Denbury Resources Announces Third Quarter Results; 2005 Capital Budget and Production Guidance; Hosts Analyst Conference.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 third quarter 2004 financial and operating results. The Company posted earnings for the quarter of $18.3 million, or $0.33 per common share, as compared to earnings of $15.1 million or $0.28 per common share for the third quarter of 2003, the increase primarily due to higher commodity prices. Net cash flow provided by operations, a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measure, totaled $44.8 million during the third quarter of 2004, less than the $49.8 million recorded during the third quarter of 2003, the decrease primarily related to current income taxes on profits from the sale of the Company's offshore properties completed in July July: see month. 2004 (see below) partially offset by the benefit from recent higher commodity prices. 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 for the third quarter of 2004 (before changes in assets and liabilities), a non-GAAP measure, totaled $29.7 million, a 35% decrease from the $45.6 million of adjusted cash flow generated in the third quarter of 2003, the decrease primarily relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the same income taxes on the offshore property sale. (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 a GAAP measure, as opposed to adjusted cash flow, which is a non-GAAP measure). Impact of Offshore Sale On July 20, 2004, the Company closed the sale of Denbury Offshore, Inc., a subsidiary that held Denbury's offshore assets Oil and gas facilities, mining and industrial installations, ocean thermal energy conversion facilities, deep water ports, aids to navigation, and nuclear power plants located or in operation seaward of the coastline. , for $200 million (before adjustments) to Newfield Newfield can refer to:
Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. (revenue less 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. ). During the third quarter, Denbury also recorded approximately $18.0 million of current income taxes relating to the offshore sale, and paid approximately $1.4 million of severance pay Severance Pay Compensation that an employer gives to someone who is about to lose their job. Notes: Severance pay is not always paid to employees. It depends on the situation in which the employee is losing their job and whether legislation requires severance to be paid. related to the sale in addition to approximately $1.0 million paid during the first six months of 2004. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, excluding the impact of the offshore operations during the third quarter of 2004 as outlined above, third quarter 2004 net income is estimated to be $15.5 million, with adjusted cash flow from operations of $43.8 million. Production Production for the third quarter, excluding the offshore production outlined above, was 27,772 BOE/d, just slightly higher than production during the prior quarter and 7% higher than the average of 25,930 BOE/d produced during the third quarter of 2003 (excluding any offshore production for both comparative periods). Oil 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. operations increased 6% over levels in the prior quarter and increased 65% when compared to third quarter 2003 tertiary production, averaging 6,967 Bbls/d in the third quarter of 2004, primarily as a result of production increases at Mallalieu Mallalieu is a surname, and may refer to:
This page or section lists people with the surname Mallalieu. and McComb McComb, city (1990 pop. 11,591), Pike co., SW Miss., near the La. line; inc. 1872. It is the trade and rail center of a cotton, corn, soybean, cattle, and timber area. Manufactures include wire and textile products, and there is poultry processing. Fields. Natural gas production increased in 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 as a result of recent drilling activity, increasing from approximately 1.5 MMcf/d in the third quarter of 2003 to approximately 3.9 MMcf/d in the 2004 quarter. Partially offsetting these increases were declines in 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. production resulting from natural field 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 , the
single largest factor being expected depletion at Thornwell Thornwell Orphanage opened in Clinton, South Carolina on October 1, 1875, to ten children orphaned by the American Civil War. It was founded by Reverend William Plumer Jacobs and named for noted theologian James Henley Thornwell. Dr. Field,
onshore Louisiana, which declined approximately 1,400 BOE/d from first
quarter 2004 production levels.
Third Quarter 2004 Financial Results The Company's net income declined from second quarter 2004 levels, as higher commodity prices were more than offset by the loss of offshore production and its net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. . Payments on the Company's commodity hedges continued to be a significant outflow, totaling $22.2 million for the third quarter of 2004, and hedge payments are expected to be even higher in the fourth quarter of 2004, after which time they will drop significantly, as most of the out-of-the-money out-of-the-money 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. by the end of this year. Depreciation and amortization expense declined approximately $0.84 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 from the second quarter of 2004 primarily as a result of proceeds from the offshore sale being credited to the Company's full cost pool. When comparing the respective third quarters of 2003 and 2004, higher commodity prices in the 2004 period more than offset lower production, resulting in a 21% increase in net income in the 2004 period. Operating expenses decreased slightly to $7.25 per BOE in the third quarter of 2004 as compared to $7.35 per BOE in the third quarter of 2003, primarily because there were no significant or unusual workover expenses in the 2004 period. Expenses remained at relatively high levels because of increased activity and emphasis on tertiary operations (with their higher operating costs operating costs npl → gastos mpl operacionales ), higher energy costs to operate the properties, and general cost inflation in the industry. Production taxes increased in the third quarter of 2004 along with increased commodity prices. General and administrative expenses increased, averaging $2.27 per BOE in the third quarter of 2004, up from $1.13 per BOE in the prior year's third quarter. Lower production as a result of the offshore sale caused a significant increase in per BOE amounts, as did approximately $1.4 million of severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs related to the offshore property sale. The Company's general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. have also risen in order to comply with the requirements of the Sarbanes-Oxley Act See SOX. . Interest expense decreased on a gross and per BOE basis as a result of lower overall interest rates, primarily related to the subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". refinancing Refinancing An extension and/or increase in amount of existing debt. in 2003, and lower average debt levels as a result of the $50 million reduction in debt during 2003 and $85 million of bank debt paid off in July 2004 with the proceeds from the offshore sale. Depreciation, depletion and amortization expense ("DD&A") decreased in the third quarter of 2004 to $7.62 per BOE, down from $8.46 per BOE in the prior quarter, as a result of the offshore sale, the proceeds of which were credited to the full cost pool. The DD&A rate in the most recent quarter was still slightly higher than the third quarter of 2003 rate, primarily as a result of the higher percentage of expenditures spent on offshore properties during 2003 and the first half of 2004, which typically have a higher finding and development cost per BOE. The Company recognized a current income tax expense of $18.9 million in the third quarter of 2004 related to state income taxes and alternative minimum taxes resulting primarily from the offshore sale, which taxes cannot be offset by the Company's regular tax net loss carryforwards Loss Carryforward An accounting technique with which a company applies net operating losses of the current year to future year's profits in order to reduce tax liability. Notes: or enhanced oil recovery Enhanced Oil Recovery (EOR) is a generic term for techniques for increasing the amount of oil that can be extracted from an oil field. Using EOR, 30-60 %, or more, of the reservoir's original oil can be extracted [1] compared with 20-40% [2] credits, partially offset by a deferred tax benefit of $11.1 million. Outlook Denbury's 2004 development and exploration budget is currently $213 million. Denbury's total current debt is $225 million, with no amounts outstanding under its $200 million bank borrowing base, and with approximately $70 million of cash remaining from the offshore sale. The Company plans to invest this cash over the next one to two years on property acquisitions, particularly properties that have future tertiary potential, some of which could be new core properties for additional phases of tertiary operations. The Company is leaving its earlier 2004 fourth quarter production forecast unchanged, anticipating a quarterly average of between 28,000 and 28,500 BOE/d. The Company has tentatively ten·ta·tive adj. 1. Not fully worked out, concluded, or agreed on; provisional: tentative plans. 2. Uncertain; hesitant. set its 2005 development and exploration expenditure budget at $260 million, excluding any potential acquisitions. Approximately 55% to 60% of the budget will be spent on projects relating to the Company's tertiary recovery (CO2) projects, which includes additional drilling and development at the CO2 source fields (Jackson Jackson. 1 City (1990 pop. 37,446), seat of Jackson co., S Mich., on the Grand River; inc. 1857. It is an industrial and commercial center in a farm region. Dome dome, a roof circular or (rarely) elliptical in plan and usually hemispherical in form, placed over a circular, square, oblong, or polygonal space. Domes have been built with a wide variety of outlines and of various materials. ), additional development of the 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. , Mallalieu, McComb and Smithdale Fields in southwestern 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 , and the commencement of work on three oil fields This list of oil fields includes major fields of the past and present. The list is incomplete; there are more than 40,000 oil and gas fields of all sizes in the world[1]. in East Mississippi in anticipation of the new CO2 pipeline to East Mississippi scheduled to be completed by mid- mid- pref. Middle: midbrain. 2006. The cost of the new CO2 pipeline is not included in the $260 million budget, as the Company currently expects to finance this pipeline through project financing Project financing A form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone basis. and effectively pay for the pipeline over time. The current estimated cost for the pipeline is approximately $45 million. Approximately 10% of the 2005 budget is being allocated to each of the remaining two core areas of onshore Louisiana and eastern Mississippi and about 10% to 15% to the Barnett Shale. Approximately 10% of the budget relates to exploratory projects, primarily natural gas targets onshore Louisiana. Based on this capital budget program, the Company anticipates that its production for 2005 will be in the range of 30,500 BOE/d, plus or minus 10% higher than the Company's third quarter 2004 production levels excluding offshore production during the quarter. The Company's production from its tertiary CO2 projects during 2005 is expected to increase between 45% and 50%, from an anticipated 2004 average of approximately 6,800 BOE/d to a projected 2005 average of approximately 10,000 BOE/d. The 2005 production forecast excludes any anticipated production from our successful well at High Island A-6 as this property may be sold. Gareth Roberts Gareth Roberts may refer to:
adj. So desirable as to arouse envy: "the enviable English quality of being able to be mute without unrest" Henry James. position in our industry. In addition, with our strong balance sheet and cash position, we have plenty of capital to pursue acquisitions that could further increase our inventory of projects and growth potential. With current strong oil prices and our strategic position in the Mississippi area with our tertiary operations, we believe we are ideally positioned for the future." Conference Call The public is invited to listen to the Company's conference call set for today, October October: see month. 28, 2004, at 10:00 A.M. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT . 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:
Analyst Conference Denbury Resources Inc. (NYSE: DNR), announced today that several members of Denbury's management are hosting a conference in New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded for analysts on November November: see month. 4th and 5th, 2004 where they will be presenting specific operational and financial updates. The slide presentation that will be presented to the analysts will be available on Denbury's website, www.denbury.com, beginning on November 4 and will include updated operational and comparative financial data and an in-depth review of the Company's significant properties. The main presentation will be webcast on November 4th and available on www.denbury.com and will be archived on our web site for approximately 30 days thereafter. To date, approximately 50 buy and sell-side analysts Sell-side analyst A financial analyst who works for a brokerage firm and whose recommendations are passed on to the brokerage firm's customers. Also called Wall Street analyst. and several asset managers have signed up for the presentations. Registration is ongoing and can be made through the contact numbers below. Financial and Statistical Data Tables Following are financial highlights for the comparative three and nine month periods ended September 30, 2004 and 2003. All production volumes and dollars are expressed on a net revenue interest basis with gas volumes converted at 6:1.
THIRD QUARTER FINANCIAL HIGHLIGHTS
(Amounts in thousands of U.S. dollars, except per share and unit data)
Three Months Ended
September 30,
------------------ Percentage
2004 2003 Change
--------- -------- ----------
Revenues:
Oil sales 68,144 44,863 52%
Gas sales 34,924 43,933 -21%
CO2 sales and transportation fees 1,681 2,238 -25%
Loss on settlements of derivative
contracts (22,243) (12,031) 85%
Interest and other income 664 387 72%
--------- --------
Total revenues 83,170 79,390 5%
--------- --------
Expenses:
Lease operating expenses 19,781 22,400 -12%
Production taxes and marketing expense 4,900 3,761 30%
CO2 operating costs 255 602 -58%
General and administrative 6,197 3,445 80%
Interest 4,768 5,358 -11%
Depletion, depreciation and accretion 20,780 22,566 -8%
Amortization of derivative contracts and
other non-cash hedging adjustments greater
383 (1,441) than 100%
--------- --------
Total expenses 57,064 56,691 1%
--------- --------
Income before income taxes 26,106 22,699 15%
Income tax provision (benefit)
Current income taxes greater
18,949 (1,514) than 100%
Deferred income taxes greater
(11,117) 9,064 than 100%
--------- --------
NET INCOME 18,274 15,149 21%
--------- --------
--------- --------
Net income per common share:
Basic 0.33 0.28 18%
Diluted 0.32 0.27 19%
Weighted average common shares:
Basic 55,085 54,014 2%
Diluted 57,549 55,718 3%
Production (daily - net of royalties)
Oil (barrels) 19,206 18,051 6%
Gas (mcf) 62,708 90,393 -31%
BOE (6:1) 29,657 33,116 -10%
Unit sales price (including hedges)
Oil (per barrel) 28.25 24.60 15%
Gas (per mcf) 5.36 4.32 24%
Unit sales price (excluding hedges)
Oil (per barrel) 38.57 27.01 43%
Gas (per mcf) 6.05 5.28 15%
Three Months Ended
September 30,
----------------- Percentage
2004 2003 Change
--------- ------- ----------
Non-GAAP Financial Measure (1)
Adjusted cash flow from
operations (non-GAAP measure) 29,747 45,611 -35%
Net change in assets and liabilities
relating to operations greater
15,019 4,178 than 100%
--------- -------
Cash flow from operations (GAAP measure) 44,766 49,789 -10%
--------- --------
--------- --------
Oil & gas capital investments 37,644 39,251 -4%
CO2 capital investments greater
15,825 2,635 than 100%
Proceeds from sales of oil and gas greater
properties 187,133 1,174 than 100%
BOE data (6:1)
Oil and natural gas revenue 37.78 29.14 30%
Loss on settlements of derivative greater
contracts (8.15) (3.95) than 100%
Lease operating costs (7.25) (7.35) -1%
Production taxes and marketing expense (1.80) (1.23) 46%
--------- -------
Production netback 20.58 16.61 24%
CO2 operating cash flow 0.55 0.54 2%
General and administrative greater
(2.27) (1.13) than 100%
Net cash interest expense (1.49) (1.55) -4%
Current income taxes and other greater
(6.46) 0.50 than 100%
Changes in asset and liabilities relating greater
to operations 5.50 1.37 than 100%
--------- -------
Cash flow from operations 16.41 16.34 0%
--------- --------
--------- --------
(1) See "Non-GAAP Measures" at the end of this report.
NINE MONTH FINANCIAL HIGHLIGHTS
(Amounts in thousands of U.S. dollars, except per share and unit data)
Nine Months Ended
September 30,
------------------ Percentage
2004 2003 Change
--------- -------- ----------
Revenues:
Oil sales 181,198 140,998 29%
Gas sales 151,177 154,274 -2%
CO2 sales and transportation fees 4,622 6,872 -33%
Loss on settlements of derivative
contracts (54,750) (53,072) 3%
Interest and other income 1,422 989 44%
--------- --------
Total revenues 283,669 250,061 13%
--------- --------
Expenses:
Lease operating expenses 66,839 67,850 -1%
Production taxes and marketing expense 13,481 11,124 21%
CO2 operating costs 608 1,453 -58%
General and administrative 15,123 10,612 43%
Interest 14,917 18,046 -17%
Loss on early retirement of debt - 17,629 -100%
Depletion, depreciation and accretion 76,265 69,249 10%
Amortization of derivative contracts and
other non-cash hedging adjustments greater
8,347 (3,702) than 100%
--------- --------
Total expenses 195,580 192,261 2%
--------- --------
Income before income taxes 88,089 57,800 52%
Income tax provision
Current income taxes greater
22,045 123 than 100%
Deferred income taxes 6,077 18,946 -68%
--------- --------
Income before cumulative effect of
change in accounting principle 59,967 38,731 55%
Cumulative effect of change in
accounting principle, net of income
taxes of $1,600 - 2,612 -100%
--------- --------
NET INCOME 59,967 41,343 45%
--------- --------
--------- --------
Net income per common share - basic:
Income before cumulative effect of
change in accounting principle 1.10 0.72 53%
Cumulative effect of change in
accounting principle - 0.05 -100%
--------- --------
Net income per common share - basic 1.10 0.77 43%
--------- --------
--------- --------
Net income per common share - diluted:
Income before cumulative effect of
change in accounting principle 1.05 0.70 50%
Cumulative effect of change in
accounting principle - 0.05 -100%
--------- --------
Net income per common share - diluted 1.05 0.75 40%
--------- --------
--------- --------
Nine Months Ended
September 30,
------------------ Percentage
2004 2003 Change
--------- -------- ----------
Weighted average common shares:
Basic 54,740 53,824 2%
Diluted 57,020 55,375 3%
Production (daily - net of royalties)
Oil (barrels) 19,114 18,852 1%
Gas (mcf) 91,028 95,341 -5%
BOE (6:1) 34,285 34,742 -1%
Unit sales price (including hedges)
Oil (per barrel) 26.58 24.41 9%
Gas (per mcf) 5.55 4.48 24%
Unit sales price (excluding hedges)
Oil (per barrel) 34.60 27.40 26%
Gas (per mcf) 6.06 5.93 2%
Non-GAAP Financial Measure: (1)
Adjusted cash flow from
operations (non-GAAP measure) 151,721 141,966 7%
Net change in assets and liabilities
relating to operations greater
(750) 3,874 than 100%
--------- --------
Cash flow from operations (GAAP measure) 150,971 145,840 4%
--------- --------
--------- --------
Oil & gas capital investments 129,606 119,584 8%
CO2 capital investments greater
42,966 16,008 than 100%
Proceeds from sales of oil and gas greater
properties 188,279 29,328 than 100%
Cash and cash equivalents greater
93,142 28,108 than 100%
Short-term investments 31,955 - N/A
Total assets 991,709 942,558 5%
Total long-term debt (excluding
discount) 225,000 329,000 -32%
Total stockholders' equity 500,630 410,386 22%
BOE data (6:1)
Oil and natural gas revenue 35.38 31.13 14%
Loss on settlements of derivative
contracts (5.83) (5.60) 4%
Lease operating costs (7.11) (7.15) -1%
Production taxes and marketing expense (1.44) (1.17) 23%
--------- --------
Production netback 21.00 17.21 22%
CO2 operating cash flow 0.43 0.57 -25%
General and administrative (1.61) (1.12) 44%
Net cash interest expense (1.39) (1.69) -18%
Current income taxes and other (2.28) - N/A
Changes in asset and liabilities greater
relating to operations (0.08) 0.40 than 100%
--------- --------
Cash flow from operations 16.07 15.37 5%
--------- --------
--------- --------
(1) See "Non-GAAP Measures" at the end of this report.
Denbury CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. adopts 10b5-1 plan In September 2004, Ashley Petroleum Inc., a corporation controlled by Mr. Gareth Roberts, Denbury's President and CEO, entered into a 10b5-1 plan pursuant to which it will sell up to 60,000 shares of common stock over the next twelve months, subject to minimum price restrictions, commencing in November 2004. Ashley Petroleum Inc. currently owns a total of 138,330 shares of common stock. Mr. Roberts currently controls approximately 955,730 shares of common stock, including 261,885 shares related to vested vested adj. referring to having an absolute right or title, when previously the holder of the right or title only had an expectation. Examples: after 20 years of employment Larry Loyal's pension rights are now vested. (See: vest, vested remainder) and unvested stock options, 138,330 shares owned by Ashley Petroleum Inc. and 235,000 shares of unvested restricted stock. 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 Payables Related: Accounts payable . 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, 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 carbon dioxide carbon dioxide, chemical compound, CO2, a colorless, odorless, tasteless gas that is about one and one-half times as dense as air under ordinary conditions of temperature and pressure. 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 significant operating acreage in onshore Louisiana. The Company increases the value of acquired properties in its core areas through a combination of exploitation drilling and proven engineering extraction practices, including secondary and tertiary recovery operations Operations conducted to search for, locate, identify, rescue, and return personnel, sensitive equipment, or items critical to national security. . This press release, other than historical financial information, contains forward looking statements that involve risks such as those involved in drilling activity and those due to price volatility, and uncertainties as to drilling results, 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. , production levels, commodity prices, and financial results as detailed in the Company's filings with the Securities and Exchange Commission, including its reports on Form 10-K and 10-Q. These reports are incorporated by reference as though fully set forth herein. These statements are based on assumptions concerning commodity prices, existing market conditions, scheduling, drilling and completion results and costs and engineering 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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