From the company's first quarter 2014 report:
"We paid our first-ever quarterly cash dividend in March, recently announced our second quarterly dividend and reiterated our plans to grow our dividend to an annualized rate of $0.50 per share to $0.60 per share in 2015. We continued our share repurchase program in the first quarter, spending approximately $200 million to acquire 12.4 million shares, and have now reacquired about 15% of our common shares outstanding at the time we initiated the program in October 2011, at an average price of $15.68 per share, which has meaningfully improved our per-share metrics."
Why Denbury is in the portfolio:
- No exploration risk as the oil fields are already identified and quite a bit of existing information already exists on each field
- Existing infrastructure lowers costs
- Proved and repeatable process that can be used to add additional reserves and production
- Initiated dividend recently and plans to raise payout to 3% effective yield
- Buying back stock when price makes for good return on capital