Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
After the company's acquisition of 33,100 net acres within its core Greeley Crescent development area from Noble Energy, Inc. (NYSE: NBL) in May of this year, Synergy now estimates it has over 1,000 gross longer lateral drilling locations in the Greeley Crescent development area alone.
"This represents —10 years of core inventory assuming a more rapid 2017 drilling program calling for 68 gross Mid-Length (ML) wells and 34 gross Long-Length (LL) wells," Mark Lear wrote in a note.
Meanwhile, the company also retains additional inventory within its 47,000 total net acres in the Wattenberg Fairway. Another 52,000 net acres in the Northeast Extension area signifies "further upside potential in an improved commodity price environment."
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
"SYRG's current drilling and completion schedule should drive 74 percent '17(16 yoy production growth, which when coupled with the sizable undeveloped acreage acquisition drives best-in-class multiple compression relative to the broader E&P group and Wattenberg peers," Lear highlighted.
"Specifically, our estimates call for a two year production CAGR of 67 percent, which should drive multiples down from 22.0x in 2016 to 6.2x in 2018 (EVIEBITDA at the futures strip)," Lear continued.
In addition, the analyst pointed out that the company's leverage stays sub 2.0x in 2017 and compresses further to 1.7x in 2018 when again assuming futures strip pricing.
At time of writing Wednesday, shares of Synergy were up 4.76 percent on the day at $6.16.
Full ratings data available on Benzinga Pro.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.