Denbury Resources Announces 2004 Results; Tertiary Oil Production Hits New High.DALLAS Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. -- Denbury Resources Inc. (NYSE NYSE See: New York Stock Exchange :DNR See dynamic noise reduction and domain name resolver. ) ("Denbury" or the "Company") today announced its fourth quarter and 2004 financial and operating results. The Company posted earnings for the full year 2004 of $82.4 million or $1.50 per share, a 46% increase over 2003 net income of $56.6 million or $1.05 per share, the increase primarily due to higher commodity prices. Fourth quarter 2004 net income was $22.5 million, or $0.41 per share, a 48% increase over fourth quarter 2003 net income of $15.2 million or $0.28 per share. Adjusted cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses (cash flow from operations before changes in assets and liabilities, a non-GAAP measure) for the fourth quarter of 2004 was $48.6 million, slightly higher than fourth quarter 2003 adjusted cash flow from operations of $47.8 million. Net cash flow provided by operations, the GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measure, totaled $17.7 million during the fourth quarter of 2004, as compared to $51.8 million during the fourth quarter of 2003. The difference between fourth quarter 2004 adjusted cash flow and cash flow from operations is due to the significant reduction of accounts payables Payables Related: Accounts payable and accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. during the quarter. (Please see the accompanying schedules for a reconciliation of net cash flow provided by operations, as defined by generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP), which is the GAAP measure, as opposed to adjusted cash flow from operations, which is the non-GAAP measure). Review of Financial Results Denbury's fourth quarter 2004 production averaged 19,644 Bbls/d and 56.0 MMcf/d, or 28,977 BOE/d, a 4% increase over third quarter 2004 levels and a 4% increase over fourth quarter 2003 production levels, all after adjusting for the sale of offshore properties. Production from the Company's tertiary tertiary (tûr`shēârē), in the Roman Catholic Church, member of a third order. The third orders are chiefly supplements of the friars—Franciscans (the most numerous), Dominicans, and Carmelites. recovery operations Operations conducted to search for, locate, identify, rescue, and return personnel, sensitive equipment, or items critical to national security. set another quarterly record in the fourth quarter of 2004, averaging 7,242 BOE/d, a 4% increase over third quarter 2004 levels, and a 30% increase over the fourth quarter of 2003 average of 5,579 BOE/d. During the month of January January: see month. 2005, production from these tertiary operations continued to increase, averaging over 8,300 BOE/d (approximately 27% of the Company's total production). Production from the Barnett Shale The Barnett Shale is a geological formation of economic significance. It consists of sedimentary rocks of Mississippian age in the U.S. State of Texas. The formation is estimated to stretch from the city of Dallas to west of the city of Fort Worth and south, covering 5,000 square averaged 5.8 MMcf/d (962 BOE/d) during the fourth quarter of 2004, an almost threefold increase over the 1.6 MMcf/d (268 BOE/d) average production during the fourth quarter of 2003. Production during the fourth quarter of 2004 was 68% oil as compared to 55% oil for the comparable quarter of 2003, primarily as a result of the sale of Denbury's offshore properties in July July: see month. 2004. Despite an overall lower production level as a result of this offshore sale, total revenues in the fourth quarter of 2004 increased $7.7 million (9%), as compared to revenues in the fourth quarter of 2003, primarily as a result of higher commodity prices, partially offset by higher hedging payments and lower production levels. In the fourth quarter of 2004, NYMEX See New York Mercantile Exchange. NYMEX See New York Mercantile Exchange (NYM). oil prices averaged approximately $48.34 per Bbl, and natural gas NYMEX prices averaged approximately $7.25 per Mcf, as compared to NYMEX averages of approximately $31.20 per Bbl and $5.40 per Mcf in the fourth quarter of 2003. Denbury's weighted average price received per BOE BOE Based on Experience BOE Board of Education BOE Boletín Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip was $13.82 higher per BOE (excluding hedges) in the fourth quarter of 2004 than in the comparable period of 2003. However, the Company paid $8.31 more per BOE on hedges during the 2004 quarterly period than payments a year earlier, reducing the net realized per BOE price increase between the respective fourth quarters to $5.51 per BOE. Oil price differentials (Denbury's net oil price received as compared to NYMEX prices) deteriorated during 2004, particularly in the last quarter, as the price of heavy, sour crude Sour Crude The name given to barrels of crude oil that do not meet certain content requirements, such as low levels of sulfur and hydrogen. Notes: Sour crude future contracts are not as popular as sweet crude oil contracts, as this type of oil is harder to refine compared produced primarily in the Company's East Mississippi Mississippi, state, United States Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by properties dropped significantly relative to NYMEX prices. The Company's average NYMEX differential increased from $3.54 per Bbl during the fourth quarter of 2003 to $6.48 per Bbl during the fourth quarter of 2004, a $2.94 per Bbl decrease in the price the Company received relative to NYMEX prices. For the full year periods, the average oil price differential was $3.60 per Bbl during 2003 as compared to $4.91 per Bbl during 2004. Overall, expenses were lower in the fourth quarter of 2004 than in the prior year's comparable quarter. Lease operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were $1.3 million less on a gross basis as a result of the offshore sale, but increased from $6.78 per BOE in the fourth quarter of 2003 to $7.60 per BOE in the fourth quarter of 2004. The primary reasons for the higher cost per BOE were continued expansion of CO2 tertiary projects, which typically have a higher operating cost per BOE than conventional oil operations, higher lease fuel costs to inject in·ject v. 1. To introduce a substance, such as a drug or vaccine, into a body part. 2. To treat by means of injection. and recycle re·cy·cle tr.v. re·cy·cled, re·cy·cling, re·cy·cles 1. To put or pass through a cycle again, as for further treatment. 2. To start a different cycle in. 3. a. CO2 due to high natural gas prices, and the cost of leased recycling recycling, the process of recovering and reusing waste products—from household use, manufacturing, agriculture, and business—and thereby reducing their burden on the environment. facilities. Production taxes and marketing expenses also increased primarily as a result of the higher commodity prices. General and administrative expenses increased $1.8 million (38%) between the fourth quarter of 2003 and 2004, averaging $2.38 per BOE in the fourth quarter of 2004, up from $1.44 per BOE in the comparable quarter of 2003. The biggest portion of the increase relates to higher bonus levels for employees in 2004 as a result of the Company's strong performance during the year, non-cash amortization of the deferred compensation related to restricted stock issued to the officers and directors during the last half of 2004, increased litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. expenses, and incremental costs Costs which are additional costs to the Service appropriations that would not have been incurred absent support of the contingency operation. See also financial management. related to the Sarbanes-Oxley Act See SOX. . Interest expense decreased 12% in the fourth quarter of 2004 as compared to the fourth quarter 2003, due to lower overall debt levels following the Company's $50 million debt reduction during 2003 and $75 million debt reduction during 2004. At Dec. 31, 2004, the Company had approximately $140 million of net debt (long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. less working capital), one of the lowest leverage positions in the Company's history. Depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able , depreciation and amortization ("DD&A") expenses decreased $4.2 million (16%) in the fourth quarter of 2004 as compared to DD&A in the prior year fourth quarter. The DD&A rate in the fourth quarter of 2004 was $7.98 per BOE, about the same as the $8.00 per BOE in the prior year fourth quarter. DD&A expense on a per BOE basis decreased due to the sale of the Company's offshore properties in July 2004, which was partially offset by increasing estimates of future development costs due to rising industry costs. During 2004, the Company paid out $84.6 million on its hedges and incurred a net expense of $1.3 million primarily related to hedging transactions surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the Company's sale of its offshore properties. The total of $85.9 million is reflected in the income statement as $70.5 million of payments on the Company's effective hedges and $15.4 million of expenses on the Company's ineffective hedges. This compares to total payments during 2003 of $62.2 million and $3.6 million of other non-cash income relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc hedging. The hedge payments are expected to be substantially less in 2005 as most of the Company's existing hedges are price floors, which means the Company will retain any commodity price increases. Effective Jan. 1, 2005, the Company plans to no longer use hedge accounting Why is hedge accounting necessary? Many financial institutions and corporate businesses (entities) use derivative financial instruments to hedge their exposure to different risks (eg interest rate risk, foreign exchange risk, commodity risk, etc). , which means that any changes in the fair value (i.e. mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. ) of the Company's derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. contracts will be charged to earnings each quarter rather than being charged to other comprehensive income. 2005 Outlook Denbury's 2005 development and exploration budget (excluding acquisitions) is currently set at $305 million, including $45 million to build the Company's CO2 pipeline to East Mississippi which the Company may finance on a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. basis upon completion. Over 60% of the combined 2005 capital budget is related to tertiary operations, as compared to approximately 43% of 2004 capital expenditures. The Company has adjusted its 2005 forecasted average production to approximately 31,000 BOE/d, an increase of approximately 500 BOE/d to adjust for the anticipated production from its High Island A-6 well, a well excluded from the offshore sale package that should commence production late in the first quarter. The adjusted production target represents an 11% increase in production over the Company's 2004 production levels, excluding 2004 offshore production. Production from the Company's tertiary operations is expected to increase from a 2004 average of 6,784 BOE/d to a projected 2005 average of almost 10,000 BOE/d, a 47% increase. Gareth Roberts Gareth Roberts may refer to:
Southwest or south west may also refer to:
Used to describe a call option with a strike price above the price of the underlying asset or a put option with a strike price below the price of the underlying asset. hedges expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. , and (vii) completed a dramatic improvement in our float over the last two years with the final sale of stock by our former largest shareholder, the Texas Pacific Group. All of these factors, combined with high commodity prices, helped our stock reach new highs during 2004. "Our decision to focus on tertiary operations continues to be a winning strategy and the backbone of our Company. Tertiary oil production continues to grow and we added almost 19 million barrels of proved tertiary oil reserves Oil reserves refer to portions of oil in place that are claimed to be recoverable under economic constraints. Oil in the ground is not a "reserve" unless it is claimed to be economically recoverable, since as the oil is extracted, the cost of recovery increases incrementally at Brookhaven Brookhaven. 1 City (1990 pop. 10,243), seat of Lincoln co., SW Miss.; inc. 1859. It is situated in a dairy, timber, and farm area. Oil and gas fields are nearby. The city's manufactures include wood products, apparel, lumber, wire cloth, and asphalt. Field this past year, and we expect our growth in tertiary oil production and reserves to continue. We are enthusiastic about the inventory of assets we have compiled, while continuing to look for additional tertiary opportunities for a future Phase III Noun 1. phase III - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the FDA and IV program. With the proceeds from the offshore sale, we have reduced our debt to minimal levels and historically low leverage ratios, giving us the ultimate financial flexibility for the future. We expect to grow our tertiary oil production almost 50% during 2005 and our total corporate production by approximately 11%, all from internal organic growth. We are bullish Bullish Word used to describe an investor's attitude. Bullish refers to an optimistic outlook, while bearish means a pessimistic outlook. bullish on oil prices even though we still use much lower oil prices for our internal economic evaluations. With our significant inventory of oil projects, we believe we have ideally positioned Denbury as any price increase will enhance the value of both our current proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. and our future potential reserves." Conference Call The public is invited to listen to the Company's conference call set for today, Feb. 24, 2005, at 10:00 a.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. . The call will be broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at our Web site: www.denbury.com. If you are unable to participate during the live broadcast, the call will be archived on our Web site for approximately 30 days and will also be available for playback Playback could mean:
Annual Meeting The Company today announced its 2004 Annual Meeting of Shareholders will be held on Wednesday Wednesday: see week. , May 11 at 3:00 p.m., local time, at the offices of the Company located at 5100 Tennyson Parkway, Plano, Texas Plano (IPA: /ˈpleɪnoʊ/) is a wealthy suburb of Dallas, Texas, located to the north, mainly within Collin County, but also extending into Denton County. According to the 2000 U.S. . The record date for determination of shareholders entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to vote at the annual meeting will be the close of business on March 31, 2005. Financial and Statistical Data Tables Following are financial highlights for the comparative fourth quarters and annual periods ended Dec. 31, 2004 and Dec. 31, 2003. All production volumes and dollars are expressed on a net revenue interest basis with gas volumes converted to equivalent barrels at 6:1.
FOURTH QUARTER FINANCIAL HIGHLIGHTS
(Amounts in thousands of U.S. dollars, except per share and unit data)
Three Months Ended
December 31,
------------------ Percentage
2004 2003 Change
--------- -------- -------------------
Revenues:
Oil sales 75,645 48,444 56%
Gas sales 36,757 41,747 -12%
CO2 sales and transportation
fees 1,654 1,316 26%
Loss on effective hedge
contracts (24,012) (9,138) greater than 100%
Interest and other income 830 840 -1%
--------- --------
Total revenues 90,874 83,209 9%
--------- --------
Expenses:
Lease operating expenses 20,268 21,589 -6%
Production taxes and marketing
expense 5,256 3,695 42%
CO2 operating costs 730 257 greater than 100%
General and administrative 6,338 4,577 38%
Interest 4,551 5,155 -12%
Depletion, depreciation and
accretion 21,262 25,459 -16%
(Gain) loss on ineffective
hedge contracts (1,282) 124 greater than 100%
--------- --------
Total expenses 57,123 60,856 -6%
--------- --------
Income before income taxes 33,751 22,353 51%
Income tax provision (benefit)
Current income taxes 884 (214) greater than 100%
Deferred income taxes 10,386 7,357 41%
--------- --------
NET INCOME 22,481 15,210 48%
========= ========
Net income per common share:
Basic 0.41 0.28 46%
Diluted 0.39 0.27 44%
Weighted average common shares
outstanding:
Basic 55,259 54,051 2%
Diluted 58,076 55,714 4%
Production (daily - net of
royalties)
Oil (barrels) 19,644 19,020 3%
Gas (mcf) 56,002 93,424 -40%
BOE (6:1) 28,977 34,590 -16%
Unit sales price (including
hedges)
Oil (per barrel) 29.63 24.85 19%
Gas (per mcf) 5.64 4.37 29%
Unit sales price (excluding
hedges)
Oil (per barrel) 41.86 27.69 51%
Gas (per mcf) 7.13 4.86 47%
Three Months Ended
December 31,
------------------ Percentage
2004 2003 Change
--------- -------- -----------------
Reconciliation of Non-GAAP
Financial Measure to GAAP (1)
Adjusted cash flow from
operations (non-GAAP measure) 48,632 47,836 2%
Net change in assets and
liabilities relating to
operations (30,951) 3,939 greater than 100%
--------- --------
Cash flow from operations (GAAP
measure) 17,681 51,775 -66%
========= ========
Oil & gas capital investments 48,464 38,860 25%
CO2 capital investments 7,299 6,665 10%
Proceeds from sales of oil and gas
properties 9,296 82 greater than 100%
BOE data (6:1)
Revenue 42.16 28.34 49%
Loss on settlements of derivative
contracts (11.18) (2.87) greater than 100%
Lease operating costs (7.60) (6.78) 12%
Production taxes and marketing
expense (1.97) (1.16) 70%
--------- --------
Production netback 21.41 17.53 22%
CO2 operating cash flow 0.35 0.33 6%
General and administrative (2.38) (1.44) 65%
Net cash interest expense (1.28) (1.36) -6%
Current income taxes and other 0.14 (0.03) greater than 100%
Changes in asset and liabilities (11.61) 1.24 greater than 100%
--------- --------
Cash flow from operations 6.63 16.27 -59%
========= ========
(1) See "Non-GAAP Measures" at the end of this report.
TWELVE MONTH FINANCIAL HIGHLIGHTS
(Amounts in thousands of U.S. dollars, except per share and unit data)
Twelve Months Ended
December 31,
---------------------- Percentage
2004 2003 Change
----------- ---------- -----------------
Revenues:
Oil sales 256,843 189,442 36%
Gas sales 187,934 196,021 -4%
CO2 sales and transportation
fees 6,276 8,188 -23%
Loss on effective hedge
contracts (70,469) (62,210) 13%
Interest and other income 2,252 1,829 23%
----------- ----------
Total revenues 382,836 333,270 15%
----------- ----------
Expenses:
Lease operating expenses 87,107 89,439 -3%
Production taxes and
marketing expense 18,737 14,819 26%
CO2 operating costs 1,338 1,710 -22%
General and administrative 21,461 15,189 41%
Interest 19,468 23,201 -16%
Loss on early retirement of
debt -- 17,629 greater than 100%
Depletion, depreciation and
accretion 97,527 94,708 3%
(Gain) loss on ineffective
hedge contracts 15,358 (3,578) greater than 100%
----------- ----------
Total expenses 260,996 253,117 3%
----------- ----------
Income before income taxes 121,840 80,153 52%
Income tax provision (benefit)
Current income taxes 22,929 (91) greater than 100%
Deferred income taxes 16,463 26,303 -37%
----------- ----------
Income before cumulative
effect of change in
accounting principle 82,448 53,941 53%
Cumulative effect of change in
accounting principle, net of
income taxes of $1,600 -- 2,612 greater than 100%
NET INCOME 82,448 56,553 46%
=========== ==========
Net income per common share -
basic:
Income before cumulative
effect of change in
accounting principle 1.50 1.00 50%
Cumulative effect of change
in greater than 100%
accounting principle -- 0.05 greater than 100%
Net income per common share
- basic 1.50 1.05 43%
=========== ==========
Net income per common share -
diluted:
Income before cumulative
effect of change in
accounting principle 1.44 0.97 48%
Cumulative effect of change
in accounting principle -- 0.05 greater than 100%
Net income per common share
- diluted 1.44 1.02 41%
=========== ==========
Twelve Months
Ended
December 31,
----------------- Percentage
2004 2003 Change
-------- -------- -----------------
Weighted average common shares
outstanding:
Basic 54,871 53,881 2%
Diluted 57,301 55,464 3%
Production (daily - net of
royalties)
Oil (barrels) 19,247 18,894 2%
Gas (mcf) 82,224 94,858 -13%
BOE (6:1) 32,951 34,704 -5%
Unit sales price (including hedges)
Oil (per barrel) 27.36 24.52 12%
Gas (per mcf) 5.57 4.45 25%
Unit sales price (excluding hedges)
Oil (per barrel) 36.46 27.47 33%
Gas (per mcf) 6.24 5.66 10%
Reconciliation of Non-GAAP
Financial Measure to GAAP: (1)
Adjusted cash flow from
operations (non-GAAP measure) 200,353 189,802 6%
Net change in assets and
liabilities relating to
operations (31,701) 7,813 greater than 100%
-------- --------
Cash flow from operations (GAAP
measure) 168,652 197,615 -15%
-------- --------
Oil & gas capital investments 178,070 158,444 12%
CO2 capital investments 50,265 22,673 greater than 100%
Proceeds from sales of oil and gas
properties 197,575 29,410 greater than 100%
Cash and cash equivalents 54,889 24,188 greater than 100%
Short-term investments 35,321 -- N/A
Total assets 992,706 982,621 1%
Total long-term debt (excluding
discount) 229,184 300,000 -24%
Total stockholders' equity 541,672 421,202 29%
BOE data (6:1)
Revenue 36.88 30.43 21%
Loss on settlements of derivative
contracts (7.01) (4.91) 43%
Lease operating costs (7.22) (7.06) 2%
Production taxes and marketing
expense (1.55) (1.17) 32%
-------- --------
Production netback 21.10 17.29 22%
CO2 operating cash flow 0.41 0.51 -20%
General and administrative (1.78) (1.20) 48%
Net cash interest expense (1.34) (1.61) -17%
Current income taxes and other (1.78) (0.01) greater than 100%
Changes in asset and liabilities (2.63) 0.62 greater than 100%
-------- --------
Cash flow from operations 13.98 15.60 -10%
======== ========
(1) See "Non-GAAP Measures" at the end of this report.
Non-GAAP Measures Adjusted cash flow from operations is a non-GAAP measure that represents cash flow provided by operations before changes in assets and liabilities, as summarized from the Company's Consolidated Statements of Cash Flows. Adjusted cash flow from operations measures the cash flow earned or incurred from operating activities without regard to the collection or payment of associated receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed or payables. The Company believes that it is important to consider this measure separately, as it believes it can often be a better way to discuss changes in operating trends in its business caused by changes in production, prices, operating costs operating costs npl → gastos mpl operacionales and so forth, without regard to whether the earned or incurred item was collected or paid during that period. For a further discussion, see "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations - Operating Results" in our latest Form 10-Q Form 10-Q See 10-Q. or Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . Denbury Resources Inc. (www.denbury.com) is a growing independent oil and gas company. The Company is the largest oil and natural gas operator in Mississippi, owns the largest reserves of CO2 used for tertiary oil recovery east of the Mississippi River Mississippi River River, central U.S. It rises at Lake Itasca in Minnesota and flows south, meeting its major tributaries, the Missouri and the Ohio rivers, about halfway along its journey to the Gulf of Mexico. , and holds key operating acreage in the onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. and Texas Barnett Shale
areas. The Company increases the value of acquired properties in its
core areas through a combination of exploitation drilling and proven
engineering extraction practices.This press release, other than historical financial information, contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties including expected reserve quantities and values relating to the Company's proved reserves, the Company's potential reserves from its tertiary operations, forecasted production levels relating to the Company's tertiary operations and overall production levels, estimated capital expenditures for 2005, and other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission, including Denbury's most recent reports on Form 10-K and Form 10-Q. These risks and uncertainties are incorporated by this reference as though fully set forth herein. These statements are based on engineering, geological ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. , financial and operating assumptions that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are both subject to a wide range of business risks, and there is no assurance that these goals and projections can or will be met. Actual results may vary materially. |
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