Denbury Resources (DNR) Stock Tumbles on Oil Supply Concerns

Denbury Resources (DNR) stock is trading sharply lower this afternoon as oil prices fall on concerns about the global oversupply.
By Rachel Graf ,

NEW YORK (TheStreet) -- Shares of Denbury Resources (DNR) - Get Report are down 8.99% to $3.34 this afternoon as oil prices tumble on concerns about the global supply glut.

Energy Information Administration data show U.S. crude stockpiles fell just 2.5 million barrels last week, while analysts were anticipating a 3-million barrel decline, Reuters reports.

Distillate inventories surged by 4.1 million barrels in their biggest uptick since January and gasoline posted an unexpected build of 1.2 million barrels last week. 

Analysts were projecting a 256,000-barrel increase in distillate stockpiles and a 432,000-barrel draw in gasoline inventories, Reuters notes.

Crude oil (WTI) is falling 3.97% to $44.94 per barrel and Brent crude is down 4.31% to $46.38 per barrel this afternoon. 

Denbury Resources is a Plano, TX-based oil and natural gas company. 

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D-.

Denbury Resources's weaknesses include 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.

You can view the full analysis from the report here: DNR

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 article's author. 

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