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Denbury (DNR) Slips to Narrower-than-Expected Loss in Q1

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Denbury Resources Inc.DNR - a predominantly oil exploration and production company - incurred first-quarter 2016 loss of 3 cents per share (excluding one-time items). The Zacks Consensus Estimate was a loss of 6 cents per share. The company had reported earnings of 7 cents in the first quarter of 2015.

Denbury Resources Inc. (DNR) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany

First-quarter total revenue of $194.8 million decreased from $307.6 million a year ago and came in below the Zacks Consensus Estimate of $288.0 million.

Operational Performance

During the reported quarter, production averaged 69,351 barrels of oil equivalent per day (Boe/d) compared with 74,356 Boe/d in the prior-year quarter.

Oil production averaged 66,139 barrels per day (approximately 95.4% of the total volume), down 6.3% from the year-ago level. Natural gas production averaged 19,270 thousand cubic feet/Mcf (down 15.3%), on a daily basis.

The company's production from tertiary operations averaged 40,464 barrels per day, down 2% year over year.

Oil price realization (including the impact of hedges) averaged $42.71 per barrel in the quarter, down 18.9% year over year. Gas prices, also, fell 41.6% year over year to $1.70 per Mcf. On an oil equivalent basis, the overall price realization was $41.20 per barrel, down 38.2% from the year-earlier level of $66.64 per barrel.

Financials

Cash flow from operations was $2.0 million in the reported quarter compared with $137.8 million in the prior year. Oil and natural gas capital investments for the reported period were approximately $52.3 million, down from the year-earlier level of $92.3 million. Cash balance as of Mar 31, 2016, was $8.3 million and total debt was $3,285.2 million.

Guidance

Denbury expects full-year 2016 production to decrease about 7-8% from the 2015 level to 64,000-68,000 Boe/d. Full-year capital expenditure is still expected at $200 million.

Zacks Rank and Key Stock Picks

Denbury currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space are ReneSola Ltd. SOL , Seadrill Partners LLC SDLP and Braskem S.A. BAK . Each of these stocks sports a Zacks Rank #1 (Strong Buy).

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BRASKEM SA (BAK): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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