Denbury Resources Profit Jumps

Higher oil and gas prices help.
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Denbury Resources'

(DNR) - Get Report

profit for the fourth quarter rose 154% from the year-ago period, as a result of higher oil and gas prices.

The company earned $57 million, or 48 cents a share, in the quarter, compared with $22 million, or 19 cents a share, a year ago. Analysts surveyed by Thomson First Call were expecting earnings of 48 cents a share in the most recent quarter.

Fourth-quarter revenue rose 95% from a year ago to $177 million, primarily as a result of higher oil and gas prices and higher production levels. Analysts were expecting revenue of $161 million in the most recent quarter.

The company oil sale price including hedge increased 84% to $50.30 a barrel and gas sale price including hedge increased 38% to $7.7 a mcf. The company's average daily production of oil increased 6% to 20,808 barrels and of gas increased 16% to 65,045 mcf.

The company's 2006 development and exploration budget excluding acquisitions is currently set at just under $500 million. The company still anticipates that its average daily production for 2006 will be approximately 37,000 BOE/d, including some 2,000 BOE/d from the recent acquisition.

Operating costs in the fourth quarter increased 48% to $11.28 per BOE over a year ago period.

"Our decision to focus on tertiary operations continues to be a winning strategy and our backbone," the company said.

On Thursday, Denbury rose 42 cents to $27.45.

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