Phil Rykhoek, president and CEO of Denbury Resources Inc. (NYSE: DNR), presented today at EnerCom’s The Oil & Gas Conference® 20.
Denbury Resources is an independent oil and natural gas company with operations focused in the Gulf Coast and Rocky Mountain regions. The Company’s goal is to increase the value of its properties through a combination of exploitation, drilling and proven engineering extraction practices, with the most significant emphasis relating to carbon dioxide enhanced oil recovery operations.
Commenting on Denbury’s Q2’15 results, Rykhoek said: “As demonstrated in our second quarter results, we continue to make significant strides in reducing our cost structure while maintaining relatively flat production levels even with a significantly reduced level of capital spending. Our second quarter lease operating expenses were below $20 per BOE and represented the sixth consecutive quarterly drop excluding non-recurring items.”
During the company’s breakout session, management was asked the following questions:
- What is your business plan over the next year?
- How do you ensure return to shareholders in this $50 oil environment?
- You mentioned that in this year your hedge gains are about $500 million, and that’s equal to your capex this year. That would seem to wipe out your capex for next year, so how much would that reduce your production?
- Can you talk about the opportunities for cost savings on the capex side? Over the next couple of years, what will you focus on in your cost structure?
- What is the minimum that you have to spend in 2016 for your existing projects?
- Have you considered buying back more shares?
