KeyBanc Starts Triangle Petroleum (TPLM) at Hold; Emerging Bakken Operator; Waiting for Operated Results
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Price: $0.01 --0%
Rating Summary:
3 Buy, 9 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 20 | New: 20
Rating Summary:
3 Buy, 9 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 20 | New: 20
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KeyBanc initiates coverage on Triangle Petroleum (NYSE: TPLM) with a Hold.
KeyBanc analyst says, "Based only on its largely derisked core acreage of approximately 32,000 net acres primarily in the Rough Rider area of North Dakota, TPLM is one of the most levered companies to the Bakken/Three Forks in the industry on a net acreage to enterprise value basis. To date, the Company’s land team, which has considerable Bakken experience, has rapidly and efficiently acquired both nonoperated and operated leasehold positions at below market prices (approximately $1,300/acre). Through the non-operated portion of its business model, TPLM is learning from many of the premier operators in the Bakken while risking minimal amounts of capital. Now that TPLM spud its initial operated wells, we expect the Company to be much further up the learning curve than most other operators were at the time of their first wells. Nevertheless, TPLM is in the very early innings of developing its position in the Bakken/Three Forks, and while we believe the probability is high that TPLM’s experienced and savvy management team will efficiently and profitably capture the resource potential on its acreage, we need to see company-operated results before we assign more confidence to the quality of its acreage position (outside the core) and operating team."
For more ratings news on Triangle Petroleum click here and for the rating history of Triangle Petroleum click here.
Shares of Triangle Petroleum closed at $5.46 yesterday.
KeyBanc analyst says, "Based only on its largely derisked core acreage of approximately 32,000 net acres primarily in the Rough Rider area of North Dakota, TPLM is one of the most levered companies to the Bakken/Three Forks in the industry on a net acreage to enterprise value basis. To date, the Company’s land team, which has considerable Bakken experience, has rapidly and efficiently acquired both nonoperated and operated leasehold positions at below market prices (approximately $1,300/acre). Through the non-operated portion of its business model, TPLM is learning from many of the premier operators in the Bakken while risking minimal amounts of capital. Now that TPLM spud its initial operated wells, we expect the Company to be much further up the learning curve than most other operators were at the time of their first wells. Nevertheless, TPLM is in the very early innings of developing its position in the Bakken/Three Forks, and while we believe the probability is high that TPLM’s experienced and savvy management team will efficiently and profitably capture the resource potential on its acreage, we need to see company-operated results before we assign more confidence to the quality of its acreage position (outside the core) and operating team."
For more ratings news on Triangle Petroleum click here and for the rating history of Triangle Petroleum click here.
Shares of Triangle Petroleum closed at $5.46 yesterday.
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