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Triangle Petroleum Is Dead

|Includes: Triangle Petroleum Corporation (TPLM)

There is nothing left for the common shares

Triangle Petroleum Corporation (NYSEMKT:TPLM) 10Q for period ending October 31, 2016:
https://seekingalpha.com/filing/3317507

The company reported ZERO revenue for the three months ending 10-31-2016. Stockholders equity is negative $106 million. They reported 55 million in assets to pay against $155 million in long term debt and have no revenue to generate a profit with, meaning it is impossible for them to ever pay off the debt.

Without the gain on sale of $50 million in the quarter, they would have lost $21 million for the quarter.

The interest on most of the long term debt is a convertible note that is accruing at the rate of 5% per year, so that is growing at the rate of $7.5 million per year.

There is no way for the company to even generate enough profit to keep up with the accruing interest.

I expect a Chapter 11 filing any day now since everything the company has left will end up with the convertible note holders, with zero left over for unsecured liabilities and nothing left for the common shares.

I am surprised that TPLM has fallen so far. A few years ago I considered TPLM a 'bigger' comparable company to American Eagle Energy, and thought that TPLM had made it into a 'safe' company size as it neared $1 billion in assets. I had considered an investment in TPLM or American Eagle to be reasonably safe when oil price were $80+/barrel.

Instead, oil prices fell into the high $20s, and even now have only partly recovered to the $50s. American Eagle Energy has already been liquidated and Triangle Petroleum Corp looks like it is next.


Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.