Triangle is essentially three companies in one. The company has three subsidiaries, wholly owned Tusa (an exploration and production company), RockPile (a wholly owned energy services subsidiary), and Caliber Midstream (of which Triangle is the majority owner.)
Tusa is Triangle's most interesting asset. Tusa is targeting rapid production growth from its Williston Basin acreage. The company is currently in the middle of a four-rig drilling program aiming to drive production up to 12,600 barrels of oil per day in the best-case scenario by the second half of 2015.
For the most part, Triangle's RockPile subsidiary is doing most of the drilling work, although Tusa is not RockPile's only customer. During the first quarter of this year, RockPile completed five wells for Tusa and five for third parties. By the fourth quarter, management expects around 64% of RockPile's business to be with third parties.And then this:
On a pro forma basis, this now brings Triangle's proved reserve base to 47 million barrels with a further 611 drilling locations. That's a 14% increase in current production and 11% increase in proved reserves. The acquisitions have increased the company's drilling inventory by five to eight years.
In total, Triangle acquired these assets for $125 million, a tad over $2,700 per acre and approximately $28 per barrel of proven reserve.Value:
Management estimates that RockPile is worth $6.66 per Triangle share, while Caliber is worth around $2.50. In total, these assets are worth $9.16 per share; this places a value of $2.4 per share on the E&P business, based on the share price at time of writing.
That's an exploration and production company with current production of 10,000 barrels per day, targeting 12,000 by year end, that's worth $206 million.Last week almost every oil and gas exploration and production was trading at or near new highs and I didn't have a chance to check the headlines or stories. This evening, I was curious if there were any headline/stories that might of interest.
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