Almost doubling their line of credit for Rockpile just underlines the growth story on the service side.
They are hitting on all cylinders. Add NG this qtr which will fall to bottom line and up we go. Easily a 13 dollar stock over the next few months
Obviously they need a bigger line of credit to support their growth, This stock has just begun to roll. They are in the catbird seat with Rockpile
Oil goes up and oil goes down- it won't have any barring on what a Co is willing to pay for Triangle. One bleep from the middle east and oil will be over 100.00. It goes both ways easily and fast
These Cos are in for the long haul a few dollar fluxuations in crude prices won't mean beans.
Keep in mind as you look at today's price these Co's have a big hedge on re oil prices.
It was only 2 mths ago that these comments were made and if history proves out these guys are always conservative.
We're seeing the benefits of our integrated model as our core E&P business, Caliber Midstream and RockPile, all have record quarters. We feel like Triangle's executing our strategy, we have a great one -- runway for growth ahead of us.
That's there so people can go calculate what our F&D costs are. And you don't have to do a lot of math to see that RockPile, right, and Caliber combined right now are saving us 13% to 15%. We see that growing to 18% to 20% over time. And you think about a $20-a-barrel F&D cost, if that's produced 20% to $16, that's such a huge move in the spectrum of how the business is performing compared to our peers. So not really a bad outcome that we see.
So we're not prepared to up guidance formally for the year, but if you're a betting man, it starts to become a pretty good bet.
You mentioned and you just talked about the M&A in the area. I'm just wondering, kind of your thoughts -- obviously, there's a big sale of non-op, kind of just what your thoughts are with your non-op and just some of the other opportunities out there, what you're seeing?
Jonathan Samuels - Chief Executive Officer, President and Director
Yes. I mean, I think I know the transaction you're referencing. It's not -- we just saw it last night. I don't -- we don't really have any thoughts to share on the call. There's been several billion dollars of M&A in the Williston Basin over the last 6 months and definitely interesting times. So McKenzie County has more permits, more production than any other county in North Dakota. A lot of people are paying attention to it and I think it's all good for Triangle and the other operators in the area.
RockPile got their second spread up and running halfway through the last quarter. That's $44 million of revenue. It really doesn't reflect a full quarter with spread too. And both spreads are fully sold out right now. And they have more customers wanting to work for them than they have capacity on the calendar. So I mean, I think before you start thinking about another basin, you start thinking about a third spread in the Williston. And as you guys know, there's economies of scale in that business, so the third spread does not cost as much as the first spread does.