Denbury Resources Inc. (NYSE:DNR) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
Denbury Resources Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 19.51% to $0.33 in the quarter versus EPS of $0.41 in the year-earlier quarter.
Revenue: Decreased 9.61% to $583.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Denbury Resources Inc. reported adjusted EPS income of $0.33 per share. By that measure, the company beat the mean analyst estimate of $0.29. It beat the average revenue estimate of $533.52 million.
Quoting Management: Phil Rykhoek, Denbury’s President and CEO, commented, “We are off to a strong start in 2013 as we continue to execute on our proven, unique, and repeatable growth strategy. Quarterly oil production from our core tertiary business exceeded our expectations, reaching a new record level in the first quarter, while our realized oil price premium in the quarter was our highest ever. From a total production standpoint, the first quarter was a transition quarter for us as we sold our Bakken area assets in the fourth quarter of 2012 but did not acquire the replacement assets in the Cedar Creek Anticline until almost the end of the first quarter of 2013. These newly acquired properties are currently producing around 11,000 BOE/d net to our interest, and we expect over 20% of our total daily production to come from the Cedar Creek Anticline for the remainder of 2013.”
Key Stats (on next page)…
Revenue decreased 4.28% from $609.2 million in the previous quarter. EPS decreased 8.33% from $0.36 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.30 to a profit $0.33. For the current year, the average estimate has moved up from a profit of $1.21 to a profit of $1.28 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)