The president and CEO of Synergy Resources Corp (SYRG, Financial), Lynn A. Peterson, purchased 49,071 shares on Oct. 6 for a price of $6 per share, according to a Form 4Â filing with the Securities and Exchange Commission.
Synergy Resources Corp is a domestic oil and natural gas explorations and production company. The company is engaged in the acquisition, development and production of crude oil and natural gas in and around the Denver-Julesburg Basin, which encompasses Colorado, Wyoming, Kansas and Nebraska.
Synergy Resources has a market cap of $1.37 billion, an enterprise value of $1.36 billion, a price-book (P/B) ratio of 1.59 and a quick ratio of 2.29.
According to GuruFocus, Synergy Resources has a cash to debt ratio of 1.04 and an equity to asset ratio of 0.86. Its Piotroski F- Score of 3 implies poor business operations. The company has an Altman Z-Score of 4.50 that places it in the safe zone. The Beneish M-Score of -3.15 suggests the company is not a manipulator of its financial statements. The company also has a 7 of 10 profitability and growth rating with an operating margin of -346.01%, a net-margin of -329.84%, a ROE of -54.59%, a ROA of -43.16% and three-year revenue growth of 51.50%, which ranks it above 97% of the 227 companies in the Global Oil & Gas Equipment & Services industry.
Growth
According to Synergy Resources most recent 10-K filing, since September 2008, when the company began commencing active operations, it has since undergone significant growth. Since the company’s inception through Aug. 31, 2015, Synergy Resources has completed, acquired or participated in 582 gross (407 net) productive oil and gas wells. As of Aug. 31, 2015, the company is an operator of 423 producing wells and participates as non-operators in 159 producing wells. In addition to the wells that reached productive status by Aug. 31, 2015, there were 28 gross (17 net) wells in various stages of drilling or completion as of that date.
Since August 2009, Synergy Resources has been able to increase its revenue from $100,000 to $100,900,000, an average annual increase of 168.6% over the previous 7 years. The company’s gross profits have also increased at an accelerated pace going from $100,000 in August 2009, to $81,200,000 over the previous trailing twelve months. An average annual increase in gross profit of 160% over the previous 7 years.
Below is a Peter Lynch Chart that shows Synergy Resources is trading above its intrinsic value.
Peterson is the president, CEO and chairman of the board at Synergy Resources. He was a co-founder of Kodiak Oil & Gas Corp (KOG, Financial), and served Kodiak as a director from 2001 to 2014, president and CEO from 2002 to 2014, and chairman of the board from 2011 to 2014. Peterson has over 30 years of industry experience. He graduated from the University of Northern Colorado with a Bachelor of Science in accounting.
Disclosure: Author does not own any shares of this company.
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