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Why Denbury Resources Is Outperforming in 2018

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Denbury Resources: The fifth-best-performer in 2018

In 2018 so far, Denbury Resources (DNR) is turning out to be the fifth-best-performing energy stock from the US oil and gas production, or upstream, sector. Denbury Resources is an EOR (enhanced oil recovery) upstream company with operations in the US Gulf Coast and Rocky Mountains. So far in 2018, DNR rose ~10% or from its 2017 close of $2.21 to $2.43.

In 2018, the increase in DNR’s stock price is outperforming the decline in the Energy Select Sector SPDR Fund (XLE) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). Year-to-date, XLE and XOP are down ~5% and ~6%, respectively.

Denbury Resources’ production consists of ~97% crude oil (DWT) in its production mix, and it derives the majority of its revenues from crude oil sales. So far in 2018, with the gain of ~2%, crude oil (SCO) prices are outperforming other energy commodities—which is helping DNR’s stock price.

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Denbury Resources’ revenues and earnings

In 2017, Denbury Resources reported revenues of ~$1.1 billion, which is ~16% higher than its revenues of ~$976 million in 2016. In 2017, Denbury Resources increased its profits by whopping ~293% versus 2016. In 2017, DNR posted an adjusted profit of ~$55 million versus its profit of ~$14 million in 2016. On a per-share basis, Denbury Resources posted an adjusted profit of $0.14 per share in 2017 versus a profit of $0.04 per share in 2016.

Next in this series, we’ll take a look at the worst-performing upstream companies in 2018.

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