NYSE:DNR

Stock Analysis Report

Executive Summary

Denbury Resources Inc. operates as an independent oil and natural gas company in the United States.

Snowflake

Fundamentals

Undervalued with proven track record.


Similar Companies

Share Price & News

How has Denbury Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.8%

DNR

-0.1%

US Oil and Gas

1.0%

US Market


1 Year Return

-78.5%

DNR

-20.1%

US Oil and Gas

8.0%

US Market

Return vs Industry: DNR underperformed the US Oil and Gas industry which returned -20.1% over the past year.

Return vs Market: DNR underperformed the US Market which returned 8% over the past year.


Shareholder returns

DNRIndustryMarket
7 Day-2.8%-0.1%1.0%
30 Day-18.6%-5.4%-0.07%
90 Day-7.1%-8.6%-1.0%
1 Year-78.5%-78.5%-17.1%-20.1%10.4%8.0%
3 Year-60.7%-60.7%-7.4%-15.9%46.2%36.7%
5 Year-91.2%-91.5%-22.6%-33.7%64.3%46.2%

Price Volatility Vs. Market

How volatile is Denbury Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Denbury Resources undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DNR ($1.05) is trading below our estimate of fair value ($2.11)

Significantly Below Fair Value: DNR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DNR is good value based on its PE Ratio (1.3x) compared to the Oil and Gas industry average (9.6x).

PE vs Market: DNR is good value based on its PE Ratio (1.3x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: DNR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DNR is good value based on its PB Ratio (0.4x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Denbury Resources forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DNR's earnings are forecast to decline over the next 3 years (-7.1% per year).

Earnings vs Market: DNR's earnings are forecast to decline over the next 3 years (-7.1% per year).

High Growth Earnings: DNR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DNR's revenue (0.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: DNR's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DNR's Return on Equity is forecast to be low in 3 years time (8.6%).


Next Steps

Past Performance

How has Denbury Resources performed over the past 5 years?

26.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DNR's earnings have grown significantly by 26% per year over the past 5 years.

Accelerating Growth: DNR's earnings growth over the past year (89.8%) exceeds its 5-year average (26% per year).

Earnings vs Industry: DNR earnings growth over the past year (89.8%) exceeded the Oil and Gas industry 20.6%.


Return on Equity

High ROE: Whilst DNR's Return on Equity (29.43%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: DNR has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: DNR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Denbury Resources's financial position?


Financial Position Analysis

Short Term Liabilities: DNR's short term assets ($203.9M) do not cover its short term liabilities ($353.8M)

Long Term Liabilities: DNR's short term assets (203.9M) do not cover its long term liabilities (3.1B)


Debt to Equity History and Analysis

Debt Level: DNR's debt to equity ratio (202.1%) is considered high

Reducing Debt: DNR's debt to equity ratio has increased from 71.4% to 202.1% over the past 5 years.

Debt Coverage: DNR's debt is not well covered by operating cash flow (19.4%).

Interest Coverage: DNR's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet

Inventory Level: DNR has a high level of physical assets or inventory.

Debt Coverage by Assets: DNR's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Denbury Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate DNR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DNR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if DNR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DNR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: DNR is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DNR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Denbury Resources's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Chris Kendall (52yo)

2.3yrs

Tenure

US$5,729,582

Compensation

Mr. Christian S. Kendall, also known as Chris, has been Chief Executive Officer of Denbury Resources Inc. since July 01, 2017 and has been its President since October 3, 2016. Mr. Kendall served as the Chi ...


CEO Compensation Analysis

Compensation vs. Market: Chris has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Chris's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.3yrs

Average Tenure

52yo

Average Age

Experienced Management: DNR's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

5.9yrs

Average Tenure

65.5yo

Average Age

Experienced Board: DNR's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: DNR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$21,80029 Aug 19
Gregory McMichael
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$1.09
BuyUS$124,90027 Jun 19
Christian Kendall
EntityIndividual
Role
Chief Executive Officer
President
Shares100,000
Max PriceUS$1.25
BuyUS$299,46026 Mar 19
Christian Kendall
EntityIndividual
Role
Chief Executive Officer
President
Shares150,000
Max PriceUS$2.00

Ownership Breakdown


Management Team

  • Mark Allen (51yo)

    Executive VP

    • Tenure: 10.3yrs
    • Compensation: US$3.30m
  • Steve McLaurin (52yo)

    VP & Chief Information Officer

    • Tenure: 8.8yrs
  • Jim Matthews (57yo)

    Executive VP

    • Tenure: 1.8yrs
    • Compensation: US$2.12m
  • Matt Dahan (55yo)

    Senior Vice President of Business Development & Technology

    • Tenure: 1.8yrs
  • Alan Rhoades (54yo)

    VP & Chief Accounting Officer

    • Tenure: 10.3yrs
  • John Filiatrault (53yo)

    Senior Vice President of Operations Services

    • Tenure: 1.8yrs
  • Chris Kendall (52yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$5.73m
  • David Sheppard (47yo)

    Senior Vice President of Operations

    • Tenure: 1.8yrs
  • Jenny Cochran (51yo)

    Senior Vice President of Human Resources

    • Tenure: 2.3yrs
  • John Mayer

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Michael Decker (70yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$269.62k
  • Kevin Meyers (65yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$292.12k
  • Randy Stein (65yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$318.42k
  • John Dielwart (66yo)

    Chairman & Presiding Director

    • Tenure: 3.6yrs
    • Compensation: US$366.62k
  • Lynn Peterson (66yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$257.12k
  • Meg VanDeWeghe (59yo)

    Independent Director

    • Tenure: 0.6yrs
  • Greg McMichael (70yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$315.78k
  • Chris Kendall (52yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$5.73m

Company Information

Denbury Resources Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Denbury Resources Inc.
  • Ticker: DNR
  • Exchange: NYSE
  • Founded: 1951
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$495.480m
  • Shares outstanding: 471.89m
  • Website: https://www.denbury.com

Number of Employees


Location

  • Denbury Resources Inc.
  • 5320 Legacy Drive
  • Plano
  • Texas
  • 75024
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DNRNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1984
HGJDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1984
0I8ALSE (London Stock Exchange)YesCommon StockGBUSDFeb 1984

Biography

Denbury Resources Inc. operates as an independent oil and natural gas company in the United States. It holds interests in various oil and natural gas properties located in Mississippi, Texas, Louisiana, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:33
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.