(RTTNews) - Thursday, Denbury Resources Inc. (DNR: News ) posted a lower third-quarter profit, primarily due to lower oil and natural gas commodity prices coupled with reduced natural gas production due to the sale of 60% of its Barnett Shale natural gas assets in mid-2009. Denbury reaffirmed its previously lowered 2009 production guidance.

Denbury's third quarter net income declined to $26.88 million or $0.11 per share from $157.55 million or $0.63 per share last year.

Results for the quarter include a non-cash charge of $22.3 million, $13.8 million after taxes, related to the change in fair value of the company's commodity derivative contracts. This compares with a non-cash gain of $86.1 million, $53.4 million after taxes, recorded in the prior-year quarter.

Adjusted net income for the quarter was $40.7 million or $0.16 per basic share, compared with $123.0 million or $0.50 per basic share last year.

On average, 14 analysts polled by Thomson Reuters expected the company to report profit of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter decreased to $227.25 million from $410.25 million last year. Analysts expected revenue of $237.09 million for the quarter.

The reduction in net income between the periods is attributed primarily to lower oil and natural gas commodity prices coupled with reduced natural gas production due to the sale of 60% of the company's Barnett Shale natural gas assets in mid-2009, and a $108.4 million net decrease in the fair value changes in commodity derivative contracts in the comparative periods.
Oil and natural gas production averaged 42,659 barrels of oil equivalent per day or BOE/d, a 10% increase from third quarter 2008 production, after adjusting for 60% of the Barnett Shale natural gas assets.

On a sequential basis, the company's oil and natural gas production decreased 4%, primarily due to the decreases in non-tertiary Mississippi production offset in part by a slight increase in tertiary production.

Oil and natural gas revenues, excluding the impact of any derivative contracts, decreased 45%, as lower commodity prices decreased revenues by 38% and lower production, primarily due to the sale of 60% of the Barnett Shale natural gas assets, decreased revenues by 7%.

On a sequential basis, oil and natural gas revenues increased 5%, as higher commodity prices in the third quarter increased revenues by 22% and lower production decreased revenues by 17%.

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