Energy
Denbury Resources Hits the Big Time (DNR, ROH, DOW)
Published:
Last Updated:
Oil and gas E&P company Denbury Resources Inc. (NYSE:DNR) will be added to the S&P 500 after trading closes on April 1st. Denbury replaces Rohm and Haas Co. (NYSE:ROH), which Standard & Poor’s expects to be purchased by Dow Chemical Corp. (NYSE:DOW).
Like most E&P companies, Denbury had a big first half of 2008, but earnings sank in the second half on falling crude prices. EPS for the full 2008 fiscal year was $1.59; for the fourth quarter EPS totaled just $0.18, barely 11% of the total.
Denbury has operations in the Barnett Shale play in Texas, and tertiary recovery fields in Texas, Louisiana, and Mississippi. The company also owns a large carbon dioxide deposit in Mississippi. The CO2 is used in a technique called CO2 flooding to cover more barrels from existing fields. Denbury is also building a new CO2 pipeline, which the company hopes to use to pipe carbon dioxide from power plant emissions to fields for enhanced oil recovery.
Denbury shares are up nearly 8% this morning. The company’s 52-week range is $5.59-$40.32, and its market cap as of yesterday was $4.03 billion.
Paul Ausick
March 26, 2009
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
