After a brief slump in 2009, Denbury Resources (NYSE: DNR) is looking strong again, thanks to its fundamentals boosted by rising oil prices. In less than 18 months, the market cap rose by a whopping 157% -- from $3.74 billion to $9.60 billion.

The turnaround
The drastic fall in global oil prices since the beginning of the financial crisis affected almost every oil company. Yet this five-star CAPS stock has recovered impressively. Total revenues grew by almost 106% in 2010, well above the five-year compounded annual growth rate of 26%. Yet behind this substantial growth is the fact that Denbury has managed to ramp up its production to approximately 73,000 barrels of oil equivalent per day -- Boe/d in short -- from a little more than 48,000 Boe/d in 2009.

With estimated proved reserves of up to 397.9 million Boe, at least 91% above its existing reserves, Denbury is comfortably placed to reap gains for a long time to come. It posted a net profit of $271.7 million and a net margin of 15%, shrugging off a net loss of $75.2 million the previous year. While the net margin is well below its corresponding values prior to 2009, the swift turnaround is worth a mention. The EBITDA margin stood at 60.3%, better than the 53.4% recorded by Penn West Energy (NYSE: PWE), a bigger player with a market cap of $12.8 billion. However, it's not as high as that of Newfield Exploration (NYSE: NFX) at 84.5%. While I am bullish about Penn West, Newfield seems to take the cake.

Another positive development is the current ratio, which rose to 1.5 times from 0.6 times in 2009. This shows that the company has recovered from its short-term liquidity issues. The current figure also happens to be at its highest in the past five years. While FCF figures have never been positive, they're at their closest to positive in the past five years. Also, the company stands more comfortably from a debt servicing perspective with an EBITDA/Interest Expense at 6.2 times.

The Foolish bottom line
In all, this stock has lived up to its reputation. With expansion into the Bakken reserves, it's looking all the better. With the company pumping up its activity from a two-drill to a five-drill program in the shale play, Denbury has diversified well beyond Texas. And like Linn Energy (Nasdaq: LINE), such an investment will bode well in the long run.

The stock does not look really expensive in my opinion. Having consistently outperformed the overall market since last October, this looks like a safe buy.

Isac Simon does not own shares of any of the companies mentioned in this article.

The Fool owns shares of Denbury Resources. 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.