PLANO, Texas, Jan. 3, 2014 (GLOBE NEWSWIRE) -- Denbury Resources Inc. (NYSE:DNR) ("Denbury" or the "Company") today announced that its Board of Directors has approved an increase of $250 million to the Company's authorized share repurchase program, leaving $422 million of authorized repurchases remaining as of December 31, 2013. The increase raises the total amount authorized under the program since it commenced in October 2011 to $1.162 billion, of which Denbury has spent $740 million as of December 31, 2013, to acquire a total of approximately 48 million common shares, or about 12% of shares outstanding at September 30, 2011, at an average cost of $15.55 per share. Of the total amount spent on repurchases, $78 million was spent in the fourth quarter of 2013 to acquire approximately five million common shares at an average cost of $16.22 per share. There is no set expiration date for the program and no requirement that the entire authorized amount be used.
Commodity Hedge Update
Denbury also announced it has converted all of its 2014 oil derivative contracts to fixed price swaps from collars. The Company's 2014 fixed price oil swaps now cover 58,000 barrels of oil production per day, or approximately 80% of estimated 2014 average daily oil production, at average NYMEX prices of approximately $93.50 per barrel ("Bbl") for the first half of 2014 and approximately $92.50 per Bbl for the second half of 2014. The Company's 2014 oil hedges were previously all costless collars with NYMEX price floors of $80 per Bbl and average NYMEX price ceilings of approximately $102 per Bbl in the first half of 2014 and approximately $98 per Bbl in the second half of 2014. No cash was paid or received to convert the hedge contracts. The conversion significantly tightens the estimated range of Denbury's anticipated cash flow from operations in 2014 from the range previously provided in Denbury's November 2013 analyst day presentation which was based on estimated average 2014 NYMEX oil prices of between $85 per Bbl and $95 per Bbl. The Company has also added natural gas hedges to its hedge portfolio and is considering adding hedge positions that extend beyond its typical duration of 18-to-24 months. Additional information on Denbury's commodity hedges will be available in an updated corporate presentation which will be posted to the Company's website today.