Triangle Petroleum Corporation (NYSEMKT:TPLM) Plagued By Falling Oil Prices

[[tagnumber 0]][[tagnumber 1]]Establishing vertical integration within the enterprise is often highly regarded as a step towards both business expansion and cost improvement. However, when the business’s success is largely dependent upon external factors and these factors are not performing well, a company may decide to get rid of one or more of its divisions in order to raise fresh capital.[[tagnumber 2]] [[tagnumber 0]] That’s exactly what the management of Triangle Petroleum Corporation (NYSEMKT:TPLM), an independent oil and gas company whose business covers both the upstream and midstream sectors of the related industry, tried to do by announcing the sale of its midstream business hoping to get a $1 billion evaluation of Caliber Midstream Partners, L.P., an unconsolidated JV formed to provide various oil, gas & water transportation services to other E&P companies in the Williston Basin.[[tagnumber 2]] [[tagnumber 0]][[tagnumber 6]][[tagnumber 7]]In the light of the highly volatile nature of the hugely falling oil and gas prices recently, Triangle Petroleum’s financials have taken a real beating and so have pretty much all of their competitors. This is evident from the company’s latest quarterly report covering the second FY 2016 quarter ended Jul. 31, 2015. Along with the optimization of some of TPLM’s expenses, the slump in revenue is hardly surprising. As a result, TPLM shares are now trading around the $2.55 mark, dangerously close to the 52–week low of $2.11 reached on Aug. 24 for a short while. Oddly enough, it was this low that triggered a respectable rebound during the next few days until the end of August, in line with the oil price jump that occurred at that same time span.[[tagnumber 2]] [[tagnumber 0]]So far, Triangle’s attempt to spin off its midstream business has failed to meet with success, the implication being that the expected $1 billion capital injection has yet to become a reality. Provided that market conditions improve in the forthcoming months, however, the company’s stock might appreciate in value and raise investors’ interest. Yet, in the current state of oil prices, this prospect seems unlikely to happen.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]]