Denbury Resources beats by $0.01, beats on revs :
- Reports Q4 (Dec) loss of $0.02 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of ($0.03); revenues rose 0.7% year/year to $271.62 mln vs the $231.31 mln Capital IQ Consensus.
- Denbury's continuing production averaged 60,685 BOE/d during the fourth quarter of 2016, in line with management's expectations, and was 96% oil, with CO2 tertiary properties accounting for 62% of overall production. On a sequential-quarter basis, continuing production in the fourth quarter of 2016 was essentially flat with continuing production in the third quarter of 2016, with production from the Company's CO2 tertiary properties increasing slightly.
- Due to the extended shut-in status of the Riley Ridge gas processing facility and management's recently updated analysis of cost estimates and engineering options to remedy the existing issues, the Company reassessed the estimated useful life of the gas processing facility and related assets during the fourth quarter of 2016 and recorded an accelerated depreciation charge of $591 million. The Company plans to continue engineering work and analysis to determine if there are alternative options to remediate the sulfur build-up in the gas supply wells and to assess its ability to reduce the costs thereof; however, the timing of completion and results of such analysis are currently uncertain. Furthermore, while Riley Ridge is a potential source of CO2 for flooding fields in the Rocky Mountain region, the Company has formed alternative plans to develop its future CO2 EOR floods, which CO2 volumes management currently anticipates could be supplied through existing CO2 sources.
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