Denbury Resources Inc. operates as an independent oil and natural gas company in the United States. The company holds properties located in Mississippi, Texas, Louisiana, and Alabama in the Gulf Coast region; and in Montana, North Dakota, and Wyoming in the Rocky Mountain region. The company was founded in 1951 and is based in Plano, Texas.
DNR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Denbury Resources Inc. To summarize, we found that Denbury Resources Inc ranked in the 95th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 5213.67%. In terms of the factors that were most noteworthy in this DCF analysis for DNR, they are:
7% of the company's capital comes from equity, which is greater than merely 2.36% of stocks in our cash flow based forecasting set.
Denbury Resources Inc's weighted average cost of capital (WACC) is 4%; for context, that number is higher than only 0.05% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 16.87% of stocks in its sector (Energy).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Denbury Resources Inc? See SHLX, PBFX, SNMP, ENB, and GPP.
Denbury Resources (DNR) looks set to become another energy bankruptcy after skipping an $8 million interest payment on June 30 for its 6.375% convertible senior notes due 2024. With $636 million in debt maturing in 2021, there wasn't much of a path for Denbury to escape restructuring, especially with oil...
Elephant Analytics on Seeking Alpha | July 4, 2020
Moody's Investors Service (Moody's) downgraded Denbury Resources Inc.'s (Denbury) Probability of Default Rating (PDR) to Ca-PD from Caa2-PD, Corporate Family Rating (CFR) to Ca from Caa2, ratings on its senior secured second lien debt to Ca from Caa2 and ratings on its senior subordinated debt to C from Ca. The SGL-4 Speculative Grade Liquidity (SGL) Rating is unchanged.
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 821 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of March 31st, 2020. […]