Denbury Resources Inc.
) second-quarter 2014 earnings of 26 cents per share (excluding
one-time items) fell short of the Zacks Consensus Estimate of 27
cents. The bottom line was also lower than the year-earlier
adjusted earnings of 41 cents. The decline was mainly due to lower
Denbury Resources Inc - Earnings Surprise |
Second-quarter total revenue of $672.1 million increased from
$650 million a year ago and surpassed the Zacks Consensus Estimate
of $622 million.
During the reported quarter, production averaged 75,320 barrels of
oil equivalent per day (Boe/d) versus 74,052 Boe/d in the
Oil production averaged 71,051 barrels per day, up 1.7% from the
year-ago level. Natural gas production averaged 25,614 thousand
cubic feet (up 2.7%), on a daily basis.
The company's production from tertiary operations averaged 40,897
barrels per day, representing a 5.5% increase year over year.
Contribution from continued field development and expansion of
facilities in Hastings, 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
$92.32 per barrel in the quarter, reflecting a fall of 6.7% year
over year, while gas prices rose 7.8% year over year to $4.27 per
Mcf. On an oil equivalent basis, the overall price realization was
$88.54 per barrel, down almost 6.5% from the year-earlier level of
$94.70 per barrel.
Cash flow from operations was $544.7 million in the first half of
2014 versus $706.7 million in the year-ago period. Oil &
natural gas capital investments were approximately $277.1 million
(before acquisitions and capitalized interest), down from the
year-earlier level of $293.3 million.
Cash balance as of Jun 30, 2014, was $12 million and total debt was
$3,637.7 million, representing a debt-to-capitalization ratio of
Denbury lowered its 2014 production to slightly below 76,500 Boe/d
from 76,500-78,500 Boe/d. The full-year capital expenditure is
expected at $1.1 billion.
Denbury currently carries a Zacks #2 Rank (Buy). There are other
stocks in the oil and gas sector like, Weatherford International
), Sasol Ltd. (
) and Cameron International Corp. (
), which hold a Zacks Rank #1 (Strong Buy) and are expected to
outperform the market.
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
WEATHERFORD INT (WFT): Free Stock Analysis
DENBURY RES INC (DNR): Free Stock Analysis
CAMERON INTL (CAM): Free Stock Analysis Report
SASOL LTD -ADR (SSL): Free Stock Analysis
To read this article on Zacks.com click here.