A caution flag for Synergy is the continued low NG prices. I believe NG makes up 45% of the total boepd produced. In the conference call management pointed out that the new horizontals are a bit gassier than expected.
Synergy can benefit greatly with a strong increase in gas prices but now in the heart of winter prices are actually trending down from their highs a couple months back. If they get down into the mid 2s where they were last year this will not be helpful.
On a positive note they are doing very well even with these very low NG prices
All true. What gas they have hedged so far is at on OK price as per the conference call. It is just a matter of time when natural gas prices will turn up. We should be exporting some as LNG to the far east but we don't have a real national energy policy. Also use it in semi's and other commercial vehicles. Factory and utility use is already going up replacing coal produced electricity.