Denbury Resources (DNR) Tops Q3 EPS by 1c

Denbury Resources (NYSE: DNR) reported Q3 EPS of $0.08, $0.01 better than the analyst estimate of $0.07.

MANAGEMENT COMMENT

Chris Kendall, Denbury’s President and CEO, commented, “Denbury’s third quarter results once again demonstrate our commitment to exceptional execution, cost efficiency, and capital discipline. We generated $44 million of free cash flow in the third quarter, keeping us on course to generate $140 – $150 million in free cash flow for the full year.

“We continue to execute on our key priorities for 2019 and we remain on track to reach the midpoint of our previously raised 2019 production guidance, despite third quarter production curtailments relating mainly to a planned maintenance shut-down of the Rockies CO2 source plant impacting our Bell Creek production and Tropical Storm Imelda impacting our Gulf Coast production. Our spending discipline is evident across the board, with capital spend, lease operating expense, and G&A spend each on target to be at or below full-year guidance.

“Our unique portfolio of assets and high quality, low decline, oil-weighted production are the driving forces behind our ability to generate sustainable free cash flow, enabling us to actively allocate capital to manage our debt maturities and reduce leverage. We continued to make meaningful progress on improving our balance sheet by repurchasing or exchanging $54 million of 2022 and 2023 senior subordinated notes at a significant discount, and we further reduced our borrowings under our senior secured bank credit facility by $30 million. Importantly, our flagship Cedar Creek Anticline EOR development continues to progress on schedule with first CO2 injection projected in early 2021.

“None of these results would have been possible without the dedication to success and commitment to safety of Denbury’s team members across the business. As we move into the final quarter of 2019, I am excited about where the Company is headed. We continue to perform, to consistently deliver on our promises, and to make steady progress toward securing our long-term success. Additionally, the low carbon footprint of our CO2 EOR focused strategy will continue to differentiate us from the industry, providing an ideal solution that significantly reduces the CO2 emissions associated with the production of oil, a vital energy source today and for the foreseeable future.”

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

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