Denbury Resources Inc. Reports Unaudited Consolidated Earnings and Production Results for the Second Quarter and Six Months Ended June 30, 2014; Provides Production and Capital Expenditure Guidance for the Full Year of 2014
Aug 6 14
Denbury Resources Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, total revenues and other income was $672,120,000 against $650,084,000 a year ago. Loss before income taxes was $88,064,000 against income before income taxes of $211,306,000 a year ago. Net loss was $55,200,000 or $0.16 per basic and diluted share against net income of $129,980,000 or $0.35 per basic and diluted share a year ago. Adjusted net income (non-GAAP measure) was $92,674,000 against $150,746,000 a year ago. Adjusted cash flow from operations (non-GAAP measure) was $314,131,000 against $308,938,000 a year ago. Cash flow from operations (GAAP measure) was $329,847,000 against $437,568,000 a year ago. Capital expenditures, total were $277,101,000 against $360,962,000 a year ago.
For the six months, total revenues and other income was $1,313,864,000 against $1,233,170,000 a year ago. Income before income taxes was $5,039,000 against $353,241,000 a year ago. Net income was $3,110,000 or $0.01 per basic and diluted share against $217,551,000 or $0.58 per diluted share a year ago. Adjusted net income (non-GAAP measure) was $181,674,000 against $274,146,000 a year ago. Adjusted cash flow from operations (non-GAAP measure) was $602,815,000 against $624,684,000 a year ago. Cash flow from operations (GAAP measure) was $544,705,000 against $706,744,000 a year ago. Capital expenditures, total was $497,724,000 against $1,653,436,000 a year ago. Total debt was $3,637,676,000.
For the quarter, oil production (daily - net of royalties) was 71,051 barrels against 69,895 barrels a year ago. Gas production (daily - net of royalties) was 25,614 mcf against 24,945 mcf a year ago.
For the six months, oil production (daily - net of royalties) was 70,446 barrels against $64,764 barrels a year ago. Gas production (daily - net of royalties) was 24,463 mcf against 25,210 mcf a year ago.
For the full year of 2014, the company now estimates total annual production volumes should average slightly below the low end of its prior estimated range of 76,500 BOE/d. Denbury's full-year 2014 capital expenditure budget is now estimated at $1.1 billion, down $25 million from the previously estimated amount of $1.125 billion. The capital budget consists of $1.0 billion of tertiary, non-tertiary, and CO(2) supply and pipeline projects, plus approximately $100 million of estimated capitalized costs (including capitalized internal acquisition, exploration and development costs; capitalized interest; and pre-production start-up costs associated with new tertiary floods). The $25 million reduction in the capital budget is primarily due to decreases in estimated capitalized interest and pre-production tertiary start-up costs. Of this combined capital expenditure amount, $498 million (approximately 45%) has been spent through the first six months of 2014. Based on year-to-date capital expenditures and reductions in the company's capital costs, spending on planned 2014 capital projects could come in below $1.1 billion, potentially allowing the Company to accelerate a portion of future capital spending into 2014. For the remainder of 2014, The compoany continue to expect depletion, depreciation and amortization rate to remain between $21 and $22 per BOE. The company anticipates effective tax rate will be between 37% and 38% with current taxes representing between 10% and 15% of total taxes, which is down from previous estimate of between 15% and 20% due to the tax benefits derived from recent debt refinancing.