Financial Analysis: Denbury Resources (DNR) vs. LRR Energy (LRE)

Denbury Resources (NYSE: DNR) and LRR Energy (NYSE:LRE) are both small-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Institutional and Insider Ownership

80.3% of Denbury Resources shares are held by institutional investors. 1.2% of Denbury Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Denbury Resources and LRR Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Denbury Resources 1 5 1 0 2.00
LRR Energy 0 0 0 0 N/A

Denbury Resources presently has a consensus target price of $2.08, indicating a potential upside of 15.10%. Given Denbury Resources’ higher possible upside, equities research analysts plainly believe Denbury Resources is more favorable than LRR Energy.

Profitability

This table compares Denbury Resources and LRR Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Denbury Resources -32.50% 0.28% 0.03%
LRR Energy -208.41% -34.35% -17.42%

Earnings & Valuation

This table compares Denbury Resources and LRR Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Denbury Resources $975.60 million 0.75 -$976.17 million ($0.90) -2.01
LRR Energy N/A N/A N/A $0.73 5.92

LRR Energy has lower revenue, but higher earnings than Denbury Resources. Denbury Resources is trading at a lower price-to-earnings ratio than LRR Energy, indicating that it is currently the more affordable of the two stocks.

Summary

Denbury Resources beats LRR Energy on 8 of the 9 factors compared between the two stocks.

About Denbury Resources

Denbury Resources Inc. is an independent oil and natural gas company. The Company’s operations are focused in two operating areas: the Gulf Coast and Rocky Mountain regions. Its properties with proved and producing reserves in the Gulf Coast region are situated in Mississippi, Texas, Louisiana and Alabama, and in the Rocky Mountain region are situated in Montana, North Dakota and Wyoming. It had an estimated proved oil and natural gas reserves of 254.5 million barrels of oil equivalent (MMBOE) as of December 31, 2016. Its primary Gulf Coast carbon dioxide (CO2) source is Jackson Dome, which is located near Jackson, Mississippi. Its mature group of properties includes the initial CO2 field, Little Creek, and other fields, including Brookhaven, Cranfield, Eucutta, Lockhart Crossing, Mallalieu and Soso fields. Its LaBarge Field is located in southwestern Wyoming. Its Riley Ridge Federal Unit is located in southwestern Wyoming and produces gas from the same LaBarge Field.

About LRR Energy

LRR Energy, L.P. (LRR Energy) operates, acquires, exploits and develops producing oil and natural gas properties in North America. The Company’s properties consist of onshore oil and natural gas properties. Its oil and natural gas properties include the Permian Basin region in West Texas and Southeast New Mexico, the Mid-Continent region in Oklahoma and East Texas, and the Gulf Coast region in Texas. As of December 31, 2014, the Company’s total estimated proved reserves were approximately 33.8 million barrels of oil equivalent (MMBoe), of which approximately 88% were proved developed reserves (approximately 73% proved developed producing and approximately 15% proved developed non-producing). The Company’s general partner is LRE GP, LLC.

What are top analysts saying about Denbury Resources Inc.? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Denbury Resources Inc. and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit