Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
May. 31, 2015 | Jul. 06, 2015 | |
Document And Entity Information Abstract | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 31, 2015 | |
Entity Registrant Name | SYNERGY RESOURCES CORP | |
Entity Central Index Key | 1,413,507 | |
Current Fiscal Year End Date | --08-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Units Outstanding | 105,025,453 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | May. 31, 2015 | Aug. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 190,205 | $ 34,753 |
Accounts receivable: | ||
Oil and gas sales | 14,781 | 16,974 |
Joint interest billing and other | 18,487 | 15,398 |
Commodity derivative | 4,268 | 365 |
Other current assets | 1,311 | 750 |
Total current assets | 229,052 | 68,240 |
Oil and gas properties, full cost method: | ||
Proved properties, net | 407,576 | 275,018 |
Unproved properties and properties under development, not being amortized | 170,639 | 95,278 |
Other property and equipment, net | 4,811 | 9,104 |
Property and equipment, net | 583,026 | 379,400 |
Commodity derivative | 4,615 | 54 |
Other assets | 2,767 | 848 |
Total assets | 819,460 | 448,542 |
Current liabilities: | ||
Trade accounts payable | 1,027 | 1,747 |
Well costs payable | 26,491 | 71,849 |
Revenue payable | 18,786 | 14,487 |
Production taxes payable | 17,120 | 14,376 |
Other accrued expenses | $ 457 | 817 |
Commodity derivative | 302 | |
Total current liabilities | $ 63,881 | 103,578 |
Revolving credit facility | $ 141,000 | 37,000 |
Commodity derivative | 307 | |
Deferred tax liability, net | $ 34,670 | 21,437 |
Asset retirement obligations | 7,772 | 4,730 |
Total liabilities | $ 247,323 | $ 167,052 |
Commitments and contingencies (See Note 13) | ||
Shareholders' equity: | ||
Preferred stock - $0.01 par value, 10,000,000 shares authorized: no shares issued and outstanding | ||
Common stock - $0.001 par value, 200,000,000 shares authorized: 105,025,453 and 77,999,082 shares issued and outstanding, respectively | $ 105 | $ 78 |
Additional paid-in capital | 533,091 | 265,793 |
Retained earnings | 38,941 | 15,619 |
Total shareholders' equity | 572,137 | 281,490 |
Total liabilities and shareholders' equity | $ 819,460 | $ 448,542 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | May. 31, 2015 | Aug. 31, 2014 |
BALANCE SHEETS [Abstract] | ||
Preferred stock, par value per share | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 105,025,453 | 77,999,082 |
Common stock, shares outstanding | 105,025,453 | 77,999,082 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
STATEMENTS OF OPERATIONS [Abstract] | ||||
Oil and gas revenues | $ 26,033 | $ 25,672 | $ 92,284 | $ 67,966 |
Expenses | ||||
Lease operating expenses | 3,570 | 2,303 | 10,300 | 5,382 |
Production taxes | 2,249 | 2,376 | 8,570 | 6,647 |
Depletion, depreciation, and amortization | 16,397 | $ 7,796 | 48,357 | $ 21,106 |
Full cost ceiling impairment | 3,000 | 3,000 | ||
General and administrative | 3,886 | $ 1,938 | 12,075 | $ 6,876 |
Total expenses | 29,102 | 14,413 | 82,302 | 40,011 |
Operating income (loss) | (3,069) | 11,259 | 9,982 | 27,955 |
Other income (expense) | ||||
Commodity derivative realized gain (loss) | 7,136 | (826) | 20,935 | (1,415) |
Commodity derivative unrealized (loss) gain | (8,298) | $ (179) | 5,578 | $ 652 |
Interest expense | (116) | (116) | ||
Interest income | 33 | $ 22 | 61 | $ 70 |
Total other income (expense) | (1,245) | (983) | 26,458 | (693) |
Income (loss) before income taxes | (4,314) | 10,276 | 36,440 | 27,262 |
Income tax provision (benefit) | (1,833) | 3,116 | 13,118 | 8,841 |
Net income (loss) | $ (2,481) | $ 7,160 | $ 23,322 | $ 18,421 |
Net income (loss) per common share: | ||||
Basic | $ (0.02) | $ 0.09 | $ 0.26 | $ 0.24 |
Diluted | $ (0.02) | $ 0.09 | $ 0.25 | $ 0.24 |
Weighted-average shares outstanding: | ||||
Basic | 104,234,519 | 77,176,420 | 91,105,035 | 75,689,903 |
Diluted | 104,234,519 | 79,008,619 | 91,804,253 | 77,299,456 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 23,322 | $ 18,421 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depletion, depreciation, and amortization | 48,357 | $ 21,106 |
Full cost ceiling impairment | 3,000 | |
Provision for deferred taxes | 13,118 | $ 8,841 |
Stock-based compensation | 3,330 | 1,569 |
Valuation increase in commodity derivatives | (5,578) | (652) |
Accounts receivable | ||
Oil and gas sales | 2,193 | (7,505) |
Joint interest billing and other | (3,089) | $ (4,037) |
Unamortized premiums paid for derivatives | $ (3,494) | |
Inventory | $ (211) | |
Accounts payable | ||
Trade | $ (720) | 188 |
Revenue | 4,299 | 3,448 |
Production taxes | 2,744 | 4,707 |
Accrued expenses | (360) | 49 |
Other | (180) | 821 |
Total adjustments | 63,620 | 28,324 |
Net cash provided by operating activities | 86,942 | 46,745 |
Cash flows from investing activities: | ||
Acquisition of property and equipment | $ (241,903) | (112,155) |
Short-term investments | 60,018 | |
Net proceeds from sales of oil and gas properties | $ 3,696 | 704 |
Net cash used in investing activities | (238,207) | $ (51,433) |
Cash flows from financing activities: | ||
Cash proceeds from sale of stock | 200,100 | |
Stock offering costs | (9,255) | |
Proceeds from exercise of warrants | 15,367 | $ 33,380 |
Gross proceeds from revolving credit facility | 104,000 | |
Finance fee for revolving credit facility | (2,300) | |
Shares withheld for payment of employee payroll taxes | (1,195) | $ (176) |
Net cash provided by financing activities | 306,717 | 33,204 |
Net increase in cash and cash equivalents | 155,452 | 28,516 |
Cash and cash equivalents at beginning of period | 34,753 | 19,463 |
Cash and cash equivalents at end of period | $ 190,205 | $ 47,979 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
May. 31, 2015 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1. Organization and Summary of Significant Accounting Policies Organization: Basis of Presentation: st The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America ("US GAAP") for interim financial information. Interim Financial Information: In management's opinion, the unaudited financial statements contained herein reflect all adjustments, consisting solely of normal recurring items, which are necessary for the fair presentation of the Company's financial position, results of operations, and cash flows on a basis consistent with that of its prior audited financial statements. However, the results of operations for interim periods may not be indicative of results to be expected for the full fiscal year. Reclassifications: Use of Estimates: Cash and Cash Equivalents: Oil and Gas Properties: Capitalized costs of oil and gas properties are depleted using the units-of-production method based upon estimates of proved reserves. For depletion purposes, the volume of petroleum reserves and production is converted into a common unit of measure at the energy equivalent conversion rate of six thousand cubic feet of natural gas to one barrel of crude oil. Investments in unproved properties and major development projects are not amortized until proved reserves associated with the projects can be determined or until impairment occurs. If the results of an assessment indicate that the properties are impaired, the amount of the impairment is added to the capitalized costs to be amortized. Properties under development represent the costs associated with the development of oil and gas properties that have yet to be proved as of May 31, 2015. Since the properties were not classified as proved as of May 31, 2015, they were classified within unproved oil and gas properties and were withheld from the depletion calculation and ceiling test. The costs for these properties will be transferred into proved properties when they are proved and will become subject to depletion and the ceiling test calculation in subsequent periods. Under the full cost method of accounting, a ceiling test is performed each quarter. The full cost ceiling test is an impairment test prescribed by SEC regulations. The ceiling test determines a limit on the book value of oil and gas properties. The capitalized costs of proved and unproved oil and gas properties, net of accumulated depletion, depreciation, and amortization, and the related deferred income taxes, may not exceed the estimated future net cash flows from proved oil and gas reserves, less future cash outflows associated with asset retirement obligations that have been accrued, plus the cost of unproved properties not being amortized, plus the lower of cost or estimated fair value of unproven properties being amortized. Prices are held constant for the productive life of each well. Net cash flows are discounted at 10 The oil and natural gas prices used to calculate the full cost ceiling limitation are based upon a 12-month rolling average, calculated as the unweighted arithmetic average of the first day of the month price for each month within the 12-month period prior to the end of the reporting period, unless prices are defined by contractual arrangements. Prices are adjusted for basis or location differentials. Oil and Gas Reserves: The determination of depletion and amortization expenses, as well as the ceiling test calculation related to the recorded value of the Company's oil and natural gas properties, is highly dependent on estimates of proved oil and natural gas reserves. Capitalized Interest: Capitalized Overhead: Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Capitalized Overhead $ 486 $ 300 $ 1,623 $ 921 Well Costs Payable: Other Property and Equipment: five seven Asset Retirement Obligations: The present value of a liability for the ARO is initially recorded when it is incurred if a reasonable estimate of fair value can be made. This is typically when a well is completed or an asset is placed in service. When the ARO is initially recorded, the Company capitalizes the cost (asset retirement cost or "ARC") by increasing the carrying value of the related asset. ARCs related to wells are capitalized to the full cost pool and subject to depletion. Over time, the liability increases for the change in its present value (accretion of ARO), while the net capitalized cost decreases over the useful life of the asset, as depletion expense is recognized. In addition, ARCs are included in the ceiling test calculation for valuing the full cost pool. Business Combinations: Oil and Gas Sales: Major Customers: 58 15 10 45 13 12 12 62 11 45 15 10 Based on the current demand for oil and natural gas, the availability of other buyers, and the Company having the option to sell to other buyers if conditions so warrant, the Company believes that its oil and gas production can be sold in the market in the event that it is not sold to the Company's existing customers. However, in some circumstances, a change in customers may entail significant transition costs and/or shutting in or curtailing production for weeks or even months during the transition to a new customer. Accounts receivable consist primarily of trade receivables from oil and gas sales and amounts due from other working interest owners whom are liable for their proportionate share of well costs. The Company typically has the right to withhold future revenue disbursements to recover outstanding joint interest billings on outstanding receivables from joint interest owners. Customers with balances greater than 10% of total receivable balances as of each of the periods presented are shown in the following table: Major Customers As of May 31, 2015 As of August 31, 2014 Company A 29 % 37 % Company B 12 % (1 ) (1) Lease Operating Expenses: Stock-Based Compensation: Income Tax: No significant uncertain tax positions were identified as of any date on or before May 31, 2015. The Company's policy is to recognize interest and penalties related to uncertain tax benefits in income tax expense. As of May 31, 2015, the Company has not recognized any interest or penalties related to uncertain tax benefits. Financial Instruments: Financial instruments, whether measured on a recurring or non-recurring basis, are recorded at fair value. A fair value hierarchy, established by the Financial Accounting Standards Board, prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). As discussed in Note 5, the Company incurred asset retirement obligations during the periods presented, the value of which was determined using unobservable pricing inputs (or Level 3 inputs). The Company uses the income valuation technique to estimate the fair value of the obligation using several assumptions and judgments about the ultimate settlement amounts, inflation factors, credit adjusted discount rates, and timing of settlement. Commodity Derivative Instruments: Earnings Per Share Amounts: The following table sets forth the share calculation of diluted earnings per share: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Weighted-average shares outstanding-basic 104,234,519 77,176,420 91,105,035 75,689,903 Potentially dilutive common shares from: Stock options Anti-dilutive 515,530 699,218 432,170 Warrants - 1,316,669 - 1,177,383 - 1,832,199 699,218 1,609,553 Weighted-average shares outstanding - diluted 104,234,519 79,008,619 91,804,253 77,299,456 As a result of the net loss reported for the three and nine months ended May 31, 2015, the calculation of basic and diluted Earnings per Share used the same number of weighted-average common shares outstanding in the denominator, as the inclusion of common share equivalents was anti-dilutive. The following potentially dilutive securities outstanding for the periods presented were not included in the respective earnings per share calculation above; as such securities had an anti-dilutive effect on earnings per share: Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Employee stock options 4,101,500 478,000 2,710,500 503,000 Recent Accounting Pronouncements: In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2015-03, "Simplifying the Presentation of Debt Issuance Costs" ("ASU 2015-03"), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. For public business entities, the ASU is effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Entities should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, entities are required to comply with the applicable disclosures for a change in an accounting principle. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In January 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2015-01, "Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items" ("ASU 2015-01"), which eliminates from US GAAP the concept of extraordinary items, while retaining certain presentation and disclosure guidance for items that are unusual in nature or occur infrequently. The standard is effective prospectively for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided the guidance is applied from the beginning of the fiscal year of adoption. Adoption of ASU 2015-01 is not expected to have a material effect on the Company's financial position, results of operations, or cash flows. In November 2014, the FASB issued Accounting Standards Update 2014-16, "Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity" ("ASU 2014-16"), which clarifies how to evaluate the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, ASU 2014-16 requires that an entity consider all relevant terms and features in evaluating the nature of the host contract and clarifies that the nature of the host contract depends upon the economic characteristics and the risks of the entire hybrid financial instrument. An entity should assess the substance of the relevant terms and features, including the relative strength of the debt-like or equity-like terms and features given the facts and circumstances, when considering how to weight those terms and features. ASU 2014-16 is effective for public businesses for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09"), which establishes a comprehensive new revenue recognition standard designed to depict the transfer of goods or services to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In doing so, companies may need to use more judgment and make more estimates than under current revenue recognition guidance. ASU 2014-09 allows for the use of either the full or modified retrospective transition method, and the standard will be effective for annual reporting periods beginning after December 15, 2016 including interim periods within that period. Early adoption is not permitted. The Company is currently evaluating which transition approach to use and the impact of the adoption of this standard on its consolidated financial statements. There were various updates recently issued by the FASB, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company's reported financial position, results of operations or cash flows. |
Property and Equipment and Full
Property and Equipment and Full Cost Ceiling Impairment | 9 Months Ended |
May. 31, 2015 | |
Property and Equipment and Full Cost Ceiling Impairment [Abstract] | |
Property and Equipment and Full Cost Ceiling Impairment | 2. Property and Equipment and Ceiling Test Impairment The capitalized costs related to the Company's oil and gas producing activities were as follows (in thousands): As of As of May 31, 2015 August 31, 2014 Oil and gas properties, full cost method: Unproved properties, not subject to amortization: Lease acquisition and other costs $ 139,012 $ 41,531 Properties under development 31,627 53,747 Subtotal 170,639 95,278 Proved producing and non-producing properties 513,677 329,926 Total capitalized costs 684,316 425,204 Less, accumulated depletion (103,101 ) (54,908 ) Less, ceiling test impairment (3,000 ) - Oil and gas properties, net 578,215 370,296 Land 4,478 3,898 Other property and equipment 867 5,961 Less, accumulated depreciation (534 ) (755 ) Other property and equipment, net 4,811 9,104 Total property and equipment, net $ 583,026 $ 379,400 The Company periodically reviews its oil and gas properties to determine if the carrying value of such assets exceeds estimated fair value. For proved producing and non-producing properties, the Company performs a ceiling test each quarter to determine whether there has been an impairment to its capitalized costs. Under the ceiling test, the value of the Company's reserves are calculated using the average of the published spot prices for West Texas Intermediate (WTI) oil (per barrel) as of the first day of each of the previous twelve months, as well as the average of the published spot prices for Henry Hub (per MMBtu) as of the first day of each of the previous twelve months, each adjusted by lease or field for quality, transportation fees and regional price differentials. The ceiling test used realized prices of $ 64.26 4.14 16 Using these prices, the Company's net capitalized costs of oil and natural gas properties exceeded the ceiling amount by $ 3.0 The Company also reviews the fair value of its unproved properties. The reviews for the three months and nine months ended May 31, 2015 and 2014 indicated that estimated fair values of such assets exceeded carrying values, thus revealing no impairment in either period. In addition, during the nine months ended May 31, 2015, certain amounts previously recorded were reclassified from one category to another without changing the total amounts recorded as property and equipment. Specifically, costs associated with the disposal well and related equipment were reclassified from other property and equipment into producing oil and gas properties to more closely reflect use of the disposal well to process flow-back water from oil and gas operations. Similarly, accumulated depreciation associated with the disposal well was reclassified from accumulated depreciation to accumulated depletion. The updated classification for the disposal well, related equipment, and accumulated depreciation did not require a change to previously reported depletion, depreciation, and amortization expense ("DDA"). Secondly, as discussed in Note 3, the analysis of assets acquired in the 2014 business combination transactions with Apollo and Trilogy was completed and fair values associated with probable horizontal well development were reclassified from proved properties into unproved properties. |
Acquisitions
Acquisitions | 9 Months Ended |
May. 31, 2015 | |
Acquisitions [Abstract] | |
Acquisitions | 3. Acquisitions During the nine months ended May 31, 2015 and 2014, the Company acquired certain oil and gas and other assets, as described below. Bayswater transaction On December 15, 2014, the Company completed the acquisition of certain assets from three independent oil and gas companies (collectively known as "Bayswater") for a total purchase price of $ 125.1 74.2 48.4 The Bayswater acquisition encompassed 5,040 4,053 2,400 1,739 17 73 11 6 40 5 100 The following allocation of the purchase price is preliminary and includes significant use of estimates. The fair values of the assets acquired and liabilities assumed are preliminary and are subject to revision as the Company continues to evaluate the fair value of this acquisition. Accordingly, the allocation will change as additional information becomes available and is assessed, and the impact of such changes may be material. The following table summarizes the preliminary purchase price and preliminary estimated fair values of assets acquired and liabilities assumed (in thousands) : Purchase Price December 15, 2014 Consideration Given Cash $ 74,221 Synergy Resources Corp. Common Stock (1) 48,434 Liabilities assumed, including asset retirement obligations 2,467 Total consideration given $ 125,122 Allocation of Purchase Price Proved oil and gas properties (2) $ 51,400 Unproved oil and gas properties 73,722 Total fair value of oil and gas properties acquired $ 125,122 (1) The fair value of the consideration attributed to the Common Stock under ASC 805 was based on the Company's closing stock price on the measurement date of December 15, 2014 ( 4,648,136 10.42 (2) Proved oil and gas properties were measured primarily using an income approach. The fair value measurements of the oil and gas assets were based, in part, on significant inputs not observable in the market and thus represent a Level 3 measurement. The significant inputs included assumed future production profiles, commodity prices (mainly based on observable market inputs), a discount rate of 10 The following table presents the pro forma combined results of operations for the three and nine months ended May 31, 2015 as if the Bayswater transaction had occurred on September 1, 2013, the first day of our 2014 fiscal year. The unaudited pro forma results reflect significant pro forma adjustments related to funding the acquisition through the issuance of common stock and cash, additional depreciation expense, costs directly attributable to the acquisition and operating costs incurred as a result of the assets acquired. The pro forma results do not include any cost savings or other synergies that may result from the acquisition or any estimated costs that have been or will be incurred by the Company to integrate the properties acquired. The pro forma results are not necessarily indicative of what actually would have occurred if the acquisition had been completed as of the beginning of the period, nor are they necessarily indicative of future results. Three Months Ended May 31, Nine Months ended May 31, 2015 2014 2015 2014 Oil and Gas Revenues $ 26,033 $ 26,766 $ 99,157 $ 71,550 Net income $ (2,481 ) $ 6,889 $ 25,102 $ 17,997 Earnings per common share Basic $ (0.02 ) $ 0.08 $ 0.26 $ 0.22 Diluted $ (0.02 ) $ 0.08 $ 0.26 $ 0.22 Apollo and Trilogy transactions During the year ended August 31, 2014, the Company closed on two transactions that qualified as Business Combinations under ASC 805. The initial accounting treatment of the transactions was based upon the preliminary analysis of the assets acquired. During the first fiscal quarter of 2015, the Company completed its analysis and finalized the allocation of purchase price to the assets acquired. The following tables present the final fair values. On September 16, 2013, the Company entered into a definitive purchase and sale agreement with Trilogy Resources, LLC ("Trilogy"), for its interests in 21 800 301,339 2.9 15.9 No material transaction costs were incurred in connection with this acquisition. The acquisition was accounted for using the acquisition method under ASC 805, Business Combinations, which requires the acquired assets and liabilities to be recorded at fair values as of the acquisition date of November 12, 2013. The following table summarizes the final purchase price and the final fair values of assets acquired and liabilities assumed (in thousands): Purchase Price November 12, Consideration Given Cash $ 15,902 Synergy Resources Corp. Common Stock * 2,896 Total consideration given $ 18,798 Allocation of Purchase Price Proved oil and gas properties $ 11,514 Unproved oil and gas properties $ 7,725 Total fair value of oil and gas properties acquired 19,239 Working capital $ (83 ) Asset retirement obligation (358 ) Fair value of net assets acquired $ 18,798 Working capital acquired was estimated as follows: Accounts receivable 536 Accrued liabilities and expenses (619 ) Total working capital $ (83 ) * The fair value of the consideration attributed to the Common Stock under ASC 805 was based on the Company's closing stock price on the measurement date of November 12, 2013. ( 301,339 9.61 On August 27, 2013, the Company entered into a definitive purchase and sale agreement ("the Agreement"), with Apollo Operating, LLC ("Apollo"), for its interests in 38 25 3,639 1,000 11.0 550,518 5.2 3.7 20,626 0.2 The acquisition was accounted for using the acquisition method under ASC 805, Business Combinations, which requires the acquired assets and liabilities to be recorded at fair values as of the acquisition date of November 13, 2013. The following table summarizes the final purchase price and the final fair values of assets acquired and liabilities assumed (in thousands): Purchase Price November 13, Consideration Given Cash $ 14,688 Synergy Resources Corp. Common Stock * 5,432 Total consideration given $ 20,120 Allocation of Purchase Price Proved oil and gas properties $ 13,284 Unproved oil and gas properties $ 7,577 Total fair value of oil and gas properties acquired 20,861 Working capital $ (507 ) Asset retirement obligation (234 ) Fair value of net assets acquired $ 20,120 Working capital acquired was estimated as follows: Accounts receivable 662 Accrued liabilities and expenses (1,169 ) Total working capital $ (507 ) * The fair value of the consideration attributed to the Common Stock under ASC 805 was based on the Company's closing stock prices on the measurement dates (including 550,518 9.49 20,626 10.08 The motivation for both the Trilogy and Apollo acquisitions was the expectation that each was accretive to cash flow and earnings per share. The acquisitions qualify as a business combination, and as such, the Company estimated the fair value of each property as of the acquisition date (the date on which the Company obtained control of the properties). Fair value measurements utilize assumptions of market participants. To determine the fair value of the oil and gas assets, the Company used an income approach based on a discounted cash flow model and made market assumptions as to future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of future development and operating costs, projections of future rates of production, expected recovery rates and risk adjusted discount rates. The Company determined the appropriate discount rates used for the discounted cash flow analyses by using a weighted-average cost of capital from a market participant perspective plus property-specific risk premiums for the assets acquired. The Company estimated property-specific risk premiums taking into consideration the Gas to Oil Ratio ("GOR") of the related reserves, among other items. Given the unobservable nature of the significant inputs, they are deemed to be Level 3 in the fair value hierarchy. The working capital assets acquired were determined to be at fair value due to their short-term nature. The preliminary analysis and allocation of the purchase price focused on the values inherent in the proved producing wells and the associated proved undeveloped reserves. All of the producing wells acquired in the transactions were vertical wells and the initial estimates allocated 100 15.3 24.8 Differences between the preliminary allocation and final allocation of acquired fair value have been treated as a change in accounting estimate, and no retroactive adjustments were made to the previously reported financial statements. Furthermore, since the reclassification of $15.3 million from proved properties subject to amortization to unproved properties not subject to amortization represents approximately 2 |
Depletion, depreciation and amo
Depletion, depreciation and amortization ("DDA") | 9 Months Ended |
May. 31, 2015 | |
Depletion, depreciation and amortization ("DDA") [Abstract] | |
Depletion, depreciation and amortization ("DDA") | 4. Depletion, depreciation and amortization ("DDA") Depletion, depreciation and amortization consisted of the following (in thousands): Three Months Ended May 31, Nine Months ended May 31, 2015 2014 2015 2014 Depletion $ 16,200 $ 7,569 $ 47,849 $ 20,550 Depreciation and amortization 197 227 508 556 Total DDA Expense $ 16,397 $ 7,796 $ 48,357 $ 21,106 Capitalized costs of proved oil and gas properties are depleted quarterly using the units-of-production method based on a depletion rate, which is calculated by comparing production volumes for the quarter to estimated total reserves at the beginning of the quarter. For the three months ended May 31, 2015, production of 738,357 1.7 2,188,737 4.9 |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
May. 31, 2015 | |
Asset Retirement Obligations [Abstract] | |
Asset Retirement Obligations | 5. Asset Retirement Obligations Upon completion or acquisition of a well, the Company recognizes obligations for its oil and gas operations for anticipated costs to remove and dispose of surface equipment, plug and abandon the wells, and restore the drilling sites to their original use. The estimated present value of such obligations is determined using several assumptions and judgments about the ultimate settlement amounts, inflation factors, credit adjusted discount rates, timing of settlement, and changes in regulations. Changes in estimates are reflected in the obligations as they occur. If the fair value of a recorded asset retirement obligation changes, a revision is recorded to both the asset retirement obligation and the asset retirement capitalized cost. For the purpose of determining the fair value of ARO incurred during the periods, the Company used the following assumptions: For The Nine Months Ended May 31, 2015 2014 Inflation rate 3.9 % 3.9 4.0 Estimated asset life 25.0 39.0 20.0 40.0 Credit adjusted risk free interest rate 8.0 % 8.0 % The following table summarizes the change in asset retirement obligations associated with the Company's oil and gas properties (in thousands): Asset retirement obligations, August 31, 2014 $ 4,730 Liabilities incurred 744 Liabilities assumed 1,913 Accretion expense 385 Asset retirement obligations, May 31, 2015 $ 7,772 |
Revolving Credit Facility
Revolving Credit Facility | 9 Months Ended |
May. 31, 2015 | |
Revolving Credit Facility [Abstract] | |
Revolving Credit Facility | 6. Revolving Credit Facility On December 15, 2014, simultaneously with the completion of the acquisition of certain oil and gas assets from Bayswater Exploration and Development, LLC, et. al., the Company amended its revolving credit facility ("LOC"). Under the amendment, the maximum loan commitment was increased to $ 500 300 230 110 Concurrent with the amendment, the Company increased its borrowings to approximately $ 146 On June 2 175 87 Interest under the LOC is payable monthly and accrues at a variable rate, subject to a minimum rate of 2.5 2.5 Certain of the Company's assets, including substantially all of the producing wells and developed oil and gas leases, have been designated as collateral under the arrangement. The borrowing commitment is subject to adjustment based upon a borrowing base calculation that includes the value of oil and gas reserves. The borrowing base limitation is subject to scheduled redeterminations on a semi-annual basis. In certain events, and at the discretion of the bank syndicate, an unscheduled redetermination could be prepared. As of July 1, 2015, based upon a borrowing base of $ 175 88 The arrangement contains covenants that, among other things, restrict the payment of dividends. In addition, the LOC generally requires an overall hedge position that covers a rolling 24 months of estimated future production with a minimum position of no less than 45 85 Furthermore, the LOC requires the Company to maintain certain financial and liquidity ratio compliance covenants. Under the requirements, as most recently amended, the Company, on a quarterly basis, must (a) not, at any time, permit its ratio of total funded debt as of such time to EBITDAX, as defined in the agreement, to be greater than or equal to 4.0 25 |
Commodity Derivative Instrument
Commodity Derivative Instruments | 9 Months Ended |
May. 31, 2015 | |
Commodity Derivative Instruments [Abstract] | |
Commodity Derivative Instruments | 7. Commodity Derivative Instruments The Company has entered into commodity derivative instruments, as described below. The Company has utilized swaps, puts or "no premium" collars to reduce the effect of price changes on a portion of its future oil and gas production. A swap requires a payment to the counterparty if the settlement price exceeds the strike price and the same counterparty is required to make a payment if the settlement price is less than the strike price. A collar requires a payment to the counterparty if the settlement price is above the ceiling price and requires the counterparty to make a payment if the settlement price is below the floor price. The objective of the Company's use of derivative financial instruments is to achieve more predictable cash flows in an environment of volatile oil and gas prices and to manage its exposure to commodity price risk. While the use of these derivative instruments limits the downside risk of adverse price movements, such use may also limit the Company's ability to benefit from favorable price movements. The Company may, from time to time, add incremental derivatives to hedge additional production, restructure existing derivative contracts or enter into new transactions to modify the terms of current contracts in order to realize the current value of the Company's existing positions. The Company does not enter into derivative contracts for speculative purposes. The use of derivatives involves the risk that the counterparties to such instruments will be unable to meet the financial terms of such contracts. The Company's derivative contracts are currently with four counterparties. Two of the counterparties are a participating lender in the Company's credit facility. The Company has netting arrangements with the counterparties that provide for the offset of payables against receivables from separate derivative arrangements with the counterparty in the event of contract termination. The derivative contracts may be terminated by a non-defaulting party in the event of default by one of the parties to the agreement. The Company's commodity derivative instruments are measured at fair value and are included in the accompanying balance sheets as commodity derivative assets and liabilities. Unrealized gains and losses are recorded based on the changes in the fair values of the derivative instruments. Both the unrealized and realized gains and losses resulting from contract settlement of derivatives are recorded in the statements of operations. The Company's cash flow is only impacted when the actual settlements under commodity derivative contracts result in making or receiving a payment to or from the counterparty. Actual cash settlements can occur at either scheduled maturity date of the contract or at an earlier date if the contract is liquidated prior to its scheduled maturity. These settlements under the commodity derivative contracts are reflected as operating activities in the Company's statements of cash flows. The Company's valuation estimate takes into consideration the counterparty's creditworthiness, the Company's creditworthiness, and the time value of money. The consideration of the factors results in an estimated exit-price for each derivative asset or liability under a market place participant's view. Management believes that this approach provides a reasonable, non-biased, verifiable, and consistent methodology for valuing commodity derivative instruments. The Company's commodity derivative contracts as of May 31, 2015 are summarized below: Settlement Period Derivative Average Volumes Average Celing Crude Oil - NYMEX WTI Jun 1, 2015 - Jun 30, 2015 Collar 2,500 - $ 80.00 $ 95.75 Jun 1, 2015 - Dec 31, 2015 Put 40,000 - $ 50.00 - Jun 1, 2015 - Oct 31, 2015 Put 5,200 - $ 50.00 - Jun 1, 2015 - Dec 31, 2015 Put 10,000 - $ 55.00 - Jan 1, 2016 - May 31, 2016 Collar 10,000 - $ 75.00 $ 96.00 Jan 1, 2016 - May 31, 2016 Collar 5,000 - $ 80.00 $ 100.75 Jun 1, 2016 - Aug 31, 2016 Collar 15,000 - $ 80.00 $ 100.05 Jan 1, 2016 - Aug 31, 2016 Swap 5,000 $ 88.55 - - Sep 1, 2016 - Dec 31, 2016 Swap 20,000 $ 88.10 - - Jan 1, 2016 - Oct 31, 2016 Swap 6,400 $ 78.96 - - Jan 1, 2016 - Dec 31, 2016 Put 25,000 - $ 50.00 - Jan 1, 2017 - Apr 30, 2017 Put 20,000 - $ 50.00 - May 1, 2017 - Aug 31, 2017 Put 20,000 - $ 55.00 Natural Gas - NYMEX Henry Hub Jun 1, 2015 - Dec 31, 2015 Collar 72,000 - $ 4.15 $ 4.49 Jan 1, 2016 - May 31, 2016 Collar 60,000 - $ 4.05 $ 4.54 Jun 1, 2016 - Aug 31, 2016 Collar 60,000 $ 3.90 $ 4.14 Natural Gas - CIG Rocky Mountain Jun 1, 2015 - Dec 31, 2015 Collar 100,000 - $ 2.20 $ 3.05 Jan 1, 2016 - Dec 31, 2016 Collar 100,000 - $ 2.65 $ 3.10 Jan 1, 2017 - Apr 30, 2017 Collar 100,000 - $ 2.80 $ 3.95 May 1 2017 - Aug 31, 2017 Collar 110,000 $ 2.50 $ 3.05 Offsetting of Derivative Assets and Liabilities As of May 31, 2015 and 2014, all derivative instruments held by the Company were subject to enforceable master netting arrangements held by various financial institutions. In general, the terms of the Company's agreements provide for offsetting of amounts payable or receivable between it and the counterparty, at election of both parties, for transactions that occur on the same date and in the same currency. The Company's agreements also provide that in the event of an early termination, the counterparties have the right to offset amounts owed or owing under that and any other agreement with the same counterparty. The Company's accounting policy is to offset these positions in its accompanying balance sheets. The following table provides a reconciliation between the net assets and liabilities reflected on the accompanying balance sheets and the potential of master netting arrangements on the fair value of the Company's derivative contracts (in thousands): As of May 31, 2015 Underlying Commodity Balance Sheet Location Gross Amounts of Gross Amounts Offset Net Amounts of Assets Derivative contracts Current assets $ 4,487 $ (219 ) $ 4,268 Derivative contracts Noncurrent assets $ 4,994 $ (379 ) $ 4,615 Derivative contracts Current liabilities $ 219 $ (219 ) $ - Derivative contracts Noncurrent liabilities $ 379 $ (379 ) $ - As of August 31, 2014 Underlying Commodity Balance Sheet Location Gross Amounts of Gross Amounts Offset Net Amounts of Assets Derivative contracts Current assets $ 903 $ (538 ) $ 365 Derivative contracts Noncurrent assets $ 718 $ (664 ) $ 54 Derivative contracts Current liabilities $ 840 $ (538 ) $ 302 Derivative contracts Noncurrent liabilities $ 971 $ (664 ) $ 307 The amount of gain (loss) recognized in the statements of operations related to derivative financial instruments was as follows (in thousands): Three Months Ended May 31, Nine Months ended May 31, 2015 2014 2015 2014 Realized gain (loss) on commodity derivatives $ 7,136 $ (826 ) $ 20,935 $ (1,415 Unrealized gain (loss) on commodity derivatives (8,298 ) (179 ) 5,578 652 Total gain (loss) $ (1,162 ) $ (1,005 ) $ 26,513 $ (763 Realized gains and losses include cash received from the monthly settlement of hedge contracts at their scheduled maturity date along with the proceeds from early liquidation of in-the-money hedge contracts. During the third quarter of 2015, the Company liquidated oil hedges with an average price of $ 80.61 188,500 5.0 Three Months Ended May 31, Nine Months ended May 31, 2015 2014 2015 2014 Monthly settlement $ 2,100 $ (826 ) $ 9,618 $ (1,415 Early liquidation 5,036 - 11,317 - Total realized gain (loss) $ 7,136 $ (826 ) $ 20,935 $ (1,415 Credit-Related Contingent Features During the nine months ended May 31, 2015, the Company added a fourth counterparty to its derivative transactions. The additional counterparty is a member of the Company's credit facility syndicate and the Company's obligations under its credit facility and derivative contracts are secured by liens on substantially all of the Company's producing oil and gas properties. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
May. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 8. Fair Value Measurements ASC Topic 820, Fair Value Measurements and Disclosure, establishes a hierarchy for inputs used in measuring fair value for financial assets and liabilities that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions of what market participants would use in pricing the asset or liability based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: • Level 1: Quoted prices available in active markets for identical assets or liabilities; • Level 2: Quoted prices in active markets for similar assets and liabilities that are observable for the asset or liability; • Level 3: Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash or valuation models. The financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The Company's non-recurring fair value measurements include asset retirement obligations and purchase price allocations for the fair value of assets and liabilities acquired through business combinations. The Company determines the estimated fair value of its asset retirement obligations by calculating the present value of estimated cash flows related to plugging and abandonment liabilities using Level 3 inputs. The significant inputs used to calculate such liabilities include estimates of costs to be incurred; the Company's credit adjusted discount rates, inflation rates and estimated dates of abandonment. The asset retirement liability is accreted to its present value each period and the capitalized asset retirement cost is depleted as a component of the full cost pool using the units-of-production method. See Note 5 for additional information. The acquisition of a group of assets in a business combination transaction requires fair value estimates for assets acquired and liabilities assumed. The fair value of assets and liabilities acquired through business combinations is calculated using a discounted cash flow approach using primarily unobservable inputs. Inputs are reviewed by management on an annual basis. Cash flow estimates require forecasts and assumptions for many years into the future for a variety of factors, including risk-adjusted oil and gas reserves, commodity prices and operating costs. See Note 3 for additional information. The following table presents the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of May 31, 2015 and August 31, 2014 by level within the fair value hierarchy (in thousands): Fair Value Measurements at May 31, 2015 Level 1 Level 2 Level 3 Total Financial assets and liabilities: Commodity derivative asset $ - $ 8,883 $ - $ 8,883 Commodity derivative liability $ - $ - $ - $ - Fair Value Measurements at August 31, 2014 Level 1 Level 2 Level 3 Total Financial assets and liabilities: Commodity derivative asset $ - $ 419 $ - $ 419 Commodity derivative liability $ - $ 609 $ - $ 609 Commodity Derivative Instruments The Company determines its estimate of the fair value of commodity derivative instruments using a market approach based on several factors, including quoted market prices in active markets, quotes from third parties, the credit rating of each counterparty, and the Company's own credit standing. In consideration of counterparty credit risk, the Company assessed the possibility of whether the counterparty to the derivative would default by failing to make any contractually required payments. Additionally, the Company considers the counterparty to be of substantial credit quality and has the financial resources and willingness to meet its potential repayment obligations associated with the derivative transactions. At May 31, 2015, derivative instruments utilized by the Company consist of puts, "no premium" collars and swaps. The crude oil and natural gas derivative markets are highly active. Although the Company's derivative instruments are based on several factors including public indices, the instruments themselves are traded with third-party counterparties and are not openly traded on an exchange. As such, the Company has classified these instruments as Level 2. Fair Value of Financial Instruments The Company's financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, commodity derivative instruments (discussed above) and credit facility borrowings. The carrying values of cash and cash equivalents, accounts receivable and accounts payable are representative of their fair values due to their short-term maturities. The carrying amount of the Company's credit facility approximated fair value as it bears interest at variable rates over the term of the loan. |
Interest Expense
Interest Expense | 9 Months Ended |
May. 31, 2015 | |
Interest Expense [Abstract] | |
Interest Expense | 9. Interest Expense The components of interest expense are (in thousands): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Revolving credit facility $ 915 $ 252 $ 2,191 $ 749 Amortization of debt issuance costs 252 118 607 312 Less, interest capitalized (1,051 ) (370 ) (2,682 ) (1,061 Interest expense, net $ 116 $ - $ 116 $ - |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
May. 31, 2015 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | 10. Shareholders' Equity The Company's classes of stock are summarized as follows: As of May 31, As of August 31, 2015 2014 Preferred stock, shares authorized 10,000,000 10,000,000 Preferred stock, par value $ 0.01 $ 0.01 Preferred stock, shares issued and outstanding nil nil Common stock, shares authorized 200,000,000 200,000,000 Common stock, par value $ 0.001 $ 0.001 Common stock, shares issued and outstanding 105,025,453 77,999,082 Stock Offering During the nine months ended May 31, 2015, the Company completed a public offering of 18,613,952 10.75 190.8 Common stock issued for acquisition of mineral property interests During the nine months ended May 31, 2015 the Company issued shares of common stock in exchange for mineral property interests. The value of each transaction was determined using the market price of the Company's common stock on the date of each transaction. For the nine months Number of common shares issued for mineral property leases 995,672 Number of common shares issued for acquisitions 4,648,136 Total common shares issued 5,643,808 Average price per common share $ 10.45 Aggregate value of shares issued (in thousands) $ 58,968 Common stock warrants During the nine months ended May 31, 2015, holders exercised outstanding warrants to purchase 2,562,473 15.4 Number of Warrants Weighted-Average Exercise Price Outstanding, August 31, 2014 2,562,473 $ 6.00 Granted - $ - Exercised (2,562,473 ) $ 6.00 Expired - $ - Outstanding, May 31, 2015 - $ - |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
May. 31, 2015 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 11. Stock-Based Compensation In addition to cash compensation, the Company may compensate certain service providers, including employees, directors, consultants, and other advisors, with equity-based compensation in the form of stock options, restricted stock grants, and warrants. The Company records an expense related to equity compensation by pro-rating the estimated fair value of each grant over the period of time that the recipient is required to provide services to the Company (the "vesting phase"). The calculation of fair value is based, either directly or indirectly, on the quoted market value of the Company's common stock. Indirect valuations are calculated using the Black-Scholes-Merton option pricing model. For the periods presented, all stock-based compensation was classified as a component within general and administrative expense on the statement of operations. The amount of stock-based compensation expense is as follows (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Stock options $ 715 $ 445 $ 1,792 $ 1,312 Employee stock grants 686 257 1,538 257 $ 1,401 $ 702 $ 3,330 $ 1,569 During the three and nine months ended May 31, 2015 and 2014, the Company granted the following employee stock options: Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Number of options to purchase common shares 1,892,500 90,000 2,302,500 353,000 Weighted-average exercise price $ 11.57 $ 10.51 $ 11.64 $ 9.92 Term (in years) 10.0 10.0 10.0 10.0 Vesting Period (in years) 5 5 5 5 Fair Value (in thousands) $ 10,500 $ 633 $ 12,940 $ 2,362 The assumptions used in valuing stock options granted during each of the nine months presented were as follows: Nine Months Ended May 31, 2015 2014 Expected term 6.5 6.5 Expected volatility 47 % 73 % Risk free rate 1.77 % 1.97 2.02 % Expected dividend yield 0.00 % 0.00 % Forfeiture rate 3.3 % 0.00 % The following table summarizes activity for stock options for the nine months ended May 31, 2015: Number of Shares Weighted-Average Exercise Price Outstanding, August 31, 2014 2,167,000 $ 5.94 Granted 2,302,500 $ 11.64 Exercised (258,000 ) $ 3.81 Forfeited (110,000 ) (4.97 Outstanding, May 31, 2015 4,101,500 $ 9.30 The following table summarizes information about issued and outstanding stock options as of May 31, 2015: Outstanding Options Vested Options Number of shares 4,101,500 888,100 Weighted-average remaining contractual life 8.8 6.9 Weighted-average exercise price $9.30 $5.34 Aggregate intrinsic value (in thousands) $9,547 $5,480 The estimated unrecognized compensation cost from unvested stock options as of May 31, 2015, which will be recognized ratably over the remaining vesting phase, is as follows: Unvested Options at May 31, 2015 Unrecognized compensation expense (in thousands) $15,038 Remaining vesting phase 4.3 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
May. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 12. Related Party Transactions Whenever the Company engages in transactions with its officers, directors, or other related parties, the terms of the transaction are reviewed by the disinterested directors. All transactions must be on terms no less favorable to the Company than similar transactions with unrelated parties. Lease Agreement: Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Rent expense $ 45 $ 45 $ 135 $ 135 Revenue Distribution Processing: Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Total Royalty Payments $ 14 $ 58 $ 95 $ 191 |
Other Commitments and Contingen
Other Commitments and Contingencies | 9 Months Ended |
May. 31, 2015 | |
Other Commitments and Contingencies [Abstract] | |
Other Commitments and Contingencies | 13. Other Commitments and Contingencies From time to time, the Company is a party to various commercial and regulatory claims, pending or threatened legal action, and other proceedings that arise in the ordinary course of business. It is the opinion of management that none of the current matters of contention are reasonably likely to have a material adverse impact on its business, financial position, results of operations or cash flows. During the nine months ended May 31, 2015, the Company modified its contract drilling obligations with Ensign United States Drilling, Inc. Two of the three rigs under contract fulfilled the terms of their contracts and were released, and one rig was contracted to continue drilling on a day-rate pricing basis. The new contract has a term of less than one year. From time to time, the Company receives notice from other operators of their intent to drill and operate a well in which the Company owns a working interest (a "non-operated well"). The Company has the option to participate in the well and assume the obligation for its pro-rata share of the costs. As of May 31, 2015, the Company was participating in the drilling and completion of 12 gross (0.7 net) new horizontal wells. It is the Company's policy to accrue costs on a non-operated well when it receives notice that active drilling operations have commenced. Accordingly, the May 31, 2015 financial statements include recorded costs of $ 3.6 |
Supplemental Schedule of Inform
Supplemental Schedule of Information to the Statements of Cash Flows | 9 Months Ended |
May. 31, 2015 | |
Supplemental Schedule of Information to the Statements of Cash Flows [Abstract] | |
Supplemental Schedule of Information to the Statements of Cash Flows | 14. Supplemental Schedule of Information to the Statements of Cash Flows The following table supplements the cash flow information presented in the financial statements for the nine months ended May 31, 2015 and 2014 (in thousands): Nine Months Ended May 31, 2015 2014 Supplemental cash flow information: Interest paid $ 2,200 $ 750 Income taxes paid 110 - Non-cash investing and financing activities: Accrued well costs $ 26,491 $ 47,489 Assets acquired in exchange for common stock 58,968 11,185 Asset retirement costs and obligations 2,657 1,367 |
Subsequent Events
Subsequent Events | 9 Months Ended |
May. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events Subsequent to May 31, 2015, the Company repaid $ 54 141 87 |
Organization and Summary of S21
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
May. 31, 2015 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: st The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America ("US GAAP") for interim financial information. |
Interim Financial Information | Interim Financial Information: In management's opinion, the unaudited financial statements contained herein reflect all adjustments, consisting solely of normal recurring items, which are necessary for the fair presentation of the Company's financial position, results of operations, and cash flows on a basis consistent with that of its prior audited financial statements. However, the results of operations for interim periods may not be indicative of results to be expected for the full fiscal year. |
Reclassifications | Reclassifications: |
Use of Estimates | Use of Estimates: |
Cash and Cash Equivalents | Cash and Cash Equivalents: |
Oil and Gas Properties | Oil and Gas Properties: Capitalized costs of oil and gas properties are depleted using the units-of-production method based upon estimates of proved reserves. For depletion purposes, the volume of petroleum reserves and production is converted into a common unit of measure at the energy equivalent conversion rate of six thousand cubic feet of natural gas to one barrel of crude oil. Investments in unproved properties and major development projects are not amortized until proved reserves associated with the projects can be determined or until impairment occurs. If the results of an assessment indicate that the properties are impaired, the amount of the impairment is added to the capitalized costs to be amortized. Properties under development represent the costs associated with the development of oil and gas properties that have yet to be proved as of May 31, 2015. Since the properties were not classified as proved as of May 31, 2015, they were classified within unproved oil and gas properties and were withheld from the depletion calculation and ceiling test. The costs for these properties will be transferred into proved properties when they are proved and will become subject to depletion and the ceiling test calculation in subsequent periods. Under the full cost method of accounting, a ceiling test is performed each quarter. The full cost ceiling test is an impairment test prescribed by SEC regulations. The ceiling test determines a limit on the book value of oil and gas properties. The capitalized costs of proved and unproved oil and gas properties, net of accumulated depletion, depreciation, and amortization, and the related deferred income taxes, may not exceed the estimated future net cash flows from proved oil and gas reserves, less future cash outflows associated with asset retirement obligations that have been accrued, plus the cost of unproved properties not being amortized, plus the lower of cost or estimated fair value of unproven properties being amortized. Prices are held constant for the productive life of each well. Net cash flows are discounted at 10 The oil and natural gas prices used to calculate the full cost ceiling limitation are based upon a 12-month rolling average, calculated as the unweighted arithmetic average of the first day of the month price for each month within the 12-month period prior to the end of the reporting period, unless prices are defined by contractual arrangements. Prices are adjusted for basis or location differentials. |
Oil and Gas Reserves | Oil and Gas Reserves: The determination of depletion and amortization expenses, as well as the ceiling test calculation related to the recorded value of the Company's oil and natural gas properties, is highly dependent on estimates of proved oil and natural gas reserves. |
Capitalized Interest | Capitalized Interest: |
Capitalized Overhead | Capitalized Overhead: Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Capitalized Overhead $ 486 $ 300 $ 1,623 $ 921 |
Well Costs Payable | Well Costs Payable: |
Other Property and Equipment | Other Property and Equipment: five seven |
Asset Retirement Obligations | Asset Retirement Obligations: The present value of a liability for the ARO is initially recorded when it is incurred if a reasonable estimate of fair value can be made. This is typically when a well is completed or an asset is placed in service. When the ARO is initially recorded, the Company capitalizes the cost (asset retirement cost or "ARC") by increasing the carrying value of the related asset. ARCs related to wells are capitalized to the full cost pool and subject to depletion. Over time, the liability increases for the change in its present value (accretion of ARO), while the net capitalized cost decreases over the useful life of the asset, as depletion expense is recognized. In addition, ARCs are included in the ceiling test calculation for valuing the full cost pool. |
Business Combinations | Business Combinations: |
Oil and Gas Sales | Oil and Gas Sales: |
Major Customers | Major Customers: 58 15 10 45 13 12 12 62 11 45 15 10 Based on the current demand for oil and natural gas, the availability of other buyers, and the Company having the option to sell to other buyers if conditions so warrant, the Company believes that its oil and gas production can be sold in the market in the event that it is not sold to the Company's existing customers. However, in some circumstances, a change in customers may entail significant transition costs and/or shutting in or curtailing production for weeks or even months during the transition to a new customer. Accounts receivable consist primarily of trade receivables from oil and gas sales and amounts due from other working interest owners whom are liable for their proportionate share of well costs. The Company typically has the right to withhold future revenue disbursements to recover outstanding joint interest billings on outstanding receivables from joint interest owners. Customers with balances greater than 10% of total receivable balances as of each of the periods presented are shown in the following table: Major Customers As of May 31, 2015 As of August 31, 2014 Company A 29 % 37 % Company B 12 % (1 ) (1) |
Lease Operating Expenses | Lease Operating Expenses: |
Stock-Based Compensation | Stock-Based Compensation: |
Income Tax | Income Tax: No significant uncertain tax positions were identified as of any date on or before May 31, 2015. The Company's policy is to recognize interest and penalties related to uncertain tax benefits in income tax expense. As of May 31, 2015, the Company has not recognized any interest or penalties related to uncertain tax benefits. |
Financial Instruments | Financial Instruments: Financial instruments, whether measured on a recurring or non-recurring basis, are recorded at fair value. A fair value hierarchy, established by the Financial Accounting Standards Board, prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). As discussed in Note 5, the Company incurred asset retirement obligations during the periods presented, the value of which was determined using unobservable pricing inputs (or Level 3 inputs). The Company uses the income valuation technique to estimate the fair value of the obligation using several assumptions and judgments about the ultimate settlement amounts, inflation factors, credit adjusted discount rates, and timing of settlement. |
Commodity Derivative Instruments | Commodity Derivative Instruments: |
Earnings Per Share Amounts | Earnings Per Share Amounts: The following table sets forth the share calculation of diluted earnings per share: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Weighted-average shares outstanding-basic 104,234,519 77,176,420 91,105,035 75,689,903 Potentially dilutive common shares from: Stock options Anti-dilutive 515,530 699,218 432,170 Warrants - 1,316,669 - 1,177,383 - 1,832,199 699,218 1,609,553 Weighted-average shares outstanding - diluted 104,234,519 79,008,619 91,804,253 77,299,456 As a result of the net loss reported for the three and nine months ended May 31, 2015, the calculation of basic and diluted Earnings per Share used the same number of weighted-average common shares outstanding in the denominator, as the inclusion of common share equivalents was anti-dilutive. The following potentially dilutive securities outstanding for the periods presented were not included in the respective earnings per share calculation above; as such securities had an anti-dilutive effect on earnings per share: Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Employee stock options 4,101,500 478,000 2,710,500 503,000 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2015-03, "Simplifying the Presentation of Debt Issuance Costs" ("ASU 2015-03"), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. For public business entities, the ASU is effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Entities should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, entities are required to comply with the applicable disclosures for a change in an accounting principle. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In January 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2015-01, "Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items" ("ASU 2015-01"), which eliminates from US GAAP the concept of extraordinary items, while retaining certain presentation and disclosure guidance for items that are unusual in nature or occur infrequently. The standard is effective prospectively for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided the guidance is applied from the beginning of the fiscal year of adoption. Adoption of ASU 2015-01 is not expected to have a material effect on the Company's financial position, results of operations, or cash flows. In November 2014, the FASB issued Accounting Standards Update 2014-16, "Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity" ("ASU 2014-16"), which clarifies how to evaluate the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, ASU 2014-16 requires that an entity consider all relevant terms and features in evaluating the nature of the host contract and clarifies that the nature of the host contract depends upon the economic characteristics and the risks of the entire hybrid financial instrument. An entity should assess the substance of the relevant terms and features, including the relative strength of the debt-like or equity-like terms and features given the facts and circumstances, when considering how to weight those terms and features. ASU 2014-16 is effective for public businesses for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09"), which establishes a comprehensive new revenue recognition standard designed to depict the transfer of goods or services to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In doing so, companies may need to use more judgment and make more estimates than under current revenue recognition guidance. ASU 2014-09 allows for the use of either the full or modified retrospective transition method, and the standard will be effective for annual reporting periods beginning after December 15, 2016 including interim periods within that period. Early adoption is not permitted. The Company is currently evaluating which transition approach to use and the impact of the adoption of this standard on its consolidated financial statements. There were various updates recently issued by the FASB, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company's reported financial position, results of operations or cash flows. |
Organization and Summary of S22
Organization and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
May. 31, 2015 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Schedule of Capitalized Overhead Expenses | Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Capitalized Overhead $ 486 $ 300 $ 1,623 $ 921 |
Schedule of Customers With Balances Greater Than 10% of Total Receivables | Major Customers As of May 31, 2015 As of August 31, 2014 Company A 29 % 37 % Company B 12 % (1 ) |
Reconciliation of Weighted-average Shares Outstanding Basic and Diluted | Three Months Ended Nine Months Ended 2015 2014 2015 2014 Weighted-average shares outstanding-basic 104,234,519 77,176,420 91,105,035 75,689,903 Potentially dilutive common shares from: Stock options Anti-dilutive 515,530 699,218 432,170 Warrants - 1,316,669 - 1,177,383 - 1,832,199 699,218 1,609,553 Weighted-average shares outstanding - diluted 104,234,519 79,008,619 91,804,253 77,299,456 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Employee stock options 4,101,500 478,000 2,710,500 503,000 |
Property and Equipment and Fu23
Property and Equipment and Full Cost Ceiling Impairment (Tables) | 9 Months Ended |
May. 31, 2015 | |
Property and Equipment and Full Cost Ceiling Impairment [Abstract] | |
Schedule of Capitalized Costs of Property and Equipment | As of As of May 31, 2015 August 31, 2014 Oil and gas properties, full cost method: Unproved properties, not subject to amortization: Lease acquisition and other costs $ 139,012 $ 41,531 Properties under development 31,627 53,747 Subtotal 170,639 95,278 Proved producing and non-producing properties 513,677 329,926 Total capitalized costs 684,316 425,204 Less, accumulated depletion (103,101 ) (54,908 ) Less, ceiling test impairment (3,000 ) - Oil and gas properties, net 578,215 370,296 Land 4,478 3,898 Other property and equipment 867 5,961 Less, accumulated depreciation (534 ) (755 ) Other property and equipment, net 4,811 9,104 Total property and equipment, net $ 583,026 $ 379,400 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
May. 31, 2015 | |
Business Acquisition [Line Items] | |
Schedule of Pro Forma Results | Three Months Ended May 31, Nine Months ended May 31, 2015 2014 2015 2014 Oil and Gas Revenues $ 26,033 $ 26,766 $ 99,157 $ 71,550 Net income $ (2,481 ) $ 6,889 $ 25,102 $ 17,997 Earnings per common share Basic $ (0.02 ) $ 0.08 $ 0.26 $ 0.22 Diluted $ (0.02 ) $ 0.08 $ 0.26 $ 0.22 |
Trilogy Resources [Member] | |
Business Acquisition [Line Items] | |
Schedule of Fair Value of Acquisition | Purchase Price November 12, Consideration Given Cash $ 15,902 Synergy Resources Corp. Common Stock * 2,896 Total consideration given $ 18,798 Allocation of Purchase Price Proved oil and gas properties $ 11,514 Unproved oil and gas properties $ 7,725 Total fair value of oil and gas properties acquired 19,239 Working capital $ (83 ) Asset retirement obligation (358 ) Fair value of net assets acquired $ 18,798 Working capital acquired was estimated as follows: Accounts receivable 536 Accrued liabilities and expenses (619 ) Total working capital $ (83 ) * The fair value of the consideration attributed to the Common Stock under ASC 805 was based on the Company's closing stock price on the measurement date of November 12, 2013. ( 301,339 9.61 |
Apollo Operating [Member] | |
Business Acquisition [Line Items] | |
Schedule of Fair Value of Acquisition | Purchase Price November 13, Consideration Given Cash $ 14,688 Synergy Resources Corp. Common Stock * 5,432 Total consideration given $ 20,120 Allocation of Purchase Price Proved oil and gas properties $ 13,284 Unproved oil and gas properties $ 7,577 Total fair value of oil and gas properties acquired 20,861 Working capital $ (507 ) Asset retirement obligation (234 ) Fair value of net assets acquired $ 20,120 Working capital acquired was estimated as follows: Accounts receivable 662 Accrued liabilities and expenses (1,169 ) Total working capital $ (507 ) * The fair value of the consideration attributed to the Common Stock under ASC 805 was based on the Company's closing stock prices on the measurement dates (including 550,518 9.49 20,626 10.08 |
Bayswater [Member] | |
Business Acquisition [Line Items] | |
Schedule of Fair Value of Acquisition | Purchase Price December 15, 2014 Consideration Given Cash $ 74,221 Synergy Resources Corp. Common Stock (1) 48,434 Liabilities assumed, including asset retirement obligations 2,467 Total consideration given $ 125,122 Allocation of Purchase Price Proved oil and gas properties (2) $ 51,400 Unproved oil and gas properties 73,722 Total fair value of oil and gas properties acquired $ 125,122 (1) The fair value of the consideration attributed to the Common Stock under ASC 805 was based on the Company's closing stock price on the measurement date of December 15, 2014 ( 4,648,136 10.42 (2) Proved oil and gas properties were measured primarily using an income approach. The fair value measurements of the oil and gas assets were based, in part, on significant inputs not observable in the market and thus represent a Level 3 measurement. The significant inputs included assumed future production profiles, commodity prices (mainly based on observable market inputs), a discount rate of 10 |
Depletion, depreciation and a25
Depletion, depreciation and amortization ("DDA") (Tables) | 9 Months Ended |
May. 31, 2015 | |
Depletion, depreciation and amortization ("DDA") [Abstract] | |
Schedule of Depletion, Depreciation and Amortization | Three Months Ended May 31, Nine Months ended May 31, 2015 2014 2015 2014 Depletion $ 16,200 $ 7,569 $ 47,849 $ 20,550 Depreciation and amortization 197 227 508 556 Total DDA Expense $ 16,397 $ 7,796 $ 48,357 $ 21,106 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
May. 31, 2015 | |
Asset Retirement Obligations [Abstract] | |
Schedule of Fair Value Assumptions | For The Nine Months Ended May 31, 2015 2014 Inflation rate 3.9 % 3.9 4.0 Estimated asset life 25.0 39.0 20.0 40.0 Credit adjusted risk free interest rate 8.0 % 8.0 % |
Schedule of Asset Retirement Obligations | Asset retirement obligations, August 31, 2014 $ 4,730 Liabilities incurred 744 Liabilities assumed 1,913 Accretion expense 385 Asset retirement obligations, May 31, 2015 $ 7,772 |
Commodity Derivative Instrume27
Commodity Derivative Instruments (Tables) | 9 Months Ended |
May. 31, 2015 | |
Commodity Derivative Instruments [Abstract] | |
Schedule of Commodity Derivative Contracts | Settlement Period Derivative Average Volumes Average Celing Crude Oil - NYMEX WTI Jun 1, 2015 - Jun 30, 2015 Collar 2,500 - $ 80.00 $ 95.75 Jun 1, 2015 - Dec 31, 2015 Put 40,000 - $ 50.00 - Jun 1, 2015 - Oct 31, 2015 Put 5,200 - $ 50.00 - Jun 1, 2015 - Dec 31, 2015 Put 10,000 - $ 55.00 - Jan 1, 2016 - May 31, 2016 Collar 10,000 - $ 75.00 $ 96.00 Jan 1, 2016 - May 31, 2016 Collar 5,000 - $ 80.00 $ 100.75 Jun 1, 2016 - Aug 31, 2016 Collar 15,000 - $ 80.00 $ 100.05 Jan 1, 2016 - Aug 31, 2016 Swap 5,000 $ 88.55 - - Sep 1, 2016 - Dec 31, 2016 Swap 20,000 $ 88.10 - - Jan 1, 2016 - Oct 31, 2016 Swap 6,400 $ 78.96 - - Jan 1, 2016 - Dec 31, 2016 Put 25,000 - $ 50.00 - Jan 1, 2017 - Apr 30, 2017 Put 20,000 - $ 50.00 - May 1, 2017 - Aug 31, 2017 Put 20,000 - $ 55.00 Natural Gas - NYMEX Henry Hub Jun 1, 2015 - Dec 31, 2015 Collar 72,000 - $ 4.15 $ 4.49 Jan 1, 2016 - May 31, 2016 Collar 60,000 - $ 4.05 $ 4.54 Jun 1, 2016 - Aug 31, 2016 Collar 60,000 $ 3.90 $ 4.14 Natural Gas - CIG Rocky Mountain Jun 1, 2015 - Dec 31, 2015 Collar 100,000 - $ 2.20 $ 3.05 Jan 1, 2016 - Dec 31, 2016 Collar 100,000 - $ 2.65 $ 3.10 Jan 1, 2017 - Apr 30, 2017 Collar 100,000 - $ 2.80 $ 3.95 May 1 2017 - Aug 31, 2017 Collar 110,000 $ 2.50 $ 3.05 |
Schedule of Fair Value of Derivatives | As of May 31, 2015 Underlying Commodity Balance Sheet Location Gross Amounts of Gross Amounts Offset Net Amounts of Assets Derivative contracts Current assets $ 4,487 $ (219 ) $ 4,268 Derivative contracts Noncurrent assets $ 4,994 $ (379 ) $ 4,615 Derivative contracts Current liabilities $ 219 $ (219 ) $ - Derivative contracts Noncurrent liabilities $ 379 $ (379 ) $ - As of August 31, 2014 Underlying Commodity Balance Sheet Location Gross Amounts of Gross Amounts Offset Net Amounts of Assets Derivative contracts Current assets $ 903 $ (538 ) $ 365 Derivative contracts Noncurrent assets $ 718 $ (664 ) $ 54 Derivative contracts Current liabilities $ 840 $ (538 ) $ 302 Derivative contracts Noncurrent liabilities $ 971 $ (664 ) $ 307 |
Schedule of Gain (Loss) Recognized in Statements of Operations | Three Months Ended May 31, Nine Months ended May 31, 2015 2014 2015 2014 Realized gain (loss) on commodity derivatives $ 7,136 $ (826 ) $ 20,935 $ (1,415 Unrealized gain (loss) on commodity derivatives (8,298 ) (179 ) 5,578 652 Total gain (loss) $ (1,162 ) $ (1,005 ) $ 26,513 $ (763 |
Schedule of Hedge Realized Gains (Losses) | Three Months Ended May 31, Nine Months ended May 31, 2015 2014 2015 2014 Monthly settlement $ 2,100 $ (826 ) $ 9,618 $ (1,415 Early liquidation 5,036 - 11,317 - Total realized gain (loss) $ 7,136 $ (826 ) $ 20,935 $ (1,415 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
May. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Schedule of Assets and Liabilities Measured on a Recurring Basis | Fair Value Measurements at May 31, 2015 Level 1 Level 2 Level 3 Total Financial assets and liabilities: Commodity derivative asset $ - $ 8,883 $ - $ 8,883 Commodity derivative liability $ - $ - $ - $ - Fair Value Measurements at August 31, 2014 Level 1 Level 2 Level 3 Total Financial assets and liabilities: Commodity derivative asset $ - $ 419 $ - $ 419 Commodity derivative liability $ - $ 609 $ - $ 609 |
Interest Expense (Tables)
Interest Expense (Tables) | 9 Months Ended |
May. 31, 2015 | |
Interest Expense [Abstract] | |
Schedule of the Components of Interest Expense | Three Months Ended Nine Months Ended 2015 2014 2015 2014 Revolving credit facility $ 915 $ 252 $ 2,191 $ 749 Amortization of debt issuance costs 252 118 607 312 Less, interest capitalized (1,051 ) (370 ) (2,682 ) (1,061 Interest expense, net $ 116 $ - $ 116 $ - |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
May. 31, 2015 | |
Shareholders' Equity [Abstract] | |
Schedule of Classes of Stock | As of May 31, As of August 31, 2015 2014 Preferred stock, shares authorized 10,000,000 10,000,000 Preferred stock, par value $ 0.01 $ 0.01 Preferred stock, shares issued and outstanding nil nil Common stock, shares authorized 200,000,000 200,000,000 Common stock, par value $ 0.001 $ 0.001 Common stock, shares issued and outstanding 105,025,453 77,999,082 |
Schedule of Common Stock Issued for Acquisition of Mineral Interests and Services | For the nine months Number of common shares issued for mineral property leases 995,672 Number of common shares issued for acquisitions 4,648,136 Total common shares issued 5,643,808 Average price per common share $ 10.45 Aggregate value of shares issued (in thousands) $ 58,968 |
Schedule of Outstanding Common Stock Warrant Activity | Number of Warrants Weighted-Average Exercise Price Outstanding, August 31, 2014 2,562,473 $ 6.00 Granted - $ - Exercised (2,562,473 ) $ 6.00 Expired - $ - Outstanding, May 31, 2015 - $ - |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
May. 31, 2015 | |
Stock-Based Compensation [Abstract] | |
Schedule of Stock-based Compensation Expense Recognized | Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Stock options $ 715 $ 445 $ 1,792 $ 1,312 Employee stock grants 686 257 1,538 257 $ 1,401 $ 702 $ 3,330 $ 1,569 |
Schedule of Employee Stock Options Granted During the Period | Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Number of options to purchase common shares 1,892,500 90,000 2,302,500 353,000 Weighted-average exercise price $ 11.57 $ 10.51 $ 11.64 $ 9.92 Term (in years) 10.0 10.0 10.0 10.0 Vesting Period (in years) 5 5 5 5 Fair Value (in thousands) $ 10,500 $ 633 $ 12,940 $ 2,362 |
Schedule of Assumptions Used In Valuing Stock Options | Nine Months Ended May 31, 2015 2014 Expected term 6.5 6.5 Expected volatility 47 % 73 % Risk free rate 1.77 % 1.97 2.02 % Expected dividend yield 0.00 % 0.00 % Forfeiture rate 3.3 % 0.00 % |
Summary of Stock Option Activity Under Stock Option and Incentive Plans | Number of Shares Weighted-Average Exercise Price Outstanding, August 31, 2014 2,167,000 $ 5.94 Granted 2,302,500 $ 11.64 Exercised (258,000 ) $ 3.81 Forfeited (110,000 ) (4.97 Outstanding, May 31, 2015 4,101,500 $ 9.30 |
Schedule of Issued and Outstanding Stock Options | Outstanding Options Vested Options Number of shares 4,101,500 888,100 Weighted-average remaining contractual life 8.8 6.9 Weighted-average exercise price $9.30 $5.34 Aggregate intrinsic value (in thousands) $9,547 $5,480 |
Schedule of Estimated Unrecognized Compensation Cost From Unvested Stock Options | Unvested Options at May 31, 2015 Unrecognized compensation expense (in thousands) $15,038 Remaining vesting phase 4.3 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
May. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Rent Expense | Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Rent expense $ 45 $ 45 $ 135 $ 135 |
Schedule of Royalty Expense | Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Total Royalty Payments $ 14 $ 58 $ 95 $ 191 |
Organization and Summary of S33
Organization and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | Aug. 31, 2014 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |||||
Net cash flows, discount rate | 10.00% | 10.00% | |||
Capitalized overhead | $ 486 | $ 300 | $ 1,623 | $ 921 | |
Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Other property and equipment, useful life | 5 years | ||||
Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Other property and equipment, useful life | 7 years | ||||
Company A [Member] | Oil and Gas Revenues [Member] | |||||
Concentration Risk [Line Items] | |||||
Risk percentage | 58.00% | 45.00% | 62.00% | 45.00% | |
Company A [Member] | Tenant accounts receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Risk percentage | 29.00% | 37.00% | |||
Company B [Member] | Oil and Gas Revenues [Member] | |||||
Concentration Risk [Line Items] | |||||
Risk percentage | 15.00% | 13.00% | 11.00% | 15.00% | |
Company B [Member] | Tenant accounts receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Risk percentage | 12.00% | ||||
Company C [Member] | Oil and Gas Revenues [Member] | |||||
Concentration Risk [Line Items] | |||||
Risk percentage | 10.00% | 12.00% | 10.00% | ||
Company D [Member] | Oil and Gas Revenues [Member] | |||||
Concentration Risk [Line Items] | |||||
Risk percentage | 12.00% |
Organization and Summary of S34
Organization and Summary of Significant Accounting Policies (Earnings Per Share) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted-average shares outstanding - basic | 104,234,519 | 77,176,420 | 91,105,035 | 75,689,903 |
Potentially dilutive common shares from: | ||||
Potentially dilutive common shares | 1,832,199 | 699,218 | 1,609,553 | |
Weighted-average shares outstanding - diluted | 104,234,519 | 79,008,619 | 91,804,253 | 77,299,456 |
Potentially dilutive common shares having anti-dilutive effect on earnings per share | 4,101,500 | 478,000 | 2,710,500 | 503,000 |
Warrant [Member] | ||||
Potentially dilutive common shares from: | ||||
Warrants | 1,316,669 | 1,177,383 | ||
Stock Options [Member] | ||||
Potentially dilutive common shares from: | ||||
Stock options | 515,530 | 699,218 | 432,170 |
Property and Equipment and Fu35
Property and Equipment and Full Cost Ceiling Impairment (Schedule of Capitalized Costs of Property And Equipment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | Aug. 31, 2014 | |
Unproved properties, not subject to amortization: | |||||
Unproved properties, not subject to amortization | $ 170,639 | $ 170,639 | $ 95,278 | ||
Proved producing and non-producing properties: | |||||
Proved producing and non-producing properties | 513,677 | 513,677 | 329,926 | ||
Total capitalized costs | 684,316 | 684,316 | 425,204 | ||
Less, accumulated depletion | (103,101) | (103,101) | $ (54,908) | ||
Less, ceiling test impairment | (3,000) | (3,000) | |||
Oil and gas properties, net | 578,215 | 578,215 | $ 370,296 | ||
Other property and equipment: | |||||
Other property and equipment, gross | 867 | 867 | 5,961 | ||
Less, accumulated depreciation | (534) | (534) | (755) | ||
Other property and equipment, net | 4,811 | 4,811 | 9,104 | ||
Property and equipment, net | 583,026 | 583,026 | 379,400 | ||
Land [Member] | |||||
Other property and equipment: | |||||
Other property and equipment, gross | 4,478 | 4,478 | 3,898 | ||
Lease acquisition and other costs [Member] | |||||
Unproved properties, not subject to amortization: | |||||
Unproved properties, not subject to amortization | 139,012 | 139,012 | 41,531 | ||
Properties under development [Member] | |||||
Unproved properties, not subject to amortization: | |||||
Unproved properties, not subject to amortization | $ 31,627 | $ 31,627 | $ 53,747 |
Property and Equipment and Fu36
Property and Equipment and Full Cost Ceiling Impairment (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
May. 31, 2015USD ($)$ / shares | May. 31, 2014USD ($) | May. 31, 2015USD ($)$ / shares | May. 31, 2014USD ($) | Aug. 31, 2014USD ($) | |
Reserve Quantities [Line Items] | |||||
Price per unit, percentage change | 16.00% | 16.00% | |||
Full cost ceiling impairment | $ | $ 3,000 | $ 3,000 | |||
Oil [Member] | |||||
Reserve Quantities [Line Items] | |||||
Price per unit | 64.26 | 64.26 | |||
Natural Gas [Member] | |||||
Reserve Quantities [Line Items] | |||||
Price per unit | 4.14 | 4.14 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | ||||||
Dec. 15, 2014USD ($)ashares | Nov. 30, 2013USD ($)shares | Nov. 13, 2013USD ($)ashares | Nov. 12, 2013USD ($)ashares | Aug. 27, 2013USD ($) | May. 31, 2015USD ($)shares | Aug. 31, 2014USD ($) | ||
Business Acquisition [Line Items] | ||||||||
Business acquisition, shares issued | shares | 4,648,136 | |||||||
Fair value attributed to unproved properties | $ 15,300 | |||||||
Fair value attributed to proved properties | $ 513,677 | $ 329,926 | ||||||
Percentage of full cost amortization | 2.00% | |||||||
Vertical Wells [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percent of entity acquired | 100.00% | |||||||
Horizontal Wells [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Fair value attributed to proved properties | $ 24,800 | |||||||
Trilogy Resources [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of wells | 21 | |||||||
Mineral acres, net | a | 800 | |||||||
Business acquisition, shares issued | shares | 301,339 | |||||||
Cash | $ 15,902 | |||||||
Total purchase price | 18,798 | |||||||
Synergy Resources Corp. Common Stock | [1] | $ 2,896 | ||||||
Apollo Operating [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of wells | 38 | |||||||
Mineral acres, gross | a | 3,639 | |||||||
Mineral acres, net | a | 1,000 | |||||||
Business acquisition, shares issued | shares | 20,626 | 550,518 | ||||||
Business acquisition, shares issued, value | $ 200 | $ 5,200 | ||||||
Cash | $ 3,700 | $ 14,688 | $ 11,000 | |||||
Percent of entity acquired | 25.00% | |||||||
Total purchase price | $ 20,120 | |||||||
Synergy Resources Corp. Common Stock | [2] | $ 5,432 | ||||||
Bayswater [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, shares issued | shares | 4,648,136 | |||||||
Cash | $ 74,221 | |||||||
Synergy Resources Corp. Common Stock | [3] | $ 48,434 | ||||||
Bayswater [Member] | Codell And Niobrara [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Mineral acres, gross | a | 5,040 | |||||||
Mineral acres, net | a | 4,053 | |||||||
Bayswater [Member] | Sussex Shannon And JSands [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Mineral acres, gross | a | 2,400 | |||||||
Mineral acres, net | a | 1,739 | |||||||
Bayswater [Member] | Vertical Wells [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of wells | 73 | |||||||
Bayswater [Member] | Horizontal Wells [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of wells | 17 | |||||||
Bayswater [Member] | Non-operated Vertical Wells [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of wells | 11 | |||||||
Bayswater [Member] | Minimum [Member] | Vertical Wells [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percent of entity acquired | 5.00% | |||||||
Bayswater [Member] | Minimum [Member] | Horizontal Wells [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percent of entity acquired | 6.00% | |||||||
Bayswater [Member] | Maximum [Member] | Vertical Wells [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percent of entity acquired | 100.00% | |||||||
Bayswater [Member] | Maximum [Member] | Horizontal Wells [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percent of entity acquired | 40.00% | |||||||
[1] | The fair value of the consideration attributed to the Common Stock under ASC 805 was based on the Company's closing stock price on the measurement date of November 12, 2013. (301,339 shares at $9.61 per share) | |||||||
[2] | The fair value of the consideration attributed to the Common Stock under ASC 805 was based on the Company's closing stock prices on the measurement dates (including 550,518 shares at $9.49 per share on November 13, 2013 plus 20,626 shares at various measurement dates at an average per share price of $10.08). | |||||||
[3] | The fair value of the consideration attributed to the Common Stock under ASC 805 was based on the Company's closing stock price on the measurement date of December 15, 2014 (4,648,136 shares at $10.42 per share). |
Acquisitions (Schedule of Fair
Acquisitions (Schedule of Fair Value of Acquisition) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | ||||||
Dec. 15, 2014 | Nov. 30, 2013 | Nov. 13, 2013 | Nov. 12, 2013 | Aug. 27, 2013 | May. 31, 2015 | May. 31, 2014 | ||
Working capital acquired was estimated as follows: | ||||||||
Business acquisition, shares issued | 4,648,136 | |||||||
Discount rate | 8.00% | 8.00% | ||||||
Trilogy Resources [Member] | ||||||||
Preliminary Purchase Price | ||||||||
Cash | $ 15,902 | |||||||
Synergy Resources Corp. Common Stock | [1] | 2,896 | ||||||
Total consideration given | 18,798 | |||||||
Preliminary Allocation of Purchase Price | ||||||||
Proved oil and gas properties | 11,514 | |||||||
Unproved oil and gas properties | 7,725 | |||||||
Total fair value of oil and gas properties acquired | 19,239 | |||||||
Working capital | (83) | |||||||
Asset retirement obligation | (358) | |||||||
Fair value of net assets acquired | 18,798 | |||||||
Working capital acquired was estimated as follows: | ||||||||
Accounts receivable | 536 | |||||||
Accrued liabilities and expenses | (619) | |||||||
Total working capital | $ (83) | |||||||
Business acquisition, shares issued | 301,339 | |||||||
Closing stock price | $ 9.61 | |||||||
Apollo Operating [Member] | ||||||||
Preliminary Purchase Price | ||||||||
Cash | $ 3,700 | $ 14,688 | $ 11,000 | |||||
Synergy Resources Corp. Common Stock | [2] | 5,432 | ||||||
Total consideration given | 20,120 | |||||||
Preliminary Allocation of Purchase Price | ||||||||
Proved oil and gas properties | 13,284 | |||||||
Unproved oil and gas properties | 7,577 | |||||||
Total fair value of oil and gas properties acquired | 20,861 | |||||||
Working capital | (507) | |||||||
Asset retirement obligation | (234) | |||||||
Fair value of net assets acquired | 20,120 | |||||||
Working capital acquired was estimated as follows: | ||||||||
Accounts receivable | 662 | |||||||
Accrued liabilities and expenses | (1,169) | |||||||
Total working capital | $ (507) | |||||||
Business acquisition, shares issued | 20,626 | 550,518 | ||||||
Closing stock price | $ 10.08 | $ 9.49 | ||||||
Bayswater [Member] | ||||||||
Preliminary Purchase Price | ||||||||
Cash | $ 74,221 | |||||||
Synergy Resources Corp. Common Stock | [3] | 48,434 | ||||||
Liabilities assumed, including asset retirement obligations | 2,467 | |||||||
Total consideration given | 125,122 | |||||||
Preliminary Allocation of Purchase Price | ||||||||
Proved oil and gas properties | [4] | 51,400 | ||||||
Unproved oil and gas properties | 73,722 | |||||||
Total fair value of oil and gas properties acquired | $ 125,122 | |||||||
Working capital acquired was estimated as follows: | ||||||||
Business acquisition, shares issued | 4,648,136 | |||||||
Closing stock price | $ 10.42 | |||||||
Discount rate | 10.00% | |||||||
[1] | The fair value of the consideration attributed to the Common Stock under ASC 805 was based on the Company's closing stock price on the measurement date of November 12, 2013. (301,339 shares at $9.61 per share) | |||||||
[2] | The fair value of the consideration attributed to the Common Stock under ASC 805 was based on the Company's closing stock prices on the measurement dates (including 550,518 shares at $9.49 per share on November 13, 2013 plus 20,626 shares at various measurement dates at an average per share price of $10.08). | |||||||
[3] | The fair value of the consideration attributed to the Common Stock under ASC 805 was based on the Company's closing stock price on the measurement date of December 15, 2014 (4,648,136 shares at $10.42 per share). | |||||||
[4] | Proved oil and gas properties were measured primarily using an income approach. The fair value measurements of the oil and gas assets were based, in part, on significant inputs not observable in the market and thus represent a Level 3 measurement. The significant inputs included assumed future production profiles, commodity prices (mainly based on observable market inputs), a discount rate of 10%, and assumptions on the timing and amount of future development and operating costs. |
Acquisitions (Schedule of Pro F
Acquisitions (Schedule of Pro Forma Results) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Acquisitions [Abstract] | ||||
Oil and Gas Revenues | $ 26,033 | $ 26,766 | $ 99,157 | $ 71,550 |
Net income | $ (2,481) | $ 6,889 | $ 25,102 | $ 17,997 |
Earnings per common share | ||||
Basic | $ (0.02) | $ 0.08 | $ 0.26 | $ 0.22 |
Diluted | $ (0.02) | $ 0.08 | $ 0.26 | $ 0.22 |
Depletion, depreciation and a40
Depletion, depreciation and amortization ("DDA") (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015USD ($)Boe | May. 31, 2014USD ($) | May. 31, 2015USD ($)Boe | May. 31, 2014USD ($) | |
Depletion, depreciation and amortization ("DDA") [Abstract] | ||||
Depletion | $ 16,200 | $ 7,569 | $ 47,849 | $ 20,550 |
Depreciation and amortization | 197 | 227 | 508 | 556 |
Total DDA Expense | $ 16,397 | $ 7,796 | $ 48,357 | $ 21,106 |
Production of BOE | Boe | 738,357 | 2,188,737 | ||
Percentage of total reserves | 1.70% | 4.90% |
Asset Retirement Obligations (S
Asset Retirement Obligations (Schedule of Fair Value Assumptions) (Details) | 9 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Inflation rate | 3.90% | |
Credit adjusted risk free interest rate | 8.00% | 8.00% |
Minimum [Member] | ||
Inflation rate | 3.90% | |
Estimated asset life | 25 years | 20 years |
Maximum [Member] | ||
Inflation rate | 4.00% | |
Estimated asset life | 39 years | 40 years |
Asset Retirement Obligations 42
Asset Retirement Obligations (Schedule of Asset Retirement Obligations) (Details) $ in Thousands | 9 Months Ended |
May. 31, 2015USD ($) | |
Asset Retirement Obligations [Abstract] | |
Asset retirement obligations, August 31, 2014 | $ 4,730 |
Liabilities incurred | 744 |
Liabilities assumed | 1,913 |
Accretion expense | 385 |
Asset retirement obligations, May 31, 2015 | $ 7,772 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
May. 31, 2015 | May. 31, 2015 | Jul. 01, 2015 | Jun. 11, 2015 | Jun. 02, 2015 | Dec. 15, 2014 | Nov. 30, 2014 | |
Line of Credit Facility [Line Items] | |||||||
Total borrowing commitment | $ 500 | $ 300 | |||||
Borrowing base | $ 175 | $ 230 | $ 110 | ||||
Amount outstanding | $ 146 | $ 146 | $ 87 | ||||
Remaining borrowing capacity | $ 88 | ||||||
Credit facility, expiration date | Dec. 15, 2019 | ||||||
Minimum hedge percentage of scheduled production for a rolling 24 months, as required by revolving credit facility covenants | 45.00% | 45.00% | |||||
Maximum hedge percentage of scheduled production for a rolling 24 months, as required by revolving credit facility covenants | 85.00% | 85.00% | |||||
Revolving credit facility, additional rate over variable | 2.50% | ||||||
Average interest rate | 2.50% | 2.50% | |||||
Minimum EBITDAX times interest and fees | 4 | 4 | |||||
Minimum liquidity | $ 25 |
Commodity Derivative Instrume44
Commodity Derivative Instruments (Schedule of Commodity Derivative Contracts) (Details) - May. 31, 2015 | bblMMBTU$ / shares |
Contract One [Member] | Collar [Member] | Crude Oil [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | bbl | 2,500 |
Average Fixed Price | |
Floor Price | 80 |
Celing Price | 95.75 |
Contract One [Member] | Collar [Member] | Natural Gas [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | MMBTU | 72,000 |
Average Fixed Price | |
Floor Price | 4.15 |
Celing Price | 4.49 |
Contract One [Member] | Swap [Member] | Crude Oil [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | bbl | 5,000 |
Average Fixed Price | 88.55 |
Floor Price | |
Celing Price | |
Contract One [Member] | Put [Member] | Crude Oil [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | bbl | 40,000 |
Average Fixed Price | |
Floor Price | 50 |
Celing Price | |
Contract Two [Member] | Collar [Member] | Crude Oil [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | bbl | 10,000 |
Average Fixed Price | |
Floor Price | 75 |
Celing Price | 96 |
Contract Two [Member] | Collar [Member] | Natural Gas [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | MMBTU | 60,000 |
Average Fixed Price | |
Floor Price | 4.05 |
Celing Price | 4.54 |
Contract Two [Member] | Swap [Member] | Crude Oil [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | bbl | 20,000 |
Average Fixed Price | 88.10 |
Floor Price | |
Celing Price | |
Contract Two [Member] | Put [Member] | Crude Oil [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | bbl | 5,200 |
Average Fixed Price | |
Floor Price | 50 |
Celing Price | |
Contract Three [Member] | Collar [Member] | Crude Oil [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | bbl | 5,000 |
Average Fixed Price | |
Floor Price | 80 |
Celing Price | 100.75 |
Contract Three [Member] | Collar [Member] | Natural Gas [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | MMBTU | 60,000 |
Floor Price | 3.90 |
Celing Price | 4.14 |
Contract Three [Member] | Swap [Member] | Crude Oil [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | bbl | 6,400 |
Average Fixed Price | 78.96 |
Floor Price | |
Celing Price | |
Contract Three [Member] | Put [Member] | Crude Oil [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | bbl | 10,000 |
Average Fixed Price | |
Floor Price | 55 |
Celing Price | |
Contract Four [Member] | Collar [Member] | Crude Oil [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | bbl | 15,000 |
Average Fixed Price | |
Floor Price | 80 |
Celing Price | 100.05 |
Contract Four [Member] | Collar [Member] | Natural Gas [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | MMBTU | 100,000 |
Average Fixed Price | |
Floor Price | 2.20 |
Celing Price | 3.05 |
Contract Four [Member] | Put [Member] | Crude Oil [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | bbl | 25,000 |
Average Fixed Price | |
Floor Price | 50 |
Celing Price | |
Contract Five [Member] | Collar [Member] | Natural Gas [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | MMBTU | 100,000 |
Average Fixed Price | |
Floor Price | 2.65 |
Celing Price | 3.10 |
Contract Five [Member] | Put [Member] | Crude Oil [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | bbl | 20,000 |
Average Fixed Price | |
Floor Price | 50 |
Celing Price | |
Contract Six [Member] | Collar [Member] | Natural Gas [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | MMBTU | 100,000 |
Average Fixed Price | |
Floor Price | 2.80 |
Celing Price | 3.95 |
Contract Six [Member] | Put [Member] | Crude Oil [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | bbl | 20,000 |
Average Fixed Price | |
Floor Price | 55 |
Contract Seven [Member] | Collar [Member] | Natural Gas [Member] | |
Derivatives, Fair Value [Line Items] | |
Average Volumes (BBls/MMBtu per month) | MMBTU | 110,000 |
Floor Price | 2.50 |
Celing Price | 3.05 |
Commodity Derivative Instrume45
Commodity Derivative Instruments (Schedule of Fair Value of Derivatives) (Details) - Commodity Contract [Member] - USD ($) $ in Thousands | May. 31, 2015 | Aug. 31, 2014 |
Current Assets [Member] | Gross Amount [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative asset | $ 4,487 | $ 903 |
Current Assets [Member] | Gross Amount Offset [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative asset | (219) | (538) |
Current Assets [Member] | Net Amount [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative asset | 4,268 | 365 |
Noncurrent Assets [Member] | Gross Amount [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative asset | 4,994 | 718 |
Noncurrent Assets [Member] | Gross Amount Offset [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative asset | (379) | (664) |
Noncurrent Assets [Member] | Net Amount [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative asset | 4,615 | 54 |
Current Liabilities [Member] | Gross Amount [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative liability | 219 | 840 |
Current Liabilities [Member] | Gross Amount Offset [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative liability | $ (219) | (538) |
Current Liabilities [Member] | Net Amount [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative liability | 302 | |
Noncurrent Liabilities [Member] | Gross Amount [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative liability | $ 379 | 971 |
Noncurrent Liabilities [Member] | Gross Amount Offset [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative liability | $ (379) | (664) |
Noncurrent Liabilities [Member] | Net Amount [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative liability | $ 307 |
Commodity Derivative Instrume46
Commodity Derivative Instruments (Schedule of Gain (Loss) Recognized in Statements of Operations) (Details) | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015USD ($)bbl | May. 31, 2014USD ($) | May. 31, 2015USD ($) | May. 31, 2014USD ($) | |
Commodity Derivative Instruments [Abstract] | ||||
Realized gain (loss) on commodity derivatives | $ 7,136,000 | $ (826,000) | $ 20,935,000 | $ (1,415,000) |
Unrealized gain (loss) on commodity derivatives | (8,298,000) | (179,000) | 5,578,000 | 652,000 |
Total gain (loss) | $ (1,162,000) | $ (1,005,000) | $ 26,513,000 | $ (763,000) |
Average price of liquidated swaps | 80.61 | |||
Number of barrels in liquidation | bbl | 188,500 |
Commodity Derivative Instrume47
Commodity Derivative Instruments (Schedule of Hedge Realized Gains (Losses)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Commodity Derivative Instruments [Abstract] | ||||
Monthly settlement | $ 2,100 | $ (826) | $ 9,618 | $ (1,415) |
Early liquidation | 5,036 | 11,317 | ||
Total realized gain (loss) | $ 7,136 | $ (826) | $ 20,935 | $ (1,415) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring [Member] - USD ($) $ in Thousands | May. 31, 2015 | Aug. 31, 2014 |
Financial Assets: | ||
Commodity derivative asset | $ 8,883 | $ 419 |
Financial Liabilities: | ||
Commodity derivative liability | $ 609 | |
Level 1 [Member] | ||
Financial Assets: | ||
Commodity derivative asset | ||
Financial Liabilities: | ||
Commodity derivative liability | ||
Level 2 [Member] | ||
Financial Assets: | ||
Commodity derivative asset | $ 8,883 | $ 419 |
Financial Liabilities: | ||
Commodity derivative liability | $ 609 | |
Level 3 [Member] | ||
Financial Assets: | ||
Commodity derivative asset | ||
Financial Liabilities: | ||
Commodity derivative liability |
Interest Expense (Details)
Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Interest Expense [Abstract] | ||||
Revolving credit facility | $ 915 | $ 252 | $ 2,191 | $ 749 |
Amortization of debt issuance costs | 252 | 118 | 607 | 312 |
Less, interest capitalized | (1,051) | $ (370) | (2,682) | $ (1,061) |
Interest expense, net | $ 116 | $ 116 |
Shareholders' Equity (Common St
Shareholders' Equity (Common Stock Transactions) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Feb. 28, 2015 | May. 31, 2015 | Aug. 31, 2014 | |
Classes of stock | |||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred stock, par value | $ 0.01 | $ 0.01 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, shares authorized | 200,000,000 | 200,000,000 | |
Common stock, par value | $ 0.001 | $ 0.001 | |
Common stock, shares issued | 105,025,453 | 77,999,082 | |
Common stock, shares outstanding | 105,025,453 | 77,999,082 | |
Common stock issued for acquisition of mineral property interests | |||
Number of common shares issued for mineral property leases | 995,672 | ||
Number of common shares issued for acquisitions | 4,648,136 | ||
Total common shares issued | 18,613,952 | 5,643,808 | |
Average price per common share | $ 10.75 | $ 10.45 | |
Aggregate value of shares issued | $ 190,800 | $ 58,968 |
Shareholders' Equity (Common 51
Shareholders' Equity (Common Stock Warrants) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Class of Warrant or Right [Line Items] | ||
Outstanding, August 31, 2014 | 2,562,473 | |
Granted | ||
Exercised | (2,562,473) | |
Expired | ||
Outstanding, May 31, 2015 | ||
Weighted average exercise price, August 31, 2014 | $ 6 | |
Weighted average exercise price, granted | ||
Weighted average exercise price, exercised | $ 6 | |
Weighted average exercise price, expired | ||
Weighted average exercise price, May 31, 2015 | ||
Proceeds from exercise of warrants | $ 15,367 | $ 33,380 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,401 | $ 702 | $ 3,330 | $ 1,569 |
Term | 10 years | 10 years | 10 years | 10 years |
Vesting Period | 5 years | 5 years | 5 years | 5 years |
Fair value | $ 10,500 | $ 633 | $ 12,940 | $ 2,362 |
Summary of activity for stock options: | ||||
Outstanding, August 31, 2014 | 2,167,000 | |||
Granted | 1,892,500 | 90,000 | 2,302,500 | 353,000 |
Exercised | (258,000) | |||
Forfeited | (110,000) | |||
Outstanding, May 31, 2015 | 4,101,500 | 4,101,500 | ||
Outstanding, weighted average exercise price | $ 5.94 | |||
Granted, weighted average exercise price | $ 11.57 | $ 10.51 | 11.64 | $ 9.92 |
Exercised, weighted average exercise price | 3.81 | |||
Forfeited, weighted average exercise price | (4.97) | |||
Outstanding, weighted average exercise price | $ 9.30 | $ 9.30 | ||
Weighted average remaining contractual life | 8 years 9 months 18 days | |||
Aggregate intrinsic value | $ 9,547 | $ 9,547 | ||
Assumptions used in valuing stock options: | ||||
Expected term | 6 years 6 months | 6 years 6 months | ||
Expected volatility | 47.00% | 73.00% | ||
Risk free rate | 1.77% | |||
Risk-free rate, minimum | 1.97% | |||
Risk-free rate, maximum | 2.02% | |||
Expected dividend yield | 0.00% | 0.00% | ||
Forfeiture rate | 3.30% | 0.00% | ||
Vested Options: | ||||
Number of shares | 888,100 | 888,100 | ||
Weighted average remaining contractual life | 6 years 10 months 24 days | |||
Weighted average exercise price | $ 5.34 | $ 5.34 | ||
Aggregate intrinsic value | $ 5,480 | $ 5,480 | ||
Unrecognized compensation expense | 15,038 | $ 15,038 | ||
Remaining vesting phase | 4 years 3 months 18 days | |||
Stock options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 715 | $ 445 | $ 1,792 | $ 1,312 |
Restricted stock grants [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 686 | $ 257 | $ 1,538 | $ 257 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Related Party Transaction [Line Items] | ||||
Rent expense | $ 45 | $ 45 | $ 135 | $ 135 |
Royalty expense | $ 14 | $ 58 | $ 95 | $ 191 |
Other Commitments and Conting54
Other Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
May. 31, 2015 | May. 31, 2015 | May. 31, 2014 | |
Long-term Purchase Commitment [Line Items] | |||
Accrued well costs | $ 3,600 | $ 26,491 | $ 47,489 |
Supplemental Schedule of Info55
Supplemental Schedule of Information to the Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
May. 31, 2015 | May. 31, 2015 | May. 31, 2014 | |
Supplemental cash flow information: | |||
Interest paid | $ 2,200 | $ 750 | |
Income taxes paid | 110 | ||
Non-cash investing and financing activities: | |||
Accrued well costs | $ 3,600 | 26,491 | $ 47,489 |
Assets acquired in exchange for common stock | 58,968 | 11,185 | |
Asset retirement costs and obligations | $ 2,657 | $ 1,367 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 1 Months Ended | |||
Jul. 10, 2015 | Jul. 01, 2015 | Jun. 11, 2015 | May. 31, 2015 | |
Subsequent Event [Line Items] | ||||
Amount outstanding | $ 87 | $ 146 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Repayment of credit facility | $ 54 | |||
Amount outstanding | $ 87 | $ 141 |