Denbury bounces 1.6% after Barron's says shares could surge 20%


Denbury Resources (DNR +1.6%) is enjoying a Barron's bounce after a weekend article said shares could jump 20% as a focus on free cash flow could bring stock buybacks and a rising dividend.

"Our four biggest [fields] are still in the growth phase, and haven't reached full development yet," CEO Phil Rykhoek tells Barron's. "Our strategic advantage is that we control different sources of CO2, and we also control the pipeline."

After years of investment, DNR's capital spending cycle moderates this year, falling from $1.6B in 2012 to an annual $1B or so for the next several years, which should boost cash flow from operations from ~$1.3B this year to $1.5B in 2015, leaving $500M that could easily allow DNR to boost the 2016 dividend to $0.75/share.

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