why denbury resources, western refining, and dcp midstream partners made big moves this week
TRANSCRIPT
![Page 1: Why Denbury Resources, Western Refining, and DCP Midstream Partners Made Big Moves This Week](https://reader035.vdocuments.us/reader035/viewer/2022070518/58ecb3971a28ab711b8b4789/html5/thumbnails/1.jpg)
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](https://reader035.vdocuments.us/reader035/viewer/2022070518/58ecb3971a28ab711b8b4789/html5/thumbnails/2.jpg)
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](https://reader035.vdocuments.us/reader035/viewer/2022070518/58ecb3971a28ab711b8b4789/html5/thumbnails/3.jpg)
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](https://reader035.vdocuments.us/reader035/viewer/2022070518/58ecb3971a28ab711b8b4789/html5/thumbnails/4.jpg)
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](https://reader035.vdocuments.us/reader035/viewer/2022070518/58ecb3971a28ab711b8b4789/html5/thumbnails/5.jpg)
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](https://reader035.vdocuments.us/reader035/viewer/2022070518/58ecb3971a28ab711b8b4789/html5/thumbnails/6.jpg)
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](https://reader035.vdocuments.us/reader035/viewer/2022070518/58ecb3971a28ab711b8b4789/html5/thumbnails/7.jpg)
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](https://reader035.vdocuments.us/reader035/viewer/2022070518/58ecb3971a28ab711b8b4789/html5/thumbnails/8.jpg)
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](https://reader035.vdocuments.us/reader035/viewer/2022070518/58ecb3971a28ab711b8b4789/html5/thumbnails/9.jpg)
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](https://reader035.vdocuments.us/reader035/viewer/2022070518/58ecb3971a28ab711b8b4789/html5/thumbnails/10.jpg)
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](https://reader035.vdocuments.us/reader035/viewer/2022070518/58ecb3971a28ab711b8b4789/html5/thumbnails/11.jpg)
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](https://reader035.vdocuments.us/reader035/viewer/2022070518/58ecb3971a28ab711b8b4789/html5/thumbnails/12.jpg)
The next billion-dollar iSecret The world's biggest tech company forgot to show you something at its
recent event, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the
coming revolution in technology. And we think its stock price has nearly unlimited room to run for early-in-the-know investors! To be one of them,
just click below.