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, Revenues Fall Y/Y
Read MoreHide Full Article
Denbury Resources Inc. reported second-quarter 2016 earnings of 8 cents per share (excluding one-time items) that beat the Zacks Consensus Estimate of 1 cent. The quarterly figure, however, declined from 13 cents pre share earned in the year-earlier quarter.
Second-quarter total revenue of $253 million decreased from $374 million a year ago.
Operational Performance
During the reported quarter, production averaged 64,506 barrels of oil equivalent per day (Boe/d) compared with 73,716 Boe/d in the prior-year quarter.
Oil production averaged 61,952 barrels per day (approximately 96% of the total volume), down 11.3% from the year-ago level. Natural gas production declined 34.1% and averaged 15,328 thousand cubic feet/Mcf, on a daily basis.
The company’s production from tertiary operations averaged 39,212 barrels per day, down 7.9% year over year.
Oil price realization (including the impact of hedges) averaged $52.61 per barrel in the quarter, down 31% year over year. Gas prices plunged 48.1% year over year to $1.50 per Mcf. On an oil equivalent basis, the overall price realization was $50.88 per barrel, down 30.5% from the year-earlier level of $73.2.
Financials
Cash flow from operations was $62.9 million in the first six months of 2016 as against $426.7 million in the comparable period a year ago. Oil and natural gas capital investments for the reported period were approximately $48.2 million, down from the year-earlier level of $90.8 million. Cash balance as of Jun 30, 2016 was $2.5 million and total debt was $2,844.7 million.
Guidance
Denbury – a predominantly oil exploration and production company – expects full-year 2016 production to decrease to 64,000–66,000 Boe/d from its earlier guidance of 64,000–68,000 Boe/d. Full-year capital expenditure is still expected at $200 million.
Zacks Rank
Denbury carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are Sasol Ltd. (SSL - Free Report) , Enbridge, Inc. (ENB - Free Report) and Total SA . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Denbury (DNR) Q2 Earnings Beat Estimates, Revenues Fall Y/Y
Denbury Resources Inc. reported second-quarter 2016 earnings of 8 cents per share (excluding one-time items) that beat the Zacks Consensus Estimate of 1 cent. The quarterly figure, however, declined from 13 cents pre share earned in the year-earlier quarter.
Second-quarter total revenue of $253 million decreased from $374 million a year ago.
Operational Performance
During the reported quarter, production averaged 64,506 barrels of oil equivalent per day (Boe/d) compared with 73,716 Boe/d in the prior-year quarter.
Oil production averaged 61,952 barrels per day (approximately 96% of the total volume), down 11.3% from the year-ago level. Natural gas production declined 34.1% and averaged 15,328 thousand cubic feet/Mcf, on a daily basis.
DENBURY RES INC Price, Consensus and EPS Surprise
DENBURY RES INC Price, Consensus and EPS Surprise | DENBURY RES INC Quote
The company’s production from tertiary operations averaged 39,212 barrels per day, down 7.9% year over year.
Oil price realization (including the impact of hedges) averaged $52.61 per barrel in the quarter, down 31% year over year. Gas prices plunged 48.1% year over year to $1.50 per Mcf. On an oil equivalent basis, the overall price realization was $50.88 per barrel, down 30.5% from the year-earlier level of $73.2.
Financials
Cash flow from operations was $62.9 million in the first six months of 2016 as against $426.7 million in the comparable period a year ago. Oil and natural gas capital investments for the reported period were approximately $48.2 million, down from the year-earlier level of $90.8 million. Cash balance as of Jun 30, 2016 was $2.5 million and total debt was $2,844.7 million.
Guidance
Denbury – a predominantly oil exploration and production company – expects full-year 2016 production to decrease to 64,000–66,000 Boe/d from its earlier guidance of 64,000–68,000 Boe/d. Full-year capital expenditure is still expected at $200 million.
Zacks Rank
Denbury carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are Sasol Ltd. (SSL - Free Report) , Enbridge, Inc. (ENB - Free Report) and Total SA . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>