Denbury Resources Inc.'s third-quarter earnings fell 70% amid lower realized oil and natural gas prices and year-earlier derivatives-related income.
While many energy producers have been racing to tap alternative shale energy fields, Denbury's focus has been on recovering oil from several mature basins in the U.S.
Denbury has continued to shed assets, including its recent deal to sell its Bakken assets in North Dakota and Montana to Exxon Mobil Corp. for $1.6 billion. Under the deal, Denbury also will get Exxon Mobil's interests in the Hartzog Draw field in Wyoming and Webster field in Texas.
President and Chief Executive Phil Rykhoek on Tuesday said, "Our 2012 production remains on track to be in the upper half of our estimated ranges and we expect to close our Bakken transaction around the end of November."
The oil and natural-gas producer reported a profit of $85 million, or 22 cents a share, down from $276 million, or 68 cents a share, a year earlier. Excluding fair value adjustments on derivatives and other items, earnings were down at 33 cents from 37 cents. Revenue increased 4.1% to $600.4 million.
Analysts polled by Thomson Reuters most recently projected earnings of 33 cents on revenue of $603 million.
Average production grew 9% from a year earlier to 72,776 barrels of oil equivalent a day. Oil represented 93% of production. Sales prices, excluding hedging impacts, were down 4% for oil, and 38% for natural-gas was 38%.
Shares closed Monday at $15.55 and were inactive premarket. The stock is down 11% in the past 12 months.
Copyright (c) 2012 Dow Jones & Company, Inc.
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