Denbury Resources Inc. (DNR) announced plans for 2015 whereby it would reduce capital spending by 50% year over year to $550 million, target relatively flat production, and increase annual dividend rate by 60% to $0.40 per share.
The downward revision in capital spending was due to the recent decline and uncertainty around future oil prices. In the third quarter of 2014, oil price realization averaged $90.92 per barrel, reflecting a fall of 14.1% year over year.
The company expects 2014 production around 74,283 Boe/d, in line with the year-to-date daily output rate. The full-year capital expenditure is expected at $1.1 billion.
Denbury also announced that Craig McPherson, senior vice president and chief operating officer, and Charlie Gibson, senior vice president – Production Operations, have resigned from their positions as officers of the company. Their roles would be temporarily assumed by Phil Rykhoek, Denbury's president and chief executive officer, as the company conducts a search for replacements.
Plano, TX-based Denbury is a growing exploration and production (E&P) company engaged in the acquisition, development, operation, and exploration of oil and natural gas properties in the Gulf Coast and Rocky Mountain regions of the U.S. It is the largest oil producer in Mississippi, with further properties in Louisiana, Alabama and Southeast Texas and has several high-growth projects in place.
With its unique profile, compelling economics and unmatched infrastructure, Denbury is nicely positioned to deliver long-term sustainable growth. Denbury carries a Zacks Rank #3 (Hold). Meanwhile, one can look at better-ranked players in the energy sector like Atlas Pipeline Partners, L.P. (APL), Murphy USA Inc. (MUSA) and Sandridge Mississippian Trust II (SDR). All these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment