Synergy Resources: What To Expect In 2016
Synergy Resources: At $2.5 Million, Niobrara Wells Shine
Synergy Resources: Budgeting For Growth
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
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
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, 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, 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.
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.
Jul. 9, 2015, 3:58 PM
- Synergy Resources (SYRG +8.7%) powers higher despite reporting a small FQ3 net loss on in-line revenues, amid a 95% Y/Y increase in production, primarily from new Wattenberg horizontal wells brought on line and production from acquisitions and asset swaps with other operators.
- SYRG says results reflect strong efficiencies, as it generated a 68% operating cash margin on revenues in the quarter despite a 48% drop in the realized average selling price per boe.
- SYRG also says its estimated $250M-$300M FY 2016 capital budget is fully funded and will generate production 50%-plus growth vs. FY 2015.
- Roth Capital cuts its price target to $19 from $20, as it expects completion delays to impact FQ4 production, but it continues to believe SYRG will demonstrate strong growth in 2016 and beyond (Briefing.com).
Apr. 14, 2015, 5:36 PM
Jan. 27, 2015, 6:12 PM
- Synergy Resources (NYSEMKT:SYRG) -3.6% AH after launching a public offering of $150M of its common stock, with an underwriters option to purchase up to an additional $22.5M of stock.
- SYRG says it will use the proceeds to help fund additional asset acquisitions in the Wattenberg Field which may become available, to pay down debt under its revolving credit facility and for corporate purposes, including working capital.
Jan. 21, 2015, 2:32 PM
- Synergy Resources (SYRG -5%) is sharply lower after saying its FQ2 production trails expectations by 900-1,200 boe/day following project delays by other firms as well as harsh winter weather and pipeline constraints.
- SYRG now expects production to average 7K-7.3K bbl/day during FQ2, down as much as 17% from its prior forecast.
- SYRG also says it is preparing to spud the first of six Codell wells and five Niobrara wells in its Cannon prospect in Colorado.
Dec. 17, 2014, 12:26 PM
- FBR Capital chooses Noble Energy (NBL +8.8%), Schlumberger (SLB +4.6%), Synergy Resources (SYRG +6%), Consol Energy (CNX +3.4%) and SunEdison (SUNE +0.7%) as its top energy and natural resources stocks for 2015.
- FBR likes NBL's strong combination of shale assets that are still immature in their adoption and application of technology, which is scalable; a strong balance sheet; and a portfolio that offers abundant exploration risk/reward potential.
- SLB is FBR's favorite energy stock among those whose secular earnings power is clearly the most likely to significantly expand over the next five years and/or is underestimated at current market multiples.
- SYRG offers investors exposure to industry-leading production growth and a solid balance sheet, a unique combination for a small-cap equity, the firm says.
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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