why denbury resources, western refining, and dcp midstream partners made big moves this week

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Why Denbury Resources, Western Refining, and DCP Midstream Partners Made Big Moves This Week

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Page 1: Why Denbury Resources, Western Refining, and DCP Midstream Partners Made Big Moves This Week

Why Denbury Resources, Western Refining, and DCP Midstream Partners Made Big

Moves This Week

Page 2: Why Denbury Resources, Western Refining, and DCP Midstream Partners Made Big Moves This Week

It was a relatively quiet week in the market. Despite the normal

movements during the week, the market basically ended up right

around where it started. Meanwhile, the price of oil pretty

much followed suit.

This led to a relative calm among energy stocks as there weren’t

many making big moves in either direction. That being said, there

were a couple of news-driven movers worth noting.Photo credit: TaxCredits.net

Page 3: Why Denbury Resources, Western Refining, and DCP Midstream Partners Made Big Moves This Week

What:MLP DCP Midstream Partners’ (NYSE: DPM) stock jumped more than 10% this

week.

Page 4: Why Denbury Resources, Western Refining, and DCP Midstream Partners Made Big Moves This Week

So What: Key driver: Parent companies

Phillips 66 and Spectra Energy announced plans to prop up DCP Midstream

Phillips 66 will contribute $1.5 billion in cash, while Spectra Energy will send over its shares in two pipelines

Page 5: Why Denbury Resources, Western Refining, and DCP Midstream Partners Made Big Moves This Week

Now What: Both moves are intended

to shore up DCP’s balance sheet and ease its access to credit

Key takeaway: With its balance sheet worries now addressed, investors are much more comfortable with DCP’s future

Page 6: Why Denbury Resources, Western Refining, and DCP Midstream Partners Made Big Moves This Week

What:Refiner Western Refining (NYSE: WNR) leapt more than 10% this week.

Page 7: Why Denbury Resources, Western Refining, and DCP Midstream Partners Made Big Moves This Week

So What: Key driver: Western

Refining led the entire refining sector higher this week

This came on the heels of an EIA report that gasoline demand is up 4% from last year

Page 8: Why Denbury Resources, Western Refining, and DCP Midstream Partners Made Big Moves This Week

Now What: Low oil prices are creating

incremental demand for gasoline, which is bullish for refiners

Key takeaway: As long as crude stays low, and drivers keep demanding gasoline, it points to higher profits for Western Refining

Page 9: Why Denbury Resources, Western Refining, and DCP Midstream Partners Made Big Moves This Week

What:Oil producer Denbury Resources (NYSE: DNR) dropped more than 14% this week.

Page 10: Why Denbury Resources, Western Refining, and DCP Midstream Partners Made Big Moves This Week

So What: Key driver: Not one, but

three analysts downgraded the stock this week

All three cited concerns with the company’s ability to navigate a long-term downturn in crude

Page 11: Why Denbury Resources, Western Refining, and DCP Midstream Partners Made Big Moves This Week

Now What: Cowen downgraded Denbury

from Market Perform to Underperform

Credit Suisse downgraded it from Neutral to Underperform and gave it a $1 price target

UBS cut it from Neutral to Sell Key takeaway: Analysts fear that

Denbury will need to take action to reduce leverage if oil prices remain weak

Page 12: Why Denbury Resources, Western Refining, and DCP Midstream Partners Made Big Moves This Week

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