Mon, Jul 28, 2014, 7:24 AM EDT - U.S. Markets open in 2 hrs 6 mins

Recent

% | $
Click the to save as a favorite.

Denbury Resources Inc. Message Board

  • fullkip fullkip Apr 30, 2013 3:12 PM Flag

    Anyone worried about losing EOR tax credit?

    EOM

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • From The Institute for Policy Integrity Energy Tax Breaks Wiki

      Tax Code Section Number

      43

      Year the provision went into effect

      In 1990.

      Public Law 101-508, Section 11511(a), added § 43, effective for costs paid or incurred in tax years beginning after 12/31/90.

      Does the provision sunset or expire? If so, when?

      This credit is currently phased out due to the price of crude oil exceeding $28 (in 1990 dollars) by more than $6.

      Description

      The enhanced oil recovery credit is one of the credits under the general business credit under § 38. Section 43 provides a credit equal to 15 percent of the taxpayer's qualified enhanced oil recovery costs (defined below) for the taxable year. The credit is adjusted for inflation and fluctuations in the price of crude oil. It is phased out as crude prices increase above $28 (in 1990 dollars): when crude prices exceed $34 (in 1990 dollars) by $6, the credit is eliminated.

      • 1 Reply to dkwilk
      • Seems EVEP's current MLP unit price undervalues the assets. All of the traders have been waiting for a Utica transaction, hasn't happened and now they are bailing out. The current dist of $3.08 should sell for an 8% yield, around $38, current price is $42+. That puts a value of around $4k per acre for the 100k acres of Utica they are trying to sell, not an unreasonable price, maybe even low. Not sure why it hasn't sold, CHK could be hurting the sale prices for e and p. On top of that, they have an over riding royalty interest on 880k acres of Utica potential that they retain, one analyst put that cash flow plus their midstream at almost $3 per unit in a few years, at 8%, $38 of additional value. $80 value vs $42 price. Will take a few years to grow into the value but you get a 6.5% yield while you wait. My kind of e and p investment. Seems the Utica is for real, Gulfport continues to appreciate.

 
DNR
17.49-0.40(-2.24%)Jul 25 4:00 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.