Denbury Resources, Inc. (NYSE:DNR)

Great way to get oil out of the ground after everyone else has given up!

The tertiary oil recovery company has 20 years of carbon dioxide, >1 billion barrels of PPP reservers, and a talented management team to turn into cash flow over the next decade. And the price is very attractive today.

World Wide Invest Better Day 2012 pick, made by David Meier and John Reeves.

CO2 is a very viable oil recovery program. Presently very few good competitors in the US.

rev 601.8M GAAp sales 0.9% higher than prior yr Q $596.4M ESP $0.36 for the Q gross margin 79.0% 790 base points better than prior yr. Q

Oil will eventually keep going up.

I agree with members, also I have done well in the past

Undervalued, "one of a kind" resource (CO2), same basic philosophy as Buffet's cigar butts only with oil.

value

Denbury Resources Inc. (DNR) has a solid business model as a Tertiary Oil Recovery (CO2 Recovery) company that also has direct exposure to the Bakken. They buy under performing or end of life oil assets near their current sources of CO2, continue production and then use tertiary CO2 floods to up the production. Overall they are able to buy assets at low valuations as many of these small operators do not have the capacity or knowledge to be able to do Tertiary Oil Recovery.

They have 5 (Down to 4 soon) drill rigs in the Bakken and are switching from a single well strategy to a pad well strategy in which they will drill 4 wells from each pad. This should reduce drilling costs going forward. Also I expect the overall price differential of Bakken Crude to WTI Crude to narrow with the increases in rail shipments and the Seaway pipeline.

-PEG of 0.4
-PV-10 value of $10B verse a market cap of $6.3B, pretty good upside.
-95% oil production volumes, so you don't have to worry much about Nat Gas prices remaining low like at other producers that have higher Nat Gas production.

Overall a Buy here around 15.5 -16

Fool Pick

Recovering oil and/or minerals from previously worked claims has become a cost effective business. Proximity to labour, transportation and refining capacity saves millions.

I'm following the Fool herd on this one. I like the prospects of most U.S. based oil & ng producers which have earnings yields > 8%.

Take a look at this company, it is run well and in the right sector at the right time.

Energy, energy, energy, need I say more!

This company is vastly needed in the southwest and other areas around Midwest. No where to go but up. Should hit 52 week this yr I bet

Great company! Entering second stage of growth with Rocky Montain properties. Favorable economics behind EOR, especially at these oil prices.

Read here: http://beta.fool.com/elmosworld/2012/01/27/end-easy-oil/1358/

natural gas will eventually rebound

DNR