In this video, energy analyst Joel South explains why Denbury Resources (DNR +0.00%) looks attractive as a long-term investment. Unlike unconventional shale drillers who experience sharp well decline curves, Denbury uses CO2-enhanced oil recovery, which helps increase crude extraction over 10 years before wells hit a long and slow decline curve; this method will increase the company's free cash flow position down the road. In addition to long-term revenue streams, Denbury's tertiary recovery could double the company's proven reserves, making today's valuations look that much better. Check out the video below for more information.
Denbury Resources: A Value Play for Energy Investors
By Joel South and Taylor Muckerman – Jan 29, 2013 at 10:31AM
NYSE: DNR
Denbury Resources
Fool.com energy analyst Joel South makes the case for why Denbury Resources is a value play in the upstream segment of the energy sector.
About the Author
Joel is a University of Washington graduate and covers energy and materials for The Motley Fool. Be sure to follow The Motley Fool's energy and materials Twitter for all your energy and materials coverage.
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