Denbury Resources Shares Continue to Climb as Oil Rises, Analysts Review and Target

Denbury Resources Inc. (NYSE: DNR) operates as an independent oil and natural gas company in the United States. It holds interests in various oil and natural gas properties located in Mississippi, Texas, Louisiana, and Alabama in the Gulf Coast region; and in Montana, North Dakota, and Wyoming in the Rocky Mountain region.

In mid-April, DNR shares were trading at $2.84 per share and have been steadily climbing since, rising to today’s level of $6.64. Profitable operations and rising oil prices could be catalysts driving the company shares.

Denbury’s production averaged 61,994 BOE/d during second quarter 2018, up 4% from second quarter 2017 due principally to higher production from the redevelopment project at Hastings Field in mid-2017, production response from continued expansion at Bell Creek Field, and a full quarter of production from the mid-2017 acquisition at Salt Creek Field. Sequentially, production increased 3% from first quarter 2018, due primarily to production increases at Cedar Creek Anticline, which benefited from the strong performance of two new Mission Canyon wells completed during March and April of 2018, and also due in part to higher production in the Gulf Coast region due to non-recurring weather downtime which lowered first quarter 2018’s production.


Our members have booked up to 800% on our recent NASDAQ and NYSE small cap alerts. We will be initiating coverage on another exciting small cap security on 10/11/18 just after market open. View our recent picks, track record and sign up for our mobile/text alerts in real time here-



  • Production of 61,994 barrels of oil equivalent (“BOE”) per day in Q2 2018, up 3% from Q1 2018

and 4% from Q2 2017

  • Adjusted cash flow from operations (1) (a non-GAAP measure) of $134 million for Q2 2018, up 7%

from Q1 2018 and 106% from Q2 2017

  • Adjusted EBITDAX (1) (a non-GAAP measure) of $153 million for Q2 2018, up from $142 million in

Q1 2018 and $86 million in Q2 2017

  • Reduced debt principal by $189 million in Q2 2018, and over $1 billion since Q4 2014
  • Continued improvement in leverage metrics, debt to annualized Q2 2018 Adjusted EBITDAX of

4.1x (including hedge settlements) and 3.0x (excluding hedge settlements)

  • Sanctioned the enhanced oil recovery (“EOR”) development project at Cedar Creek Anticline, with

total recoverable oil potential estimated to be in excess of 400 million barrels

The company’s primary focus is on enhanced oil recovery utilizing carbon dioxide (“CO2 EOR”), and their operations are focused in two key operating areas: The Gulf Coast and Rocky Mountain regions. Currently their properties with proved and producing reserves in the Gulf Coast region are situated in Mississippi, Texas, Louisiana and Alabama, and in the Rocky Mountain region are situated in Montana, North Dakota and Wyoming.


Denbury is unique among domestic oil and gas companies in that its primary corporate strategy and focus are aimed at developing significant stranded reserves of American oil from depleted reservoirs through CO2 EOR (carbon dioxide enhanced oil recovery).



Denbury Resources Inc. operates as an independent oil and natural gas company in the United States. It holds interests in various oil and natural gas properties located in Mississippi, Texas, Louisiana, and Alabama in the Gulf Coast region; and in Montana, North Dakota, and Wyoming in the Rocky Mountain region. As of December 31, 2017, the company had 259.7 million barrels of oil equivalent of estimated proved oil and natural gas reserves. Denbury Resources Inc. was founded in 1951 and is headquartered in Plano, Texas.



9 Wall Street analysts have issued ratings and price targets for Denbury Resources in the last 12 months. Their average twelve-month price target is $4.5167, suggesting that the stock has a possible downside of 28.76%. The high price target for DNR is $9.00 and the low price target for DNR is $1.00. There are currently 7 hold ratings and 2 buy ratings for the stock, resulting in a consensus rating of “Hold.”

Date                    Brokerage          Action                                Rating                 Price Target

10/3/2018          Oppenheimer   Initiated Coverage          Outperform       $9.00

8/20/2018          KLR Group          Reiterated Rating            Hold                    $5.00

8/15/2018          Johnson Rice      Upgrade                            Hold ➝ Accumulate

8/1/2018            Stifel Nicolaus   Boost Price Target          Hold ➝ Hold     $1.30 ➝ $4.60

7/13/2018          Royal Bank of Canada    Reiterated          Hold                    $5.00

3/7/2018            UBS Group                       Initiated              Neutral               $2.50

1/16/2018          Mizuho Upgrade             Neutral ➝ Buy



Financial review

Q2 2018

Total revenues of $387.1 million rose from $261.2 million a year ago.

Gross profit                      $261,369,000

Operating income           $  54,058,000

Net income                      $  30,222,000

Shareholder equity         $885,645,000

Adjusted cash flow from operations was $134 million in Q2 compared with $65 million in the year-ago quarter. The company’s capital spending decreased to $90.4 million from the year-earlier quarter’s $152.6 million. As of Jun 30, 2018, cash balance was $4.5 billion and total debt was $2.5 billion.

The Company had $415 million outstanding under its $1.05 billion senior secured bank credit facility as of June 30, 2018, a decrease of $35 million from the level outstanding as of March 31, 2018 and a decrease of $60 million from December 31, 2017. At June 30, 2018, the Company had $573 million of liquidity available under its bank credit facility after consideration of $62 million of outstanding letters of credit. In addition to reductions of senior secured bank credit facility debt outstanding, the Company has reduced the outstanding principal of its long-term notes by $329 million over the last 7 months through a series of exchange transactions completed in December 2017 and January 2018 and related conversions of all of its convertible notes into equity in April and May 2018.


Stock influences and risk factors

Continuing strength in oil prices may act as a catalyst for the company shares.

A financial downturn in one or more of the world’s major markets could negatively affect their business and financial condition.

Inability to meet financial performance covenants in their bank agreements may require borrowing base reductions.

Their future performance depends upon their ability to effectively develop existing oil and natural gas reserves and find or acquire additional oil and natural gas reserves that are economically recoverable.


Stock chart

On Tuesday, October 9, 2018, DNR shares were at $6.64 per share on traded volume of 3.4 million shares. The current RSI (14) is 69.84

At $6.64, DNR shares are trading above their 50 DMA and 200 DMA of $5.30 and $3.77 respectively.



Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.
Traders News Source has not been compensated for this report by anyone and the opinions if any are that of the author Vikas Agrawal, CFA. Author’s Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I, wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in the article.
This web site, published by TNS LLC, and is an investment newsletter that is built on the premise of assisting individual investors in learning about investing. Our goal as publishers of financial information is to provide research and analysis of investments to our subscribers. TNS LLC does not give buy or sell recommendations. We do purchase distribution rights from analyst, financial writers and bloggers for a fee that may be licensed to issue price targets and recommendations. Furthermore, we encourage you to speak to a licensed professional prior to making an investment in any type of publicly traded security.
We do sell advertising to other companies including brokerage firms, web sites, publicly traded issuers, investor relations firms, and investment publications, among others. TNS LLC makes no warranty as to the policies of these organizations, and in no way endorses their offers, services, or the content of their advertisements.
When an advertiser is a publicly traded company or a third party acting on behalf of a public company, we fully disclose all compensation in the email advertisement. Such disclosure is included in a disclosure statement in each of the advertisements sent via email.
17B Disclosure
Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.
PLEASE NOTE WELL: TNS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.
Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operator’s owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.
TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.
The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur.
Understand there is no guarantee past performance will be indicative of future results. In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.