Denbury Resources’s Capital Expenditure Guidance

For fiscal 2016, Denbury Resources (DNR) plans to spend ~$200 million in capital expenditure, which is ~51% lower when compared with fiscal 2015 capital expenditure of ~$407 million. Denbury Resources plans to adjust this budget higher or lower based on changes in estimated levels of cash flow.

Denbury Resources’s capital budget consists of ~$145 million for tertiary, non-tertiary, and CO2 supply and pipeline projects, plus ~$55 million for capitalized costs, including capitalized internal acquisition, exploration and development costs and pre-production tertiary startup costs.

Denbury Resource’s fiscal 2016 capital budget excludes capitalized interest estimated at $25 million. In 1H16, Denbury Resources spent ~$101 million (or ~50% of its planned budget) in capital expenditure.

Other S&P 500 (SPY) upstream companies such as Southwestern Energy (SWN), Devon Energy (DVN), and Pioneer Natural Resources (PXD) have recently increased their fiscal 2016 capital guidance.