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Denbury (DNR) Prices $450M Senior Second Lien Notes at Par
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Denbury Resources Inc. announced that it has upsized and priced the senior secured second lien notes. The aggregate principal amount of the notes was upsized from $400 million to $450 million.
The notes — which are slated to mature by 2024 — are expected to carry an annualized interest rate of 7.5% and have been priced at par. Denbury will likely conclude the notes offering on Aug 21. The company added that the new notes will have almost the same covenants and priority like its current second lien notes. The collateral backing the new second lien notes is almost the same as the existing notes.
The proceeds from the offering will likely be allocated by Denbury for paying the borrowed amount under the senior secured bank credit facility. The remaining proceeds are expected to be utilized by the company for general corporate activities.
Headquartered in Plano, TX, Denbury is among the leading oil and natural gas explorers with operations in key resources like the Rocky Mountain and Gulf Coast area. With proven and highly advanced extraction techniques like CO2 enhanced oil recovery, the company has significantly improved the value of its oil and gas plays.
Denbury has an excellent earnings surprise history as the stock surpassed the Zacks Consensus Estimate in all the prior four quarters, the average positive surprise being 162.9%. We expect the company to record earnings growth of 235.7% and 51.1% in 2018 and 2019, respectively.
The company’s earnings chart looks impressive with the stock rallying 261.5% over the past year, outperforming the 26.6% collective gain of the stocks belonging to the industry.
Currently, Denbury carries a Zacks Rank #2 (Buy). Other prospective players in the energy space are McDermott International, Inc. , Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) and Murphy Oil Corp. (MUR - Free Report) . While Murphy Oil carries a Zacks Rank #2, McDermott and Petrobras sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
McDermott’s earnings surpassed the Zacks Consensus Estimate in the last four quarters, the average positive surprise being 101.7%.
Petrobras beat the Zacks Consensus Estimate in three of the past four quarters, the average positive earnings surprise being 10.4%.
Murphy Oil’s bottom line surpassed the consensus mark in each of the last four quarters, the average positive surprise being 102.5%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Denbury (DNR) Prices $450M Senior Second Lien Notes at Par
Denbury Resources Inc. announced that it has upsized and priced the senior secured second lien notes. The aggregate principal amount of the notes was upsized from $400 million to $450 million.
The notes — which are slated to mature by 2024 — are expected to carry an annualized interest rate of 7.5% and have been priced at par. Denbury will likely conclude the notes offering on Aug 21. The company added that the new notes will have almost the same covenants and priority like its current second lien notes. The collateral backing the new second lien notes is almost the same as the existing notes.
The proceeds from the offering will likely be allocated by Denbury for paying the borrowed amount under the senior secured bank credit facility. The remaining proceeds are expected to be utilized by the company for general corporate activities.
Headquartered in Plano, TX, Denbury is among the leading oil and natural gas explorers with operations in key resources like the Rocky Mountain and Gulf Coast area. With proven and highly advanced extraction techniques like CO2 enhanced oil recovery, the company has significantly improved the value of its oil and gas plays.
Denbury has an excellent earnings surprise history as the stock surpassed the Zacks Consensus Estimate in all the prior four quarters, the average positive surprise being 162.9%. We expect the company to record earnings growth of 235.7% and 51.1% in 2018 and 2019, respectively.
The company’s earnings chart looks impressive with the stock rallying 261.5% over the past year, outperforming the 26.6% collective gain of the stocks belonging to the industry.
Currently, Denbury carries a Zacks Rank #2 (Buy). Other prospective players in the energy space are McDermott International, Inc. , Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) and Murphy Oil Corp. (MUR - Free Report) . While Murphy Oil carries a Zacks Rank #2, McDermott and Petrobras sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
McDermott’s earnings surpassed the Zacks Consensus Estimate in the last four quarters, the average positive surprise being 101.7%.
Petrobras beat the Zacks Consensus Estimate in three of the past four quarters, the average positive earnings surprise being 10.4%.
Murphy Oil’s bottom line surpassed the consensus mark in each of the last four quarters, the average positive surprise being 102.5%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>