Denbury Resources (DNR) Stock Slides on Falling Oil Prices
NEW YORK (TheStreet) -- Shares of Denbury Resources (DNR) - Get Report are dipping 4.11% to $2.91 in mid-afternoon trading Monday as oil prices retreat.
Crude oil (WTI) is slumping 2.58% to $43.05 per barrel and Brent crude is sinking 2.3% to $44.64 per barrel this afternoon.
Oil prices are dropping today amid rising concerns that a global oversupply of crude and refined products would weigh on markets, which delayed a long awaited rebalance in the market, Reuters reports.
Data from market intelligence firm Genscape showed an inventory increase of 1.1 million barrels at the Cushing, OK delivery hub last week, according to traders.
Additionally, a large overhang in refined products, especially gasoline, despite projections for a record U.S. summer driving season, has made investors less hopeful about a speedy market rebalancing.
"We've got gasoline stocks that are through the roof ... And you have the specter of turnaround season not too far in the horizon," Robert Yawger, senior VP of energy futures at Mizuho Securities, told Reuters.
Denbury Resources is a Plano, TX-based oil and natural gas company.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D- on the stock.
The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and deteriorating net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: DNR