Denbury Resources Inc.
) presented estimated reserves and preliminary production numbers
for 2013 on Feb 11. However, a down trend in price realizations
cast a dark shadow on investors' sentiment. As a result, the
share price opened at $16.41 or up 0.7% on Feb 12 from the
previous day's closing to finally settle at $16.35.
CONOCOPHILLIPS (COP): Free Stock Analysis
WILLIAMS(C)ENGY (CWEI): Free Stock Analysis
DENBURY RES INC (DNR): Free Stock Analysis
EXXON MOBIL CRP (XOM): Free Stock Analysis
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Denbury's average realized oil price was $93.00 per Bbl in the
fourth quarter of 2013, compared to $105.91 per Bbl in the third
quarter. This was partially offset by average realized natural
gas price of $3.50 per Mcf in the fourth quarter, compared to
$3.38 per Mcf in the third quarter.
Denbury Resources' total estimated proved oil and natural gas
reserves at Dec 31, 2013 were 468 million barrels of oil
equivalent (MMBOE), consisting of 387 million barrels of crude
oil, condensate and natural gas liquids, and 81 MMBOE (or 490
billion cubic feet) of natural gas.
Denbury's aggregate proved reserves additions during 2013 were 85
MMBOE, representing a 330% reserves replacement-to-production
ratio. The proved reserve additions consisted primarily of 34
MMBOE of reserves from tertiary development of Bell Creek Field
and 42 MMBOE of reserves acquired in the Cedar Creek Anticline of
Montana and North Dakota during 2013. These additions were offset
by 26 MMBOE of production during the year.
Denbury expects 2013 capital expenditures to be $981 million for
capital projects and $163 million for other capital costs. The
company as of Feb 7 has acquired a total of approximately 58
million common shares under the program, or about 14% of its
shares outstanding, at an average cost of $15.67 per share.
Denbury is the leading carbon dioxide Enhanced Oil Recovery
company in the U.S. with a unique profile. Recently, the company
closed the second and final phase of its previously announced
divestiture program to
) and its wholly owned subsidiary, XTO Energy. The company plans
to use most of the proceeds raised from its asset sale to work
out a purchase deal with
Last month, Denbury inked an agreement with a wholly owned
subsidiary of ConocoPhillips to purchase the producing property
interests in Cedar Creek Anticline (CCA) for $1.05 billion in
cash. The CAA acreage matches Denbury's existing portfolio. Also,
recovery from these fields requires supply of carbon dioxide - a
process in which Denbury excels in the Gulf of Mexico.
Plano, Texas-based Denbury Resources is a growing exploration and
production company engaged in the acquisition, development,
operation and exploration of oil and natural gas properties in
the Gulf Coast and Rocky Mountain region of the U.S. It is the
largest oil producer in Mississippi, with further properties in
Louisiana, Alabama and Southeast Texas.
Denbury carries a Zacks #3 Rank (short-term Hold rating).
However, there are better-ranked Zacks Rank #1 (Strong Buy)
stocks in the oil and gas sector like
Clayton Williams Energy, Inc.
) which are expected to outperform the market.