Denbury Resources 3Q profit more than doubles

DALLAS - Denbury Resources Inc. said Tuesday its third-quarter profit more than doubled due in part to higher prices for crude and natural gas.

Its shares rose $1.89, or 16 percent, to $13.67 in afternoon trading.

The Plano, Texas, company posted net income of $157.5 million, or 63 cents per share, up from $68 million, or 27 cents per share, a year ago. Analysts polled by Thomson Reuters expected, on average, earnings of 51 cents per share. These estimates typically exclude items.

Denbury said it recorded a gain of $86.1 million in the most recent period related to its derivative commodity contracts. The gain was partially offset by a $30.4 million charge relating to a forfeited deposit on the canceled Conroe Field acquisition, it said.

In August, Denbury said it would buy a 91.4 percent interest Conroe, an oil field north of Houston, in a deal with a privately owned company for at least $600 million. The transaction had been expected to close in October.

Quarterly revenue rose 62 percent to $410.3 million, topping forecast of $387.6 million.

Production rose 12 percent to 45,913 barrels of oil equivalent per day, after adjusting for the sale of Louisiana natural-gas properties in December 2007 and February 2008.

Denbury said it remains on track to produce 46,650 barrels of oil equivalent per day for the entire year.

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