Denbury Reports Third Quarter 2016 Results

PLANO, Texas, Nov. 03, 2016 (GLOBE NEWSWIRE) -- Denbury Resources Inc. (NYSE:DNR) ("Denbury" or the "Company") today announced a net loss of $25 million, or $0.06 per diluted share, for the third quarter of 2016.  Excluding special items, the Company reported adjusted net income (1) (a non-GAAP measure) for the quarter of $1 million, or $0.00 (1)(2) per diluted share.  Adjusted net income (1) for the third quarter of 2016 differs from the quarter's GAAP net loss due to the exclusion of (1) a $76 million ($48 million after tax) full cost pool ceiling test write-down, (2) a $29 million ($18 million after tax) gain due to noncash fair value adjustments on commodity derivatives (1) (a non-GAAP measure) and (3) an $8 million ($5 million after tax) gain on debt extinguishment, with the GAAP and non-GAAP measures reconciled in tables beginning on page 7.

Sequential and year-over-year comparisons of selected quarterly financial items are shown in the following table:
    Quarter Ended
($ in millions, except per-share and unit data)   Sept. 30, 2016   June 30, 2016   Sept. 30, 2015
Net loss   $ (25 )   $ (381 )   $ (2,244 )
Adjusted net income (1) (non-GAAP measure)   1     29     63  
Net loss per diluted share   (0.06 )   (1.03 )   (6.41 )
Adjusted net income per diluted share (1)(2) (non-GAAP measure)   0.00     0.08     0.18  
Cash flows from operations   96     61     273  
Adjusted cash flows from operations (1)(3) (non-GAAP measure)   62     93     243  
             
Revenues   $ 246     $ 253     $ 300  
Receipt (payment) on settlements of commodity derivatives   (7 )   52     161  
Total   $ 239     $ 305     $ 461  
             
Average realized oil price per barrel (excluding derivative settlements)   $ 43.45     $ 43.38     $ 45.74  
Average realized oil price per barrel (including derivative settlements)   42.12     52.61     71.32  
Lease operating expenses per BOE (4)   18.82     17.04     17.34  
             
Total production (BOE/d)   61,533     64,506     71,410  
Total continuing production (BOE/d) (5)   60,714     62,976     69,453  
                   

(1)    A non-GAAP measure.  See accompanying schedules that reconcile GAAP to non-GAAP measures along with a statement indicating why the Company believes the non-GAAP measures provide useful information for investors.(2)    Calculated using average diluted shares outstanding of 390.2 million, 372.4 million, and 350.9 million for the three months ended September 30, 2016, June 30, 2016 and September 30, 2015, respectively.(3)    Adjusted cash flows from operations reflects cash flows from operations before working capital changes.  Adjusted cash flow from operations for the three-month period ended June 30, 2016 includes a $28 million payment to Evolution in connection with our settlement agreement to resolve all outstanding disputes and claims.  Excluding these payments, adjusted cash flows from operations would have totaled $121 million for the three months ended June 30, 2016.(4)    Lease operating expenses for the three months ended September 30, 2016, include repair costs at Thompson Field following the weather-related impacts during the second quarter, and for the three months ended September 30, 2015, include a reimbursement for a retroactive utility rate adjustment ($10 million) and an insurance reimbursement for previous well control costs ($4 million).  Excluding these items, lease operating expenses per BOE would have averaged $18.23 and $19.43 for the three months ended September 30, 2016 and 2015, respectively.(5)    Total continuing production excludes production from the Williston Basin sold during the third quarter of 2016 and other minor property divestitures.

If you liked this article you might like

Cars and Small-but-Strong Energy Stocks in Play

Selling Investors on Cars and Small but Strong Energy Plays

3 Independent Energy Stocks That Are Ready to Rock

5 Stocks Under $10 Poised for Big Breakouts

Short-Interest Tables Show Traders Are Watching the Wrong Stocks

Short-Interest Tables Show Traders Are Watching the Wrong Stocks