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Denbury Resources and ENP

How will the acquisition of Encore by Denbury Resources affect ENP? That remains an interesting question after watching EAC's rise of 35% or so the other day after the announcement.

If you follow ENP as I do, you know that they recently increased their quarterly distribution. It would appear that Denbury will continue as the new general partner for ENP, and that ENP will continue their E&P activites in the west, the Permian Basin and in North Dakota's Williston Basin.

I would think that ENP's operations would complement the Denbury operations in the Gulf Coast, and that after the acquisition is completed it would be beneficial going forward. Based upon this, I can only think that ENP's shareholders will continue to benefit from a stream of increasing distributions going forward.

Of course, now that Jim Cramer has warned that this deal is a bad one I am even more encouraged.

Disclosure: I am long ENP.