Denbury Resources: A Value Play for Energy Investors
Jan 29th 2013 10:37AM
Updated Jan 29th 2013 11:35AM
In this video, energy analyst Joel South explains why Denbury Resources 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.
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The article Denbury Resources: A Value Play for Energy Investors originally appeared on Fool.com.Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley 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.
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