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What Boosted Denbury Resources’ Revenue Growth in 1Q18?

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Denbury Resources’ 1Q18 revenues

In 1Q18, Denbury Resources (DNR) reported revenues of ~$353 million, much better than the Wall Street analyst consensus of ~$316 million. For 1Q18, DNR reported crude oil and natural gas revenues of ~$340 million, CO2 sales of ~$8 million, and interest income of ~$5 million. Thus, ~96% of DNR’s revenues came from crude oil and natural gas production sales.

On a year-over-year basis, Denbury Resources’ 1Q18 revenues are higher by ~29% when compared with 1Q17 revenues of ~$275 million. Even sequentially, DNR’s 1Q18 revenues are higher by ~8% when compared with 4Q17 revenues of ~$327 million.

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Reasons behind Denbury Resources’ higher revenues in 1Q18

Despite the year-over-year marginal increase of less than 1% in Denbury Resources’ 1Q18 production, DNR reported significantly higher total realized price for crude oil, natural gas, and natural gas liquids in 1Q18. DNR’s total realized price increased by ~27% to $62.61 per boe (barrel of oil equivalent) in 1Q18 from $49.35 per boe in 1Q17.

We’ll look at DNR’s production in the next part of this series.

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