Triangle Petroleum Lags Earnings, Beats Revs

Zacks

Upstream energy firm Triangle Petroleum Corporation (TPLM) reported lower-than-expected fiscal third-quarter 2014 (three months ended Oct 31, 2013) earnings, owing to significant increase in operating expenses.

Earnings per share – excluding one-time items – came in at 18 cents, lagging the Zacks Consensus Estimate of 24 cents.

However, the figure improved significantly from the year-ago adjusted loss of 5 cents. Substantial increase in production volumes favored the results.

Revenues of $88.6 million were up by a whopping 315.7% from the year-ago quarter’s $21.3 million. The figure also surpassed the Zacks Consensus Estimate of $72.0 million. Higher sales from Exploration & Production and RockPile Energy Services business units aided the result.

Production

In the third quarter of fiscal 2014, total volume increased 389.1% to 626,000 barrel of oil equivalent (boe) as compared to 128,000 boe reported in the year-ago period.      

Segmental Performance

Exploration & Production (E&P):  Revenues from Triangle Petroleum’s E&P segment came in at $55.5 million, representing a year-over-year increase of 433.7%.

Operating income for the unit stood at $40.5 million, a 63.8% increase from the previous quarter, owing to higher production.

RockPile Energy Services (RPES): Revenues from the RPES unit was reported at $66.0 million, up 176.2% from $23.9 million recorded in the year-ago period.  

The unit reported operating profit of $13.0 million, reflecting a 13.4% sequential hike.

Caliber Midstream (CLBR):  Revenues from Triangle Petroleum’s CLBR business segment were $4.0 million, up 8.1% sequentially.  

However, the operating profit from the unit was $0.6 million down 14.3% sequentially.

Operating Cost

The company reported operating expenses of $71.4 million, significantly up by 225.6% from the year-ago period.

Guidance

Triangle Petroleum increased the projected production volumes exit rate for the fourth quarter of fiscal 2014 to 7,500.0-8,500.0 barrels of oil equivalent per day (Boepd) from 7,000 – 8,000 Boepd.

Zacks Rating

Colorado-based Triangle Petroleum currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.   

Meanwhile, one can look at better-ranked players in the energy sector like Harvest Natural Resources Inc. (HNR), VOC Energy Trust (VOC) and Matador Resources Co. (MTDR). All the stocks sport a Zacks Rank #1 (Strong Buy).

Read the Full Research Report on MTDR
Read the Full Research Report on VOC
Read the Full Research Report on TPLM
Read the Full Research Report on HNR


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