Denbury Resources (DNR)

dan_s · Post by **dan_s** » Sun Dec 30, 2012 1:43 pm

An updated Net Income & Cash Flow Forecast model for Denbury Resources (DNR) has been posted under the Sweet 16 Tab.

I now believe DNR offers investors even better low risk and growth potential after the sale to Exxon of their Bakken assets. The sale really shores up the balance sheet. Their large stock repurchase plan should put a floor under the share price. They have 12% to 15% annual production growth locked in through 2020.

My Fair Value Estimate is $28/share (compares to First Call's Price Target of $21.79).

I wish they'd start paying a dividend as I believe a lot more funds would be buyers if they had a decent dividend yield. Some funds will only buy stocks that pay dividends.