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Understanding Denbury’s 4Q16 Revenues

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4Q16 revenues

For 4Q16, Denbury Resources (DNR) reported revenues of ~$272 million, which was ~18% higher than the Wall Street analyst consensus estimate of ~$231 million. For 4Q16, DNR reported crude oil (USO) revenues of ~$258 million, natural gas (UNG) revenues of ~$3 million. It reported Carbon Dioxide revenues of ~$6 million and other revenues of ~$5 million. This means that ~95% of DNR’s revenues came from crude oil sales.

Sequentially, DNR’s 4Q16 revenues are ~7% higher than its 3Q16 revenues. On a YoY (year-over-year) basis, DNR’s 4Q16 revenues are ~1% higher than its 4Q15 revenues.

Despite the decline in Denbury’s 4Q16 production, DNR’s 4Q16 realized prices for crude oil (USO) and natural gas (UNG) improved significantly, which impacted DNR’s revenues positively. DNR reported ~19% higher crude oil realized price of $48.03 per barrel in 4Q16 from $40.41 per barrel in 4Q15.

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2016 revenues

For fiscal 2016, Denbury reported revenues of ~$976 million, which is ~23% lower than its ~$1.3 billion in 2015. By comparison, DNR peer Devon Energy (DVN) reported revenues of ~$10.3 billion, which is ~22% lower than its ~$13.2 billion in 2015.

Now let’s take a look at DNR’s production.

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