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Denbury Resources (DNR) Beats on Q4 Earnings & Revenues
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Denbury Resources Inc. reported earnings of 12 cents per share in fourth-quarter 2017 (excluding one-time items), which beat the Zacks Consensus Estimate of 7 cents. The company had incurred loss of 2 cents in the year-ago quarter. A significant decline in total expense, improved production and higher oil price realization drove results.
In 2017, adjusted profit was 14 cents per share compared with 4 cents a year ago. The figure surpassed the Zacks Consensus Estimate of 10 cents.
Denbury Resources Inc. Price, Consensus and EPS Surprise
In fourth-quarter 2017, total revenues were $327 million, up from $272 million in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $308 million.
Total revenues in 2017 rose 15.8% year over year to $1,129.8 million. The figure surpassed the Zacks Consensus Estimate of $1,080.0 million.
Operational Performance
During the reported quarter, production averaged 61,144 barrels of oil equivalent per day (Boe/d) compared with 60,685 Boe/d in the prior-year quarter.
Oil production averaged 59,086 barrels per day (96.6% of the total volume), down 1.1% from the year-ago quarter’s level. Natural gas production fell 8.8% and averaged 12,351 thousand cubic feet/Mcf on a daily basis.
The company’s production from tertiary operations averaged 39,488-37,346 barrels of oil equivalent per day, up 5.7% year over year.
Oil price realization (including the impact of hedges) averaged $55.49 per barrel in the quarter, up 32.3% year over year. Gas prices deteriorated 4% year over year to $2.45 per Mcf. On an oil equivalent basis, overall price realization rose 32.2% from the year-ago quarter’s level of $40.94 to $54.11 per barrel.
Total Expenses
During the quarter, total expenses were $333.5 million, down 61.6% year over year.
Financials
Cash flow from operations was $124 million, up from $60 million in the year-ago quarter. Oil and natural gas capital investments were approximately $58.2 million compared with $61.4 million in the year-ago quarter. As of Dec 31, 2017, cash balance was $0.6 million and total debt was $2.8 billion.
Guidance
Denbury Resources — a predominantly oil exploration and production company — expects full-year 2018 production in the range of 60,000-64,000 barrels of oil equivalent per day (BOE/d). The mid-point of this range is likely to be almost flat with the company’s 2017 exit rate of 61,144 BOE/d. Capital expenditure is estimated in the range of $300-$325 million, up 21-38% from the 2017 capital spending level of $235.7 million.
Q4 Price Performance
During the fourth quarter, Denbury Resources outperformed the industry. The company’s shares gained 65% compared with the industry’s rally of 9.1%. Zacks Rank & Key Picks
Houston, TX-based EOG Resources is a major independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 40.94% in the preceding four quarters.
Headquartered at Irving, TX, Pioneer Natural Resources Company is an independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 66.92% in the preceding four quarters.
ConocoPhillips, based in Houston, TX, is a major global exploration and production (E&P) company. The company delivered a positive earnings surprise of 144.45% in the preceding four quarters.
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Denbury Resources (DNR) Beats on Q4 Earnings & Revenues
Denbury Resources Inc. reported earnings of 12 cents per share in fourth-quarter 2017 (excluding one-time items), which beat the Zacks Consensus Estimate of 7 cents. The company had incurred loss of 2 cents in the year-ago quarter. A significant decline in total expense, improved production and higher oil price realization drove results.
In 2017, adjusted profit was 14 cents per share compared with 4 cents a year ago. The figure surpassed the Zacks Consensus Estimate of 10 cents.
Denbury Resources Inc. Price, Consensus and EPS Surprise
Denbury Resources Inc. Price, Consensus and EPS Surprise | Denbury Resources Inc. Quote
In fourth-quarter 2017, total revenues were $327 million, up from $272 million in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $308 million.
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Total revenues in 2017 rose 15.8% year over year to $1,129.8 million. The figure surpassed the Zacks Consensus Estimate of $1,080.0 million.
Operational Performance
During the reported quarter, production averaged 61,144 barrels of oil equivalent per day (Boe/d) compared with 60,685 Boe/d in the prior-year quarter.
Oil production averaged 59,086 barrels per day (96.6% of the total volume), down 1.1% from the year-ago quarter’s level. Natural gas production fell 8.8% and averaged 12,351 thousand cubic feet/Mcf on a daily basis.
The company’s production from tertiary operations averaged 39,488-37,346 barrels of oil equivalent per day, up 5.7% year over year.
Oil price realization (including the impact of hedges) averaged $55.49 per barrel in the quarter, up 32.3% year over year. Gas prices deteriorated 4% year over year to $2.45 per Mcf. On an oil equivalent basis, overall price realization rose 32.2% from the year-ago quarter’s level of $40.94 to $54.11 per barrel.
Total Expenses
During the quarter, total expenses were $333.5 million, down 61.6% year over year.
Financials
Cash flow from operations was $124 million, up from $60 million in the year-ago quarter. Oil and natural gas capital investments were approximately $58.2 million compared with $61.4 million in the year-ago quarter. As of Dec 31, 2017, cash balance was $0.6 million and total debt was $2.8 billion.
Guidance
Denbury Resources — a predominantly oil exploration and production company — expects full-year 2018 production in the range of 60,000-64,000 barrels of oil equivalent per day (BOE/d). The mid-point of this range is likely to be almost flat with the company’s 2017 exit rate of 61,144 BOE/d. Capital expenditure is estimated in the range of $300-$325 million, up 21-38% from the 2017 capital spending level of $235.7 million.
Q4 Price Performance
During the fourth quarter, Denbury Resources outperformed the industry. The company’s shares gained 65% compared with the industry’s rally of 9.1%.
Zacks Rank & Key Picks
Denbury carries a Zacks Rank #3 (Hold).
A few better-ranked players in the same sector are EOG Resources (EOG - Free Report) , Pioneer Natural Resources Company and ConocoPhillips (COP - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston, TX-based EOG Resources is a major independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 40.94% in the preceding four quarters.
Headquartered at Irving, TX, Pioneer Natural Resources Company is an independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 66.92% in the preceding four quarters.
ConocoPhillips, based in Houston, TX, is a major global exploration and production (E&P) company. The company delivered a positive earnings surprise of 144.45% in the preceding four quarters.
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Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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