Synergy Resources Issues Corrected Press Release

PLATTEVILLE, CO -- (Marketwired) – 01/09/15 -- Synergy Resources Corporation (NYSE MKT: SYRG), a U.S. oil and gas exploration and production company focused in the Denver-Julesburg Basin, issued a press release this morning regarding its fiscal first quarter results   which included an inadvertent error in the table depicting the Condensed Statement of Operations whereby the amounts of Income Tax Expense were omitted for both the current quarter and the comparable quarter of the prior year.  A corrected press release with tables for the period ended November 30th, 2014 is below.

Synergy Resources Reports Fiscal

First Quarter 2015 Results

Revenues up 121% to $42.5 Million, Driving Operating  Income up 104% to $14.8 Million and Net Income of $0.27 per Share;  Company to Host Earnings Conference Call Today, January 9th, 2015 at 11:00 a.m. ET 877-407-9122 Toll Free Dial-In, 201-493-6747 International/Local Dial-In

PLATTEVILLE, CO -- (Marketwired) – 01/09/15 -- Synergy Resources Corporation (NYSE MKT: SYRG), a U.S. oil and gas exploration and production company focused in the Denver-Julesburg Basin, reported its fiscal first quarter results for the period ended November 30th, 2014.

First Quarter 2015 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

First Quarter 2015 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 30th, 2014

·	As of November 30th , 2014, the company was the operator of 39 producing horizontal wells in the Wattenberg Field

 

 

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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.

The following tables present certain per unit metrics that compare results of the corresponding quarterly reporting periods:

“Bbl” refers to one stock tank barrel, or 42 U.S. gallons liquid volume in reference to crude oil or other liquid hydrocarbons.  “Mcf” refers to one thousand cubic feet.  A BOE (i.e. barrel of oil equivalent) combines Bbls of oil and Mcf of gas by converting each six Mcf of gas to one Bbl of oil.

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Lease Operating Expenses (“LOE”)-The following table summarizes operating costs on a per unit basis:

Depletion, Depreciation, and Amortization (“DDA”) – The following table summarizes the components of DDA:

General and Administrative (“G&A”) –The following table summarizes G&A expenses incurred and capitalized during the periods presented:

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Conference Call

The company will hold a conference call on Friday January 9^th, 2015 at 11:00 a.m. Eastern time to discuss results for its fiscal first quarter ended November 30^th, 2014.

Synergy Resources co-CEO Ed Holloway, co-CEO William Scaff, Jr., CFO Monty Jennings, COO Craig Rasmuson, and VP of Capital Markets and Investor Relations Jon Kruljac will host the presentation, followed by a question and answer period.

Date: Friday January 9^th, 2015

Time: 11:00 a.m. Eastern time (9:00 a.m. Mountain time)

877-407-9122 Toll Free Dial-In (US & Canada)

201-493-6747 International/Local Dial-In

Please call the conference telephone number 5-10 minutes prior to the start time.  An operator will register your name and organization. If you have any difficulty connecting with the conference call, contact Rhonda Sandquist with Synergy Resources at 970-737-1073.  A replay of the call will be available after 3:00 p.m. Eastern time on the same day and until

January 23^rd, 2015.

Replay Dial-In Numbers

877-660-6853 Toll Free (US & Canada)

201-612-7415 International/Local

Replay ID#411931

About Synergy Resources Corporation

Important Cautions Regarding Forward Looking Statements

This press release may contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "believes", "expects", "anticipates", "intends", "plans", "estimates", "should", "likely" or similar expressions, indicates a forward-looking statement. These statements are subject to risk and uncertainties and are based on the beliefs and assumptions of management, and information currently available to management. 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. The identification in this press release of factors that may affect the company's future performance and the accuracy of forward-looking statements is meant to be illustrative and by no means exhaustive. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Factors that could cause the company's actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: the success of the company's exploration and development efforts; the price of oil and gas; worldwide economic situation; change in interest rates or inflation; willingness and ability of third parties to honor their contractual commitments; the company's ability to raise additional capital, as it may be affected by current conditions in the stock market and competition in the oil and gas industry for risk capital; the company's capital costs, which may be affected by delays or cost overruns; costs of production; environmental and other regulations, as the same presently exist or may later be amended; the company's ability to identify, finance and integrate any future acquisitions; and the volatility of the company's stock price.

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About Non-GAAP Financial Measures

The company uses "adjusted EBITDA," as a non-GAAP financial measure to evaluate financial performance such as period-to-period comparisons. This Non-GAAP measure is not defined under U.S. GAAP and should be considered in addition to, not as a substitute for, indicators of financial performance reported in accordance with U.S. GAAP. The company may use non-GAAP measures that are not comparable to measures with similar titles reported by other companies. Also, in the future, the company may disclose different non-GAAP financial measures in order to help investors more meaningfully evaluate and compare the company's future results of operations to its previously reported results. The company encourages investors to review its financial statements and publicly-filed reports in their entirety and not rely on any single financial measure. The section titled "Reconciliation of Non-GAAP Financial Measures" includes a detailed description of this measure as well as reconciling to its most similar U.S. GAAP measure.

Reconciliation of Non-GAAP Financial Measures

The company defines adjusted EBITDA as net income adjusted to exclude the impact of interest expense, interest income, income taxes, depreciation, depletion and amortization, stock based compensation, and the plus or minus change in fair value of derivative assets or liabilities. The company believes adjusted EBITDA is relevant because it is a measure of cash flow available to fund capital expenditures and service debt and is a metric used by some industry analysts to provide a comparison of its results with its peers. The following table presents a reconciliation of the company's non-GAAP financial measures to the nearest GAAP measure.

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Financial Statements

Condensed financial statements are included below. Additional financial information, including footnotes that are considered an integral part of the financial statements, will be included in Synergy's Edgar Filings at www.sec.gov on Form10-Q for the period ended November 30^th, 2014.

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Source:  Synergy Resources Corporation