Denbury Resources (DNR) Update - Oct 7

Denbury Resources (DNR) Update - Oct 7

Postby dan_s » Mon Oct 07, 2019 12:45 pm

I just finished my review of the updated profile for DNR. It was prepared by one of our Top Shelf MBAs, Anna Engstrom. Anna + the other four MBAs that draft 90% of our profiles are a blessing to me. Anna and three of the young men are graduates of SMU's MBA program. David Day is a graduate of Texas Tech's MBA program. All of them have "real jobs", but they keep helping me with the profiles and forecasts.

Denbury is:
> Profitable
> Generating lots of FREE CASH FLOW FROM OPERATIONS
> Is developing new Tertiary Recovery Projects (CO2 Floods) that have HUGE upside

Actual Results:
2017: EPS of $0.41 and operating cash flow per share of $0.83
2018: EPS of $0.70 and operating cash flow per share of $1.00
1H 2019: EPS of $0.26 and operating cash flow per share of $0.57 < in just six months

DNR is now trading for 1X operating CFPS, which is locked in by hedges. Plus, 60% of their oil sell in the LLS market at a premium to WTI. Their Q2 realized oil price was $61.92/bbl.

They recently restructured the company's debt, which significantly reduced the risk.
Dan Steffens
Energy Prospectus Group
dan_s
 
Posts: 21012
Joined: Fri Apr 23, 2010 8:22 am

Return to Picks and tips from the EP community

Who is online

Users browsing this forum: No registered users and 3 guests