Synergy Resources: Moving Into The Mid-Cap Category
Synergy Resources: What To Expect In 2016
Synergy Resources: At $2.5 Million, Niobrara Wells Shine
Synergy Resources: E&P With A Premium Valuation That Could Decline 80%
Grizzly Bear • 41 Comments
Grizzly Bear • 41 Comments
6 Reasons I Am Short Synergy Resources
Mon, Jul. 18, 3:58 PM
- Pioneer Natural Resources (PXD +0.1%), EP Energy (EPE +0.9%), Carrizo Oil & Gas (CRZO +2.8%), Sanchez Energy (SN +2.5%) and Synergy Resources (SYRG -0.1%) are all upgraded to Buy at KLR Group in advance of Q2 earnings reports.
- At the same time, the firm downgrades Devon Energy (DVN -0.4%), Consol Energy (CNX -1.3%) and Continental Resources (CLR +0.4%) to Accumulate from Buy on valuation given their substantial share price appreciation over the past four months.
- KLR expects the U.S. E&P industry's cost intensity to decline another 10% this year as capital spending is rationalized another 45%, but it anticipates spending ultimately will increase ~70% "assuming a substantive recovery in commodity prices."
- The firm's new stock price targets are $218 for PXD, $6.50 for EPE, $49 for CRZO, $9 for SN, $9 for SYRG, $44 for DVN, $20 for CNX and $54 for CLR.
Thu, Jul. 14, 5:57 PM
- Energy companies including Anadarko Petroleum (NYSE:APC), Noble Energy (NYSE:NBL), Whiting Petroleum (NYSE:WLL), DCP Midstream (NYSE:DPM) and Synergy Resources (NYSEMKT:SYRG) have donated millions of dollars to derail a push by Colorado environmentalists to place measures on November's election ballot that would stifle oil and gas drilling in the state, Reuters reports.
- Environmental groups are gathering signatures for two statewide initiatives that would transfer regulatory control of oil and gas development to local governments and create tougher setback requirements to keep oil and gas activities away from occupied structures.
- Opponents of the proposed ballot initiatives say they would seriously damage oil and gas exploration in Colorado, the seventh largest oil and gas producing state in the U.S.; a state agency tasked with encouraging energy development says 90% of surface acreage in Colorado would be unavailable for oil and gas development under the new setback laws.
Fri, Jun. 10, 7:05 PM
- Western Colorado has 40x more natural gas than previously thought, potentially making it the second-largest formation in the U.S., according to a new estimate from the U.S. Geological Survey.
- The Mancos Shale formation in Colorado’s Piceance Basin holds ~66.3T cf of gas, up from just 1.6T estimated in 2003, the USGS says, and the revision puts the basin second only to the Marcellus Shale in terms of the largest total gas reserves in the U.S.
- Current prices of ~$2/MMBtu are considered too low for companies to begin drilling to any large extent; companies likely would begin drilling if prices reached $3.50/MMBtu, says David Ludlam of the West Slope Colorado Oil and Gas Association.
- Among Colorado's top current oil and gas producers: APC, NBL, ECA, XOM, CVX, OXY, WLL, BBG, SYRG, PDCE, BCEI, CRZO
Tue, Jun. 7, 3:44 PM
- Seaport Global Securities upgrades a half-dozen energy E&P stocks - and downgrades two others - even after the group has rallied YTD, saying it is "willing to overlook higher leverage as long as the operational trajectory is notably improving."
- Noble Energy (NBL +4.2%) and Eclipse Resources (ECR +5.5%) are upgraded to Buy from Neutral, as NBL boasts "strong growth and cheap valuation relative to peers" and ERC is "among the cheapest NE gas names while offering good compression in out-year multiples."
- Seaport hikes Synergy Resources (SYRG +2.4%) to Buy from Accumulate thanks to "top-tier growth potential at >$50 oil."
- Upgraded to Accumulate from Neutral are Carrizo Oil & Gas (CRZO +4.3%), as “strong Eagle Ford returns justify return to growth,” and Concho Resources (CXO +4.6%), with “high-quality exposure to the Delaware Basin poised to garner further credit."
- The firm raises WPX Energy (WPX +0.2%) to Neutral from Sell, citing “leverage burden eased with equity, higher commodity price deck assumptions, recent operational progress."
- However, Oasis Petroleum (OAS +0.7%) is downgraded to Neutral from Buy as “NAV valuation gap has closed after a 54% move since our March 30 report," and Petroquest Energy (PQ +1.3%) is cut to Accumulate from Buy as “risk/reward upside has tempered" following a 67% move since March 30.
Mon, May 16, 2:24 PM
- Synergy Resources (SYRG +3.6%) is upgraded to Sector Outperform from Sector Perform with a $13 price target, lifted from $11, at Scotia Howard Weil following its recent Noble Energy asset acquisition and 45M-share public offering.
- The firm believes that following the recent pullback, SYRG shares look more attractive than the company's Niobrara peers.
- Now read Synergy Resources downgraded at Roth, which cites dilution via asset deal
Thu, May 5, 3:24 PM
- Synergy Resources (SYRG -0.6%) is downgraded to Neutral from Buy with a $6.25 price target, cut from $9.50, at Roth Capital, citing additional share dilution from the recent $505M purchase of Colorado oil and gas assets.
- Roth says it is concerned by the significant dilution SYRG has experienced during 2016, noting the company did not raise its 2016 capital budget despite the large acquisition and that it may need to draw down a portion of its revolver to fund 2016 capex, which could limit the ability to grow in 2017.
- The firm also notes disappointing Q1 results, driven by a lower oil to gas production ratio, which "appears to be trending in the wrong direction for SYRG, which could impact future well economics."
Tue, May 3, 5:06 PM
Tue, May 3, 4:40 PM
- Synergy Resources (NYSEMKT:SYRG) -3.5% AH after agreeing to acquire certain oil and gas assets in Colorado from Noble Energy (NYSE:NBL) for $505M.
- SYRG says the deal includes ~33.1K primarily undeveloped net acres within the DJ Basin in the Greeley Crescent area.
- To help fund the deal, SYRG says it is launching a public offering of 45M common shares, with an underwriters option to purchase up to an additional 6.75M shares.
Mon, May 2, 6:39 PM
- The Colorado Supreme Court ruled today that municipalities cannot bar fracking and the storage of fracking waste, striking down measures passed by the cities of Fort Collins and Longmont.
- A local ban "could ultimately lead to a patchwork of regulation that would inhibit the efficient development of oil and gas resources" if left in place, according to one of two rulings today.
- The decisions uphold lower court rulings and come amid a long-running battle over fracking across northeastern Colorado, which sits atop the Denver-Julesburg Basin.
- Among Colorado's top oil and gas operators: APC, NBL, ECA, WLL, BBG, BCEI, CRZO, PDCE, SYRG
Mon, Apr. 18, 2:31 PM
- Investors should stay on defense through select oil and gas stocks such as Concho Resources (CXO +2.5%), Noble Energy (NBL +0.9%), PDC Energy (PDCE +4.3%), Parsley Energy (PE +2.2%), Pioneer Natural Resources (PXD +2.3%), Synergy Resources (SYRG +1.5%) and Cimarex Energy (XEC +1.8%) following the producers' failure to reach a deal at Doha, Stifel says.
- The firm says the balance sheets of the seven companies should remain sound even if WTI oil prices fall short of its $37/bbl forecast for 2016, and the group also owns some of the strongest assets as measured by half-cycle returns.
- A re-surging market share battle between Saudi Arabia and Iran casts doubt on the timing of a realignment of oil supply and demand, and the divide between the two countries runs deep and could widen if the Saudis flood an oversupplied market with additional barrels, Stifel says.
- Now read Stifel downgrades "riskier" oil stocks ahead of OPEC meeting
Wed, Apr. 13, 11:58 AM
- Synergy Resources (SYRG -6.1%) is downgraded to Hold from Buy with an $8.50 price target, cut from $9, at Canaccord Genuity, on valuation.
- The firm notes that with 93K net acres, including 41K in the core of the Wattenberg field, SYRG has significant exposure to the DJ Basin, and says the company's experienced management team and a solid balance sheet nicely position it to exploit its quality asset base.
- But given SYRG trades at a 2016 EV/EBITDA multiple of ~18x vs. only 6.7x for top pick PDC Energy, which is also in the Wattenberg, Canaccord believes valuation will put a lid on the stock.
- Now read Synergy Resources to launch 19.5M-share offering
Mon, Apr. 11, 9:21 AM
Mon, Apr. 11, 8:05 AM
- Synergy Resources (NYSEMKT:SYRG) -5.4% premarket after announcing a public offering of 19.5M common shares, with an underwriters option to purchase up to an additional 2.925M shares.
- SYRG says it plans to use the proceeds for general corporate purposes, which may include continuing to develop its acreage position in the Wattenberg field in Colorado, funding part of its capital spending program for the rest of the year, or other uses including potential future acquisitions.
- Now read Stock dilution is OK for energy investors, because the alternative is far worse
Thu, Mar. 24, 6:45 PM
- At least 15 companies in the hard-hit E&P energy industry have announced new share offerings this year, and nearly all have been rewarded by stock investors who normally would cringe as their holdings are diluted.
- Amid widespread worries about energy companies collapsing under debt loads, analysts and investors say shareholders more easily stomach the dilution if it means the companies are adding cash to strengthen their balance sheets.
- Some companies did not urgently need cash but stood to "immunize” their balance sheets in case the oil markets remain ugly into 2017, and others have asset sales pending but the newly raised money means they do not have to worry about timing of proceeds, says Wunderlich's Irene Haas.
- But "the low-hanging fruit [has] been picked," says Christian Ledoux, senior portfolio manager at South Texas Money Management, "not because [other companies] don’t want to, but because they won’t be able to attract investors" until oil prices are much higher.
- E&P companies that have outperformed the S&P 500 Energy Index by more than 10 percentage points since their respective offerings YTD: EGN, OAS, DVN, MRO, NFX, CPE, FANG, WFT, QEP, HES, SYRG.
- Outperforming the index by 1-10 percentage points: PXD, GPOR, PDCE, MTDR
- Underperforming the index: COG
Thu, Jan. 21, 4:37 PM
- Synergy Resources (NYSEMKT:SYRG) -6.2% AH after announcing a public offering of 10M common shares, with an underwriters option to purchase up to an additional 1.5M shares.
- SYRG says it plans to use the proceeds to repay amounts borrowed under its revolving credit facility and for general corporate purposes, which may include continued development of its acreage position in the Wattenberg Field in Colorado.
Fri, Jan. 8, 3:29 PM
- Synergy Resources (SYRG -6.8%) skids to a three-year low after yesterday reporting FQ1 earnings and revenue that trailed analyst expectations, as higher production volumes were more than offset by lower commodity prices.
- SYRG says FQ1 net oil and natural gas production rose 27% Y/Y to ~959K boe from ~753K boe in the year-ago quarter, and averaged 10,540 boe/day vs. an average of 8,278 boe/day a year ago, but the average realized price of oil was $36.72/bbl vs. $73.69 in the year ago quarter, and the average realized price for natural gas was $2.49/Mcf vs. $4.74 in FQ1 2015.
- SYRG says it completed five wells, including four mid-length lateral wells (7K ft.), and drilled eight standard length lateral wells (4K ft.), with output from the four mid-length lateral wells on the Bestway pad averaging 612 boe/day during their first 30 days.
Synergy Resources Corp. is a oil and natural gas exploration and production company. It is focused on the acquisition, development, exploitation, exploration and production of oil and natural gas properties, primarily located in the Wattenberg field in the D-J Basin of northeast Colorado. The... More
Sector: Basic Materials
Industry: Oil & Gas Equipment & Services
Country: United States
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