Denbury sold 50% of its working interest in four Texas oil field for $42 million in net proceeds, plus a carried interest in 10 wells to be drilled by Navitas.
The net sale price is around $40,000 per flowing barrel or around 6x estimated cash flow.
This appears to be higher cost production, so the multiple to EBITDAX appears a bit favorable compared to Denbury's overall valuation.
Transaction accounts for less than 2% of Denbury's production and closer to 1% of its EBITDAX.
Combined with positive cash flow at $60 oil, Denbury will have a decent amount of cash to do further debt repurchases and save up for its 2021 maturities.