• Resources
  • Blog
  • Journalists
  • Log In
  • Sign Up
  • Data Privacy
  • Send a Release
Cision PR Newswire: news distribution, targeting and monitoring home
  • News
  • Products
    • Overview
    • Distribution by PR Newswire
    • Cision Communications Cloud®
    • Cision IR
    • Sponsored Placement
    • All Products
  • Contact
    • General Inquiries
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices

 

When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • Sponsored Placement
  • All Products
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR

Synergy Resources Corporation Reports Second Quarter And Six Month Results


News provided by

Synergy Resources Corporation

Apr 11, 2012, 06:00 ET

Share this article

Share this article


PLATTEVILLE, Colo., April 11, 2012 /PRNewswire/ -- Synergy Resources Corporation (NYSE Amex: SYRG), a domestic oil and gas exploration and production company focused in the Denver-Julesburg Basin (the "D-J Basin"),  today reported its second quarter and six-month results for the period ended February 29, 2012.  Net oil and natural gas production for the second quarter 2012 increased to 1,091 barrels of oil equivalent per day (Boe/d) compared to 386 Boe/d for the second quarter 2011. 

Second Quarter and Six-Month 2012 Highlights

  • Reported record net income for the second quarter and six-month period of $6,118,805 and $7,745,881 respectively;
  • Posted second quarter 2012 revenues of $6,218,975 compared to $2,033,687 for the three months ended February 28, 2011, a 206% increase;
  • Reported oil and natural gas production of 1,091 Boe/d for the second quarter 2012, a quarter over quarter increase of 183%;
  • For the six months, adjusted EBITDA, a non-GAAP measure, was $7,260,267, representing a 68% return on revenue;
  • Participated in the Company's first two horizontal wells with other operators;
  • Acquired an additional 8,875 acres in the D-J Basin which brings Synergy's acreage position to 204,937 gross acres and 176,601 net acres under lease;
  • Completed the sale of 14.6 million shares of common stock at $2.75 per share for net proceeds totaling approximately $37.4 million.
  • Ended quarter with production in excess of 1250 Boe/d.

Monty Jennings, Chief Financial Officer of Synergy Resources Corporation, said, "Increased production from our new wells fueled record second quarter and six month results.   Second quarter revenues surged 206%.  Six-month revenues grew by 208%.  Our six month adjusted cash flows from operations, a non-GAAP measure, were $7,977,072 in 2012 compared to $1,977,488 in 2011, an increase of 303%.  Earnings in both the three-month and six-month period totaled $6,118,805 and $7,745,881 respectively.  On top of the record financial performance we also successfully completed a secondary offering of 14.6 million shares of common stock resulting in net proceeds of approximately $37.4 million. We believe that the proceeds from our equity offering, plus cash flow from operations, along with additional borrowings available under our revolving line of credit will be sufficient to meet our capital needs for the remaining 2012 fiscal year." 

Operating income for the three month period ended February 29, 2012 was $2,875,295 compared to operating income of $686,413 for the comparable year-ago quarter.  Revenues for the second quarter were a record $6,218,975 compared to $2,033,687 for the comparable year-ago quarter.  Average prices for the quarter were $92.33 per barrel and $4.09 per mcf. Net income, including the effect of $3,241,000 in tax benefits in 2012, was $6,118,805 or $0.12 per diluted share for the second quarter 2012 compared to a net loss of $(11,738,360) or $(0.55) per diluted share for the same year ago period.  Improved operating results for the quarter were associated with increasing revenues from the Company's wells completed during fiscal 2012. As of February 29, 2012, Synergy Resources had 157 producing wells, a comparative increase of 101 wells, which consists of 64 wells added through acquisitions and 37 wells completed since February 28, 2011. To date, all wells drilled by Synergy have been 100% successful in reaching commercial production.

Operating income for the six month period ended February 29, 2012 was $4,494,188 compared to operating income of $697,251 for the comparable year-ago period.  Revenues for the six-month period were a record $10,697,839 compared to $3,477,282 for the comparable year-ago period.  The Company reported net income of $7,745,881 or $0.18 per share for the six-month period compared to a net loss of $(12,898,363) or $(0.73) per diluted share for the same year ago period.  Net income for 2012 included a tax benefit of $3,241,000, representing recognition of a deferred tax asset.

Edward Holloway, Chief Executive Officer and President of Synergy Resources, said, "Continued execution of our vertical and horizontal drilling program in the liquid-rich Wattenberg Field drove strong second quarter and six month results.  Since the start of our current drilling program to the end of our second quarter, we've drilled 31 wells, of which 18 have reached productive status while completion activities are underway on 13 wells, most of which are expected to reach productive status during our fiscal third quarter. Additionally, we participated in our first two horizontal wells with Noble Energy and PDC Energy.  We plan to drill and complete a total of 52 vertical wells in fiscal 2012 as well as participate in additional horizontal wells with notable operators in the Wattenberg field."

Holloway concluded, "While the first half of fiscal 2012 has been the most successful period in our Company's history, our visible growth in vertical and horizontal drilling is strong.  Our core position in the Wattenberg Field provides us with strong upside potential in the oil and liquid-rich portion of the play." 

The following table presents certain per unit metrics that compare results of the quarterly and six month reporting periods:








Per Unit Analysis

Three Months Ended

Six Months Ended


February 29,

February 28,


February 29,

February 28,



2012

2011

% Change

2012

2011

% Change

Sales volumes - oil (Bbls)

55,823

19,511

186.1%

97,227

35,450

174.3%

Sales volumes - gas (Mcf)

260,627

91,333

185.4%

504,208

174,639

188.7%

Sales Volumes - BOE

99,261

34,733

185.8%

181,262

64,557

180.8%

BOE/D

1,091

386

182.6%

996

357

179.2%








Average sales price - oil (S's/Bbls)

$                 92.33

$                 83.64

10.4%

$                 85.70

$                 78.58

9.1%

Average sales price - gas (S's/Bbls)

4.09

4.40

-7.1%

4.69

3.96

18.5%

Average sales price - (S's/BOE)

62.65

58.55

7.0%

59.02

53.86

9.6%








Lease operating expense ($'s/BOE)

2.98

1.59

87.4%

3.03

1.81

67.4%

Production taxes ($'s/BOE)

5.68

5.90

-3.7%

5.35

5.36

-0.2%

DD&A expense  ($'s/BOE)

15.24

18.07

-15.7%

14.76

19.05

-22.5%

G&A expense ($'s/BOE)

9.44

13.23

-28.6%

14.84

18.52

-19.9%

Financial Statements and Footnotes

Condensed financial statements are included in this earnings release.  Additional financial information, including footnotes that are considered an integral part of the financial statements, can be found in Synergy's Edgar Filings at www.sec.gov on Form 10-Q for the period ending February 29, 2012.

About Synergy Resources Corporation

Synergy Resources Corporation 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 the 7th largest field in the U.S. in terms of proved gas reserves and 9th in production. Synergy's corporate offices are located in Platteville, Colorado.  More company news and information is available at www.SYRGinfo.com.

This press release may contain forward-looking statements.  The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information.  Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information.

SYNERGY RESOURCES CORPORATION

CONDENSED BALANCE SHEETS




 February 29,


 August 31,



2012


2011







ASSETS

Cash and cash equivalents


$

38,852,524


$

9,490,506

Other current assets



6,481,572



5,140,452

Total current assets



45,334,096



14,630,958

Oil and gas properties and other equipment



67,743,351



48,898,064

Deferred tax asset, net



3,241,000



-

Other assets



219,912



168,863

Total assets


$

116,538,359


$

63,697,885








LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities


$

14,654,442


$

13,946,413

Revolving credit facility



5,392,110



-

Asset retirement obligations



815,873



643,459

Total liabilities



20,862,425



14,589,872

Shareholders' equity:







Common stock and paid-in capital



122,869,634



84,047,594

Accumulated deficit



(27,193,700)



(34,939,581)

Total shareholders' equity



95,675,934



49,108,013

Total liabilities and shareholders' equity


$

116,538,359


$

63,697,885








SYNERGY RESOURCES CORPORATION

CONDENSED STATEMENTS OF OPERATIONS










Three Months Ended


Six Months Ended



 February 29, 


 February 28, 


 February 29, 


 February 28, 



2012


2011


2012


2011














Oil and gas revenues


$

6,218,975


$

2,033,687


$

10,697,839


$

3,477,282

Expenses:













Lease operating expenses



854,414



260,480



1,560,734



463,155

Depreciation, depletion,
    and amortization



1,552,237



647,205



2,766,079



1,232,186

General and administrative



937,029



439,589



1,876,838



1,084,690

Total expenses



3,343,680



1,347,274



6,203,651



2,780,031

Operating income



2,875,295



686,413



4,494,188



697,251














Other income (expense):













Change in fair value of
   derivative conversion liability



-



(9,926,158)



-



(10,315,421)

Interest income and expense, net


2,510



(2,498,615)



10,693



(3,280,193)

Total other (expense)



2,510



(12,424,773)



10,693



(13,595,614)

Provision for income tax benefit


3,241,000



-



3,241,000



-

Net income (loss)


$

6,118,805


$

(11,738,360)


$

7,745,881


$

(12,898,363)

Net income (loss) per common share:











Basic


$

0.13


$

(0.55)


$

0.19


$

(0.73)

Diluted


$

0.12


$

(0.55)


$

0.18


$

(0.73)

Weighted average
      shares outstanding:













Basic



47,445,178



21,487,951



41,771,695



17,580,331

Diluted



49,229,042



21,487,951



43,536,398



17,580,331

SYNERGY RESOURCES CORPORATION

 CONDENSED STATEMENTS OF CASH FLOWS

For the six months ended February 29, 2012 and February 28, 2011







2012



2011








 Cash flows from operating activities: 







 Net income (loss) 


$

7,745,881


$

(12,898,363)

 Adjustments to reconcile net loss to net cash 







   provided by (used in) operating activities: 







 Depreciation, depletion, and amortization 



2,766,079



1,232,186

 Provision for deferred taxes 



(3,241,000)



-

 Other, non-cash items 



215,109



13,643,665

 Changes in operating assets and liabilities: 







 Current assets 



(1,328,365)



(904,715)

 Current liabilities 



3,473,420



2,596,173

 Total adjustments 



1,885,243



16,567,309

Net cash provided by (used in) operating activities


9,631,124



3,668,946

Cash flows from investing activities:







Acquisition of property and equipment



(17,882,999)



(5,946,766)

Net cash used in investing activities



(17,882,999)



(5,946,766)

Cash flows from financing activities:







Net proceeds from sale of stock



37,421,783



16,690,721

Net proceeds from borrowings



192,110



-

Net cash provided by financing activities



37,613,893



16,690,721

Net decrease in cash and equivalents



29,362,018



14,412,901

Cash and equivalents at beginning of period



9,490,506



6,748,637

Cash and equivalents at end of period


$

38,852,524


$

21,161,538

SYNERGY RESOURCES CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES








 Six Months Ended 



 February 29, 


 February 28, 

ADJUSTED CASH FLOW FROM OPERATIONS


2012


2011

Cash payments


$       17,882,999


$         5,946,766

Non-cash payments


694,145


-

Accrued costs, beginning of period


(4,967,369)


(3,446,439)

Accrued costs, end of period


7,829,177


2,515,024

Asset retirement obligation


135,517


76,663

Capital expenditures


$       21,574,469


$         5,092,014













 Six Months Ended 



 February 29, 


 February 28, 

ADJUSTED EBITDA


2012


2011

Net income (loss)


$         7,745,881


$    (12,898,363)

Add back:





Depreciation, depletion, and amortization


2,766,079


1,232,186

Provision for income tax benefit


(3,241,000)


-

Change in fair value of derivative conversion liability


-


10,315,421

Interest expense and related items, net


(10,693)


3,280,193

Adjusted EBITDA


$         7,260,267


$         1,929,437

SOURCE Synergy Resources Corporation

Modal title

Contact Cision

  • Cision Distribution 888-776-0942
    from 8 AM - 9 PM ET

  • Chat with an Expert
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • Cision Communication Cloud®
  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • For Small Business
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • COVID-19 Resources
  • Accessibility Statement
  • Asia
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Israel
  • Italy
  • Mexico
  • Middle East
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom

My Services

  • All New Releases
  • Online Member Center
  • ProfNet

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2022 Cision US Inc.