Denbury Increases Its Rockies Position
In this video, Motley Fool energy analyst Joel South tells us about Denbury Resources' (NYSE: DNR) new $1 billion stake in the Cedar Creek Anticline. With the deal expected to close at the end of the first quarter, and the area currently producing 11,000 barrels of oil equivalent per day, Denbury will increase its average daily production by 7,700 boe/d for 2013. More importantly, the increased hydrocarbon production will be produced using lower-cost tertiary recovery methods, increasing the company's internal rate of return compared to the Bakken assets sold to ExxonMobil (NYSE: XOM) last quarter.
The relevant video segment can be found between 0:00 and 3:33.
There are a number of great plays investors can make in the energy space as the oil and natural gas booms continue, but we here at the Fool want to make this the year your portfolio dominates in every sector. Make sure you start 2013 with a bang and get the inside scoop on what Motley Fool superinvestor David Gardner will be buying this year. He's crushed the market in his Stock Advisor and Rule Breakers portfolios for years, and now I invite you to a personal tour of his flagship stock-picking service, Supernova. Just click here now for instant access.
The article Denbury Increases Its Rockies Position originally appeared on Fool.com.Joel South and Taylor Muckerman have no position in any stocks mentioned. The Motley Fool owns shares of Denbury Resources and ExxonMobil. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.