News Releases

Triangle Petroleum Provides Financial Results and Operational Update for All Business Segments for Second Quarter Fiscal Year 2014

Sep 9, 2013

DENVER, Colorado, September 9, 2013 - Triangle Petroleum Corporation ("Triangle" or the "Company") (NYSE MKT: TPLM) today provides an operational update and reports its second quarter fiscal 2014 results for the three-month period ended July 31, 2013 ("Q2 fiscal 2014").

Second Quarter Highlights for Fiscal Year 2014 (ended July 31, 2013)

  • Increased quarterly sales volumes to 394 Mboe (+277% y/y, 4,287 Boepd) as compared to 105 Mboe (1,138 Boepd) in the same period in Q2 fiscal 2013

  • Increased consolidated sales to $50.4 million (+391% y/y) as compared to $10.3 million in the same period in Q2 fiscal 2013

  • Increased consolidated Adjusted Net Income to $10.6 million, or $0.19 Adjusted EPS as compared to -$1.0 million or -$0.02 Adjusted EPS in the same period in Q2 fiscal 2013

Segment Financial Results

Q2 fiscal 2014 stand-alone revenue and Adjusted-EBITDA (reference accompanying "Reconciliation Tables" as well as "Use of Segment Information and Non-GAAP Measures" disclosures at end of press release)

Q2 FY2014 Revenue q/q % Change Adj.-EBITDA q/q % Change  
E&P $34.6 64% $24.7 66%  
RockPile $44.3 65% $11.5 98%  
Caliber $1.1 21% $0.7 17%  
Total $80.0 64% $36.9 73%  
*Dollars in U.S. millions      
*E&P Adjusted-EBITDA does not include TPC (parent company) other revenues and expenses  
*Caliber revenue and Adjusted-EBITDA represents Triangle's 30% ownership share of the partnership

Operational Update

 

Q2 Fiscal 2014 Segment Income and Elimination (in thousands)

    Exploration
and
Production
    RockPile's
Pressure
Pumping
and Other
Services
    Corporate
and
Other(a)
    Eliminations
and
Other
    Consolidated
Total
Revenues                            
Oil and natural gas sales $ 34,639   $ -   $ -   $ -   $ 34,639
Pressure pumping services for third parties   -     16,972     -     (1,382)     15,590
Intersegment revenues   -     27,148     -     (27,148)     -
Other   -     165     272     (272)     165
Total revenues   34,639     44,285     272     (28,802)     50,394
                             
Costs and Expenses                            
Prod. taxes, LOE, and other expenses   6,827     -     -     -     6,827
Depletion, depreciation and amortization   10,111     1,600     135     (928)     10,918
Pressure pumping   -     30,370     -     (17,678)     12,692
General and administrative   1,816     2,545     2,519     -     6,880
Total operating expenses   18,754     34,515     2,654     (18,606)     37,317
                             
Income (loss) from operations   15,885     9,770     (2,382)     (10,196)(b)     13,077
Other income (expense)   (4,193)     (216)     (576)     (1,293)(c)     (6,278)
Net income (loss) before income taxes $ 11,692   $ 9,554   $ (2,958)   $ (11,489)   $ 6,799

 

(a) Corporate and Other includes our corporate office and several subsidiaries that management does not consider in the exploration and production or pressure pumping segments. These subsidiaries have limited activity.
(b) $10.2 million RPES and other services consolidated elimination results in a $10.2 million reduction in oil and natural gas property expenditures.
(c) $1.3 million CLBR intracompany elimination results in a $1.3 million reduction in oil and natural gas property expenditures.
*Reference Note 3 - Segment Reporting in our Q2 fiscal 2014 Form 10-Q for additional details.


 

Q2 Fiscal 2014 Summary Consolidated Statement of Operations (in thousands)

          Three Months Ended July 31,  
          2013   2012  
Revenues                
Total revenues     $ 50,394   $ 10,258  
Costs and Expenses              
Oil and gas operating expenses (incl. production taxes) 6,818   1,084  
Pressure-pumping operating expenses(a) 12,692   1,845  
Depreciation and amortization   10,918   2,997  
Corporate and Other stock-based compensation 1,092   729  
E&P stock-based compensation 247   704  
RPES stock-based compensation 99   -  
Corporate and Other cash G&A expenses 1,427   626  
E&P cash G&A expenses 1,569   1,174  
RPES cash G&A expenses 2,446   2,277  
Accretion of asset retirement obligations   9   84  
Total operating expenses     37,317   11,520  
                 
Operating Income (Loss)     13,077   (1,262)  
             
Loss from derivative activities     (4,399)   -  
Interest expense     (1,969)   (32)  
Loss from equity investment     (596)   -  
Interest income     43   85  
Other income     643   -  
Other Income (Expense)     (6,278)   53  
                 
Net Income (Loss) Before Income Taxes 6,799   (1,209)  
Income tax provision -   -  
Net Income (Loss)       $ 6,799   $ (1,209)  
Noncontrolling interest's net loss share   -   256  
Net Income (Loss) Attributable to Common Stockholders $ 6,799   $ (953)  
                 
Net Income (Loss) per common        
Basic $ 0.12   $ (0.02)  
Diluted $ 0.12   $ (0.02)  
Adjusted Net Income (Loss) per common(b)        
Basic $ 0.19   $ (0.02)  
Diluted $ 0.19   $ (0.02)  
Weighted average common shares        
Basic 56,451   44,265  
Diluted 57,012   44,265  
(a) Includes intercompany eliminations; reference Note 3 - Segment Reporting in our Q1 fiscal 2014 Form 10-Q for additional details.
(b) Reference accompanying "Reconciliation Tables" and "Use of Segment Information and Non-GAAP Measures" at end of press release for additional details.

 

Exercise of Over-Allotment Option

The underwriters for the Company's recently completed public offering gave notice of the exercise, in full, of their over-allotment option to purchase an additional 2,250,000 shares of the Company's common stock at the public offering price of $6.25 per share. The closing of the over-allotment option will occur on September 11, 2013. The over-allotment option will result in aggregate net proceeds to the Company of approximately $13.4 million, after deducting underwriting discounts and commissions.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Reconciliation Tables (in thousands)

a) Consolidated Adjusted net income (loss) per common stockholder (reference disclosure (3) in "Use of Segment Information and Non-GAAP Measures")

 

          Q2 fiscal 2014   Q2 fiscal 2013
Net Income (Loss) as reported   $ 6,799   $ (953)
(Gain) loss on derivative activities   4,399   -
Unrealized (income) loss on securities held for investment (581)   -
Adjusted Net Income (Loss)     $ 10,617   $ (953)
Adjusted Net Income (Loss) per common        
Basic   $ 0.19   $ (0.02)
Diluted   $ 0.19   $ (0.02)
         
Weighted average common shares        
Basic   56,451   44,265
Diluted   57,012   44,265
b) E&P stand-alone Adjusted-EBITDA (reference disclosure (1) and (2) in "Use of Segment Information and Non-GAAP Measures")
 
          Q2 fiscal 2014   Q1 fiscal 2014
Net Income (Loss) $ 11,692   $ 9,304
Depreciation and amortization 10,111   6,618
Interest expense (income) 437   268
Stock-based compensation 247   322
Accretion of asset retirement obligations 9   8
Unrealized (gain) loss on derivative activities 2,806   (1,212)
Unrealized (income) loss on securities held for investment (581)   (409)
Adjusted-EBITDA       $ 24,721   $ 14,899
*E&P Adjusted.-EBITDA does not include TPC (parent company) cash G&A expense of $1.4 million
             

 

c) RPES stand-alone Adjusted-EBITDA (reference disclosure (1) and (2) in "Use of Segment Information and Non-GAAP Measures")

   
               
          Q2 fiscal 2014   Q1 fiscal 2014
Net Income (Loss) $ 9,554   $ 4,180
DD&A 1,600   1,239
Stock-based compensation 99   211
Interest expense 216   153
Adjusted-EBITDA       $ 11,469   $ 5,783
           
               
d) CLBR stand-alone Adjusted-EBITDA (reference disclosure (1) and (2) in "Use of Segment Information and Non-GAAP Measures")
 
               
          Q2 fiscal 2014   Q2 fiscal 2013
Net Income (Loss)   $ 697   $ 596
Depreciation 33   29
Adjusted-EBITDA     $ 730   $ 625
*Caliber Adjusted-EBITDA represents Triangle's 30% ownership share of the partnership, before intracompany elimination
           

 

Use of Segment Information and Non-GAAP Measures

1.  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.  Most of Triangle's consolidated interest expense relates to debt of the consolidated parent.

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 administrative costs, (ii) intracompany eliminations, and (iii) 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.

We believe 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.

2.  The Company often provides financial metrics for each of Triangle's three 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 differs from Triangle's consolidated revenues for the corresponding reporting period.  Triangle's consolidated revenues would reflect segment revenues reduced for intracompany sales (i.e. for RPES services to Triangle's E&P segment).

Triangle also believes that stand-alone segment revenue assists investors in measuring RPES's and CLBR's performance as stand-alone companies without eliminating, on a consolidated basis, certain revenues attributable to completion services for Triangle's economic interests in new wells operated by Triangle.

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. We present 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 a vertically integrated, growth oriented 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, September 10, 2013 at 8:30 AM MT (10:30 AM ET) to provide an operational update and financial results of Triangle's second quarter fiscal year 2014, followed immediately by a question and answer session. Interested parties may dial-in using the conference call number (877) 415-3180 (participant passcode # 25294679). International parties may dial-in using (857) 244-7323 (participant passcode # 25294679). 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 September 17, 2013 at (888) 286-8010 (participant passcode # 69946862). For international participants, the encore dial-in number is (617) 801-6888 (participant passcode # 69946862).

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 for the fiscal year ended January 31, 2013 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 Corporation
Justin Bliffen, Chief Financial Officer
303-260-7125
info@trianglepetroleum.com


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