On Synergy’s earnings call yesterday, co-CEO Ed Holloway addressed the issue of oil prices: “First of all, it’s important for our shareholders to know that over a year ago, when we were setting our strategies and budgets for fiscal 2014 and ‘15, we used $75 of net oil price in our model. $60 – $75 Oil: Business as Usual for Synergy To date, all of Synergy’s operations have centered in the Wattenberg Field. Net income was $28.9 million, or $0.37 per share, for FY 2014.
Its operating income for the fiscal year more than doubled to $43.5 million, compared to $19.5 million in FY 2013. In addition to its operated horizontal wells Synergy has participated in over 77 gross horizontal wells in the past three years as a non-operator.įor FY2014, Synergy reported $104 million in revenue. Three horizontal drilling rigs are currently in operation and SYRG plans to expend $200-$210 million in fiscal 2015. Liquids consisted of 89% of production in Q3’14. The company currently operates 314 wells and has 298,000 net acres in the DJ Basin. Estimated proved reserves for Q4’14 increased to 16.3 MMBO and 95.2 MMcf of gas for a total of 32.2 MMBOE. Synergy averaged 5,894 BOEPD versus 2,479 BOEPD, respectively, aided by bringing online 31 gross new operated horizontal wells. 31, 2014, compared to its Q413 production. Synergy Resources’ net oil and natural gas production of 542,207 BOE (all from the Wattenberg field) more than doubled in its fiscal fourth quarter which ended Aug. Yesterday, Synergy Resources (ticker: SYRG), Noble Energy (ticker: NBL) and Anadarko Petroleum (ticker: APC) all reported growing production from the Wattenberg Field. However, established producers in Colorado’s prolific Wattenberg field seem more likely to ignore OPEC and stick to the business of producing oil from the liquids-rich Niobrara and Codell shales in the DJ Basin. “At this price, 50% of tight oil will be out of the market,” el-Badri said.
On Wednesday, OPEC’s secretary-general Abdalla Salem el-Badri told an energy conference that oil price weakness would likely hit output of shale oil hard, the Wall Street Journal reported.