CM - Denbury eyes 44% less spend, defers project and wants to split - April 2020Denbury Resources, Inc. is deferring work on the company’s Cedar Creek Anticline CO2 tertiary flood development project in the Williston Basin beyond 2020 while it watches its spending. Planned 2020 capex, excluding acquisitions and capitalized interest, was slashed 44%, or $80 million, to $95-105 million. In turn, the company expects this year’s oil and gas output to fall by 3,000 boe/d from earlier guidance of 54,500 boe/d at midpoint. The company said it restructured about 40% of its...
Apr 03, 2020
CM - Denbury executes private exchange offers for debt reduction - October 2019Denbury Resources Inc. announced it had entered into new debt swapping agreements under which it issued an aggregate 13.69 million common shares and $5.8 million in cash in exchange for about $42.5 million in notes. It negotiated exchange agreements Oct. 7-16 with holders of $13.2 million of its 5.5% senior subordinated notes due 2022 and $29.297 million of 4.625% senior subordinated notes due 2023. The company said that, between late August and early October, it had repurchased $11.337...
Oct 25, 2019
CM - Analyst Notes - October 4, 2019Berry Petroleum Co. (NYSE: BRY; $9.36- Sept. 30; Buy; PT-$14) Looking ahead to 2020, we think there is downward bias to production estimates, but with less spending, when contemplating entering 2020 at 3 rigs, the industry’s general move towards reduced growth, and BRY’s unchanged focus on shareholder returns. We model ~10% y/y boe growth (to 31mboepd; 27.6mbpd oil) for ~$180MM in spending, which compares to consensus ~14% growth (to 32.5mboepd; 28.4mbpd oil) for $205MM in capex. Name...
Oct 04, 2019
CM - Denbury reorganizing debt through exchange offers - June 2019Denbury Resources Inc. and senior noteholders agreed to exchange $402
million of older debt into cash and new notes through private transactions. Institutional
holders will swap about $44.8 million principal amount of the company’s 6% notes
due 2021, $93.1 million of 5.5% notes due 2022 and $96.3 million of 4 %
notes due 2023 for nearly $48.5 million of cash, $36.6 million aggregate
principal amount of new 7.75% senior secured second lien notes due 2024
and $149.1 million of new 6 % convertible...
Jun 21, 2019
PS - People & Companies - April 11, 2019Amplify Energy Corp. announced
the resignation of P. Michael Highum from
the board and audit committee. Brigade
Capital Management senior analyst
Scott Hoffman was appointed to the
audit committee. Denbury Resources appointed
Mary M. VanDeWeghe to its audit
committee and reserves and health, safety
and environmental committee of the board.
VanDeWeghe has served as the president
and CEO of Forte Consulting Inc., a
management and financial consulting
firm, since March 2009. Also, Laura...
Apr 11, 2019
Denbury's $1.6B funding supports Penn Virginia buyJP Morgan Chase will provide Denbury Resources Inc. with a new $1.2 billion senior secured bank credit facility and a $400 million senior secured second lien bridge loan to support the company’s $1.7 billion acquisition of Penn Virginia Corp. The credit facility will replace Denbury’s current one, under which no amounts are currently drawn.Denbury entered a definitive agreement Oct. 28 to buy Penn Virginia in a deal under which PV shareholders can elect to receive cash, stock or a...
Nov 15, 2018
Denbury issues $450 million more in second-lien notesEligible holders via SEC Rule 144A and Regulation S were offered $450 million aggregate principal amount of Denbury Resources Inc.’s 7.5% senior secured second lien notes due 2024, after the company upsized the private placement from $400 million. The notes sold at 100 and the offering closed Aug. 21. The company said it use net proceeds to pay off all the borrowings outstanding under its senior secured bank credit facility, which were $410 million as of July 31, and to use...
Aug 23, 2018
Denbury lightens debt load $40.8MM more with swapsHolders of three series of notes issued by Denbury Resources Inc. agreed to exchange nearly $174.3 million combined principal amount for $133.5 million of newly issued notes via an exchange offer that closed Jan. 5. This follows one completed last month in which the company issued $467 million of new notes to holders who tendered an aggregate $610 million. The two exchanges have resulted in Denbury cutting its total debt outstanding by about $184 million since the end of...
Jan 19, 2018
Denbury further beating down debt with $1B exchange offerDenbury Resources Inc. turned about $610 million of old debt into nearly $467 million of fresher—albeit more expensive and dilutive—obligations via negotiated exchanges. Holders of senior notes paying 5.5% p.a. through 2022 and 4.625% p.a. through 2023 agreed to exchange an aggregate $610 million of their notes for $382 million in new 9.25% senior secured second-lien notes and $85 million in new 3.5% convertible senior notes due 2024. Denbury said the exchanges lowered the amounts...
Dec 22, 2017
Analysts Takes - August 24, 2017At $15.25/sh, we believe ECP got a great deal for CPN given its annuity-like EBITDA of $1.7-$2.1B and implies a FCF yield of 14% in 2017 vs. its historical FCF yield at ~9%. CPN’s intrinsic value has only improved since rumors first started leaking about a possible buyout…. CPN has the most leverage to TX and given the impending coal plant retirement announcements, it will only provide upside for the IPP. CPN has already benefitted from improving forward prices in the later years due to the...
Aug 24, 2017
Denbury funding $71.5MM through credit facilityDenbury Resources Inc. said it will use its credit facility, reaffirmed at $1.05 billion last month, to fund the $71.5 million purchase of a 23% stake in the Salt Creek field in Wyoming from Linn Energy, Inc. The cost of the stake, a non-operated working interest, would ultimately be offset by the sale of some nonproductive acreage in the Houston area, which the company will soon sell. Denbury estimates capital costs of about $5.0 million this year, and finding and development costs of less...
Jun 23, 2017
LINN’s new asset sale will pay down remaining debtLINN Energy, Inc. said that a deal to sell assets in Wyoming for $71.5 million, together with its earlier announced sales of its Jonah and South Belridge assets, for a combined $844.5 million, will allow it to extinguish all of its remaining debt outstanding. LINN’s long-term debt at the end of Q1 was $805 million and its other non-current liabilities amounted to $351 million.The company announced that it will sell its nearly 5,000 net acre Salt Creek field in Wyoming to Denbury...
Jun 01, 2017
People & Companies - March 30, 2017¦ Denbury Resources announced that its board will elect president and COO Christian S. Kendall as CEO to succeed Phil Rykhoek, who will retire from that role on June 30. Rykhoek started as CFO in 1995 and became CEO in 2009. Kendall has held the COO title since September 2015 and became president last October. He has over 27 years of experience in the oil and gas industry, and spent 14 years with Noble Energy prior to joining Denbury. ¦ Dril-Quip, Inc. named Jeffrey J. Bird as VP and...
Mar 28, 2017
People Briefs - May 11, 2018Amplify Energy Corp. named
Kenneth Mariani as President and CEO
effective May 14. He was most recently
the president of Enervest. Antero Midstream GP LP elected
35-year industry veteran Peter A.
Dea to the board of directors of general
partner AMGP GP LLC effective April
26. Co-Founder and Executive
Chairman of Confluence Resources
LP, and co-founded and was President
and CEO of Cirque Resources LP,
and President and CEO of Western
Gas Resources, where he also sat on
the board....
May 11, 2018
Capital Markets - People & Companies Briefs - January 26, 2017Denbury Resources founding shareholder and director Wieland F. Wettstein said he will retire as director at the company’s May shareholders meeting. He was chairman from May 2008 to March 2016, succeeded in that role by John P. Dielwart. The company will replace Wettstein with a new director.Gradient Energy Services appointed Danny Jimenez CEO. Mr. Jimenez has held various leadership and operational roles at privately held and publicly traded oilfield services company. He holds a...
Jan 26, 2017