Denbury Inc.DEN
NYSE • Energy
$88.66
P/E
19.95
PEG
—
FCF Yield
—
Rev Growth YoY
-17.7% YoY
Gross Margin
100.0%
Health Score
6/10
D/E Ratio
0.03
Confidence
LOW
Business Snapshot
Denbury Inc. is an independent oil and natural gas company focused on enhanced oil recovery using carbon dioxide (CO₂) injection, primarily in the Gulf Coast and Rocky Mountain regions. It operates in the energy sector's oil and gas exploration and production space. The company generated $1.40 billion in trailing twelve-month (TTM) revenue, placing it in the mid-cap tier among domestic E&P peers. A defining characteristic is its industry-leading low debt level (debt/equity of 0.03x), which provides significant financial flexibility, and its reported gross margin of 100% – a figure that suggests revenue is reported net of production costs or that wellhead economics are fully captured in revenue.
Financial Health
The company reports a gross margin of 100.0% versus 40.4% in the prior year – a dramatic expansion that is unusual for an E&P firm and may reflect a change in accounting presentation or revenue recognition. Net margin stands at a healthy 20.5%, indicating strong earnings conversion after expenses...
Risk Assessment
- VALUATION — P/E of 19.95x is 43% above the energy sector average of 14x, implying optimistic expectations for a company with falling revenue.
- EARNINGS QUALITY — Denbury has beaten analyst estimates in 0 of the last 4 quarters, indicating predictable reporting volatility and low management credibility.
- REVENUE DECELERATION — Revenue contracted 17.7% year-over-year, and while the QoQ increase of 8.3% offers a bright spot, the structural decline dominates the trend.
- DEBT / LIQUIDITY — Current ratio of 0.59x is well below the safe threshold of 1.0x, suggesting potential near-term working capital stress despite low long-term debt.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- 52-WEEK POSITION — The current price of $88.66 sits 11.9% below the 52-week high of $100.65, leaving limited upside before hitting recent resistance....