Denbury goes big … on the PowerPoint presentation

Denbury Resources is going against the grain in some big ways.
The Plano-based firm is buying Encore Acquisiton for some $4.5 billion during a tough time in the market. It’s a deal that makes them even more oil-centric at a time when natural gas has been all the rage domestically, and also puts a big emphasis on the CO2 business (using it for better oil recovery through injection).
But there’s something about Denbury’s boldness that caught the attention of, some folks who make it their business to go over the many files public companies made to the Securities and Exchange Commission. They took issue with
the size of one of Denbury’s PowerPoint presentations.

We don’t think we’re being overly fussy here, but it just seems that when a Powerpoint starts to approach the size of a 10-Q, there’s something very wrong here. Denbury’s, which was presented to analysts as part of its “Fall Analyst Presentation” last Thursday weighs in at a whopping 103 pages. It’s not until page 102 that you get to the “concluding remarks”. Actually, when we went to check how the PPT stacked up against the company’s most recent 10Q, we were shocked to find that the Q was less than half the size of the PPT. That’s just plain wrong. Clearly, Denbury didn’t take the advice we gave to Best Buy (BBY) last year when it filed a 102-page whopper.
That’s not to say that Denbury’s presentation doesn’t have some interesting slides. We liked slide #8 which gave some reasons to invest in Denbury including “We are oily”, which doesn’t sound like a good thing to us. And the slides about transferring CO2 production techniques were also interesting. The slides about the merger were also worth skimming through.