Denbury's Profit Rises

But second-quarter earnings fall short of analyst expectations.
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Denbury Resources

(DNR) - Get Report

said its second-quarter earnings rose 8.9% from the year-ago period, on higher oil and gas prices.

The oil and gas exploration company earned $44.3 million, or 36 cents a share, including items, in the quarter, compared with $40.7 million, or 34 cents a share, a year ago. Analysts were expecting earnings of $43.9 million, or 39 cents a share.

Second-quarter revenue rose 51.3% from a year ago to $193.6 million against analysts' estimation of $169.7 million.

The company reaffirmed its full-year 2006 production guidance of 37,000 barrels of oil equivalent per day, an increase of 24% over average 2005 production levels. The 2006 development and exploration budget excluding acquisitions is about $550 million.

By segment, second-quarter oil sales rose 53% from a year ago to $136.1 million, gas sales rose 46% to $53.3 million and CO2 sales and transportation fee rose 56% to $2.4 million.

The company's oil sale price including hedge increased 33% to $62.99 a barrel and gas sale price including hedge increased 7% to $6.92 a thousand cubic feet (mcf). The company's average daily production of oil increased 13% to 23,362 barrels and of gas increased 43% to 84,671 mcf.

The stock was trading up 56 cents, or 1.6%, to $35.37 Wednesday.

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