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 solid track record.

Risks

  • Denbury Resources has significant price volatility in the past 3 months.

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

-15.0%

NYSE:DNR

-3.1%

US Oil and Gas

-0.3%

US Market


1 Year Return

-75.8%

NYSE:DNR

-17.4%

US Oil and Gas

3.9%

US Market

DNR underperformed the Oil and Gas industry which returned -17.5% over the past year.

DNR underperformed the Market in United States of America which returned 3.4% over the past year.


Share holder returns

DNRIndustryMarket
7 Day-15.0%-3.1%-0.3%
30 Day-19.4%0.2%2.3%
90 Day-51.1%-7.8%2.3%
1 Year-75.8%-75.8%-14.5%-17.4%6.2%3.9%
3 Year-65.5%-65.5%2.9%-6.4%46.4%36.7%
5 Year-93.7%-94.0%-29.4%-38.7%59.6%41.8%

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 based on future cash flows and its price relative to the stock market?

45%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Denbury Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).

Denbury Resources's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Denbury Resources is good value based on earnings compared to the US Oil and Gas industry average.

Denbury Resources is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Denbury Resources earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Denbury Resources is good value based on assets compared to the US Oil and Gas industry average.


Next Steps

Future Growth

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

-1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Denbury Resources's revenue is expected to grow by 2% yearly, however this is not considered high growth (20% yearly).

Denbury Resources's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Denbury Resources's revenue growth is positive but not above the United States of America market average.

Denbury Resources's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Denbury Resources's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Denbury Resources is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Denbury Resources performed over the past 5 years?

14.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Denbury Resources's year on year earnings growth rate has been positive over the past 5 years.

Denbury Resources's 1-year earnings growth exceeds its 5-year average (42.1% vs 14.6%)

Denbury Resources's earnings growth has exceeded the US Oil and Gas industry average in the past year (42.1% vs 29.5%).


Return on Equity

Whilst Denbury Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Denbury Resources used its assets more efficiently than the US Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Denbury Resources has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Denbury Resources's financial position?


Financial Position Analysis

Denbury Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Denbury Resources's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Denbury Resources's level of debt (246.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (69% vs 246.9% today).

Debt is not well covered by operating cash flow (18.2%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.6x coverage).


Balance Sheet

High level of physical assets or inventory.

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 and Payments Analysis

Unable to evaluate Denbury Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Denbury Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Denbury Resources has not reported any payouts.

Unable to verify if Denbury Resources's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Denbury Resources has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Denbury Resources's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Chris Kendall (52yo)

2.0yrs

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

Chris's remuneration is higher than average for companies of similar size in United States of America.

Chris's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.0yrs

Average Tenure

52yo

Average Age

The tenure for the Denbury Resources management team is about average.


Board Age and Tenure

5.7yrs

Average Tenure

65.5yo

Average Age

The tenure for the Denbury Resources board of directors is about average.


Insider Trading

More shares have been bought than sold by Denbury Resources individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$124,90027 Jun 19
Christian Kendall
EntityIndividual
Role
President
Member of the Board of Directors
Shares100,000
Max PriceUS$1.25
BuyUS$299,46026 Mar 19
Christian Kendall
EntityIndividual
Role
President
Member of the Board of Directors
Shares150,000
Max PriceUS$2.00
SellUS$97,20024 Aug 18
James Matthews
EntityIndividual
Role
Executive VP
Shares20,000
Max PriceUS$4.86

Ownership Breakdown


Management Team

  • David Sheppard (47yo)

    Senior Vice President of Operations

    • Tenure: 1.6yrs
  • Jim Matthews (57yo)

    Executive VP

    • Tenure: 1.6yrs
    • Compensation: $2.12m
  • Steve McLaurin (52yo)

    VP & Chief Information Officer

    • Tenure: 8.5yrs
  • Chris Kendall (52yo)

    President

    • Tenure: 2.0yrs
    • Compensation: $5.73m
  • Jenny Cochran (51yo)

    Senior Vice President of Human Resources

    • Tenure: 2.1yrs
  • Mark Allen (51yo)

    Executive VP

    • Tenure: 10.1yrs
    • Compensation: $3.30m
  • Matt Dahan (55yo)

    Senior Vice President of Business Development & Technology

    • Tenure: 1.6yrs
  • John Filiatrault (53yo)

    Senior Vice President of Operations Services

    • Tenure: 1.6yrs
  • Alan Rhoades (54yo)

    VP & Chief Accounting Officer

    • Tenure: 10.0yrs
  • John Mayer

    Director of Investor Relations


Board Members

  • Michael Decker (70yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: $269.62k
  • Kevin Meyers (65yo)

    Independent Director

    • Tenure: 8.0yrs
    • Compensation: $292.12k
  • Randy Stein (65yo)

    Independent Director

    • Tenure: 14.5yrs
    • Compensation: $318.42k
  • John Dielwart (66yo)

    Chairman & Presiding Director

    • Tenure: 3.3yrs
    • Compensation: $366.62k
  • Lynn Peterson (66yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: $257.12k
  • Meg VanDeWeghe (59yo)

    Independent Director

    • Tenure: 0.3yrs
  • Greg McMichael (70yo)

    Independent Director

    • Tenure: 14.6yrs
    • Compensation: $315.78k
  • Chris Kendall (52yo)

    President

    • Tenure: 2.1yrs
    • Compensation: $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$488.413m
  • Shares outstanding: 452.23m
  • Website: Click here

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 Analysis2019/07/18 23:38
End of Day Share Price2019/07/18 00:00
Earnings2019/03/31
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.