S&P: Denbury unaffected

Standard & Poor's said its ratings on Denbury Resources Inc. (BB-/positive/--) will not be affected by the company's announcement that it has commenced the acquisition of leases and right-of-way for the construction of an 84-mile pipeline to transport carbon dioxide from the company's CO2 fields near Jackson, Miss., to its secondary recovery operations in eastern Mississippi.

In recent years, Denbury has achieved strong rates of return on investments and production increases in its tertiary operations and the pipeline will enable Denbury to expand its tertiary recovery strategy (Phase II) to its fields in eastern Mississippi, according to S&P.

S&P said it expects the company to finance the acquisition in a manner that does not significantly increase leverage, while maintaining its adequate liquidity position.

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