Stockholders' Equity

12 Months Ended

Dec. 31, 2015

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Note 6. 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 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 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 our 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 2015, or for any prior period, and therefore we recorded the cumulative effect of correcting these items during 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. On September 21, 2015, in light of the continuing low oil price environment and our desire to maintain our financial strength and flexibility, the Company’s Board of Directors suspended our quarterly cash dividend effective 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 $87.0 million were paid to stockholders during the years ending December 2015 and 2014, respectively.

Stock Repurchase Program

In October 2011, we commenced a common share repurchase program, which has been approved for up to an aggregate of $1.162 billion of Denbury common shares by the Company’s Board of Directors.  The program has no pre-established ending date and may be suspended or discontinued at any time.  In September 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. 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. We are not obligated to repurchase any dollar amount or specific number of shares of our common stock under the program.

The following table presents a summary of repurchases under our share repurchase program:

	Total Repurchases Since Inception		Year Ended December 31,
In thousands, except per-share data			2015		2014		2013
Total amount repurchased	$	951,780	$	11,759	$	200,369	$	277,768
Weighted average price per share	$	14.78	$	2.66	$	16.16	$	16.87
Denbury common stock repurchased (shares)	64,382		4,425		12,398		16,469

As of December 31, 2015, an additional $210.1 million remains authorized for purchases of common stock under this repurchase program. We account for treasury stock using the cost method and include treasury stock as a component of stockholders’ equity.

Retirement of Treasury Stock

During the year ended December 31, 2015, we retired 60.0 million shares of existing treasury stock, with a carrying value of $884.1 million, acquired principally through our stock repurchase program. These retired shares are now included in the pool of authorized but unissued shares. Our accounting policy upon the retirement of treasury stock is to deduct its par value from common stock and reduce additional paid-in capital by the excess amount of treasury stock retired.

Employee Stock Purchase Plan

We previously provided for an Employee Stock Purchase Plan (the “Plan”) in which eligible employees could contribute up to 10% of their base salary, and we matched 75% of their contribution.  The combined funds 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. We recognize compensation expense for the Company match portion, which totaled $1.1 million, $7.0 million and $6.5 million for the years ended December 31, 2015, 2014 and 2013, respectively.  This plan was administered by the Compensation Committee of our Board of Directors.

401(k) Plan

We offer a 401(k) plan to which employees may contribute tax-deferred earnings subject to IRS limitations.  We match 100% of an employee’s contribution, up to 6% of compensation, as defined by the plan, which is vested immediately.  During 2015, 2014 and 2013, our matching contributions to the 401(k) plan were approximately $10.1 million, $9.9 million and $9.0 million, respectively.