·

Increased volumes in FY 2015 to 4,176 Mboe (+116% y/y) as compared to 1,929 Mboe in fiscal year 2014 (“FY 2014”).   Average daily production increased to 11,441 Boepd in FY 2015, or 2% above the high end of our FY 2015 guidance range of 10,200-11,200 Boepd, from 5,286 Boepd in FY 2014

·

Total capital expenditures amounted to approximately $671.9 million, in line with guidance

·

Increased consolidated adjusted net income in FY 2015 to $54.1 million, or $0.58 per fully diluted EPS (+21% y/y), as compared to $37.4 million, or $0.48 per fully diluted EPS in FY 2014

·

Increased total estimated net proved reserves to 58,870 Mboe  (61% proved developed) at fiscal year-end 2015, a 46% increase over fiscal year-end 2014 total estimated net proved reserves, with an associated increase in SEC PV-10 to approximately $983 million (+45% y/y)

·

Repurchased and retired $20.5 million face value of Triangle USA Petroleum Corporation (“TUSA”) outstanding 6.75% bonds for $13.9 million

·

Repurchased 6.5 million shares of common stock at an average price of $4.94 per share in Q4 2015, bringing cumulative repurchases during FY 2015 to approximately 11.4 million shares at an average price of $6.72 per share leaving a total of approximately 75.2 million shares outstanding at January 31, 2015

·

$428.7 million of total liquidity as of January 31, 2015, including $67.9 million of cash on hand and available borrowing capacity on TUSA and RockPile Energy Services (“RockPile”) credit facilities 

FY 2015

Revenue

y/y % Change

Adj.-EBITDA

y/y % Change

E&P

$284.5

77%

$208.2

86%

RockPile

$418.1

116%

$95.1

127%

Total

$702.6

98%

$303.3

97%

Q4 2015

Revenue

y/y % Change

Adj.-EBITDA

y/y % Change

E&P

$63.0

28%

$54.2

69%

RockPile

$111.1

97%

$17.9

71%

Total

$174.2

65%

$72.1

70%

·

TUSA generated $284.5 million of revenue in FY 2015 (+77% y/y) as compared to $160.5 of revenue in FY 2014.  In Q4 2015, TUSA generated $63.0 million of revenue (+28% y/y) as compared to $49.4 million in Q4 2014

·

Increased Q4 2015 volumes to 1,357 Mboe (+103% y/y) from 667 Mboe in Q4 2014. Q4 2015 average daily volumes were 14,747 Boepd as compared to 7,249 Boepd in Q4 2014 

·

Spud 62 gross (43.9 net) and completed 49 gross (34.5 net) operated wells with a four-rig operated program in FY 2015

§

Includes a consolidated elimination benefit from RockPile, Caliber Midstream Partners L.P. (“Caliber”),  and other services in FY 2015 resulting in an aggregate net reduction of $31.6 million in oil and natural gas property expenditures, which represents an approximate 7% cost savings

·

Successful Bakken down spacing program across our core acreage supported an increase in gross operated remaining drilling inventory to 673 locations assuming 8 Bakken (up from 6) and 4 Three Forks wells per drilling spacing unit (DSU); further evaluation and testing of Three Forks down spacing ongoing 

·

As of January,  31 2015, approximately 90% of operated producing wells were connected to gas sales and 91% were connected to oil gathering infrastructure

·

Reduced lease operating expense (LOE) to $6.15/boe (-18% y/y) in FY 2015 from $7.49/boe in FY 2014

·

RockPile generated $418.1 million (+116% y/y) of stand-alone revenue in FY 2015 ($288.5 million of consolidated revenue)  as compared to $193.6 million in FY 2014 ($98.2 million of consolidated revenue).   In Q4 2015,  RockPile generated $111.1 million (+97% y/y) of stand-alone revenue as compared to $56.5 million in Q4 2014

Three Months Ended January 31,

Year Ended January 31,

2015

2014

2015

2014

Revenues

Oil, natural gas and natural gas liquids sales

$

$

$

$

Oilfield services(a)

$

Total Revenues

Expenses

Lease operating expenses

Gathering, transportation and processing

Production taxes

Depreciation and amortization

Accretion of asset retirement obligations

Oilfield services(a)

Corporate and other stock-based compensation

E&P stock-based compensation

RockPile stock-based compensation

Corporate and other cash G&A expenses

E&P cash G&A expenses

RockPile cash G&A expenses

System conversion costs

- 

- 

- 

Total operating expenses

Operating Income

Interest expense, net

Amortization of deferrred loan costs

Gain on extinguishment of debt

- 

- 

Commodity derivatives gains (losses)

Equity investment income (loss)

- 

- 

Gain (loss) on equity investment derivatives

Other income

Total other income

Net Income Before Income Taxes

Income tax provision(b)

Net Income

$

$

$

$

Net Income per Common Share

Basic

$

$

$

$

Diluted(c)

$

$

$

$

Adjusted Net Income per Common Share(d)

Basic

$

$

$

$

Diluted(c)

$

$

$

$

Weighted Average Common Shares

Basic

Diluted

(a)

Includes intercompany eliminations; reference Note 3 – Segment Reporting in our fiscal year 2015 Form 10-K for additional details

(b)

The effective tax rate for the three months and year ended January 31, 2015 is approximately 13% and 33%, respectively, which differs from the statutory income tax rate due to permanent book to tax differences. Income tax provision is a non-cash expense

(c)

Includes interest expense add-back of $1.0 million and $4.1 million net of income taxes and amounts capitalized for the 3 months and year ended January 31, 2015, respectively,  related to outstanding convertible note

(d)

Reference accompanying Reconciliation Tables and Use of Segment Information and Non-GAAP Measures at end of press release for additional detail

(1)

The Company often provides financial metrics for Triangle’s segments of operation. Revenues for each segment are disclosed in notes to the financial statements contained in the Company’s Form 10-K and Form 10-Q filings, but the sum of those stand-alone revenues differ from Triangle’s consolidated revenues for the corresponding reporting period. Triangle’s consolidated revenues would reflect segment revenues reduced for intercompany sales (i.e. for RockPile services to Triangle’s E&P segment).

(2)

Adjusted-EBITDA represents income before interest expense, income taxes, depreciation and amortization, other non-cash items, and non-recurring items. Adjusted-EBITDA is not a calculation based upon generally accepted accounting principles in the U.S. ("GAAP"). Triangle has presented Adjusted-EBITDA by segment because it regularly reviews Adjusted-EBITDA by segment as a measure of the segment’s operating performance. Triangle also believes Adjusted-EBITDA assists investors in comparing segment performance on a consistent basis without regard to interest expense, income taxes, depreciation and amortization, other non-cash items, and non-recurring items which can vary significantly depending upon many factors. 

(3)

Adjusted net income (loss) is defined as net income (loss) applicable to common stockholders adjusted to exclude certain charges or amounts in order to provide users of this financial information with additional meaningful comparisons between current results and the results of prior periods. Triangle presents this measure because (i) it is consistent with the manner in which the Company's performance is measured relative to the performance of its peers, (ii) this measure is more comparable to earnings estimates provided by securities analysts, and (iii) charges or amounts excluded cannot be reasonably estimated and guidance provided by the Company excludes information regarding these types of items. These adjusted amounts are not a measure of financial performance under GAAP. We believe that net income (loss) is the performance measure calculated and presented in accordance with GAAP that is most directly comparable to adjusted net income (loss).

Exploration
and
Production

Oilfield
Services

Corporate
and Other(a)

Eliminations
and Other

Consolidated
Total

Revenues

Oil, natural gas and natural gas liquids sales

$

$

 -

$

 -

$

 -

$

Oilfield services for third parties

 -

 -

Intersegment revenues

 -

 -

 -

Total Revenues

 -

Expenses

LOE, GTP, Production Taxes and other expenses

 -

 -

 -

Depreciation and amortization

Cost of oilfield services

 -

General and administrative

 -

Total operating expenses

Operating Income

Other income (expense), net

Net Income (Loss) Before Income Taxes

$

$

$

$

(b)

$

(a)

Corporate and Other includes Triangle's corporate office and several subsidiaries that management does not consider to be part of the exploration and production or oilfield services segments.  Also included are results from Triangle's investment in Caliber, including any changes in the fair value of equity investment derivatives.  Other than Caliber, these subsidiaries have limited activity

(b)

$31.6 million RockPile, Caliber, and other services consolidated elimination results in a $31.6 million reduction in oil and natural gas property expenditures.

Exploration
and
Production

Oilfield
Services

Corporate
and Other(a)

Eliminations
and Other

Consolidated
Total

Revenues

Oil, natural gas and natural gas liquids sales

$

$

 -

$

 -

$

 -

$

Oilfield services for third parties

 -

 -

Intersegment revenues

 -

 -

 -

Total Revenues

 -

Expenses

LOE, GTP, Production Taxes and other expenses

 -

 -

 -

Depreciation and amortization

Cost of oilfield services

 -

General and administrative

 -

Total operating expenses

Operating Income

Other income (expense), net

Net Income (Loss) Before Income Taxes

$

$

$

$

(b)

$

(a)

Corporate and Other includes Triangle's corporate office and several subsidiaries that management does not consider to be part of the exploration and production or oilfield services segments.  Also included are results from Triangle's investment in Caliber, including any changes in the fair value of equity investment derivatives.  Other than Caliber, these subsidiaries have limited activity

(b)

$1.3 million RockPile, Caliber, and other services consolidated elimination results in a $1.3 million reduction in oil and natural gas property expenditures.

a)

Consolidated Adjusted net income (loss) per common stockholder (reference disclosure (3) in “Use of Segment Information and Non-GAAP Measures”)

Q4 Fiscal 2015

Q4 Fiscal 2014

Fiscal 2015

Fiscal 2014

Net income attributable to common stockholders

$

$

$

$

(Gain) loss on equity investment derivatives

(Gain) loss on commodity derivatives

Realized gain (loss) on commodity derivatives

 -

 -

Other

Tax impact(a)

Adjusted Net Income

$

$

$

$

Adjusted Net Income Per Common Share

Basic

$

$

$

$

Diluted(b)

$

$

$

$

Weighted Average Common Shares

Basic

Diluted

(a)

Tax impact is computed as pre tax-effected adjusting items multiplied by the Company's effective tax rate

(b)

Includes interest expense add-back of $1.0 million and $4.1 million net of income taxes and amounts capitalized for the 3 months and year ended January 31, 2015, respectively,  related to outstanding convertible note

b)

E&P stand-alone Adjusted-EBITDA (reference disclosure (1) and (2) in “Use of Segment Information and Non-GAAP Measures”)

Q4 Fiscal 2015

Fiscal 2015

Net Income (Loss) Before Income Taxes

$

$

Depreciation and amortization

Net interest expense

Stock-based compensation

Accretion of asset retirement obligations

Other

(Gain) loss on commodity derivatives

Realized gain (loss) on commodity derivatives

Adjusted-EBITDA

$

$

c)

Oilfield Services stand-alone Adjusted-EBITDA (reference disclosure (1) and (2) in “Use of Segment Information and Non-GAAP Measures”)

Q4 Fiscal 2015

Fiscal 2015

Net Income (Loss) Before Income Taxes

$

$

Depreciation and amortization

Stock-based compensation

Net interest expense

Other

Adjusted-EBITDA

$

$