Current SYRG Stock Info

Synergy Resources Corporation (ticker: SYRG) is a domestic oil and natural gas exploration and production company with 392,000 gross (286,000 net) acres under lease. Synergy's core area of operations and all of its production comes from the Denver-Julesburg Basin, which encompasses Colorado, Wyoming, Kansas and Nebraska.

Synergy’s horizontal program, initiated in May 2013, doubled the company’s revenue and production on a year-over-year basis. In its fiscal Q2’14 earnings release, SYRG announced 111% increases in both quarterly revenue ($23 mi...

Analyst Commentary

GHS Dirty Energy Daily – (4.4.14)

Synergy Resources (AMEX: SYRG; $10.41; Buy; $11.50 PT)
Slight negative, however SYRG’s FQ2 earnings miss comes as no surprise following last week’s ops update (highlighted delays/mechanical issues at the Phelps/Leffler pads). The critical factor for today’s call is how management addresses FY14 production guidance of 5.1-5.5 Mboepd which may be at risk. We remain in the buy on weakness camp as we see SYRG as a premier small-cap growth story (>100% growth next two years) with a compelling valuation (EV/FY15E EBITDA of 4.7x).

Johnson Rice & Co. Morning Energy Call – (4.4.14)

Synergy Resources Corp. (SYRG - $10.41,OW rated): Sales Note: In-line quarter, look to the call for more Leffler pad detail
SYRG reported an in-line CFPS of $0.22 vs cons' $0.23 and our $0.22. Due to repairs at the Eaton Plant (previously announced), production came in light at 3.9 mboe/d vs cons' 4.2 mboe/d and our 4.5 mboe/d, however this was offset by higher than expected realizations of $65/boe vs cons' $62/boe and our $58/boe. LOE was also slightly above expectations (+$0.30/boe or CFPS of $0.01), but was primarily associated with high line pressures and air emission compliance, which should be less of an issue throughout the remainder of '14. With operations prereleased (see note) there were no updates included, however look to the call for a more in-depth discussion on the Leffler pad's results (i.e. the ">300 boe/d" rate was determined conservatively vs industry standards) and the test well drilled in the Wattenberg Extension (showed Codell prospectivity).

SunTrust Robinson Humphrey – (4.4.14)

What's incremental. This morning's earnings report was not as bad as we feared following last week's pre-announcement. Production and earnings came in above our recently-lowered views, but some costs are fluctuating. Overall, we view the press release as a modest positive as it boosts confidence in the near-term production outlook following delays announced last week. We think the upcoming multiple-well pads Phelps and Eberle should further boost investor enthusiasm.
Results above STRHe, below consensus. Synergy announced adjusted EPS of $0.08, above our recently-lowered $0.07 estimate but below the $0.09 consensus. Versus our view, higher production/realized prices and lower G&A expense were partly offset by higher D,D&A and operating expense. Production of 3.9 Mboepd was 10% above our 3.6 Mboepd estimate but 7% below the 4.2 Mboepd consensus.  


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