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Linn Co, LLC Message Board

signetrudy66 4 posts  |  Last Activity: Jun 21, 2014 10:19 AM Member since: Jul 13, 2013
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  • Reply to

    Triangle Petroleum's Hidden Value

    by signetrudy66 Jun 20, 2014 9:54 AM
    signetrudy66 signetrudy66 Jun 21, 2014 10:19 AM Flag

    Part II:

    Over the next few years, Conoco plans to invest $4 billion in Bakken development. The company is targeting production of 55,000 barrels of oil equivalent per day by 2017, up from production of 24,000 BOE per day reported during 2012 and 39,000 reported last year. Triangle and Rock Pile should be able benefit from this growth, either directly or indirectly.

    Earnings growth
    Back to Tusa. With its planned drilling program, management expects Tusa to report adjusted EBITDA of $225 million at the high end for fiscal 2015. Tusa's fiscal 2014 has just ended, and the company reported adjusted EBITDA of $112 million for the period. RockPile's EBITDA is also expected to expand 75% year on year.

    However, Caliber Midstream is expected to report the strongest growth. The subsidiary's EBITDA is expected to jump 400% year on year by the end of 2015. This growth is thanks to an aggressive expansion planned by Caliber's management. The expansion aims to provide essential infrastructure for Tusa and Triangle within the Williston Basin.

    Triangle is also pursuing growth through acquisitions. The most recent acquisition by the company is 46,100 net acres in a contiguous area of Williams County, ND and Sheridan County, MT.

    The additional acreage will add 1,175 barrels per day of production to the company's existing output, taking production on a pro forma basis to 9,575 barrels per day.

    Additionally, the new acreage has potential for a further 252 drilling locations and 4.4 million barrels of reserves.

    On a pro forma basis, this now brings Triangle's proved reserve base to 47 million barrels with a further 611 drilling locations. That's a 14% increase in current production and 11% increase in proved reserves. The acquisitions have increased the company's drilling inventory by five to eight years.

  • Here is the transcript, read and enjoy:

    By Rupert Hargreaves | More Articles
    June 20, 2014 | Comments (0)

    Domestic oil companies are one of the hottest trades in the energy space right now. For this reason, investors are prepared to pay a premium to get their hands on shares of the best producers.

    However, one company has been missed by much of the rally and appears significantly undervalued. This company is Triangle Petroleum .

    Three in one
    Triangle is essentially three companies in one. The company has three subsidiaries, wholly owned Tusa (an exploration and production company), RockPile (a wholly owned energy services subsidiary), and Caliber Midstream (of which Triangle is the majority owner.)

    Tusa is Triangle's most interesting asset. Tusa is targeting rapid production growth from its Williston Basin acreage. The company is currently in the middle of a four-rig drilling program aiming to drive production up to 12,600 barrels of oil per day in the best-case scenario by the second half of 2015.

    For the most part, Triangle's RockPile subsidiary is doing most of the drilling work, although Tusa is not RockPile's only customer. During the first quarter of this year, RockPile completed five wells for Tusa and five for third parties. By the fourth quarter, management expects around 64% of RockPile's business to be with third parties.

    New customers
    Rock Pile won't have trouble finding new customers. The Bakken formation is one of the hottest regions for oil exploration within the U.S. right now.

    One of the region's biggest players is international player ConocoPhillips (NYSE: COP ) . This international oil behemoth has put U.S. shale at the forefront of its development plan and holds approximately 626,000 net acres in the Bakken region.

    Continued in reply to this post.

  • signetrudy66 signetrudy66 Jun 13, 2014 2:42 PM Flag

    And one important note Unclelarry, the $72,500 figure that is cited, for the 0% tax rate is your taxable income. That is your Adjusted Gross less your minimum $11k deduction and less your $7.8k personal exemptions. That means you can have an Adjusted Gross Income of approximately $90k++ without having to pay any taxes on your long term capital gains or your qualified dividends.

    You can have all the advantages of the Roth, without the Roth. Withdraw the money, tax free, from your Roth to pay for your new house. And when you sell your old house, repurchase your CSX shares in a non-Roth account. If your annual income is less than $90K, you won't pay any capital gains on any qualified dividends or any share sales.

    The posters on this thread who give me a thumbs down on my post are morons and have no idea of current tax laws. I am a professional tax preparer and will benefit in no way from the advice I have given you. But you need to have the intelligence and wherewithal to look up the 0% capital gains tax rate on Google. And this rate is applicable to qualified dividends also. Good luck, you can have your cake and eat it too.

  • signetrudy66 signetrudy66 Jun 12, 2014 6:30 PM Flag

    Why don't you just consider withdrawing the funds from your Roth, in order to buy your new house. If you do this, when you sell your existing house you can reinvest the funds back into CSX stock, even if your re-investment isn't in a Roth account. You could leave your CSX shares to your heirs, tax free, unless they are worth more than $5million.

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