Denbury Resources Inc.'s (DNR) fourth-quarter profit almost tripled, beating analysts' estimates, as revenue surged amid higher prices and output.
The oil-and-gas explorer and producer has posted rising sales in five straight quarters as it has benefited from improved commodities pricing and the $4.5 billion acquisition of Encore Acquisition Co. last March. The deal transformed Denbury into one of the largest oil-focused independent producers.
Denbury's profit rose to $10.4 million, or 3 cents a share, from $3.5 million, or 1 cent a share, a year earlier. Excluding items such as tax, hedging and merger impacts, earnings climbed to 22 cents from 18 cents. Revenue almost doubled to $519.1 million from $270.8 million a year earlier.
Analysts polled by Thomson Reuters most recently forecast earnings of 19 cents on $492 million in revenue.
Average daily production jumped 70% on the acquisition. Sales prices, excluding hedging impacts, rose 12% for oil and 14% for natural gas.
Shares slid 1.4% to $22.50 in premarket trading. The stock had surged 68% in the past year through Tuesday's close.
-By Ian Thomson, Dow Jones Newswires; 212-416-2314; firstname.lastname@example.org
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