DNR Increases Proved Reserves Estimate By 14%
Analysts at JP Morgan reiterate their "overweight" rating on Denbury Resources Inc (NYSE: DNR), while revising their estimates for the company. The target price for DNR has been reduced from $20 to $19.
JP Morgan says, “DNR released 2Q10 results. EPS and CFPS beat consensus and our estimates….DNR increased its 2010 EOR production guidance to 28,000 Bopd from 27,750 Bopd. Its EOR production averaged 28,507 Bopd in 2Q10.”
“DNR estimated that its midyear proved reserves were at 428 MMBoe versus the YE09 reserves of 374 MMBoe pro forma for the EAC merger and the Southern asset sale. The company estimated that it added 65 MMBoe of reserves in 2Q10, including 37 MMBoe in EOR reserves, 15 MMBoe in the Bakken, and 12 MMBoe in the Hayneville. DNR also increased its potential reserves estimate in the Bakken to 350 MMBoe, up from previous EAC estimate of 100 MMBoe on tighter spacing and increased EURs,” the analysts add.
JP Morgan has raised its EPS estimates for 2010 from $1.83 to $1.84, while lowering its EPS estimates for 2011 from $2.46 to $2.21.
