Boston, MA 05/19/2014 (wallstreetpr) – Triangle Petroleum Corporation (NYSEMKT:TPLM)’s wholly owned E&P subsidiary, Triangle USA Petroleum Corporation has announced that it is making two separate deals to take over Williston Basin properties. The parent company also announced that it has obtained bank commitments whereby the acquisition will be financed completely by the bank. The acquisitions also include a new senior protected second lien tenure loan arrangement.
The properties to be acquired measure around 46,100 net acres and are located in an adjoining region of Williams County in ND and Sheridan County in MT. the company expects net buying price adjustments to be around $120 million. Further, it seeks to sell off the obtained salt water dumping well to Caliber Midstream Partners, L.P.
Affect on 2015 Financial Results
Triangle Petroleum Corporation (NYSEMKT:TPLM) expects to close the transactions by June 30, 2014. It also said that the take- over will not affect its first or second quarter results for the financial year 2015. Also, financial guidance for the period will also remain unaffected from the acquisitions. Nevertheless, it expects production to rise by as much as 9% in the second half of the fiscal year 2015. It estimates an increase from 11,000 Boepd to almost 12,000 Boepd. Further, adjusted EBITDA is also expected to rise 9% in the same period. The company has raised its yearly estimation from $220 million to $240 million for the second half of the next year. Its USA subsidiary is expected to increase capital expenses from the estimated $465 million to as much as $560 million in 2015.
With Simmons & Company International acting as its financial advisor, Triangle Petroleum Corporation (NYSEMKT:TPLM) anticipates that strong PDP unit of the take- over along with the existing liquidity would allow it complete debt financing. Its approximate pro forma liquidity amounts to $195 million of the net available liquidity, of which $50 million is in cash and the rest is obtainable on senior credit facility.
