Exploration & Production | Quarterly / Earnings Reports | Production | First Quarter (1Q) Update

Synergy Ups Daily Production 158% to 8,278 BOE/d

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   |    Friday,January 09,2015

Synergy Resources Corporation reported its fiscal first quarter results for the period ended November 30th, 2014.

1Q2015 Financial Highlights vs. Same Year-Ago Quarter

• Revenues increased 121% to $42.5 million
• Operating income increased 104% to $14.8 million
• Adjusted EBITDA (a non-GAAP metric) increased 161% to $33.4 million representing a 79% margin on revenues
• Net income increased 247% to $21.2 million
• At November 30th, 2014, cash and equivalents totaled $47.1 million

1Q2015 Operational Highlights

• Net oil and natural gas production increased to 753,312 barrels of oil equivalent (BOE), averaging 8,278 BOE per day versus 3,208 BOE per day in the same year ago quarter, an average daily increase of 158%
• As operator, completed 8 horizontal wells including one well on the Phelps pad, one mid-reach lateral well on the Eberle pad and six wells on the Weld 152 pad, all of which commenced production by November 30^th, 2014
• As of November 30th, 2014, the company was the operator of 39 producing horizontal wells in the Wattenberg Field

First Quarter 2015 Financial Results

Revenues totaled $42.5 million, up 17% from $36.3 million in the previous quarter and up 121% from $19.3 million in the year ago quarter. The year-over-year improvement was attributed to a 158% increase in production, primarily from the new horizontal wells brought on line partially offset by a 14% decrease in the realized average selling price per BOE. During fiscal Q1 2015, average selling prices were $73.69 per barrel of oil and $4.74 per mcf of gas, as compared to $93.06 and $4.86, respectively a year-ago.

Operating income decreased to $14.8 million down 5% from $15.5 million in the previous quarter and up 104% from $7.2 million in the same year-ago period. Net income was $21.2 million or $0.27 per basic and $0.26 per diluted share, up from $10.4 million or $0.13 per basic and diluted share in the previous quarter and up 247% from $6.1 million or $0.08 per basic and diluted share in the same year-ago period. 

Adjusted EBITDA (a non-GAAP financial measure) increased to $33.4 million, up 19% from $28 million in the previous quarter and up 161% from $12.8 million in the same year-ago quarter.

As of November 30^th, 2014, the company's cash and equivalents and short term instruments totaled $47.1 million, as compared to $34.8 million at August 31^st, 2014. At November 30th 2014, there was $77 million borrowed under the revolving line of credit.