UBS Cuts Price target on Denbury Resources (DNR) Following Revised Outlook

October 2, 2015 8:52 AM EDT
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Price: $0.24 --0%

Rating Summary:
    3 Buy, 15 Hold, 7 Sell

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    Up: 9 | Down: 9 | New: 34
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UBS maintained a Sell rating on Denbury Resources (NYSE: DNR), and cut the price target to $2.00 (from $3.00), following the company's revised 2015 outlook.

Analyst William Janela commented, "DNR recently provided a revised 2015 outlook, indicating full-year production is now expected fall in the lower half of its 72.5-75.5 MBoed guidance range due to weatherrelated downtime (~250 Boed impact to full-year volumes) and shut-in of uneconomic wells (~500 Boed). It also lowered its 2015 capex budget by ~5% (from $550MM to $520MM), reflecting a $50MM reduction in tertiary development spending ($270MM vs. $320MM prior) partly offset by an additional $20MM in capitalized costs ($105MM vs. $85MM original budget). Combined with suspension of its dividend (announced 9/21), the incremental spending cuts should free up ~$50MM of cash in 2H15."

For an analyst ratings summary and ratings history on Denbury Resources click here. For more ratings news on Denbury Resources click here.

Shares of Denbury Resources closed at $2.50 yesterday.

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