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Denbury (DNR) Q2 Earnings Beat Estimates, Revenues Fall Y/Y
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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).
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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 >>