UPDATE: Imperial Capital Re-Initiates Triangle Petroleum at Outperform; Bakken Pure Play
Imperial Capital re-initiated coverage on Triangle Petroleum (NYSE: TPLM) with an Outperform rating and a $7.50 price target.
Imperial Capital noted, "With the vertical integration its investments in RockPile Energy Services and Caliber Midstream provide, we believe TPLM is well positioned to develop its core Bakken acreage. On 3/4/13, the company announced a $55.8mn equity investment by Natural Gas Partners; TPLM plans to use the proceeds to fund a third rig in order to expedite its drilling program. … As a result of the addition of the third rig, TPLM looks to exit 4QFY14 (1/31/14) at a production rate of 440-455mboe, up from the 4QFY13 rate of 258mboe. We estimate production growth of 260%, 188%, and 50% for FY13, FY14, and FY15, respectively. Assuming commodity price stability, we believe that TPLM could add another rig within the next 12 months."
Triangle Petroleum closed at $6.47 on Wednesday.
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