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Denbury Resources’ Cash Operating Cost Reductions in 2016

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Denbury Resources’ cash operating cost

For the first nine months of 2016, Denbury Resources (DNR) reported cash operating costs of $33.31 per boe (barrel of oil equivalent), ~8% lower than its 2015 cash operating costs of $36.16 per boe.

Cash operating costs are determined by adding all cash costs, including LOE (lease operating expenses), production, ad valorem taxes, cash interest expenses, and G&A (general and administration) cash expenses.

For 3Q16, Denbury Resources reported LOE of $18.82 per boe, a midpoint rise of ~9% compared to 3Q15.

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Other oil and gas producers                

In 3Q16, EOG Resources (EOG) and Diamondback Energy (FANG) reported LOEs of $4.43 per boe and $5.37 per boe, respectively. The Energy Select Sector SPDR ETF (XLE) generally invests at least 95% of its total assets in oil and gas companies.

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