Denbury Resources (DNR) Stock Dropping as Oil Prices Retreat
NEW YORK (TheStreet) -- Shares of Denbury Resources (DNR) - Get Report are slipping 2.33% to $3.77 on Monday afternoon as oil prices trade in the red.
Crude oil (WTI) is slumping 2.5% to $44.77 per barrel and Brent crude is falling 3.02% to $45.94 per barrel this afternoon.
Oil prices are sliding today as output from OPEC was near all-time highs in April. Production for last month rose to 32.64 million barrels per day, according to Reuters.
Additionally, analysts are starting to warn of a growing oversupply of refined fuel products with demand for gasoline potentially missing expectations at a time when refineries will boost output for the summer driving season, the Wall Street Journal noted.
"We see evidence that refineries are running too hard relative to product demand," Morgan Stanley said in a note cited by the Journal, "We increasingly see risks of product oversupply."
Denbury Resources is a Plano, TX-based independent 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 deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
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
