Synergy Resources: What To Expect In 2016
Synergy Resources: At $2.5 Million, Niobrara Wells Shine
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.
Thu, Jan. 7, 5:30 PM
Thu, Jan. 7, 4:15 PM
- Synergy Resources (NYSEMKT:SYRG): FQ1 EPS of -$0.04 misses by $0.04.
- Revenue of $26.14M (-38.6% Y/Y) misses by $5.12M.
Dec. 14, 2015, 4:40 PM
- Synergy Resources (NYSEMKT:SYRG) says co-CEOs Ed Holloway and William Scaff will step down effective Dec. 31, to be replaced by current President Lynn Peterson.
- Peterson is the former co-founder, president and CEO of Kodiak Oil and Gas.
- Holloway and Scaff will remain on the board and advise Peterson on strategic initiatives, asset acquisitions and other activities through May 31, 2016.
Nov. 19, 2015, 3:17 PM
- Synergy Resources (SYRG -4.3%) is downgraded to Accumulate from Buy with a $14 price target at KLR Group, as the stock has appreciated 20%-plus since late September and outperformed the E&P sector by more than 10%.
- KLR says its pre-acquisition FY 2016 production expectation of ~11.6M boe/day is ~5% above company guidance, and its economic model contemplates a one-rig Wattenberg program next year, a 2-3 rig program in 2017 and a 3-4 rig program in 2018.
- The firm calculates SYRG’s mid-cycle capital yield at ~140%, thanks largely to superior cash flow via its lower expenses structure and comparing favorably to its DJ Basin peers (100%-140%) and to the industry median (~120%).
Oct. 19, 2015, 3:25 PM
- Carrizo Oil & Gas (CRZO -4.2%), Comstock Resources (CRK -4.6%), Synergy Resources (SYRG -1.6%), Callon Petroleum (CPE -6.5%), Gastar Exploration (GST -5.9%) and Goodrich Petroleum (GDP +0.1%) are mostly lower despite getting praise from a Barron's weekend article as "six small oil explorers that should do well."
- Imperial Capital considers CRZO, CRK, SYRG and CPE as its favorite low-risk, small-cap E&P companies based on liquidity risk, quality of properties and quality of operatorship; in addition, Abraxas Petroleum (AXAS -7.5%), Jones Energy (JONE -4%) and PetroQuest (PQ -6.1%) are well positioned purely from a liquidity standpoint.
- Imperial says GDP, in the firm's high-risk group, shows the most improvement at maintenance capex because Haynesville Shale wells are expected to come online at such high rates; it places GST high in its medium-risk group.
Oct. 15, 2015, 5:30 PM
Oct. 15, 2015, 4:05 PM
- Synergy Resources (NYSEMKT:SYRG): FQ4 EPS of -$0.05 misses by $0.06.
- Revenue of $32.6M (-10.1% Y/Y) misses by $3.44M.
Sep. 8, 2015, 2:56 PM
- Energy E&P companies could suffer ~50% downside to 2017 consensus estimates, Cowen analysts say as they downgrade two-third of their portfolio coverage in the sector amid a weak oil price environment.
- The firm cuts capital spending estimates for several names in the sector, which in turn cuts production and cash flow estimates, the firm says as it lowers its 2016 production and operating cash flow estimates by a respective 4% and 35% below consensus view; by 2017, it sees 10% downside to consensus production estimates and 51% downside to consensus cash flow estimates.
- Downgraded to Underperform from Market Perform: BBG, BCEI, CWEI, DNR, NOG.
- Downgraded to Market Perform from Outperform: CPE, FANG, PDCE, PE, SYRG.
- Maintained at Market perform: AXAS, EGN
- Maintained at Outperform: OAS, QEP, WLL
Aug. 25, 2015, 8:55 AM
- Synergy Resources (NYSEMKT:SYRG) hires James Henderson as executive VP of finance and CFO, replacing Frank Jennings, who will become Chief Accounting Officer after serving as CFO since 2008.
- Henderson is the former CFO of Kodiak Oil and Gas, and brings more than 25 years of oil and gas industry financial reporting and management experience to the company.
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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