DENVER, June 8, 2015 /PRNewswire/ -- Triangle Petroleum Corp. ("Triangle" or the "Company") (NYSE MKT: TPLM) today provides an operational update and reports its first quarter fiscal year 2016 financial results for the three-month period ended April 30, 2015 ("Q1 fiscal 2016" or "Q1 FY 2016").
First Quarter Highlights for Fiscal Year 2016 (ended April 30, 2015)
Quarterly production volumes of ~1,226 Mboe (13,775 Boepd)
Increasing full fiscal year 2016 production guidance to a range of 11,500-13,500 Boepd
No change to previously issued capital expenditure guidance
Further increases to production guidance will be considered as fiscal year 2016 progresses
Triangle USA Petroleum ("TUSA") driving continued reduction in drilling and completion costs
Leading edge AFEs $7.3 million as of May 2015
Consolidated cash flow from operations (before working capital changes) of $31.4 million, or $0.42 per fully diluted share; Operating cash flow of $39.3 million
23% quarter over quarter decrease in consolidated cash general and administrative expenses
Consolidated adjusted revenue of $137.8 million including $19.5 million of cash receipts from hedge settlements
Consolidated adjusted-EBITDA of $38.8 million
$305.0 million of total liquidity as of April 30, 2015, including $50.3 million of cash on hand and available borrowing capacity on the TUSA and RockPile Energy Services ("RockPile") credit facilities
RockPile's estimated share of Williston Basin completion activity increased to approximately 15%, up from approximately 5% in Q1 fiscal 2015
Completed record number of wells in quarter including 50 for third parties and 5 for TUSA
RockPile generated over $5 million of stand-alone EBITDA in the month of April
Completed 730 stages, which is 40% more stages than the previous single month record
Caliber Midstream Phase I and Phase II system for Triangle complete and fully operational
Proactively amended TUSA's existing senior credit facility and modified certain covenants to further enhance TUSA's financial flexibility
Segment Financial Results
Q1 fiscal 2016 stand-alone revenue and Adjusted-EBITDA (reference accompanying "Reconciliation Tables" and "Use of Segment Information and Non-GAAP Measures" disclosures at end of release).
Q1 FY 2016
Revenue
y/y % Change
Adj.-EBITDA
y/y % Change
E&P
$47.8
-21%
$44.5
5%
RockPile
$80.6
31%
$3.5
-75%
Total
$128.4
5%
$48.0
-15%
*Dollars in U.S. millions. *E&P revenue does not include realized hedge settlements. *Exploration and production operating segment ("E&P") Adjusted-EBITDA includes all exploration and production related business lines, and does not include TPC (parent company) other revenues and expenses.
Segment Operational Update
TUSA generated $47.8 million of revenue in Q1 FY 2016 excluding $19.5 million of cash receipts from hedge settlements as compared to $60.8 million of revenue in Q1 FY 2015 (-21% y/y). The contribution from year over year production growth partially offset a 54% drop in average pre-hedge realized prices to $38.97/Boe from $84.08/Boe
Based on realized commodity prices in the month of May, current futures prices, and recent differentials, Q2 FY 2016 pre-hedge realized prices per Boe are trending 20% higher sequentially from Q1 FY 2016 actual pre-hedge realized prices of $38.97/Boe
Spud 10 gross (7.3 net) and completed 5 gross (3.3 net) operated wells with a two-rig operated program in Q1 FY 2016
Total of 23 gross (18.7 net) operated wells either in progress or waiting on completion as of April 30, 2015
Pre-hedge oil price differentials declined ~16% q/q to $7.68/Bbl, which represents the tightest differential we have reported since Q3 FY 2014
TUSA cash operating expenses (LOE, Gathering, Transportation and Processing, production taxes, and G&A) per unit were $18.55/Boe in Q1 FY 2016 compared to $24.38/Boe in Q1 FY 2015 (-24% y/y)
RockPile generated approximately $80.6 million of stand-alone revenue in Q1 fiscal 2016 as compared to $61.4 million in Q1 fiscal 2015 (+31% y/y)
Backlog of approximately 27 wells at the end of Q1 fiscal 2016, including 22 for third-party operators
Q1 Fiscal 2016 Summary Consolidated Statement of Operations (in thousands)
Quarter Ended April 30,
2014
2015
Revenues
Oil, natural gas and natural gas liquids sales
$ 60,834
$ 47,778
Oilfield services(a)
38,948
70,510
Total revenues
99,782
118,288
Expenses
Lease operating expenses
4,726
10,909
Gathering, transportation and processing
3,802
6,348
Production taxes
6,348
4,787
Depreciation and amortization(a)
21,287
37,806
Impairment of oil and natural gas properties
-
192,000
Accretion of asset retirement obligations
25
57
Oilfield services(a)
27,710
65,464
Corporate and other stock-based compensation
1,523
2,136
E&P stock-based compensation
395
321
RockPile stock-based compensation
90
51
Corporate and other cash G&A expenses
3,518
4,977
E&P cash G&A expenses
2,778
748
RockPile cash G&A expenses
5,097
6,626
Total operating expenses
77,299
332,230
Operating Income (Loss)
22,483
(213,942)
Interest expense, net
(2,672)
(9,106)
Amortization of deferred loan costs
(192)
(616)
Realized commodity derivative gains (losses)
(818)
19,468
Unrealized commodity derivative gains (losses)
(4,638)
(33,442)
Equity investment income (loss)
(126)
188
Gain (loss) on equity investment derivatives
10,454
-
Gain on Caliber capital transactions
-
2,880
Other income(a)
62
930
Total other income (expense)
2,070
(19,698)
Income (Loss) Before Income Taxes
24,553
(233,640)
Income tax provision (benefit)(b)
10,011
(53,441)
Net Income (Loss) Attributable to Common Stockholders
$ 14,542
$ (180,199)
Net Income (Loss) per Common Share
Basic
$ 0.17
$ (2.39)
Diluted(c)
$ 0.15
$ (2.39)
Adjusted Net Income (Loss) per Common Share(d)
Basic
$ 0.13
$ (0.09)
Diluted(c)
$ 0.12
$ (0.09)
Weighted Average Common Shares
Basic
85,952
75,256
Diluted
103,314
75,256
(a) Includes intercompany eliminations; reference Note 3 – Segment Reporting in our fiscal year 2015 Form 10-K for additional details
(b) The tax benefit for the quarter ended April 30, 2015 is associated with the establishment of a full valuation allowance against our net deferred tax assets. The effective tax rate for the quarter ended April 30, 2014 was approximately 40.8%. Income tax provision is a non-cash expense
(c) Includes interest expense add-back of $0.9 million net of income taxes and amounts capitalized Q1 fiscal 2015 related to outstanding convertible note
(d) Reference accompanying Reconciliation Tables and Use of Segment Information and Non-GAAP Measures at end of press release for additional detail
Q1 Fiscal 2016 Summary Consolidated Balance Sheet (in thousands)
January 31, 2015
April 30, 2015
Assets
Cash and equivalents
$ 67,871
$ 50,277
Other current assets
241,638
160,222
Net property and equipment
1,261,006
1,099,434
Other noncurrent assets
84,355
87,840
Total assets
$ 1,654,870
$ 1,397,773
Liabilities and Stockholders' Equity
Current liabilities
$ 271,842
$ 200,881
5% convertible note
135,877
137,576
TUSA credit facility
119,272
146,272
TUSA 6.75% notes due July 2022
429,500
429,500
RockPile credit facility
104,887
99,016
Other notes and mortgages payable
10,102
9,982
Other noncurrent liabilities
38,372
7,256
Total stockholders' equity
545,018
367,290
Total liabilities and stockholders' equity
$ 1,654,870
$ 1,397,773
Q1 Fiscal 2016 Production Volumes and Average Pre-Hedging Realized Prices
Quarter Ended April 30,
2014
2015
Production volumes
Crude oil (Mbbls)
598
1,025
Natural gas (MMcf)
441
739
Natural gas liquids (Mbbls)
52
78
Total barrels of oil equivalent (Mboe)
724
1,226
Average daily production volumes (Boe/d)
8,135
13,775
Average realized prices:
Crude oil ($ per Bbl)
$ 90.88
$ 43.36
Natural gas ($ per Mcf)
$ 8.21
$ 3.23
Natural gas liquids ($ per Bbl)
$ 54.87
$ 12.18
Total average realized price ($ per Boe)
$ 84.08
$ 38.97
Use of Segment Information and Non-GAAP Measures
(1)
The Company often provides financial metrics for Triangle's segments of operation. Revenues for each segment are disclosed in notes to the financial statements contained in the Company's Form 10-K and Form 10-Q filings, but the sum of those stand-alone revenues differ from Triangle's consolidated revenues for the corresponding reporting period. Triangle's consolidated revenues would reflect segment revenues reduced for intercompany sales (i.e. for RockPile services to Triangle's E&P segment).
Triangle also believes that stand-alone segment revenue assists investors in measuring RockPile's performance as a stand-alone company without eliminating, on a consolidated basis, certain revenues attributable to services for Triangle's economic interests in wells operated by Triangle's E&P segment.
(2)
Adjusted-EBITDA represents income before interest expense, income taxes, depreciation and amortization, other non-cash items, and non-recurring items. Adjusted-EBITDA is not a calculation based upon generally accepted accounting principles in the U.S. ("GAAP"). Triangle has presented Adjusted-EBITDA by segment because it regularly reviews Adjusted-EBITDA by segment as a measure of the segment's operating performance. Triangle also believes Adjusted-EBITDA assists investors in comparing segment performance on a consistent basis without regard to interest expense, income taxes, depreciation and amortization, other non-cash items, and non-recurring items which can vary significantly depending upon many factors.
The total of Adjusted-EBITDA by segment is not indicative of Triangle's consolidated Adjusted-EBITDA, which reflects other matters such as (i) additional parent company administrative costs, (ii) intercompany eliminations, (iii) paid-in-kind interest expense on the convertible notes, and (iv) the use of the equity method, rather than consolidation, for Triangle's investment in Caliber. The Adjusted-EBITDA measures presented in the "Reconciliation Tables" may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation.
Triangle believes that net income before income taxes is the performance measure calculated and presented in accordance with GAAP that is most directly comparable to Adjusted-EBITDA. Net income before income taxes will be significantly affected by consolidated interest expense and full-cost pool amortization. Such amortization varies with changes in proved reserves, well costs during the year, and future plans in developing proved undeveloped reserves.
(3)
Adjusted net income (loss) is defined as net income (loss) applicable to common stockholders adjusted to exclude certain charges or amounts in order to provide users of this financial information with additional meaningful comparisons between current results and the results of prior periods. Triangle presents this measure because (i) it is consistent with the manner in which the Company's performance is measured relative to the performance of its peers, (ii) this measure is more comparable to earnings estimates provided by securities analysts, and (iii) charges or amounts excluded cannot be reasonably estimated and guidance provided by the Company excludes information regarding these types of items. These adjusted amounts are not a measure of financial performance under GAAP. We believe that net income (loss) is the performance measure calculated and presented in accordance with GAAP that is most directly comparable to adjusted net income (loss).
About Triangle
Triangle (NYSE MKT: TPLM) is an independent energy company with a strategic focus on developing the Bakken Shale and Three Forks formations in the Williston Basin of North Dakota and Montana. For more information, visit Triangle's website at www.trianglepetroleum.com.
Conference Call Information
As previously announced, Triangle will host a conference call Tuesday, June 9, 2015 at 8:30 AM MT (10:30 AM ET) to provide an operational update and financial results of Triangle's Q1 fiscal 2016, followed immediately by a question and answer session. A live webcast of the conference call can be accessed by visiting the following link: http://www.videonewswire.com/event.asp?id=102401. Alternatively, interested parties may dial-in using the conference call number (888) 347-6610. International parties may dial-in using (412) 902-4292. The Company recommends dialing into the conference call at least ten minutes before the scheduled start time. A recording of the conference call will be available through June 20, 2015 at (877) 344-7529 (conference # 10066265). For international participants, the replay dial-in number is (412) 317-0088 (conference # 10066265).
Q1 Fiscal 2016 Segment Income and Elimination (in thousands)
Exploration and Production
Oilfield Services
Corporate and Other(a)
Eliminations and Other
Consolidated Total
Revenues
Oil, natural gas and natural gas liquids sales
$
47,778
$
-
$
-
$
-
$
47,778
Oilfield services for third parties
-
71,090
-
(580)
70,510
Intersegment revenues
-
9,504
-
(9,504)
-
Total Revenues
47,778
80,594
-
(10,084)
118,288
Expenses
LOE, GTP, Production Taxes and other expenses
22,101
-
-
-
22,101
Depreciation and amortization
29,299
9,489
325
(1,307)
37,806
Impairment of oil and natural gas properties
192,000
-
-
-
192,000
Cost of oilfield services
-
70,586
1,238
(6,360)
65,464
General and administrative
1,069
6,677
7,113
-
14,859
Total operating expenses
244,469
86,752
8,676
(7,667)
332,230
Operating Income
(196,691)
(6,158)
(8,676)
(2,417)
(213,942)
Other income (expense), net
(21,002)
(875)
2,686
(507)
(19,698)
Net Income (Loss) Before Income Taxes
$
(217,693)
$
(7,033)
$
(5,990)
$
(2,924)
(b)
$
(233,640)
(a) Corporate and Other includes Triangle's corporate office and several subsidiaries that management does not consider to be part of the exploration and production or oilfield services segments. Also included are results from Triangle's investment in Caliber, including any changes in the fair value of equity investment derivatives. Other than Caliber, these subsidiaries have limited activity
(b) $2.9 million RockPile, Caliber, and other services consolidated elimination results in a $2.9 million reduction in oil and natural gas property expenditures.
*Reference Note 3– Segment Reporting in our Q1 fiscal year 2016 Form 10-Q for additional details
Reconciliation Tables (in thousands)
A.
Consolidated Adjusted net income per common stockholder (reference disclosure (3) in "Use of Segment Information and Non-GAAP Measures").
Quarter Ended April 30,
2014
2015
Net Income (Loss) Attributable to Common Stockholders
$ 14,542
$ (180,199)
Impairment of oil and natural gas properties
-
192,000
Unrealized (gain) loss on commodity derivatives
4,638
33,442
(Gain) loss on equity investment derivatives
(10,454)
-
Gain on Caliber capital transactions
-
(2,880)
Tax benefit associated with reversal of deferred tax liability
-
(53,441)
Tax adjustment(a)
2,373
4,210
Adjusted Net Income (Loss)
$ 11,099
$ (6,868)
Adjusted Net Income (Loss) Per Common Share
Basic
$ 0.13
$ (0.09)
Diluted(b)
$ 0.12
$ (0.09)
Weighted Average Common Shares
Basic
85,952
75,256
Diluted
103,314
75,256
(a) Tax adjustment is calculated by applying Company's effective tax rate of 40.8% for Q1 fiscal 2015 to pre-tax effected adjusting items and expected Q1 fiscal 2016 statutory tax rate of 38.0% to adjusted pre-tax loss
(b) Includes interest expense add-back of $0.9 million net of income taxes and amounts capitalized for Q1 fiscal 2015 related to outstanding convertible note
B.
E&P stand-alone Adjusted-EBITDA (reference disclosure (1) and (2) in "Use of Segment Information and Non-GAAP Measures").
Quarter Ended April 30,
2014
2015
Net Income (Loss) Before Income Taxes
$ 16,040
$ (217,693)
Depreciation and amortization
20,153
29,299
Impairment of oil and natural gas properties
-
192,000
Net interest expense
942
6,521
Stock-based compensation
395
321
Accretion of asset retirement obligations
25
57
Other
169
507
Unrealized commodity derivative losses (gains)
4,638
33,442
Adjusted-EBITDA
$ 42,362
$ 44,454
C.
Oilfield Services stand-alone Adjusted-EBITDA (reference disclosure (1) and (2) in "Use of Segment Information and Non-GAAP Measures").
Quarter Ended April 30,
2014
2015
Net Income (Loss) Before Income Taxes
$ 8,437
$ (7,033)
Depreciation and amortization
3,590
9,489
Stock-based compensation
90
51
Net interest expense
507
787
Other
1,176
219
Adjusted-EBITDA
$ 13,800
$ 3,513
*RockPile Adjusted-EBITDA calculated per RockPile credit facility
Forward-Looking Statements Disclosure
The information presented in this press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements. Factors that could cause actual results to differ materially from the results contemplated by the forward-looking statements include, but are not limited to, the risks discussed in the Company's annual report on Form 10-K and its other filings with the Securities and Exchange Commission. The forward-looking statements in this press release are made as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement as a result of new information, future developments, or otherwise.
Contact
Triangle Petroleum Corp. Joe Magner, Vice President, Capital Markets 303-260-7125 info@trianglepetroleum.com
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