Denbury Resources Inc. (DNR) said that it decided to reduce its 2015 capital spending by 50% in 2015 to $550 million, target relatively flat production for 2015, and increase annual dividend rate by 60% to $0.40 per share in 2015.
The company stated that the senior management will discuss key elements of the Company's plans for 2015 at its annual analyst day on Tuesday, November 18.
Denbury also announced that Craig McPherson, Senior Vice President and Chief Operating Officer, and Charlie Gibson, Senior Vice President - Production Operations, have resigned from their positions as officers of the Company. McPherson's and Gibson's roles would be temporarily assumed by Phil Rykhoek, Denbury's President and Chief Executive Officer, as the Company conducts a search for their replacements.
Phil Rykhoek Sr., Chief Executive. Officer, Pres and Director, said "Given the recent decline and uncertainty around future oil prices, we have decided to reduce our 2015 capital spending to a level that we believe can maintain production and build liquidity to further enhance our solid financial position, thereby making more funds available to take advantage of future opportunities. In support of our growth and income strategy, we are increasing our annual dividend rate to $0.40 per share in 2015, a 60% increase over 2014 levels, but below our prior estimated range as we account for the lower oil price environment."
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