June 1, 2017 - 8:19 AM EDT
Print Email Article Font Down Font Up Charts

Blog Coverage: Denbury Resources Acquires 23% Stake in Salt Creek

Upcoming AWS Coverage on EOG Resources Post-Earnings Results

LONDON, UK / ACCESSWIRE / June 1, 2017 / Active Wall St. blog coverage looks at the headline from Denbury Resources Inc. (NYSE: DNR) as the Company announced on May 30, 2017, that it has entered into a definitive agreement with certain subsidiaries of Linn Energy, Inc., to acquire 23% non-operated working interest in Salt Creek Field in Wyoming for $71.5 million. The Company plans to fund the acquisition with its bank line and anticipates this cost will ultimately be offset by the sale of non-productive surface acreage, ideally suitable for commercial development in the Houston area. Register with us now for your free membership and blog access at:


One of Denbury Resources' competitors within the Independent Oil & Gas space, EOG Resources, Inc. (NYSE: EOG), reported on May 08, 2017, its financial results for Q1 2017. AWS will be initiating a research report on EOG Resources in the coming days.

Today, AWS is promoting its blog coverage on DNR; touching on EOG. Get all of our free blog coverage and more by clicking on the link below:


The Acquired Asset

The net production from the acquired interest is currently estimated at about 2,100 barrels per day with production expected to surge over the next several years, subject to planned field development projects. According to the Company, the proved developed resources for the acquired interest are estimated at about 9 million barrels of oil where Denbury expects to recognize an additional 9 million barrels of oil of proved undeveloped reserves based on current development plans. The exploration is set to have in estimation finding and development costs of less than $7 per barrel including both the acquisition and future development costs, where the net estimated capital costs for FY17 was about $5 million.

The acquisition of the interest is expected to close by the end of June 2017 and is subject to satisfactory completion of diligence reviews and customary closing conditions. The purchase price for the agreement is subject to standard purchase price adjustments for revenues and costs between the March 01, 2017, effective date and closing date of the transaction.

Denbury's Portfolio

Denbury is an independent oil and natural gas firm with operations focused on two primary areas of operation, namely the Gulf Coast and the Rocky Mountain regions. The Company plans to increase the value of its portfolio and properties through a combination of exploitation, drilling, and proven engineering extraction practices, with the most significant emphasis to CO2 enhanced oil recovery operations. Recently, on May 04, 2017, the Company announced net income of $22 million for Q1 FY17.

Denbury's capital budget for FY17, excluding acquisitions and capitalized interest, remained unchanged from the previously estimated amount of about $300 million, according to the announcement made on May 04, 2017. The capital budget consists of about $245 million of tertiary, non-tertiary, and CO2 supply and pipeline projects, plus about $55 million of estimated capitalized costs. About 18%, or $53 million, of the combined capital expenditure amount has been incurred in Q1 FY17. Denbury's estimated FY17 production remained unchanged from a previously disclosed range of 58,000 to 62,000 BOE/d.

Chris Kendall, COO of Denbury, views this agreement as the perfect strategy for the Company where Salt Creek is complementary to its portfolio. The growth in the particular area involves building scale at the center of core Rockies region, with production set to be advanced and many opportunities for future expansion in this large and long-lived interest. The acquisition builds upon the Company's goal to resume production by 2018, and the attractive price should improve the Company's key credit metrics in the near term, with the added feasibility to make additional enhancement in the future.

Stock Performance

Denbury Resources' share price finished yesterday's trading session at $1.53, tumbling 8.93%. A total volume of 10.71 million shares exchanged hands, which was higher than the 3 months average volume of 7.70 million shares. The stock currently has a market cap of $602.47 million.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.


The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.


AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.


This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.


For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: [email protected]

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

Source: ACCESSWIRE (June 1, 2017 - 8:19 AM EDT)

News by QuoteMedia

Legal Notice