Denbury Resources Earnings Cheat Sheet: Another Solid Sales Quarter

S&P 500 (NYSE:SPY) component Denbury Resources Inc. (NYSE:DNR) reported net income above Wall Street’s expectations for the second quarter. Denbury Resources, Inc. is an independent oil and gas company that acquires and develops oil and natural gas properties in the U.S. Gulf Coast region.

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Denbury Resources Earnings Cheat Sheet for the Second Quarter

Results: Net income for Denbury Resources Inc. rose to $259.2 million (64 cents per share) vs. $135.4 million (34 cents per share) in the same quarter a year earlier. This marks a rise of 91.5% from the year earlier quarter.

Revenue: Rose 22.1% to $601.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: DNR reported adjusted net income of 37 cents per share. By that measure, the company beat the mean estimate of 33 cents per share. It beat the average revenue estimate of $560.2 million.

Quoting Management: Phil Rykhoek, Chief Executive Officer, said, “Our results underline the benefits of our being so heavily weighted toward oil in this commodity price environment, enabling us to report record quarterly cash flow from operations, even with lower than targeted production growth. Not only are we more than 90% oil-weighted, but we sell approximately 60% of our oil based on price indexes other than NYMEX WTI prices, resulting in our first ever positive NYMEX oil price differential on a total corporate basis. We expect production growth to accelerate in 2012, as our long-term projects to flood our two newest tertiary fields, Hastings and Oyster Bayou Fields, are on schedule, with anticipated initial oil production expected late this year and late in the first quarter of 2012, respectively, and our Bakken well results in the Cherry area, our largest acreage position, continue to exceed expectations.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 80.7%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose more than twofold from the year earlier quarter.

The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 26 cents versus a mean estimate of net income of 27 cents per share.

Competitors to Watch: QR Energy LP (NYSE:QRE), Swift Energy Company (NYSE:SFY), Carrizo Oil & Gas, Inc. (NASDAQ:CRZO), Crimson Exploration Inc. (NASDAQ:CXPO), South Texas Oil Company (STXXQ), GeoMet, Inc. (NASDAQ:GMET), Penn Virginia Corporation (NYSE:PVA), Evolution Petroleum Corp. (AMEX:EPM), Constellation Energy Partners LLC (NYSE:CEP), and Lucas Energy, Inc. (AMEX:LEI).

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(Source: Xignite Financials)