Denbury Resources’ EBITDA normalized for production
In 1Q16, Denbury Resources (DNR) reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) normalized for total production of ~$17 per boe (barrel of oil equivalent), which was ~50% lower compared to 1Q15.
As seen in the above chart, Denbury Resources’ adjusted EBITDA normalized for total production fell substantially in the last two quarters. This was mainly due to its much lower adjusted EBITDA due to lower realized crude oil prices (USO) and lower hedging effectiveness.
In 1Q16, other upstream companies such as Murphy Oil (MUR), Energen (EGN), and Pioneer Natural Resources (PXD) also reported much lower year-over-year adjusted EBITDAs normalized for total production.