Exploration & Production | Financial Results | Capital Markets
Denbury Suspends Dividend Increase
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Denbury Resources Inc. has announced that its Board of Directors has declared a quarterly cash dividend of $0.0625 per common share, a rate of $0.25 per share on an annualized basis, payable March 31, 2015, to shareholders of record as of the close of business on February 24, 2015. This dividend rate is unchanged from the Company's prior quarterly dividend rate but lower than the Company's previously planned $0.40 per share annualized dividend rate for 2015 that was discussed during the Company's November 2014 analyst day presentation.
Management Comment
Phil Rykhoek , Denbury's President and CEO, commented: "Given the significant decline in oil prices that we have experienced over the last two months, as well as ongoing uncertainty as to the length and extent of this downward cycle, Denbury's Board of Directors has decided to leave the Company's current dividend rate unchanged for the first quarter of 2015 instead of increasing it to the previously planned $0.40 per share annualized rate. The Company's original dividend plans for 2015 were based on projected oil prices of between $70 and $85 per barrel, which we estimated would provide the Company with $200 to $300 million of excess cash flow after capital expenditures and dividends. With the decline and overall uncertainty in oil prices, we believe it is prudent to adjust our prior dividend plans to balance the Company's anticipated cash inflows and outflows in the current oil price environment."