Denbury Resources 1Q Profit Falls 23% on Lower Output, Charges

   By Tess Stynes 
 

Denbury Resources Inc.'s (DNR) first-quarter earnings fell 23% as the oil and natural-gas producer was hurt by lower production amid asset sales late last year, as well as debt-extinguishment charges and other items.

Last month, Denbury closed on its $1.05 billion acquisition of some Montana and North Dakota properties from ConocoPhillips (COP), a deal that Denbury expects will enhance its focus on carbon dioxide-enhanced recovery, a method used to increase the amount of oil that can be produced from aging fields. The deal was funded partly with proceeds from the sale of Denbury assets in what is known as the Bakken Shale to Exxon Mobil Corp. (XOM) in exchange for $1.6 billion in cash and interests in two oil fields.

Denbury Resources reported a profit of $87.6 million, or 23 cents a share, down from $113.5 million, or 29 cents a share, a year earlier. Excluding derivatives impacts, debt-extinguishment charges and other items, adjusted earnings declined to 33 cents from 41 cents.

Revenue decreased 9.6% to $583 million.

Analysts polled by Thomson Reuters most recently projected earnings of 29 cents a share on revenue of $534 million.

Total production was down about 11% as the result of asset sales last year. As a result, oil and natural-gas revenue--excluding derivatives impacts--was down 9%, offsetting the benefit of higher realized oil prices.

Shares closed Wednesday at $17.56 and were inactive premarket. The stock is up 8.4% this year.

Write to Tess Stynes at [e-mail].

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