Exploration & Production | Quarterly / Earnings Reports

Synergy Sees 108% Upswing in Revenues YOY

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   |    Wednesday,July 09,2014

Synergy Resources Corporation has reported its fiscal third quarter results for the period ended May 31^st, 2014.

Third Quarter 2014 Financial Highlights vs. Same Year-Ago Quarter

• Revenues increased 108% to $25.7 million
• Operating income increased 131% to $11.3 million
• Adjusted EBITDA (a non-GAAP metric) increased 103% to $18.9 million representing a 74% margin on revenues
• At May 31^st, 2014, cash and equivalents totaled $48 million
• Re-determined borrowing base of $110 million yields additional liquidity of $73 million

Third Quarter 2014 Operational Highlights

• Net oil and natural gas production increased to 379,081 barrels of oil equivalent (BOE), averaging 4,120 BOE per day versus 2,256, as compared to the same year ago quarter, an average daily increase of 83%
• As operator, completed 5 horizontal wells on our Phelps pad and commenced production in May
• As of May 31^st , 2014, the company was the operator of 16 producing horizontal wells in the Wattenberg Field

Third Quarter 2014 Financial Results

Revenues totaled $25.7 million, up 11% from $23 million in the previous quarter and up 108% from $12.3 million in the year ago quarter. The year-over-year improvement was attributed to an 83% increase in production, primarily from the new horizontal wells brought on line and a 14% increase in the realized average selling price per BOE. During fiscal Q3 2014, average selling prices were $90.91 per barrel of oil and $5.15 per mcf of gas, as compared to $83.98 and $4.76, respectively a year-ago.

Operating income increased to $11.3 million up 19% from $9.5 million in the previous quarter and up 131% from $4.9 million in the same year-ago period. Net income was $7.2 million or $0.09 per basic and diluted share, up from $5.2 million or $0.07 per basic and diluted share in the previous quarter and up 98% from $3.6 million or $0.07 per basic and $0.06 per diluted share in the same year-ago period. 

Adjusted EBITDA (a non-GAAP financial measure) increased to $18.9 million, up 9% from $17.5 million in the previous quarter and up 103% from $9.3 million in the same year-ago quarter.

As of May 31^st, 2014, the company's cash and equivalents and short term instruments totaled $48 million, as compared to $79.5 million at August 31, 2013. At May 31^st 2014, there was $37 million borrowed under the revolving line of credit.