Denbury Resources, Inc. (NYSE:DNR)
The Company is engaged in the acquisition, development, operation and exploration of oil and natural gas properties in the Gulf Coast region of the United States, primarily in Louisiana, Mississippi, Alabama, and Texas.
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Good performer
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I'll just simply say this - anything that is attached to the oil industry will out perform S&P over the new few months. However - their bubble will eventually burst when the "GO GREEN" thing REALLY takes effect. That's when I'll change my picks to more "green friendly" corporations.
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A rock steady company that seems to have been almost untouched by the recent market drops. It's 4th quarter profits are up, and it's price has risen steadily for the last five years with very few exceptions.
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anything with OIL!
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observation over time
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1/2/08 - Dow and Nas significantly declined. This is 1 of 14 stocks that did well today. This is a part of my pick for the year that I'm going to follow.
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Drivers: Oil Price, Enhanced Oil Recovery
Risks: Low Oil Prices
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cf. accnt sttngs
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Have owned this stock a couple of years. It has had a fantastic run. Going to split (again) Dec. 14, 2007. Expecting it will continue to climb as it is a well run company, oil related, working in the south where we live.
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Proven track record.
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Texas based Denbury Resources is positioned to increase production. Expertise in processing CO2 for oil production.
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DNR is just beginning to reap the production numbers in BOPD from the CO2 recovery which has steadily increased since the beginng of this operation. The key to this success is that these fields were intially aquired for a song along with the CO2 source. The industry standard is that 40% of the oil in these fields is still in place.
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Although extracting oil with C02 isn't a new process, Denbury is making great use of it by acquiring mineral rights to deposits that were abandoned prior to C02 use. They should be able to exploit many areas that have been neglected in the past few decades, prior to to C02 implementation. I think their potential yields will far exceed operating costs and management looks steady. What do y'all think?
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Althougth in an cyclic industry, their business model, to extract hitherto uncaptured oil through flooding oil fields, is a good one.
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