DNR hit my forecast on the nose. Good start to the day. The Company’s oil and natural gas production averaged 64,919 barrels of oil equivalent per day (“BOE/d”) during the second quarter of 2011. Production was slightly lower than my forecast model.- Dan
DALLAS--(BUSINESS WIRE)-- Denbury Resources Inc. (NYSE:DNR) today announced its second quarter 2011 financial and operating results.
The Company recognized net income during the second quarter of 2011 of $259.2 million, or $0.65 per basic common share, as compared to net income of $135.4 million, or $0.34 per basic common share, in the second quarter of 2010. Net income, as adjusted to exclude non-cash derivative gains and other non-cash or unusual items, was approximately $146.7 million, or $0.37 per basic common share, in the second quarter of 2011 versus $72.9 million, or $0.18 per basic common share, in the prior year second quarter. The primary non-cash item included in second quarter of 2011 and 2010 results was a $183.8 million ($114.0 million net of taxes) and $125.9 million ($78.0 million net of taxes), respectively, non-cash gain on the change in the fair value of derivatives.
During the second quarter of 2011, the Company’s oil price differentials (Denbury’s received net oil price compared to NYMEX West Texas Intermediate (“WTI”) prices) improved significantly, primarily due to the favorable price differential for crude oil sold under Light Louisiana Sweet (“LLS”) index pricing. Company-wide oil price differentials in the second quarter of 2011 were $3.72 per Bbl above NYMEX. < DNR sells about 40% of its oil into the Gulf Coast market where it gets much higher than WTI.