DEN - Denbury a new Buy at Citi as emerging leader in carbon capture and storage

Denbury (NYSE:DEN) +3.4% in Tuesday's trading as Citi initiated coverage with a Buy rating and $83 price target, saying the stock has lagged E&P peers YTD, but few E&Ps offer an improving base business with material exposure to growth in carbon capture and storage. Denbury's (DEN) volumes "are set to rise ~20% over the next two years as Cedar Creek Anticline comes onstream while the hedge headwind should fade," Citi's Scott Gruber writes. Carbon capture and storage deal flow "should remain robust with Denbury building on its industry leading ~7M metric tons/year of offtake arrangements," according to Gruber. Denbury (DEN) recently reported better than forecast Q1 adjusted earnings and revneues.

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Denbury a new Buy at Citi as emerging leader in carbon capture and storage