* Denbury Resources announced that is has cancelled its plan to negotiate a purchase of Encore Energy Partners' Elk Basin properties located on the border of Wyoming and Montana. In management's view, this potential transaction has held up the process of Denbury divesting its GP and LP ownership stake (46%) in Encore Energy Partners. Positive for DNR since ENP faces operational and business challenges; DNR better off totally divesting its interests in ENP
* Encore Energy Partners is one of the most expensive stocks in the upstream MLP universe on a forward EBITDA basis (9.2x vs. median of 7.9x). Of the two companies, DNR is the stock to own.