S&P 500 component Denbury Resources Inc. reported net income above Wall Street’s expectations for the fourth quarter. Denbury Resources is an independent oil and gas company that acquires and develops oil and natural gas properties in the United States Gulf Coast region.
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Denbury Resources Earnings Cheat Sheet for the Fourth Quarter
Results: Net income for Denbury Resources Inc. rose to $52.6 million (13 cents per share) vs. $10.4 million (3 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.
Revenue: Rose 18.9% to $617.3 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Denbury Resources Inc. reported adjusted net income of 45 cents per share. By that measure, the company beat the mean estimate of 33 cents per share. It beat the average revenue estimate of $579.1 million.
Quoting Management: Phil Rykhoek, Denbury’s President and CEO, commented, “We finished 2011 with strong financial performance, attaining new record levels of quarterly revenue and adjusted cash flow. Solid production volumes, favorable oil pricing, and a sequential quarterly reduction in lease operating expenses all contributed to our record performance. Our oil price differentials in the fourth quarter were our best ever, with our net oil price averaging in excess of $9 per barrel higher than NYMEX oil prices. With the earlier than anticipated startups of our Oyster Bayou and Hastings Fields, and a positive start to our 2012 Bakken production, our year-to-date 2012 average oil production from both our tertiary and Bakken operations is above expectations. Our liquidity position is strong and we are well positioned to execute our unique, highly profitable, lower-risk, and long-term oil production growth strategy.”
Key Stats:
The company has now beaten analyst estimates for three quarters in a row. It beat the mark by 8 cents in the third quarter and by 3 cents in the second quarter.
Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from 28 cents a share to 32 cents over the last ninety days. The average estimate for the fiscal year is $1.33 per share, a rise from $1.22 ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com
To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com
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