DENVER, CO--(Marketwired - February 23, 2017) - Synergy Resources Corporation (NYSE MKT: SYRG) ("Synergy", the "Company", "we", "us" or "our"), a U.S. oil and gas exploration and production company focused on the Wattenberg Area of the Denver-Julesburg Basin, reports its fourth quarter and year-end financial and operating results for the period ended December 31, 2016, and announces a company name, address and ticker symbol change.

Fourth Quarter and Year End 2016 Highlights

• Revenues were $38.7 million and $107.1 million for the three and twelve months ended December 31, 2016, respectively
• Net income was $5.3 million or $0.03 per diluted share and net loss was $219.2 million or $1.26 per diluted share for the three and twelve months ended December 31, 2016, respectively
• Adjusted EBITDA was $25.5 million and $65.2 million for the three and twelve months ended December 31, 2016, respectively (see further discussion regarding the presentation of adjusted EBITDA in "About Non-GAAP Financial Measures" below)

Fourth Quarter and Year End 2016 Financial Results

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

The volatility of oil and natural gas prices impacted the Company's financial results throughout the year. The Company's fourth quarter benefited from higher prices relative to the same period a year ago as realized oil prices increased approximately 19%, averaging $40.94 per barrel versus $34.37 in the fourth quarter of 2015. Natural gas prices averaged $3.18 per Mcf in the fourth quarter of 2016 compared to $2.44 a year ago, a 30% increase. For the full year, however, realized oil prices averaged $34.43, 14% lower than the full year 2015, while natural gas prices averaged $2.44 per Mcf, 10% lower than 2015.

Revenues for the three months ended December 31, 2016 increased 52% as compared to the three months ended December 31, 2015. This was due to the higher commodity prices realized in the quarter versus the comparable period a year ago, along with a 23% increase in sales volumes period over period. For the twelve months ending December 31, 2016, despite a 23% increase in sales volumes year over year, revenues increased only 1% as the lower prices received for the year offset the production growth.

Production taxes for the twelve months ended December 31, 2016 were favorably impacted by an adjustment of the Company's assumed ad valorem tax rate based on its most recent filing and areas of activity. G&A expense for the twelve months ended December 31, 2016 as compared to the twelve months ended December 31, 2015 declined by approximately $647 thousand and on a per unit of production basis by 20% year over year.

Net income for the three months ended December 31, 2016 totaled $5.3 million, or $0.03 per diluted share, as compared to a net loss of $48.2 million, or $0.44 per share, in the three months ended December 31, 2015. For the twelve months ended December 31, 2016 the Company reported a net loss of $219.2 million, or $1.26 per share, as compared to a net loss of $131.7 million, or $1.27 per share in the prior year. Net losses reported in both years 2016 and 2015 were primarily the result of ceiling test writedowns of $215 million and $141 million, respectively, related to commodity price weakness over those periods.

Adjusted EBITDA for the three and twelve months ended December 31, 2016 was $25.5 million and $65.2 million, respectively, compared to $10.8 million and $86.7 million for the same three- and twelve-month periods in 2015, respectively.

2016 Operating Activity

Management Commentary

Lynn A. Peterson, Chairman and CEO of Synergy commented, "The Synergy team delivered outstanding performance during 2016. While some of the many changes in 2016 are less tangible, such as moving to a calendar year end and the strengthened independence of our Board of Directors, other changes, highlighted by our acquisition of the Greeley Crescent acreage and the development of infrastructure, are features of 2016 that we are reminded of every day. Our staff nearly doubled in 2016 providing the capacity to create and begin executing on a development plan that has set the stage for differentiated growth over the coming quarters and years. All of this and much more was accomplished while simultaneously maintaining a strong financial position along with the operational flexibility to react to changing commodity prices."

Mr. Peterson also noted that, "As we continue to gain confidence in commodity prices, our plan is to maintain a two rig drilling program during 2017. As a result, we now believe that capital expenditures and production for 2017 should be at the top end of our guidance range issued in September 2016. We intend to provide updated 2017 guidance as we exit the first quarter of 2017 and observe the initial performance from some of the Evans wells. We are drilling out plugs in the second tranche of six Evans wells, and the wells have been turned to flowback as that process is completed. Stimulation activity is now focused on the next group of five Evans wells on the eastern pad."

Company Name, Address and Ticker Symbol Change

The Company intends to propose that its shareholders approve a change in its legal name to "SRC Energy Inc." at its 2017 annual meeting. Pending the shareholder vote on the proposal, the Company intends to use the new name on a "doing business as" basis beginning on or about March 6, 2017. In addition, the Company's domain name will become SRCenergy.com. On or about March 6, 2017 the company's NYSE MKT ticker symbol will change to SRCI.

Synergy will be relocating to its new offices effective February 27^th, 2017. Our phone numbers will not be impacted by this change.

SRC Energy Inc.
1675 Broadway, Suite 2600
Denver, CO 80202

Conference Call

The Company 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, 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. Please refer to Synergy's website at www.syrginfo.com for the current corporate presentation and other news and information.

Dial-in (Toll-Free): (877) 407-9122

Dial-in (International): (201) 493-6747

Replay Information:

The Company's earnings call will be available via Webcast. A link to the Webcast can be found at www.syrginfo.com on the Investor Relations page.

Webcast URL (archived for 12 months): http://syrginfo.equisolvewebcast.com/q4-2016

About Synergy Resources Corporation

Synergy Resources Corporation is a domestic oil and natural gas exploration and production company. Synergy's core area of operations is in the Wattenberg Field of the Denver-Julesburg Basin. The Denver-Julesburg Basin encompasses parts of Colorado, Wyoming, Kansas, and Nebraska. The Company's corporate offices are located in Denver, Colorado. More company news and information about Synergy is available at www.syrginfo.com.

Important Cautions Regarding Forward Looking Statements

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. The use of words such as "believes", "expects", "anticipates", "intends", "plans", "estimates", "should", "likely" or similar expressions, indicates a forward-looking statement. Forward-looking statements herein include statements regarding future production, capital projects and expenditures, drilling plans and growth. These statements are subject to risks 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; the volatility of the Company's stock price; and the other factors described in the "Risk Factors" sections of the Company's filings with the Securities and Exchange Commission, all of which are incorporated by reference in this release.

Reconciliation of Non-GAAP Financial Measures

We define adjusted EBITDA as net income (loss) adjusted to exclude the impact of the items set forth in the table below because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures, and the method by which the assets were acquired. We believe that adjusted EBITDA is widely used in our industry as a measure of operating performance and could also be used by investors to measure our ability to meet debt covenant requirements. The following table presents a reconciliation of adjusted EBITDA, a non-GAAP financial measure, to net income (loss), its nearest GAAP measure:

Consolidated Financial Statements

Condensed consolidated financial statements are included below. Additional financial information, including footnotes that are considered an integral part of the consolidated financial statements, can be found in Synergy's Annual Report on Form 10-K for the period ended December 31, 2016, which is available at www.sec.gov.