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Denbury Resources Inc. Message Board

  • upperfeliciana upperfeliciana May 6, 2013 9:50 AM Flag


    Wow, ouch. Tanked this morning.

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    • A Barron's article ripped LINE, Twilight of a Stock-Market Darling. I can't insert the web link. If the article is wrong this is a buying opportunity?

      • 1 Reply to bison666666
      • Didn't read the article, but looked briefly at the qtrly report. The distribution coverage is 88%, not good. The ebitda was around $350 million for the quarter, annualized $1.4 billion, enterprise value is $15 billion, 10x+ mutltiple. You can buy great e and p s in the 5x range currently. The yield has increased the value. On a reserves basis, 800 million boe, little over half gas. Around $18 per boe, with the gassiness, probably should be lower, say $15 per share. A move up in nat gas would do a lot for their cash flow, but it would for most gassy e and p s. Seems it could fall under $30 as investors that bought for yield, $3.08 x 88%, $2.70, 10% yield, $27. Know the CEO from a previous life, good guy, but they are a huge co and it's hard to add value with new purchases of reserves, will probably ride the price curve. Would buy EVEP or ARP but still think for yield, the midstream MLPs are still a fairly good buy. With ARP, the yield is close to 10%, fairly low debt. Problem with MLPs is tax reporting, it is complicated, need to be ready to deal with it. What did the Barron's article say.

3.70+0.15(+4.23%)Nov 30 4:01 PMEST