Denbury Resources Inc. 's ( DNR ) first-quarter
2013 adjusted earnings of 33 cents per share (excluding one-time
items) beat the Zacks Consensus Estimate of 29 cents. However, the
quarterly results were 19.5% below the year-earlier adjusted
earnings of 41 cents.DENBURY RES INC (DNR): Free Stock Analysis
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First quarter total revenue of $583.1 million decreased 9.6% year
over year but surpassed the Zacks Consensus Estimate of $521.0
During the reported quarter, continuing production averaged 63,823
barrels of oil equivalent per day (Boe/d) versus 54,485 Boe/d in
the prior-year quarter.
Oil production averaged 59,577 barrels per day (down nearly 10.9%
from the year-ago level), representing 93.3% of the total volume.
Natural gas production averaged 25,477 thousand cubic feet (down
9.2%), on a daily basis.
The company's production from tertiary operations averaged 39,057
barrels per day, which represents a 17% increase year over year.
The upside came from contributions from new floods at Hastings and
Oyster Bayou fields alongside production gains from expanding
tertiary floods at Delhi and Tinsley fields.
Oil price realization (including the impact of hedges) averaged
$105.59 per barrel in the quarter, showing a rise of 4.4% year over
year, while gas prices contracted 50.2% to $3.28 per Mcf. On an oil
equivalent basis, the overall price realization was $99.87 per
barrel, up almost 2.8% from the year-earlier level of $99.14 per
Cash flow from operations was $269.2 million in the reported
quarter versus $291.7 million in the year-ago quarter. Oil &
natural gas capital investments were $270.9 million (before
acquisitions and capitalized interest), down from the year-earlier
level of $319.8 million.
Cash balance as of Mar 31, 2013 was $62.3 million and long-term
debt was $3,295.1 million, representing a debt-to-capitalization
ratio of 39.0%.
Denbury expects 2013 production in the range of 68,700-71,700
Boe/d. The company's tertiary production target is 36,500-39,500
Boe/d. Capital expenditure budget has been reiterated at $1.06
billion, of which about 85% is apportioned for tertiary projects.
The remainder is for conventional projects, with special emphasis
on Cedar Creek Anticline.
Denbury carries a Zacks #3 Rank (short-term Hold rating). However,
there are other stocks in the oil and gas sector - InterOil
Corporation ( IOC ), Tesco
Corporation ( TESO ) and EPL
Oil & Gas, Inc. ( EPL ) - which hold a
Zacks Rank #1 (Strong Buy) and are expected to perform