Denbury Resources Cuts 2017 Capital Budget; Increases 2017 Production Guidance

(RTTNews) - Denbury Resources Inc. (DNR) reduced 2017 capital budget and increased 2017 production guidance.

In response to lower than anticipated oil prices in the first half of 2017 and to better align the Company's estimated 2017 cash flow and capital expenditures, the Company announced that it reduced its estimated 2017 capital budget, excluding acquisitions and capitalized interest, from $300 million to approximately $250 million.

The capital budget consists of approximately $195 million of tertiary, non-tertiary, and CO2 supply and pipeline projects, plus approximately $55 million of estimated capitalized costs (including capitalized internal acquisition, exploration and development costs and pre-production tertiary startup costs). Of this combined capital expenditure amount, approximately $125 million (50%) has been incurred through the second quarter of 2017.

Despite this reduction in the capital budget, and as a result of the Company's successful execution of its capital projects in the first half of this year, the Company currently anticipates its 2017 production being on target to meet or exceed the midpoint of its original guidance of 58,000 to 62,000 BOE/d and the 2016 exit rate of roughly 60,000 BOE/d, excluding acquired properties. With the recent acquisition of Salt Creek Field, the Company has revised its full-year 2017 production guidance to an expected range of 60,000 to 62,000 BOE/d.