Denbury Resources Inc.'s (DNR) second-quarter earnings soared 92% as the oil-and-natural-gas explorer increased production and reported higher commodity prices.
The company has reported higher revenue in recent quarters due to a jump in oil prices and the acquisition of Encore Acquisition Co., a deal it completed in 2010. The transaction has transformed Denbury into one of the largest oil-focused independent producers.
The higher oil prices and projected increase in cash flow generation also led Denbury to increase its capital expenditure budget for the year, with greater investments planned to almost all areas. It now expects to spend about $1.35 billion this year, excluding acquisitions.
For the latest quarter, Denbury posted a profit of $259.2 million, or 64 cents a share, up from $135.4 million, or 34 cents a share, a year earlier. Excluding derivatives and other impacts, adjusted earnings grew to 37 cents a share from 18 cents. Revenue increased 21% to $601.4 million.
Analysts surveyed by Thomson Reuters expected earnings of 33 cents a share on revenue of $560 million.
Average daily production rose 23% from a year earlier. Sales prices excluding hedging impacts increased 44% for oil and 16% for natural gas.
In June, Denbury said it would buy the remaining interest in a Wyoming gas and carbon dioxide project that it didn't already own, as well as a 33% interest in nearby land, for up to $191 million.
Shares were up 0.9% at $18.29 in premarket trading.
-By John Kell, Dow Jones Newswires; 212-480-2480; firstname.lastname@example.org