PLANO, Texas, Jan. 27, 2015 (GLOBE NEWSWIRE) -- Denbury Resources Inc. (NYSE:DNR) ("Denbury" or the "Company") today announced that its Board of Directors has declared a quarterly cash dividend of $0.0625 per common share, a rate of $0.25 per share on an annualized basis, payable March 31, 2015, to shareholders of record as of the close of business on February 24, 2015. This dividend rate is unchanged from the Company's prior quarterly dividend rate but lower than the Company's previously planned $0.40 per share annualized dividend rate for 2015 that was discussed during the Company's November 2014 analyst day presentation.
Management Comment
Phil Rykhoek, Denbury's President and CEO, commented, "Given the significant decline in oil prices that we have experienced over the last two months, as well as ongoing uncertainty as to the length and extent of this downward cycle, Denbury's Board of Directors has decided to leave the Company's current dividend rate unchanged for the first quarter of 2015 instead of increasing it to the previously planned $0.40 per share annualized rate. The Company's original dividend plans for 2015 were based on projected oil prices of between $70 and $85 per barrel, which we estimated would provide the Company with $200 to $300 million of excess cash flow after capital expenditures and dividends. With the decline and overall uncertainty in oil prices, we believe it is prudent to adjust our prior dividend plans to balance the Company's anticipated cash inflows and outflows in the current oil price environment."
Denbury is an independent oil and natural gas company with operations focused in two key operating areas: the Gulf Coast and Rocky Mountain regions. The Company's goal is to increase the value of acquired properties through a combination of exploitation, drilling and proven engineering extraction practices, with the most significant emphasis relating to CO2 enhanced oil recovery operations. For more information about Denbury, please visit www.denbury.com.
This news release, other than historical financial information, contains forward-looking statements, including estimates of cash flows, capital expenditures, rate of dividend payments, and future oil prices used for planning and modeling purposes, that involve risks and uncertainties including risks and uncertainties detailed in Denbury's filings with the Securities and Exchange Commission, including Denbury's most recent report on Form 10-K. These risks and uncertainties are incorporated by this reference as though fully set forth herein. These statements are based on engineering, geological, commodity pricing, financial and operating assumptions that management believes are reasonable based on currently available information; however, management's assumptions and Denbury's future performance are both subject to a wide range of business risks, and there is no assurance that Denbury's goals and performance objectives can or will be realized. Actual results may vary materially. Future dividends will be subject to declaration by the Company's Board of Directors at their discretion, subject to requirements of applicable law. In addition, any forward-looking statements represent Denbury's estimates only as of today and should not be relied upon as representing its estimates as of any future date. Denbury assumes no obligation to update its forward-looking statements.