UPDATE: KeyBanc Starts Denbury Inc. (DEN) at Overweight as the Only E&P with Negative Carbon Footprint

April 13, 2021 5:42 PM EDT
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Price: $55.41 -0.38%

Rating Summary:
    2 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 13 | New: 24
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(Updated - April 14, 2021 8:33 AM EDT)

KeyBanc analyst Leo Mariani initiates coverage on Denbury Inc. (NYSE: DEN) with a Overweight rating and a price target of $60.00 as the company has the highest oil cut among U.S. E&Ps at 97% and offers large potential upside from its carbon capture and sequestration business, which could be worth over $500M over time. DEN is also the only E&P with a negative carbon footprint today.

The analyst stated "DEN Is Uniquely Positioned to Capture New Revenue by Sequestering CO2 Emissions Underground and the Business Could Be Worth >$500M. DEN owns a network of ~925 miles of CO2 pipelines strategically located in proximity to multiple large sources of industrial CO2 along the Gulf Coast, positioning DEN to sequester CO2 underground. We think this business could have a future value of $500M-$3.75B assuming a 10x multiple and annual revenue of $50M-$375M. We also think DEN is likely to sign some major contracts in 2021, with revenues commencing in 2023."

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

Shares of Denbury Inc. closed at $46.27 yesterday.

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