DEN - Denbury Inc.: Stronger Cash Flow Expected In 2022 Due To Less Hedging That Year
- Denbury's production margins should be near $30 per BOE at low-$60s WTI oil.
- It has around 66% of its oil production hedged in 2021 and around 12% of its oil production (at the same level) hedged in 2022.
- Denbury's cash flow will benefit much more from strong oil prices in 2022.
- Denbury is able to invest in getting its Cedar Creek Anticline project going now.
- Shares don't appear to be cheap though, pricing in roughly $60 long-term oil based on 2021 production levels.
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Denbury Inc.: Stronger Cash Flow Expected In 2022 Due To Less Hedging That Year