Denbury Sells Haynesville, Texas Gas Assets For $217.5 Million

Date : 10/12/2010 @ 9:32AM
Source : Dow Jones News
Stock : Denbury Resources Inc. (DNR)
Quote : 1.08  -0.11 (-9.24%) @ 12:06AM

Denbury Sells Haynesville, Texas Gas Assets For $217.5 Million

Denbury (NYSE:DNR)
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Denbury Resources Inc. (DNR) has agreed to sell its Haynesville and East Texas natural-gas assets to an unnamed closely held oil-and-gas company for about $217.5 million.

Shares were up 1.1% at $17.80 in recent premarket trading. Denbury's stock has climbed 19% this year.

The company has been shedding assets it acquired with its purchase of slightly smaller rival Encore Acquisition Co. earlier this year in a deal valued at about $3.25 billion, seeking to reduce leverage and focus capital on core areas. Chief Executive Phil Rykhoek said Tuesday the company has "nearly completed" the divestiture program.

The Encore deal added production for Denbury that has boosted its top line. In August, Denbury reported swinging to a second-quarter profit absent prior-year derivatives-related write-downs as revenue more than doubled.

The Texas sale is expected to close in 30 to 45 days. The company plans a use the $115 million Wyoming acquisition it announced last month to offset tax impacts from the sale in a so-called Section 1031 exchange. Such deals allow the exchange of certain types of property to defer recognition of capital gains or losses.

 
   -By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; matthew.jarzemsky@dowjones.com 
 
 
 

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