Denbury stretches limits of Powerpoint…

November 16, 2009

Earlier this month, Denbury Resources announced that itplanned to buy Encore Acquisition (EAC) in a $4.5 billion deal (according to the press release) or $3.25 billion deal (according to the WSJ). We’re not sure which number is more accurate, but we do know that the Powerpoint presentation that Denbury filed as part of an 8K on Friday, stretches the limits — and no doubt, most people’s patience.

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.

But at 103 pages, it’s simply too long for really anyone but the most die-hard Denbury investors to digest. Maybe it’s time for the analysts who follow Denbury to wage a revolution and against 103-page Powerpoint presentations.

Image source: Dilbert

Leave a Reply

You must be logged in to post a comment.