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Synergy Resources – SYRG – Q3 Revenues increased 157% to a record $7.5 million

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Synergy Resources Corporation (NYSE: SYRG), a U.S. oil and gas exploration and production company focused on the Denver-Julesburg Basin, reported its fiscal third quarter results for the period ended May 31, 2012.

SYRG – Third Quarter 2012 Financial Highlights vs. Same Year-Ago Quarter

  • Revenues increased 157% to a record $7.5 million
  • Operating income improved 603% to a record $3.8 million
  • Net income totaled $2.4 million or $0.05 per share versus a loss of $292,000 or $(0.01) per share
  • Adjusted EBITDA (a non-GAAP metric) totaled a record $5.8 million, up 296%, and representing a 77% return on revenue
  • At May 31, 2012, cash and equivalents totaled $27.8 million, with a current ratio of 2.4 to 1

SYRG – Third Quarter 2012 Operational Highlights


  • Net oil and natural gas production increased 190% to 124,763 barrels of oil equivalent (BOE), averaging 1,356 BOE per day versus 467, as compared to the same year-ago quarter.
  • As the operator, drilled 11 wells and brought six into production during the quarter. This increased the total of wells drilled as operator to 90, with 79 brought into production and the remaining 11 currently being completed.
  • Production commenced at the Wake E24-77HN, the company’s first horizontal well, with a non-operating working interest of 25%.
  • At May 31, 2012, the company had completed, acquired or participated in a total of 170 producing oil and gas wells, including 106 added over the previous 12 months.
  • Increased estimated proved reserves to 3.6 million barrels of oil and 24.8 billion cubic feet of gas, or combined total BOE of 7.8 million. The estimated present value of these reserves before tax and discounted 10% is $129.7 million. Compared to the annual reserve report prepared on August 31, 2011, total BOE increased 74%, with present value increasing by 81%.

About Synergy Resources Corporation – SYRG

Synergy Resources Corporation (SYRG) is a domestic oil and natural gas exploration and production company. Synergy’s core area of operations is in the Denver-Julesburg Basin, which encompasses Colorado, Wyoming, Kansas, and Nebraska. The Wattenberg field in the D-J Basin ranks as one of the most productive fields in the U.S. The company’s corporate offices are located in Platteville, Colorado.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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