NEW YORK (TheStreet) -- Shares of Denbury Resources (DNR) are lower by 0.9% to $9.92 in midday trading Tuesday, extending Monday's losses after the company announced it will cut capital spending plans in half for 2015, and that two top executives resigned.
The independent oil and natural gas company said it is reducing capital spending by 50% in 2015 to $550 million, and targets relatively flat production amid declining oil prices.
Plano, TX-based Denbury also announced that COO Craig McPherson and Senior VP of product operations Charlie Gibson have resigned.
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Analysts at Sterne Agee downgraded the company to "neutral" from "buy" this morning, and said shares could decline to $8.
The firm called the company "not a compelling investment."
Separately, TheStreet Ratings team rates DENBURY RESOURCES INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate DENBURY RESOURCES INC (DNR) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share."