent per day (Boe/d) compared with 60,328 Boe/d in the prior-year quarter.
Oil production averaged 57,410 barrels per day (bpd) (approximately 97% of the total volume), down from the year-ago quarter’s level of 58,376 bpd. Natural gas production averaged 10,623 thousand cubic feet/Mcf (down 9.3%) on a daily basis.
The company’s production from tertiary operations averaged 37,219 barrels per day, down 2.9% year over year.
Oil price realization (including the impact of hedges) averaged $59.78 per barrel in the quarter, up 25.1% year over year. Gas prices fell 4.9% year over year to $2.35 per Mcf. On an oil equivalent basis, the overall price realization was $58.41 per barrel, up 25.1% from the year-earlier quarter’s level of $46.69 per barrel.
Financials
Adjusted cash flow from operations was $135 million in the reported quarter compared with $68 million in the year-ago quarter. The company’s capital spending rose to $95.6 million from the year-earlier quarter’s figure of $67.3 million. As of Sep 30, 2018, cash balance was $66.7 million and total debt was $2.5 billion.
Guidance
Denbury continues to expect 2018 production in the range of 60,000-64,000 Boe/d. The company reiterated its capital expenditure in the range of $300 million-$325 million.
Zacks Rank & Other Stocks to Consider
Denbury carries a Zacks Rank #2 (Buy).
A few other top-ranked players in the same sector are Hess Corp. (HES - Free Report) , Enterprise Products Partners L.P. (EPD - Free Report) and Eni SpA (E - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
New York-based Hess is a global integrated energy company. It delivered an average positive earnings surprise of 230.5% in the last four quarters.
Headquartered in Houston, TX, Enterprise Products Partners is among the leading midstream energy players in North America. It pulled off an average positive earnings surprise of 9.3% in the last four quarters.
Based in Rome, Italy, Eni is among the leading integrated energy players in the world. The partnership witnessed a negative earnings surprise of 0.3% in the preceding four quarters.
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Denbury Resources Inc.’s third-quarter 2018 earnings per share (EPS) of 13 cents (excluding one-time items) beat the Zacks Consensus Estimate of 11 cents and improved from the year-ago quarter’s earnings of 4 cents.
Total revenues of $395 million rose from $266.5 million in the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate of $357 million.
Higher realized crude price attributed to the strong quarterly results.
Operational Performance
During the quarter, production averaged 59,181 barrels of oil equivalent per day (Boe/d) compared with 60,328 Boe/d in the prior-year quarter.
Oil production averaged 57,410 barrels per day (bpd) (approximately 97% of the total volume), down from the year-ago quarter’s level of 58,376 bpd. Natural gas production averaged 10,623 thousand cubic feet/Mcf (down 9.3%) on a daily basis.
The company’s production from tertiary operations averaged 37,219 barrels per day, down 2.9% year over year.
Oil price realization (including the impact of hedges) averaged $59.78 per barrel in the quarter, up 25.1% year over year. Gas prices fell 4.9% year over year to $2.35 per Mcf. On an oil equivalent basis, the overall price realization was $58.41 per barrel, up 25.1% from the year-earlier quarter’s level of $46.69 per barrel.
Financials
Adjusted cash flow from operations was $135 million in the reported quarter compared with $68 million in the year-ago quarter. The company’s capital spending rose to $95.6 million from the year-earlier quarter’s figure of $67.3 million. As of Sep 30, 2018, cash balance was $66.7 million and total debt was $2.5 billion.
Guidance
Denbury continues to expect 2018 production in the range of 60,000-64,000 Boe/d. The company reiterated its capital expenditure in the range of $300 million-$325 million.
Zacks Rank & Other Stocks to Consider
Denbury carries a Zacks Rank #2 (Buy).
A few other top-ranked players in the same sector are Hess Corp. (HES - Free Report) , Enterprise Products Partners L.P. (EPD - Free Report) and Eni SpA (E - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
New York-based Hess is a global integrated energy company. It delivered an average positive earnings surprise of 230.5% in the last four quarters.
Headquartered in Houston, TX, Enterprise Products Partners is among the leading midstream energy players in North America. It pulled off an average positive earnings surprise of 9.3% in the last four quarters.
Based in Rome, Italy, Eni is among the leading integrated energy players in the world. The partnership witnessed a negative earnings surprise of 0.3% in the preceding four quarters.
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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