DEN - Denbury surges as KeyBanc says buy on oil leverage carbon capture business

Denbury ([[DEN]] +7.6%) jumps near a new YTD high after KeyBanc initiates shares with an Overweight rating and $60 price target, touting the company as "the only E&P with a negative carbon footprint today."Denbury boasts "the highest oil cut among U.S. E&Ps at 97% and offers large potential upside from its carbon capture and sequestration business, which could be worth over $500M over time," KeyBanc's Leo Mariani writes.Denbury owns a network of 925 miles of CO2 pipelines strategically located in proximity to multiple large sources of industrial CO2 along the Gulf Coast, positioning the company to sequester CO2 underground, a business Mariani believes could have a future value of at least $500M and as much as $3.75B assuming a 10x multiple and annual revenue of $50M-$375M.Denbury's cash flow will benefit much more from strong oil prices in 2022, Elephant Analytics writes in a neutral analysis published on Seeking Alpha.

For further details see:

Denbury surges as KeyBanc says buy on oil leverage, carbon capture business