Trinity Exploration & Pr... Share Discussion Threads

[spellbrook] 02/10/2017 12:01

Trinity Exploration & Production PLC (LON:TRIN) shares offer investors exposure to a high-margin, cash-generative story with a considerable upside, according to stockbroker Cantor Fitzgerald.

The broker repeated a ‘buy’ recommendation and increased its price target to 38p from 37p for the Trinidad-focused oil producer following the release of half-year results last week.

READ: Trinity reveals positive financials as attention turns back to growth

Analyst Sam Wahab said in a note that: “The company has undertaken a significant review of its portfolio, completing a considerable amount of remedial work to existing wells.

“As a result, the company is currently producing in excess of 2,600 bopd at compelling and robust economics.”

READ: Trinity Exploration sells west coast Trinidad assets to Range Resources

He added: “We are also encouraged by the company’s prudent approach to capital discipline, allocating funds to production and development assets to generate material cash flows and compelling economic returns, focusing on extracting value from the ‘low hanging fruit’ in its portfolio.”






[...]

[lw425] 02/10/2017 11:49

I agree.

TRIN is without doubt the cheapest oil producer on AIM based on price per barrel of reserves and daily production.

11m cash in bank with another 4m to come from the disposal.

Production increasing to 3000 barrels a day very soon as stated in last weeks excellent results.

[ny boy] 02/10/2017 11:48

Nice technical breakout on volume thru resistance @ 12.75p, from bull flag

Looks good for strong move up with news flow updates this autumn.

[spellbrook] 02/10/2017 11:44

added a few more, feel the TRIN story is just starting to be noticed..imo..gla

[lw425] 02/10/2017 11:34

Extremely unusual to have such a genuinely undervalued stock trading at such a discount to the broker targets.

13.5p now.

Target 38p.

BUY

[mark10101] 02/10/2017 11:28

Seems a little perkier today, it did look like strength was building. Lets hope a nice steady rise this week with the brokers note giving a nice boost.

[spellbrook] 02/10/2017 11:26

EXPLORATION there when we want ...


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Trinity $TRIN #TRIN analyst highlights high margin cash generative story with considerable development, appraisal and exploration upside

[wwick] 02/10/2017 11:24

Looks to me like Cantors do not wish to be overshadowed by Whitman Howard :-)

[squiresquire] 02/10/2017 11:23

Not before time,

we do though have another broker update due this week, ime sorry but i did read about it but cannot find where, it was from a broker who visited TrIN on the last jolly a week or more ago. All excellent news,

[lw425] 02/10/2017 11:22

Also $4.55m coming in this quarter from the minor disposal previously announced.

Profitable.

Cash in bank.

TRIN will be producing for decades to come based on it's reserves and upgrade potential.

It's breaking out for it's major Q4 move.

TA does not lie when backed by fundamentals.

[che7win] 02/10/2017 11:14

Breaking out from here IMHO.

[lw425] 02/10/2017 11:07

States in the results released last week that 3000 barrels a day should be reached in the near future

The market cap does look insanely cheap on this basis. Mid 20's seems fair?

Sitting above the 200 day moving average should be triggering buy alerts for investors.

[sandy12345] 02/10/2017 11:00

are we ready for lift off guys?

[spellbrook] 02/10/2017 10:59

Trinity‏ @Trinity_PLC 31s32 seconds ago
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Trinity $TRIN #TRIN Cantor encouraged by spend on prod and development assets to generate material cashflows and compelling economic returns

[spellbrook] 02/10/2017 10:58

Trinity‏ @Trinity_PLC 6m6 minutes ago
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Trinity $TRIN #TRIN analyst highlights high margin cash generative story with considerable development, appraisal and exploration upside

[spellbrook] 02/10/2017 10:57

Trinity‏ @Trinity_PLC 2m2 minutes ago
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Trinity $TRIN #TRIN: Cantors says following balance sheet restructuring, 1H/17 results underline a strong period of operational progression

[spellbrook] 02/10/2017 10:51

Trinity‏ @Trinity_PLC 2m 2 minutes ago
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Trinity Exploration $TRIN #TRIN Cantors ups TP to 38p following strong H1

[mark10101] 02/10/2017 09:07

Apparently Cantor Fitzgerald have increased TRINS target to 38p, seems a pretty decent target to me for this year with next year bearing the most fruit I would hope higher than that.

[spellbrook] 30/9/2017 15:38

Sit back, accumulate and wait.

[mark10101] 30/9/2017 14:27

A good week all round with a strong end.

We know the fundamentals for TRIN are there but after a painful summer it looks like the technicals are also returning to supportive again.

[spellbrook] 30/9/2017 10:11

Malcy sums it up well..imo

Trinity Exploration & Production

Trinity also had results yesterday and the turnaround story gathers pace. Production, which had stalled after the 2016 lull, is picking up sharply as the 2017 work programme kicks in. To give an idea of its activity, in the 1st half of the year there were 49 RCP's, workovers and reactivations, in the second half there will be 90 in total evenly split between the three.

This means that the company's 2 rigs are at full capacity and additional rigs have had to be contracted. The success can be measured by the economic indicators per well. So far this year the NPV is $118/-, the IRR 332% and paybacks happens in 8 months, impressive or what?

Key metrics for the first half show EBITDA racing ahead of an admittedly difficult comparison by a multiple of nearly 4x, obviously prices are up but break-even price is down again and, of course, post the refinancing net debt is relatively normal with a healthy cash balance of $11.5 million.

These numbers mean that margins are up and TRIN has aggressively trimmed costs putting them into a genuine position of increasing profitability, a rare situation for an Aim company.

This combination makes the outlook very bright for TRIN, with a solid balance sheet and sales up on the increased operating activities the assets are working hard under disciplined project management from the almost entirely local team. On that subject, I met yesterday with Bruce Dingwall who I have known for some time, but also CFO Jeremy Bridglalsingh who is very impressive.

Looking forward, expect a resumption of the drilling of new wells in Q1 2018 with a 4 well + programme whilst continuing with the hopper of workovers etc, all this from a fixed cost base onshore making increased profitability going down to the bottom line.

Further out, the prospects are exciting for the offshore Galeota Ridge which could be transformational for the company. Overall, the chart looks good, the fundamentals are sound and the management are most impressive making the outlook for the share very promising indeed.

[spellbrook] 29/9/2017 17:03

Bruce A. I. Dingwall CBE, Executive Chairman of Trinity, commented:


We look forward with confidence and in providing a further quarterly update in November."

[ny boy] 29/9/2017 07:48

Bought just over 10p, will hold for a year or two.

[wwick] 28/9/2017 21:00

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