11 Aug

Analyzing Denbury Resources’ 2Q17 Revenues

WRITTEN BY Nicholas Chapman FEATURED IN Post-Release Earnings Reports

Denbury Resources’ 2Q17 revenues

For 2Q17, Denbury Resources (DNR) reported revenues of ~$261 million, higher than the Wall Street analyst consensus for revenues of ~$254 million. For 2Q17, DNR reported crude oil (USO) revenues of ~$248 million, natural gas (UNG) revenues of ~$3 million, and carbon dioxide revenues and transportation fees of ~$7 million. Plus, its interest income and other revenues totaled ~$4 million. About 95% DNR’s revenues came from crude oil sales.

Analyzing Denbury Resources’ 2Q17 Revenues

Sequentially, DNR’s 2Q17 revenues are ~5% lower than its 1Q17 revenues of ~$275 million. On a year-over-year basis, DNR’s 2Q17 revenues are ~2% higher than its 2Q16 revenues of ~$255 million.

Despite the decline in Denbury Resources’ 2Q17 production, its 2Q17 realized prices for crude oil (SCO) and natural gas (UGAZ) improved significantly, which impacted DNR’s revenues positively. DNR reported an ~9% higher crude oil realized price of $47.16 per barrel in 2Q17 from $43.38 per barrel in 2Q16. We’ll look at DNR’s production in the next part.

How DNR’s quarterly revenues are trending in 2017

For 1Q17, Denbury Resources (DNR) reported revenues of ~$275 million, higher than the Wall Street analyst consensus for revenues of ~$248 million. For 1Q17, DNR reported crude oil (USO) revenues of ~$264 million and natural gas (UNG) revenues of ~$2 million. Its carbon dioxide revenues and transportation fees reached ~$5 million, and it reported interest income and other revenues of ~$4 million. 

About 96% of DNR’s 1Q17 revenues came from crude oil sales. On a year-over-year basis, DNR’s 1Q17 revenues are ~41% higher than its 1Q16 revenues of ~$195 million.

Peers

DNR’s peer Encana (ECA) reported revenues of ~$1.1 billion in 2Q17, higher than Wall Street analyst estimates of ~$783.0 million. The Energy Select Sector SPDR ETF (XLE) invests at least 95% of its total assets in oil and gas companies.

Next, let’s take a look at Denbury Resources’ 2Q17 operational performance.

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