Stockholders' Equity

9 Months Ended

Sep. 30, 2015

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Note 4. Stockholders' Equity

During the second quarter of 2015, we reduced the number of shares of our common stock reported as outstanding by 1,430,819 shares (approximately 0.4% of our outstanding shares at March 31, 2015). This reduction was the result of a correction to properly reflect the number of shares actually issued in the merger with Encore Acquisition Company ("Encore") in March 2010. The stock and cash consideration originally issued and paid in the Encore merger was valued at $3.0 billion, which would have been reduced by $22.1 million for this share correction. As a result, we recorded adjustments to our Unaudited Condensed Consolidated Balance Sheet to reflect a decrease in consideration paid in the Encore merger through a reduction of "Goodwill" ($22.1 million), offset by a reduction in an equal amount of the Company's stockholders' equity ($22.1 million). We determined that this correction in outstanding shares (1) had no impact on net income (loss) for the second quarter of 2015, our estimated results of operations for the year ending December 31, 2015, or for any prior period, and (2) was not material to our consolidated balance sheet, statement of cash flows, or basic or diluted earnings per common share for the second quarter of 2015, or for any prior period, and therefore we recorded the cumulative effect of correcting these items during the three months ended June 30, 2015.

Dividends

In all four quarters of 2014 and in each of the first three quarters of 2015, the Company's Board of Directors declared quarterly cash dividends of $0.0625 per common share, or an annual rate of $0.25 per common share. On September 21, 2015, in light of the continuing low oil price environment and its desire to maintain our financial strength and flexibility, the Company's Board of Directors suspended our quarterly cash dividend, after payment of our third quarter dividend on September 29, 2015. By suspending the dividend, we will free up cash which can be directed to other uses. Dividends totaling $65.4 million and $65.2 million were paid to stockholders during the nine months endedSeptember 30, 2015 and 2014, respectively.

Stock Repurchase Program

On September 21, 2015, the Company's Board of Directors reinstated the ability to repurchase shares under our share repurchase program, which authorization was suspended in November of 2014. During the three months ended September 30, 2015, we repurchased 2.7 million shares of Denbury common stock for $6.9 million, and in October 2015 we repurchased an additional 1.7 million shares of Denbury common stock for $4.8 million. During the three months ended March 31, 2014, we repurchased 12.4 million shares of Denbury common stock for $200.4 million. As of November 4, 2015, $210.1 million remains authorized for use under this repurchase program. Our share repurchases are based on various parameters including, but not limited to, the price of our common stock, oil prices, free cash flow, our leverage or other funding sources available to us. There is no requirement that the remaining balance under the program be utilized, and there is no set expiration date for the repurchase program.

Employee Stock Purchase Program

We previously provided for an Employee Stock Purchase Plan (the "Plan") in which funds from eligible employees, together with Company contributions, were used to purchase previously unissued Denbury common stock or treasury stock that we purchased in the open market for that purpose, in either case, based on the market value of our common stock at the end of each quarter. The Plan was terminated, effective at the end of the offering period ended on March 31, 2015, as all of the previously authorized shares reserved for issuance under the Plan had been issued.