"We believe the company is acting prudently having reduced capex in order to preserve its balance sheet during the prevailing commodity price environment," analysts at Canaccord Genuity said.
RockPile (RPES), Triangle Petroleum's business line provider of hydraulic pressure pumping, had its operating margins under pressure coming in at just 7% vs. 18% estimate at Canaccord Genuity, according to the analyst note.
While margins remain under pressure, the firm increased their full year forecast of 2015 production to 13.2 Mboe/d (millions of barrels per day) from 12.4 Mboe/d, Canaccord Genuity added.
Triangle Petroleum is an energy holding company that has three principal lines of business: oil and natural gas exploration, development, and production; oilfield services, and midstream services.
Shares of Triangle Petroleum are increasing 0.39% to $5.09 in late morning trading Wednesday.
Separately, TheStreet Ratings team rates TRIANGLE PETROLEUM CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate TRIANGLE PETROLEUM CORP (TPLM) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TPLM's very impressive revenue growth greatly exceeded the industry average of 38.5%. Since the same quarter one year prior, revenues leaped by 83.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 173.1% when compared to the same quarter one year prior, rising from $14.25 million to $38.91 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, TRIANGLE PETROLEUM CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- TPLM's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 48.16%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The debt-to-equity ratio of 1.47 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, TPLM maintains a poor quick ratio of 0.85, which illustrates the inability to avoid short-term cash problems.
- You can view the full analysis from the report here: TPLM Ratings Report