S&P boosts Denbury

Standard & Poor's said it raised its corporate credit rating on Denbury Resources Inc. to BB from BB-.

The outlook is stable.

S&P noted the rating action is based on the company's consistent operating performance and low financial leverage, as well as favorable near-term fundamentals for domestic oil and natural gas producers.

Denbury's improved financial leverage position also played a factor, the agency added.

The ratings on Denbury reflect its midsize reserve base, high lifting costs and the high cyclicality inherent in the E&P industry, S&P said, noting these weaknesses are tempered by the low risk nature of the company's reserve base, meaningful and steady production growth, competitive finding and development costs and significantly improved capital structure.

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