Exploration & Production | Operational Updates | Downspacing | Financial Results | Capital Markets

Triangle Talks Successful Bakken Downspacing; Financial Results

Share Print Bookmark    |    Tuesday,April 14,2015

Triangle Petroleum Corporation reported an operational update and reports its fourth quarter fiscal year 2015 and full fiscal year 2015 results for the period ended January 31, 2015.

Operational Update

• TUSA generated $284.5 million of revenue in FY 2015 (+77% y/y) as compared to $160.5 of revenue in FY 2014. In Q4 2015, TUSA generated $63.0 million of revenue (+28% y/y) as compared to $49.4 million in Q4 2014
• Increased Q4 2015 volumes to 1,357 Mboe (+103% y/y) from 667 Mboe in Q4 2014. Q4 2015 average daily volumes were 14,747 Boepd as compared to 7,249 Boepd in Q4 2014
• Spud 62 gross (43.9 net) and completed 49 gross (34.5 net) operated wells with a four-rig operated program in FY 2015
• Incurred $435 million of operated and non-operated drilling and completion capex in FY 2015
• Includes a consolidated elimination benefit from RockPile, Caliber Midstream Partners L.P., and other services in FY 2015 resulting in an aggregate net reduction of $31.6 million in oil and natural gas property expenditures, which represents an approximate 7% cost savings
• Reduced gross well costs to $10.2 million on average in FY 2015 (-14% y/y) with recent gross well AFEs coming in under $8 million and already exceeding the top end of our 10-20% FY 2016 well cost reduction target
• Decreased drilling time to an average of 16 days in FY 2015 as a result of high grading drilling rig fleet and pad drilling efficiencies
• 84% of approximately 83,000 net core acres held by production as of fiscal year-end 2015
• Successful Bakken down spacing program across our core acreage supported an increase in gross operated remaining drilling inventory to 673 locations assuming 8 Bakken (up from 6) and 4 Three Forks wells per drilling spacing unit (DSU); further evaluation and testing of Three Forks down spacing ongoing
• As of January, 31 2015, approximately 90% of operated producing wells were connected to gas sales and 91% were connected to oil gathering infrastructure
• Reduced lease operating expense (LOE) to $6.15/boe (-18% y/y) in FY 2015 from $7.49/boe in FY 2014

• RockPile generated $418.1 million (+116% y/y) of stand-alone revenue in FY 2015 ($288.5 million of consolidated revenue) as compared to $193.6 million in FY 2014 ($98.2 million of consolidated revenue). In Q4 2015, RockPile generated $111.1 million (+97% y/y) of stand-alone revenue as compared to $56.5 million in Q4 2014
• Increased year-over-year completions by 83%, completing 49 Triangle operated wells and 99 third-party wells in FY 2015 as compared to 31 Triangle operated wells and 50 third-party wells in FY 2014
• Backlog of 39 wells, including 37 for third-party operators, at the end of February 2015
• In FY 2015, RockPile paid total distributions of $89 million (95% cash) to Triangle

Highlights for Fiscal Year 2015:

• Increased volumes in FY 2015 to 4,176 Mboe (+116% y/y) as compared to 1,929 Mboe in fiscal year 2014. Average daily production increased to 11,441 Boepd in FY 2015, or 2% above the high end of our FY 2015 guidance range of 10,200-11,200 Boepd, from 5,286 Boepd in FY 2014
• Total capital expenditures amounted to approximately $671.9 million, in line with full year budget guidance
• Increased consolidated adjusted net income in FY 2015 to $54.1 million, or $0.58 per fully diluted EPS (+21% y/y), as compared to$37.4 million, or $0.48 per fully diluted EPS in FY 2014
• Increased total estimated net proved reserves to 58,870 Mboe (61% proved developed) at fiscal year-end 2015, a 46% increase over fiscal year-end 2014 total estimated net proved reserves, with an associated increase in SEC PV-10 to approximately $983 million(+45% y/y)
• Repurchased and retired $20.5 million face value of Triangle USA Petroleum Corporation ("TUSA") outstanding 6.75% bonds for just under $13.9 million
• Repurchased 6.5 million shares of common stock at an average price of $4.94 per share in Q4 2015, bringing cumulative repurchases during FY 2015 to approximately 11.4 million shares at an average price of $6.72 per share leaving a total of approximately 75.2 million shares outstanding at January 31, 2015
• $428.7 million of total liquidity as of January 31, 2015, including $67.9 million of cash on hand and available borrowing capacity on TUSA and RockPile Energy Services credit facilities