Hot Commodity Stocks: Triangle Petroleum (TPLM)
Thanks to ongoing supply worries in the Middle East, West Texas Intermediate (WTI) is still trading near multi-year highs of $110 a barrel. As tough as it is for consumers and the US economy to deal with high oil prices, it’s a great thing for small-cap oil companies.
Companies like Triangle Petroleum (TPLM)…
Triangle is a Denver, Colorado based oil exploration company whose sole focus lies on the Bakken shale play of North Dakota.
In case you’re unaware, the Bakken is the hottest unconventional oil play in America.
Crude production from this prolific field shot from 100,000 barrel of oil per day (bopd) in early 2009, up to 800,000 bopd in 2013.
Surging Bakken production is a key driver in the ongoing US oil industry renaissance. And there’s no question that it’s giving companies like Triangle Petroleum an amazing profit opportunity.
Speaking of profits…
Triangle released Q2 results last week. And boy oh boy, were the results spectacular.
The company saw crude production for the second quarter explode to 4,287 Boepd. That’s an eye popping 277% increase over the previous year’s Q2 production of 1,138 Boepd!
What’s more, stunning production growth increased quarterly revenues to $50.4 million- a shocking 390% improvement over the $10.3 million reported last year.
And to top it all off, the company turned in a quarterly profit of $0.19 per share- an incredible leap over the $0.02 per share loss reported in Q2 2012.
Whenever you see an oil company turning in production and earnings growth numbers of this magnitude, you should sit up in your chair and take notice.
And judging by the trading action in Triangle’s shares, investors are doing just that…
As you can see, Triangles shares exploded 19% last week to trade near a new multi-year high of $9.00.
Is there room for more upside?
You bet.
Even with last week’s pop, Triangle shares are still trading at a meager 8.7x forward earnings. Compare that to other Bakken players like Oasis Petroleum (OAS), Kodiak Oil & Gas (KOG), and EOG Resources (EOG), you’ll find Triangle has plenty of room to run.
And get a load of this…
Triangle management expects crude production to reach 8,000 boepd within the next four months. That equates to an additional 100% increase from the level reached in the first half of the year!
Folks, Triangle Petroleum is a quickly growing and well-managed small cap oil company.
If you’re looking for a way to capitalize on high oil prices, Triangle Petroleum should be at the top of your list!
Until Next Time,
Justin Bennett
Category: Commodities
