Where Will Denbury Resources Be in 1 Year?
In late March, Denbury Resources (NYSE: DNR) and Penn Virginia (NASDAQ: PVAC) terminated their merger agreement. Investors simply didn't like the deal and, in the end, the companies' leaders decided it wasn't worth the fight. That decision, however, has material long-term and short-term implications for Denbury. Here's what to expect from the company over the next year or so.
Denbury and Penn Virginia were an odd pairing because the two energy exploration and production companies operated in different regions and, perhaps more importantly, used entirely different resource extraction techniques. Denbury's belief was that it could mix the two approaches to enhance production, but investors were leery of the idea. In the end, the skeptics prevailed, and the two companies amicably agreed to go their separate ways.
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