Denbury Resources (DNR) Tops Q3 EPS by 2c, Revenues Beat

Denbury Resources (NYSE: DNR) reported Q3 EPS of $0.13, $0.02 better than the analyst estimate of $0.11. Revenue for the quarter came in at $394.97 million versus the consensus estimate of $349.85 million.

Chris Kendall, Denbury’s President and CEO, commented, “Denbury’s performance in the third quarter continued to highlight the sustained advances across our business. We maintained strong capital discipline and we remain on track to spend within our full-year guidance. Each of our key safety and environmental performance metrics is at a record rate. We amended our bank credit facility and extended the maturity to 2021, while also enhancing our debt maturity profile with the complete repayment of our credit facility and issuance of new second lien notes maturing in 2024. Our balance sheet continued to strengthen, with our leverage ratio reduced by nearly a half-turn from the second quarter. While our production was below the second quarter as we expected, we continued to generate significant free cash flow, with an operating margin now approaching $41 per BOE.

“We are particularly excited about the recently announced acquisition of Penn Virginia and what our combined company will be. The Penn Virginia team has done an outstanding job of building and efficiently operating a large, contiguous, high value Eagle Ford position. Penn Virginia’s high oil weighting, strong margins, large short-cycle investment inventory, and significant EOR potential set the stage for the combined company to deliver years of growth and free cash flow, providing significant long-term value to stakeholders of both companies.”

For earnings history and earnings-related data on Denbury Resources (DNR) click here.

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