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Denbury Resources suspends dividend

Published 2015-09-21, 09:31 a/m
© Reuters. Denbury Resources suspends dividend
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Sept 21 (Reuters) - Oil and natural gas producer Denbury
Resources Inc DNR.N said it would suspend dividend payments
from the fourth quarter, hurt by a slump in crude oil prices.
The company said it expected to save about $88 million
annually, which it intended to use for cutting debt, increasing
capital spending or buying back shares.
"Although our oil commodity hedges and proactive reduction
in capital spending have buffered us to a large degree from this
oil price downturn, the benefit from our hedges will begin to
diminish in the fourth quarter of 2015," Chief Executive Phil
Rykhoek said in a statement on Monday.
Denbury shares rose nearly 5 percent to $3.04 in early
morning trading on the New York Stock Exchange.
The company also reinstated a previously authorized share
repurchase program, which was suspended in November last year
and has $222 million in authorized buybacks.
Denbury, which operates in the U.S. Gulf Coast and Rocky
Mountain region, said it will pay a cash dividend of 6.25 cents
per share for the third quarter.
The company said the timeline for reinstating a dividend is
uncertain and is expected to be highly dependent on oil prices.

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