Denbury Resources reported a $55 million loss in the second quarter as it failed to capitalize on rising oil prices.
The Plano-based oil company reported a $174 million loss in its commodity hedging program that was designed to insulate against a fall in prices. The loss came after domestic oil prices rose almost $8 a barrel from second-quarter 2013.
The loss was a dramatic reversal from a year ago, when Denbury reported a $130 million profit.
Oil and natural gas production were up 2 percent in the second quarter to more than 75,000 barrels of oil equivalent a day.
“Our organization remains highly focused on increasing shareholder value by executing on our growth and income strategy. Our second-quarter results demonstrate that we are starting to see the benefits of our focus on reducing costs,” Denbury CEO Phil Rykhoek said in a statement.
Denbury’s stock closed at $16.66, a 1 percent decrease on the day.
HollyFrontier
Dallas refiner HollyFrontier’s profit fell to $176 million in the second quarter, a 30 percent decline from a year ago.
The drop came as refining margins shrank on the rising price of domestic crude. HollyFrontier, which operates across the western half of the U.S., made less than $15 a barrel refining oil, compared with more than $20 a year ago.
“Although refined product margins decreased compared to the prior year quarter, our margins are healthy and we expect further growth in North American crude oil production to continue to provide us with a structural crude advantage,” CEO Mike Jennings said.
Energy Transfer Partners
Profits at Energy Transfer Partners, Kelcy Warren’s pipeline company, continue to rise.
The company reported net income of $581 million in the second quarter, up 40 percent from a year ago. Revenue increased 13 percent to $13.03 billion.
Energy Transfer operations have expanded significantly in recent years as the Dallas company buys up other oil and natural gas pipelines. Its plans for a $1.8 billion acquisition of Houston-based Susser Holdings is scheduled to be voted on by that company’s shareholders at the end of the month.
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