ENP Newswire -
Release date- 16052014 -
Signed two separate definitive agreements to acquire approximately 46,100 net acres (46% operated) in a contiguous area of
1,175 Boepd of current production
4,450 MBoe of net proved reserves with a PV-10 value of approximately
Total consideration of approximately
Triangle, pro forma for the Acquisitions (approximate): o 135,237 net acres in the Williston Basin o 91,767 net acres in the core Williston Basin, 57% operated o 9,575 Boepd of production
46,500 MBoe of net proved reserves, based upon internal estimates as of
611 potential gross operated locations remaining, assuming six Middle Bakken wells and four
Summary fiscal year 2015
Transactions expected to close by
Production: 9% increase to 2nd half fiscal year 2015 estimates
12,000 Boepd from previous 11,000 Boepd (at approximate midpoint)
Adjusted-EBITDA: 9% increase to 2nd half fiscal year 2015 estimates
Fiscal year 2015
Does not include RockPile Energy Services ('RockPile') and infrastructure
Please see updated corporate presentation at www.trianglepetroleum.com for more detailed budget and guidance information
Strong PDP component of the Acquisitions and existing liquidity allow for 100% debt financing
1.1x net debt to annualized 2nd half fiscal year 2015 Adjusted-EBITDA (net of cash on hand)
1.3x total funded debt to annualized 2nd half fiscal year 2015 Adjusted-EBITDA
Includes all fiscal year 2015 year-to-date
Potential Debt Refinancing
Following closing of the Acquisitions,
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
Use of Segment Information
The Company often provides financial metrics for Triangle's segments of operation. However, the sum of the stand-alone revenues for each of Triangle's segments of operations differs from Triangle's consolidated revenues for the corresponding reporting period.
Adjusted-EBITDA represents income before interest, 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, income taxes, depreciation and amortization, other non-cash items, and non-recurring items which can vary significantly depending upon many factors.
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. Adjusted-EBITDA 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. A large portion of Triangle's consolidated interest expense relates to paid-in-kind interest on the convertible note at the parent.
Chief Financial Officer
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