I think you completely misunderstand the way oil companies operate and I agree with all of Peter's comments.
DNR is really not the stock for you. Have you thought about the restaurant stocks? They fit your model of how earnings should behave much better than oil and gas stocks. If they get hurt by the cold weather, which hits restaurant sales hard, you will may be able to buy at cheap prices, and their earning reports will fit your valuation model. Ruellia
Operating cash flow is basically income after all expenses save for those which are non-cash (principally non-cash losses on hedges and depreciation), it is not what you think. You need to look at the P & L to try and get an idea of what is actually happening in more detail. Operating cash flow is not what you're describing which is gross revenues--cash coming in the door before expenses.
Take a look at the LINE p & l, for example. They reliably lose money every year (significantly by design) but they have a very large market evaluation and have reliably paid distributions in excess of 10% per annum (tax free, by the way) for years. How did they do it?--good operating cash flow and shelter. That's a big part of what the energy business is all about--producing cash and not having to pay taxes on it so that you efficiently harvest it in order to put it back to work. For you to criticize a company for doing this illustrates that you simply do not comprehend what you are looking at.
And, again, for the record, I don't own DNR. I own a little bit of EAC from yesterday AM purely as an arbitrage play. I also, for the record, don't think that the last DNR operating statement was all that great. I'm just against misinformation and misunderstanding.