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Denbury Resources Inc.

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With its unique profile, compelling economics and unmatched infrastructure, Denbury Resources’ is positioned well to deliver long-term sustainable growth. We appreciate the company’s cost-reduction initiatives, which drove the company’s better-than-expected results in second-quarter 2018. Moreover, Denbury’s niche, highly specialized strategy to increase oil recovery from mature depleted oil fields through tertiary CO2 flooding will help it grow in the future.  Denbury estimated capital expenditure in the range of $300-$325 million, skyrocketed 38% from prior year. This higher spending could support the firms higher expected production. The company expects 2018 production in the range of 60,000-64,000 barrels of oil equivalent per day (BOE/d), up roughly 3% year over year. The improving oil price environment is expected to result in increase in top-line and bottomline.

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