Right after the earnings announcement, Denbury Resources (NYSE:DNR) announced that there would be layoffs with a one-time charge of about $8 million in the third quarter. Shareholders have been hoping for some time that the moribund company would show some signs of life rather than just going down without a struggle. Maybe some of those signs are on the way. Whether or not enough happens significantly is another matter. But finally, management appears to be facing reality before the creditors pull the plug.
Source: Denbury Resources Second-Quarter 2017 Press Release
As shown above, Denbury has another cash-free profit. Cash flow from operations managed to double to more than $50 million for the quarter, but that was because working capital account swings are not always unfavorable. The total amount was still insufficient to properly service the debt. The company would not have posted a profit without the benefits of the non-cash mark-to-market gains on the commodity derivative contracts.
