Denbury Resources Inc.
) first-quarter 2014 adjusted earnings of 25 cents per share
(excluding one-time items) came in line with the Zacks Consensus
Estimate. However, quarterly results were 24.2% lower than the
year-earlier adjusted earnings of 33 cents. The decline was
mainly due to lower price realization as well as higher lease
operating expenses and depletion, depreciation and amortization.
First-quarter total revenue of $641.7 million increased from
$583.1 million a year ago and surpassed the Zacks Consensus
Estimate of $607.0 million.
During the reported quarter, production averaged 73,718 barrels
of oil equivalent per day (Boe/d) versus 63,823 Boe/d in the
Oil production averaged 69,834 barrels per day, up 17.2% from the
year-ago level. Natural gas production averaged 23,299 thousand
cubic feet (down 8.5%), on a daily basis.
The company's production from tertiary operations averaged 39,892
barrels per day, representing a 2.0% increase year over year.
Contributions from continued field development and expansion of
facilities in Heidelberg, Oyster Bayou and Tinsley fields as well
as production in the Rocky Mountain region in Bell Creek Field,
supported the increase.
Oil price realization (including the impact of hedges) averaged
$93.46 per barrel in the quarter, reflecting a fall of 11.5% year
over year, while gas prices expanded 34.5% year over year to
$4.41 per Mcf. On an oil equivalent basis, the overall price
realization was $89.93 per barrel, down almost 10.0% from the
year-earlier level of $99.87 per barrel.
Cash flow from operations was $215.0 million in the reported
quarter versus $269.0 million in the year-ago quarter. Oil &
natural gas capital investments were approximately $203.0 million
(before acquisitions and capitalized interest), down from the
year-earlier level of $240.0 million.
Cash balance as of Mar 31, 2014, was $7.9 million and total debt
was $3,548.4 million, representing a debt-to-capitalization ratio
Denbury expects 2014 production in the range of 76,500-78,500
Boe/d. The company expects tertiary production at the lower end
of the estimated range of 42,000-44,000 Boe/d. The capital
expenditure budget has been reiterated at $1 billion, of which
about 78% is apportioned for tertiary projects. The remainder is
for conventional projects, with special emphasis on Cedar Creek
Anticline and Hartzog Draw fields.
Denbury carries a Zacks #3 Rank (Hold). There are other stocks in
the oil and gas sector like,
RSP Permian, Inc.
Clayton Williams Energy, Inc.
Matrix Service Company
), which hold a Zacks Rank #1 (Strong Buy) and are expected to
outperform the market.
WILLIAMS(C)ENGY (CWEI): Free Stock Analysis
DENBURY RES INC (DNR): Free Stock Analysis
MATRIX SERVICE (MTRX): Free Stock Analysis
RSP PERMIAN INC (RSPP): Free Stock Analysis
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