Denbury Resources 2016 Capex, Production To Be Lower Than Prior Year

(RTTNews) - While reporting its fourth-quarter financial results today, Denbury Resources Inc. (DNR) announced a 51 percent reduction in capital expenditures for fiscal 2016 from the prior year and also projected lower production for the full year.

For 2016, Denbury Resources anticipates capital expenditures of about $200 million, representing a 51 percent reduction from 2015 capital expenditures of $407 million.

Despite this significant reduction in capital spending for the second year in a row, the company said its production declines should be minimized due to the long-lived low-decline profile of its asset base.

At this spending level, the company anticipates 2016 production of between 64,000 and 68,000 BOE/d, a decrease of approximately seven to twelve percent from 2015 levels, about sixty percent due to natural declines, with the other forty percent due to production shut-in for economic reasons.