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:
We started the process of determining a valid price forecast for Denbury Resources Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Denbury Resources Inc ranked in the 95th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Denbury Resources Inc ended up being:
4% of the company's capital comes from equity, which is greater than just 2.1% 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 just 0.19% of tickers in our DCF set.
Relative to other stocks in its sector (Energy), Denbury Resources Inc has a reliance on debt greater than 94.47% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DNR, try SHLX, WMB, ENBL, GEL, and GPP.