Upstream energy firm Triangle Petroleum Corporation (TPLM) reported strong second-quarter fiscal 2015 (three months ended Jul 31, 2014) results, attributable to a significant increase in production. Higher operating expense was however a partial dampener.

Earnings per share – excluding one-time items – came in at 20 cents, surpassing the Zacks Consensus Estimate of 14 cents. The bottom line also improved from the year-ago adjusted profit of 19 cents.

Revenues of $142 million were up a whopping 181.8% from the year-ago quarter’s $50.4 million. The top line also beat the Zacks Consensus Estimate of $119 million.

Production

In the reported quarter, total volume increased 146.5% to 971,000 barrels of oil equivalent (boe) from 394,000 boe in the year-ago period.

Segmental Performance

Exploration & Production (E&P): Revenues came in at $80.5 million, representing a year-over-year increase of 132.7%.

Adjusted earnings before income, tax, depreciation and amortization (:EBITDA) for the segment were $54.4 million, up 120.2% from the year-ago period owing to higher production.

RockPile Energy Services (RPES): Revenues were reported at $102.1 million, up 130.5% from $44.3 million recorded in the year-ago period.

The segment reported EBITDA of $28.8 million, reflecting a significant increase from $11.5 million in the second quarter of fiscal 2014.

Caliber Midstream (CLBR): Revenues reported were $2.9 million, up a whopping 163.6% year over year.

Moreover, the EBITDA at the segment surged 228.6% year over year to $2.3 million.

Operating Cost

The company reported operating expenses of $103.5 million. This reflects a 176.6% increase from the year-ago period.

Increased Proved Reserves

Triangle Petroleum’s total estimated proved reserves at the end of the second quarter stood at 51,660 million barrels of oil equivalent (Mboe), higher than 22,080 Mboe as of second quarter fiscal 2014.

Zacks Rating & Other Picks

Colorado-based Triangle Petroleum currently carries a Zacks Rank #2 (Buy), implying that will outperform the broader U.S. equity market over the next one to three months.

One can also consider players in the energy sector like Patterson-UTI Energy Inc. (PTEN), Pioneer Energy Services Corp. (PES) and Cameron International Corporation (CAM). All these stocks sport a Zacks Rank #1 (Strong Buy).

Read the Full Research Report on PTEN
Read the Full Research Report on CAM
Read the Full Research Report on TPLM
Read the Full Research Report on PES


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