NEW YORK (TheStreet) -- Shares of Triangle Petroleum Corp. (TPLM) sank 15.68% to $4.14 after OPEC cut the forecast for how much crude oil it will need to provide in 2015 to the lowest in 12 years amid surging U.S. shale supplies and reduced estimates for global consumption, Bloomberg reports.
The Organization of the Petroleum Exporting Countries lowered its projection for 2015 by about 300,000 barrels a day, to 28.9 million a day, Bloomberg said.
That's about 1.15 million a day less than the group's 12 members pumped last month, and the 30-million barrel target they reaffirmed at a meeting in Vienna on November 27. The impact of this year's 40% price collapse on supply and demand remains unclear, OPEC said, according to Bloomberg.
"The fundamentals outlined in the report look quite bearish," Natixis SA analyst Abhishek Deshpande told Bloomberg.
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 weak operating cash flow, a generally disappointing performance in the stock itself and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TPLM's very impressive revenue growth greatly exceeded the industry average of 6.3%. Since the same quarter one year prior, revenues leaped by 181.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving 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 114.0% when compared to the same quarter one year prior, rising from $6.80 million to $14.55 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. 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.
- The debt-to-equity ratio of 1.14 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, TPLM's quick ratio is somewhat strong at 1.35, demonstrating the ability to handle short-term liquidity needs.
- Net operating cash flow has declined marginally to $22.00 million or 4.95% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, TRIANGLE PETROLEUM CORP has marginally lower results.
- You can view the full analysis from the report here: TPLM Ratings Report