Denbury Resources: Built To Survive
Douglas E. Johnston • 10 Comments
Douglas E. Johnston • 10 Comments
A Bounce Could Signal A Bottom For Denbury
Stephen Percoco, CFA
Stephen Percoco, CFA
Denbury Resources Inc. Sharply Alters Course
Casey Hoerth • 13 Comments
Casey Hoerth • 13 Comments
Fri, Jan. 8, 5:02 PM
- Denbury Resources (NYSE:DNR) rose 1.8% today after extending to January 20 the early participation deadline for its exchange note offer asking bond investors to exchange their subordinated notes for new senior unsecured notes.
- The terms are unchanged, and Covenant Review analyst Scott Josefsberg claims the new notes have terms that are unfriendly to bondholders, saying "many" DNR bondholders are "very unhappy" with the proposed legal terms of the exchange.
- "Bondholders might take a haircut on their holdings now, only to again wind up with bonds trading below par and at risk of being further down the line if Denbury might go into bankruptcy," according to Josefberg.
Thu, Jan. 7, 9:15 AM
- Gainers: INVT +35%. DVAX +27%. QURE +14%. HMY +9%.
- Losers: TLOG -75%. EPZM -20%. GALE -19%. FINL -17%. SUNE -14%. AKBA -11%. RLYP -8%. FRO -8%. OTIC -8%. CIG -7%. SYN -7%. ATNM -7%. JKS -7%. KBH -7%. SAGE -7%. CEMP -7%. DNR -6%. ATML -6%. WLL -6%. SDRL -6%. ADMS -6%. BHP -6%. BBL -5%. AEZS -5%. VALE -5%. GGB -5%.
Dec. 29, 2015, 9:20 AM
Dec. 28, 2015, 11:45 AM
- WTI crude is down 3.2% to $36.90/barrel, and Brent crude down 2.5% to $36.95/barrel, leaving prices close to 11-year lows. Energy industry firms are among the biggest decliners on a day the S&P is down 0.6%.
- Fears about excess supply appear to be weighing once more. OPEC figures point to a global oil supply glut of more than 2M barrels (over 2% of global demand); a smaller glut is expected next year. Meanwhile, Japanese government data indicates the country's oil product sales fell to a 46-year low in November, and European data suggests the continent's oil product demand growth turned negative in October.
- The biggest casualties include Whiting Petroleum (WLL -9.9%), Oasis Petroleum (OAS -8.2%), Vanguard Natural Resources (VNR -12.5%), Denbury Resources (DNR -8%), SandRidge Energy (SD -8.1%), SandRidge Permian Trust (PER -10.9%), SandRidge Mississippian Trust (SDT -7.5%), U.S. Silica (SLCA -6.2%), Marathon Oil (MRO -6.7%), C&J Energy Services (CJES -8.1%), MV Oil Trust (MVO -9.2%), Bonanza Creek (BCEI -6.4%), Parker Drilling (PKD -7.9%), and Continental Resources (CLR -5.9%).
- Other notable decliners include Kinder Morgan (KMI -5%), Williams Partners (WPZ -4.4%), EOG Resources (EOG -3.4%), Cheniere Energy (CQP -3.6%), SeaDrill (SDRL -3.5%), Encana (ECA -2.8%), Devon Energy (DVN -2.7%), Ensco (ESV -3.8%), Hercules Offshore (HERO -4.7%), Atwood Oceanics (ATW -4.9%), Helmerich & Payne (HP -3.8%), and Pioneer Natural (PXD -2.6%).
- ETFs: XLE, VDE, ERX, OIH, XOP, ERY, DIG, DUG, BGR, IYE, IEO, FENY, PXE, FIF, PXJ, NDP, RYE, FXN, DDG, DRIP, GUSH
Dec. 22, 2015, 5:39 PM
Dec. 22, 2015, 9:49 AM
- Denbury Resources (DNR +2.6%) opens higher after disclosing that it expects a 2016 capital development budget, excluding acquisitions, of $250M-$300M.
- DNR says the capital budget estimate is based on 2016 oil futures prices as of mid-December 2015, but it will not formally announce its 2016 budget until late February.
- Also, DNR launches a private exchange offer to holders of various outstanding notes for up to $650M aggregate principal amount of newly issued notes.
Dec. 16, 2015, 2:31 PM
- Moody's says it is reviewing 29 E&P companies from the U.S. and seven from Canada for a potential downgrade, saying the companies "will be stressed for a longer period with much lower cash flows, difficulty selling assets and limited capital markets access."
- Based on the severity and potential duration of the industry challenges, Moody's expects many companies will be downgraded one notch and others could be lowered by more than one notch.
- Yesterday, the ratings agency cut its oil and gas price assumptions in light of continuing oversupply in the global oil markets and the U.S. natural gas market.
- Among the U.S. companies: APC, AR, APA, XEC, CXO, COP, CLR, DNR, EGN, EOG, EPE, EQT, HES, MRO, MUR, NFG, NFX, NBL, OXY, PXD, QEP, RRC, SM, SWN, UNT, WLL, WPX
- From Canada: BTE, CNQ, OTCQX:COSWF, CVE, ECA, OTCPK:HUSKF, SU
Nov. 5, 2015, 6:35 AM
- Denbury Resources (NYSE:DNR): Q3 EPS of $0.18 beats by $0.05.
- Revenue of $303.6M (-52.4% Y/Y) misses by $83.63M.
Nov. 4, 2015, 5:30 PM
- AAWW, ACIW, ACRE, ACTA, AES, AGIO, AGU, AINV, ALSK, AMCX, AMED, AMRC, ANSS, APA, ATHM, AZN, BBEP, BCE, BCRX, BDBD, BEE, BR, CCC, CCOI, CECE, CELG, CLDT, CNK, CNP, CNQ, CNSL, CONE, COTY, CROX, CSTM, CWEI, DNR, DUK, EGL, ENB, ENDP, ENOC, ESI, FUN, GEO, GLOG, GLP, GOGO, HFC, HGG, HII, HRC, INSY, IRC, IT, ITC, ITG, KATE, KOP, LAMR, LBY, LINE, LPI, LXP, MEG, MGA, MITL, MPEL, MPW, MSG, MSO, MVIS, MZOR, NDLS, NGS, NHI, NILE, NRP, OGE, OMED, PBH, PDCE, PRFT, PRIM, PWE, PWR, RDUS, RGEN, RGLD, RICE, RL, RLGY, RRD, RVLT, RWLK, SCOR, SEAS, SFM, SFY, SJI, SNSS, SPAR, SRC, SRPT, SSTK, STN, STWD, SYMC, TAP, TDC, TE, THS, TIME, TK, TLP, TNK, TRXC, TU, USAC, VC, VER, VIVO, WAC, WIN, WPP, ZEUS
Oct. 5, 2015, 12:46 PM
Oct. 5, 2015, 10:32 AM
- The energy sector is an early leader in today's trading even after Standard & Poor's issued negative outlooks for Exxon Mobil (XOM +0.3%) and Chevron (CVX +1.9%) after Friday's close, citing high debt levels and low energy prices.
- XOM "has substantially more debt than during the last cyclical commodity price trough in 2009, while upstream production and costs are at similar levels,” S&P said, adding that “a sustained period of lower oil and gas prices will significantly reduce the company’s operating cash flow in 2015 and 2016 from 2014 levels, resulting in rising debt balances as the company sustains its capital investments and dividends.”
- The ratings agency anticipates CVX "will outspend internally generated cash flow to fund major project capital spending and dividends."
- While S&P stopped short of credit downgrades - it held CVX’s long-term credit rating at AA and XOM’s at AAA - it did downgrade 12 others: CHK, WLL, UPL, DNR, LINE, BBG, LGCY, TPLM, ARP, CWEI, MPO, EXXI.
- Outlooks also were lowered for NOG and EVEP.
- Ratings were affirmed for COP, WPX, WTI and CRK.
Sep. 21, 2015, 7:42 AM
- Denbury Resources (NYSE:DNR) says it is suspending its quarterly dividend beginning in Q4, saying it needs to free up cash to pay down debt, increase capital spending or buy back stock.
- DNR says it is reinstating its share repurchase program, which was suspended in November 2014 and had $222M remaining.
- DNR says its oil commodity hedges and proactive reduction in capital spending has buffered it from much of the oil price downturn, but the benefit will begin to diminish in Q4.
Sep. 8, 2015, 2:56 PM
- Energy E&P companies could suffer ~50% downside to 2017 consensus estimates, Cowen analysts say as they downgrade two-third of their portfolio coverage in the sector amid a weak oil price environment.
- The firm cuts capital spending estimates for several names in the sector, which in turn cuts production and cash flow estimates, the firm says as it lowers its 2016 production and operating cash flow estimates by a respective 4% and 35% below consensus view; by 2017, it sees 10% downside to consensus production estimates and 51% downside to consensus cash flow estimates.
- Downgraded to Underperform from Market Perform: BBG, BCEI, CWEI, DNR, NOG.
- Downgraded to Market Perform from Outperform: CPE, FANG, PDCE, PE, SYRG.
- Maintained at Market perform: AXAS, EGN
- Maintained at Outperform: OAS, QEP, WLL
Sep. 8, 2015, 11:59 AM
- Denbury Resources (DNR -4.1%) drops near 52-week lows after at least three firms downgrade shares, citing concerns about how DNR will be able to navigate a lower-for-longer crude price environment in leverage, dividend sustainability and its ability to reinvest in the business.
- Credit Suisse, which cuts DNR to Underperform from Neutral with a $1 price target, notes the company benefited from its hedge book in 2015 and will realize $540M in hedge gains this year by its model, but the number falls to less than $100M in 2016.
- Shares also are cut to Sell from Neutral at UBS and to Underperform at Cowen.
Sep. 8, 2015, 9:14 AM
Sep. 1, 2015, 8:21 AM
- Denbury Resources (NYSE:DNR) hires Chris Kendall as its new COO, effective Sept. 8, and will assume the role from President/CEO Phil Rykhoek, who has been serving in that capacity on an interim basis.
- Kendall is joining DNR from Noble Energy (NYSE:NBL), where he was senior VP for global operations and a member of NBL's executive management team; he had been with NBL since 2001.
Denbury Resources, Inc. engages in oil and natural gas industry. Its activities include exploitation, drilling and extraction. The company operates in the Gulf Coast and Rocky Mountain regions. Denbury Resources was founded by Gareth G. Roberts in 1951 and is headquartered in Plano, TX.
Sector: Basic Materials
Industry: Independent Oil & Gas
Country: United States
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