Monday, June 9, 2014

Triangle Petroleum -- Quarterly Report -- June 9, 2014

Triangle Petroleum beats by $0.04, beats on revs : Reports Q1 (Apr) earnings of $0.15 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.11; revenues rose 191.0% year/year to $99.78 mln vs the $95.54 mln consensus.

Form 10-Q, June 9, 2014:

Summary of operating and financial results for the three months ended April 30,2014:
  • Production volumes totaled 723,518 Boe for the three months ended April 30, 2014 compared to 241,525 Boe for the three months ended April 30, 2013, an increase of 200%
  • Oil and natural gas sales were $60.8 million compared to $21.1 million for the three months ended April 30, 2013
  • Our average realized oil price increased to $90.88 per barrel compared to $89.69 per barrel in the first three months of fiscal year 2014
  • Net income was $14.5 million for the three months ended April 30, 2014 compared to $5.2 million for the three months ended April 30, 2013
  • Cash flow provided by operating activities was $39.8 million for the period ended April 30, 2014 compared to $8.3 million for the three months ended April 30, 2013
  • Spud 13 gross (9.1 net) operated wells and completed nine gross (6.1 net) operated wells during the three months ended April 30, 2014
Remember: "three months ended April 30, 2014, included two "tough" North Dakota winter months, February, March, and a wet spring month of April.

From a press release, earnings, dated April 16, 2014, for full fiscal year 2014, ending January 31, 2014, for comparison:
1,929 mboe (300% increase; 488 mboe FY13);  net proved reserves, 40MMboe (175% increase); revenues increased 326% ($260 million); net income to $1.07 EPS; downspacing to 600' apart; initial well results from currently producing infill wells indicate an approximate 15% increase in production
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2 comments:

  1. NDoilgalJune 9, 2014 at 9:48 PM

    Can you explain the difference between wells drilled and net wells. Here is what was in Triangle's info on their quarter results:

    Completed nine gross (6.1 net) operated wells and 10 gross (0.5 net) non-operated wells in Q1 fiscal 2015
    During Q1 fiscal 2015, increased operated drilling program to four operated rigs from three which the Company plans to maintain throughout fiscal year 2015.

    So does this mean 4 rigs drilled 9 wells for Triangle or 6? I am assuming (and may be wrong) that the rigs aren't working on the non-operated wells.

    I see this type of wells vs net wells often and don't understand the differences.

    Thanks!

    ReplyDelete
    Replies
    1. Bruce OksolJune 9, 2014 at 10:44 PM

      Generally speaking, a well is not "financed" by a single operator. To spread the risk, or for other financial reasons, often more than one operator has a "working interest" in a well.

      If an operator is involved in two wells in a calendar year, no matter how small the "working interest," the operator can say he has two gross wells. However, if his working interest in each is only 50% in each, the operator has one "net" well.


      Better explanations may be found by googling "gross wells vs net wells." For example:

      http://www.mpgpetroleum.com/glossary.html

      Delete

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