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Denbury (DNR) Beats Earnings and Revenue Estimates in Q1

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Denbury Resources Inc.’s DNR first-quarter 2018 earnings of 12 cents per share (excluding one-time items) beat the Zacks Consensus Estimate of 8 cents. The company had incurred a loss of 2 cents in the first quarter of 2017. Increased production as well as higher realized oil and gas prices contributed to growth.
 

Denbury Resources Inc. Price, Consensus and EPS Surprise

 

Denbury Resources Inc. Price, Consensus and EPS Surprise | Denbury Resources Inc. Quote

First-quarter total revenues of $353.2 million increased from $275.4 million a year ago. The top line beat the Zacks Consensus Estimate of $313 million.

Operational Performance

During the reported quarter, production averaged 60,338 barrels of oil equivalent per day (Boe/d) compared with 59,933 Boe/d in the prior-year quarter.

Oil production averaged 58,354 barrels per day (bpd) (approximately 97.3% of the total volume), up from the year-ago quarter’s level of 58,303 bpd. Natural gas production averaged 11,904 thousand cubic feet/Mcf (up 21.7%), on a daily basis.

The company’s production from tertiary operations averaged 38,710 barrels per day, up 4.4% year over year.

Oil price realization (including the impact of hedges) averaged $57.89 per barrel in the quarter, up 28.2% year over year. Gas prices fell 2.4% year over year to $2.44 per Mcf. On an oil equivalent basis, the overall price realization was $56.47 per barrel, up 27.3% from the year-earlier quarter’s level of $44.35 per barrel.

Financials

Cash flow from operations was $91.6 million in the reported quarter compared with $24.3 million in the year-ago quarter. Oil and natural gas capital investments in the reported quarter were approximately $56.1 million compared with $74.1 million in the year-ago quarter. As of Mar 31, 2018, cash balance was $0.9 million and total debt was $2,703 million.

Guidance

Denbury expects 2018 production in the range of 60,000-64,000 Boe/d. Capital expenditure is still expected between $300 million and $325 million.

Q1 Price Performance

During the first quarter, Denbury’s shares gained 24% against the industry’s 6% decline.



 

Zacks Rank & Key Picks

Denbury currently carries a Zacks Rank #3 (Hold).

A few better-ranked players in the same sector are Nine Energy Service, Inc NINE, BP plc BP and Delek US Holdings, Inc DK. All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Nine Energy Service is engaged in delivering onshore completion and production services to unconventional oil and gas resource development. The company pulled off a positive earnings surprise of 6.25% in the preceding quarter.

BP is among the leading integrated energy players in the world. The company delivered an average positive earnings surprise of 29.6% in the trailing four quarters.

Delek US Holdings is a diversified energy company. The company delivered a positive earnings surprise of 25% in the preceding quarter.

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