Denbury Resources (DNR) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $21.53 million, or $ 0.05 a share in the quarter, against a net loss of $185.19 million, or $0.53 a share in the last year period. On the other hand, adjusted net loss for the quarter narrowed to $6.85 million, or $0.02 a share from a loss of $9.10 million or $0.03 a share, a year ago. 

Revenue during the quarter surged 41.37 percent to $275.45 million from $194.84 million in the previous year period. Gross margin for the quarter expanded 1125 basis points over the previous year period to 58.67 percent.   

Phil Rykhoek, Denbury’s chief executive officer, commented, "We believe we are close to arresting the decline in our production and are now moving into a period of stable to growing production. On a quarterly sequential basis, our production was down only 1% despite the minimal level of capital we expended over the last year, highlighting the strength of our asset base. Beginning later this year, we expect our production to grow modestly and for that growth to continue into 2018. Our capital projects generate a good rate of return in today’s price environment, and we have demonstrated that it does not take a lot of capital to sustain our production. Our LOE per BOE was a bit higher this quarter associated with our increased activity levels, but we expect full-year LOE per BOE to be close to our prior guidance of around $20 per BOE.

The company has spent $67.60 million cash to meet investing activities during the quarter as against cash outgo of $66.95 million in the last year period.

Cash flow from financing activities was $43.48 million for the quarter, down 38.21 percent or $26.89 million, when compared with the last year period.

Cash and cash equivalents stood at stood at $1.75 million as at Mar. 31, 2017.