Synergy Resources (SYRG) Offers Prelim. Q4 Results

Synergy Resources Corporation (NYSE MKT: SYRG) ("Synergy" or the "Company"), an oil and gas exploration and production company focused in the Denver-Julesburg Basin, today issues its preliminary fourth quarter and year-end December 31, 2016 financial results.

Highlights

• Production sales volumes for three and twelve months ended December 31, 2016 were 13,269 BOE/day (58% oil) and 11,670 BOE/day (53% oil), respectively
• Drilling and completion capital expenditures for three and twelve months ended December 31, 2016 were $47.7 million and $130.9 million, respectively
• Liquidity of $178 million is composed of the undrawn revolver plus cash on hand at year-end 2016 and does not include proceeds from the recently announced divestiture
• Proved reserves at year-end 2016 increased 41% over the December year-end 2015

                                                                            

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                                               %                          % 

                         Three Months Ended  Chg.  Twelve Months Ended  Chg.

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 Average Daily Volumes 12/31/2016 12/31/2015      12/31/2016 12/31/2015     

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Daily Production                                                            

 (BOE/day)               13,269     10,815    23%   11,670      9,548    22%

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Product Price Received                                                      

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Crude Oil ($/Bbl)        $40.94     $34.37    19%   $34.43     $40.08   -14%

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Natural Gas ($/Mcf)       $3.18      $2.44    30%    $2.44      $2.71   -10%

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     Differentials                                                          

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NYMEX WTI                -$8.20     -$7.56    8%    -$8.77     -$8.65    1% 

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NYMEX Henry Hub           $0.14      $0.32   -56%   -$0.08      $0.13    nm 

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  Unit Cost Analysis                                                        

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Lease Operating                                                             

 Expense ($/BOE)          $4.08      $3.16    29%    $4.67      $4.61    1% 

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                    Proved Reserves - December 31, 2016 *                   

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                        Developed Producing    Undeveloped                  

                               (PDP)              (PUD)        Total Proved 

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Oil/Condensate - Mbbl          7,435              30,597          38,032    

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Gas - MMcf                     62,570            269,351         331,921    

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     Total - MBOE              17,863             75,489          93,352    

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* Reserve information prepared by independent reserve engineering firm,     

 Ryder Scott Company, L.P.                                                  

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Production for the three months ended December 31, 2016 increased 23% year-over-year and was up 23% sequentially. Production for 2016 as a whole increased 22% from 2015, averaging 11,670 BOE/day, above the high end of the Company's full year guidance range of 11,100-11,300 BOE/day. Synergy's oil differentials improved by 11% for the three months ended December 31, 2016 compared to the three months ended September 30, 2016 reflecting the favorable impact of uncommitted volumes.

Operations Update

Operations at the Evans drilling spacing unit (DSU) are on schedule with completion work continuing on the second tranche of six extended reach lateral wells (~12,000') while flow-back operations have begun on the first tranche of six long reach lateral wells (~10,000'). A second crew has commenced completion work on the Wiedeman DSU where the Company has drilled four standard reach lateral wells (~4,500') and four long reach lateral wells.

The Company is currently drilling 12 mid-reach lateral wells (~7,500') on the Orr DSU and on the Orr State DSU.

Fourth Quarter 2016 Earnings Release and Call

Synergy plans to issue its three and twelve months ended December 31, 2016 earnings release on Thursday, February 23, 2017 after the close of trading on the New York Stock Exchange.

Synergy will host a conference call on Friday, February 24, 2017 at 11:00 a.m. Eastern time (9:00 a.m. Mountain time) to discuss the results. The call will be conducted by Chairman and CEO Lynn A. Peterson, CFO James Henderson, co-COOs Nick Spence and Mike Eberhard and Manager of IR John Richardson. A Q&A session will immediately follow the discussion of the results for the quarter.

To participate in this call please dial:
Domestic Dial-in Number: (877) 407-9122
International Dial-in Number: (201) 493-6747

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