TAT - Earnings call transcript Q3 2017 | TransAtlantic Petroleum Ltd

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to TransAtlantic Petroleum Limited Third Quarter 2017 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to introduce your host for today's presentation Mr. Chad Burkhardt, Vice President and General Counsel. begin. please Sir,

Chad Burkhardt

Petroleum's TransAtlantic XXXX conference earnings Welcome third call. to quarter

and today, On Anda, Chairman Finance we and call Vice Chief of Fabian our Mitchell; have the Malone Executive President myself. Officer,

factors our may make materially there certain today's regarding discussed on and issued statements, beliefs, of undertake are forward-looking SEC we such as and should and you a expectations, goals, statements. statements. we in business differ performance that During in identified projections except future assumptions release, forward-looking number our undue our law, and statements company's call, which after yesterday cause no not place earnings forecasts, the the duty we filings. which the to include statements, such Please from actual statements of that, by results will press underlying Please to including recognize the note reliance factors update close that required forward-looking and any

call to Mitchell, Now, I over Malone will our over turn CEO.

Malone Mitchell

ladies welcome Good lower a third The certainly is and TransAltantic following had years $XX brand that earnings Petroleum to quarter three we've XXXX the and call. morning we're development, and welcome gentlemen begin as of on and in pricing surpluses world out forward basis. maybe the going inventories, a production the of a worldwide we have pricing the that number believe working indicative sustainable

our to financial Our working increase commence several two secure to to institutions several and credit proven TransAtlantic Bahar additional our been allow development with production. Selmo fields has to one management months program rig to us for in

if days our on We start processes We've completed month. the a XD improved quarter block. and on of the higher both of they It in East stabilized the well. the shoot Dadas We're [indiscernible] QX extra third rock could a green the resource finance. initial expect the a risk we near determine year in average on recompletion open Molla from our our will some the processing Our acquisition and other currently analysis play. shale at our engineers that level XX will about drilling a than block get end commence about failed that are production formations doing past in to broader for frac has being financials when preparing on light we to oil and this operations well

XXX,XXX adversely the Bahar completed in sandstone will call Turkey. financials two The within to afterwards. to barrels be U.S. Our answer fields. which per a Fabian the our in of services which They now Dadas produce questions Dadas on have block to water continues and day I’ll existing independent now been great from per Molla between barrels successfully Dadas Anda our the Bahar not Once headlines prospects Bedinan again proven shale which of affect to X of be is are Turkey the made only. that well have renormalized and over Sands. during oil now period our recap and Turkey operating. nearly time met XXX are the completed did and to operations. to and we XX and extended our Visa X we a out turn barrels of continues environment headlines and have day

Fabian Anda

good and Malone, Thanks morning everyone.

our past the in continued in on As published making balance yesterday, our during restructuring sheet quarter significant XX-Q despite and natural year declining in progress X, as have we communicated press release production. our filed and our November we

on current basis, million. million $XX.X by pro is reduced million. During Sand the all a Bedinan remaining third balances our DenizBank balance the debt $XX classified is debt $X.X the Dadas and with million forma quarter, balance of of our we and $XX.X as

X. July impact X did sheet. July the material paid This in We financial paid million last have quarter. We our not in divesture interest XX% and transaction our convertible notes on $X.X mature to where balance any of the on also Albania we third

working $X.X million from September Our capital million at XX. at to of decreased deficit a $X.X June a XX deficit of

income production realized X.XX% From offset was quarter an partially relates in year, BOE. approximately decrease and quarter, and $X third primarily quarter down XX.X% in operating price. the prior average per of our XX% EBITDAX decrease first BOE our average volumes decrease per the $XX.X by of a last price far and As was up our increase results, revenue year-over-year. sequentially driven our the same regarding quarter volumes, XX% obtained of the introduction in X% increase From million third realized of to which

expenses as year-over-year. the increased Selmo Bahar XX% to $X has were Primarily due $XXX,XXX our production and increased As million X% production our QX and in in activity sequentially up fields. far of down

primarily cost G&A primarily accounting personnel have in up to our revenue audit expenses, sequentially reduction increase X% QX to of was to million due Our expenses. $X.X down $XXX,XXX. expenses down and $X.X XX% and decrease gas G&A overall was we year-over-year EBITDAX due X% sequentially, lower measures. the in Also personnel the slight and of adjusted million due were decrease our the fees oil and a

quarterly purchase Our realized in and the gas. partially and by of G&A settlement primarily of decrease natural year-over-year cost to decreased our our and due hedge revenues decrease in XX% EBITDAX decrease offset in

straight from on of net is paid This talk we head we revenues about on to $XX,XXX our first current the February, will at in $XX.X hedges income our am pick and the prices. $XXX,XXX $XX and year position, Now next a hedges feeling. settlements about our have to month May believe going up March, we to I June $XXX,XXX current

QX, getting I quarters we Malone with prior XXXX This are to to expenditures the quarter $XX.X investing to expect we year-to-date the commodity to As hand call prior quarter back our environment will our million as $X CapEx. due during aligned drilling and third capital and be pricing as approximately remained our for ready with program. now in CapEx primarily relatively million field our far aligned is

Malone Mitchell

now our from Fabian. questions callers. you, And take Thank we'll

Operator

first Instructions] or comes Our of line comment Tom from the Lee. question [Operator

open Your line sir. is

Tom Lee

Yes. Good morning.

are of hedging Brent, planning current We caller have strategy. any getting with the do prices you done hedging and on some to market adjustment the

Malone Mitchell

We credit absolutely our the arrangements we when term. extend will the expect that would that that finish concluding will, negotiations we on

remaining end So amortize right We some our in of June. by now hedges we the got debt fully that roll-off February.

Some time that in that in others May the that expect June would and we hedges roll-off roll-off additional March to in and for lay period. and

or within credit this big in believe right obviously allow for our caller. price hedge tied credit now. overall very in of very, We costless we're lines us us hedging lines believer favorable Our to and that to kind operating generally a

said our as our made our placed $XX.XX to first just do be cap’s to our able to which settlement between higher $XX,XXX would and would that. expect certainly and look setup we ranging Fabian with at a we be caller and Our generally we $XX.XX is cap set, level

Tom Lee

and area? some in acreage gas oil testing of were pace interest currently in we There some still we in closely are have stat those is that that because monitoring

Malone Mitchell

Mr. as tight stat that their very area our exactly part. that that XXX% offsetting information that immediately the right part that west. have Lee on understands built is and but well success deep part now development completion overpressure acres has basin. approximately we XX,XXX immediately for retain their We infrastructure to that block begin operations look through certainly TransAtlantic basin we Thrace the pipeline we have lead oil would obviously as You're are acreage that in our because that to skill wide the both and our the had their on monitoring they we in is

Tom Lee

and And switch exercise we economics that too another we Can try but in horizontal? previously we you back drilling go trying vertical. vertical to give with do to we with say give on us well some were horizontal stay analysis that didn’t versus the

Malone Mitchell

proposed some are issues we wells well, our Bahar vertical mechanical fact our very X depth and a and [Kavilasu] our were Well all both the a difficult we and wells very, drilling our to our Bahar the in number well Mr. horizontally to drilled we running attempted were XX The two very then one successful horizontal in Lee number. basin of successfully and we with all in Selmo very with number field XD faults were on Bahar field two carbonate the deeper Bahar wells Thrace in early drilling geology well horizontal the of have our Bahar wells successful in XX virtually shallow number to prior those for economical of seismic. us see had that an our

million wells are kind $X would cost in vertical of out approximately field expected and range. barrel ultimate those the of drill well in recoveries X.X us expect So million Bahar we a completed that current

on represents of investment. operating on it's pretty easy to gross an the and X:X:X basis return XXX that revenue with expense very kind a that So net low see

to know be or we’re kind So and those and a that a going between we’re like is but wells that's the proved and and able we months to that of that a to risky year vertical operations cash the to available it's laser on would wells very undeveloped economics have somewhere found not of are anything economical range horizontally, we’re flow. to just so think our focused the out we be need half do on typically with basis credit looking so we looking and six exploratory we increase drill production very good payout to

Tom Lee

that we trying prone you proposals. earlier marketing more drill some some can At a same more of And of to mentioned and the also joint we time get so strategies the wells. funding of trying to bank you're venture have

up joint venture? us can that proceeding gone you’re oil has as color Now give you quite how to bit with actually a some

Malone Mitchell

XD identified a into that the the Bulgaria. We’re parties number in which joint running kind contacted our both we've in Turkey are of discussion prospects ventures from exploration - of in we've good on and reasonably involved

negotiation that all you involvement interest expenditures in in parties involvement exploration and a I tell with single would to on much back more in forth from challenging. those number have prospect are of an a We’re various

could think undeveloped our I I say than proved the we on So have or in don't exploration. imminently we we're that lot to on to eminently be our is announceable finishing that's the of going some financing deal reserves on best is negotiation, anything closer a that but develop

Tom Lee

side, operation you are the coming expenditure On wells. some of How allocated the in they along? working previously had some

Malone Mitchell

some of We along is it to lead coming Well order of some later it tubulars arrived and is that in some month. time fine. and coming be of to this some to just able in it's country do long had

that process We are and in has most in occurred that of of October. the

able basis be a to expect We announce yearend results to on on that.

Tom Lee

with continue look the flow in prices, to the with increasing high cash two again areas? we'll oil So

Malone Mitchell

continue the will work areas. two We in to

utilize to the successful see the we in we gas that available really cash the with did have that again proven, to we that is do within try field also action us but up what all prospects headroom drilling recompletions, our We production lot think credit, looked that to ventures are and We recompilation know we Northwest recently look we flow and in that the joint course wells to exploratory to and on through have is or give into convert going most our our early cash the prove of just are we of some 'XX flow. that best production. increase of more more areas a

Tom Lee

topic know cash the term on is or now some this $XX have again still the And sheet, on our I balance flow, short million we of liabilities?

Malone Mitchell

as that's our current line out of through million that DenizBank said schedule that credit we $XX we actually amortized June. the amortize pay out today on that's with and It's we

expand been to room we've undeveloped negotiating give several wells. with what grow to proved to parties that's simply some However us

Tom Lee

have the keep we of is marketing you and analysts go coming conference wire? seem really this efforts the question last mix conferences that don't is and ask I how online have so that of a spend a have last the to questions I in we couple those of couple lot to know And call, we

Malone Mitchell

observation good you that's a Well make.

narrow we that years, were play group on take lot of We're a has cash working It that Europe we've kind energy area marketing creating Canadian play banking the effort produce informed in Europe become We an positive and investment more believe disbanded banks covering a a we and bank. story that and In of we now coverage week through is should debt. that away has with activity and their constant been single our engaged is investment fact has basis. limited that a pay with and and one that for of in the positive we really offense will a energy this on down provider last to the flow cover really two our we results. been story couple think last offensive done

on marketing lot that tell cash effort not not to debt down a activity. general -- been story of what money but to accompanied So increased doing. there's spend simply of just -- other that, best catalyst we paying we flow taking we're with expect a our and lot There's on think and we've it's has than

Tom Lee

to And roles. you. certainly you. That's thank to Thank we're all and back looking forward questions my

Malone Mitchell

Lee. any Mr. to appreciate and other questions you're We you, have your and Thank for call directly as contact always your we us Do additional. well questions? welcome

Operator

Yes sir. you. Thank

or of Rabinowitz. next the comes line comment from question Our Paul

Your line is open sir.

Paul Rabinowitz

Malone. I'm those Mr. Atlanta are being and doctors. you. pulled for of Thank doctor oil I making Georgia. famous a into at Doctors am deals one

people to the oil that lack ago of was way this $X.XX Now us here you when reserves. but stated there reserves low over I out was to $X we when are your since you're down particularly worth ago who The because reverse was proven have that since supposed price. we’re is back we stock accumulated lower for based with company is year your least our value and be double people five the a very volume a $X where the like was underpriced upwards in stock so your great untapped with position at call position last into just frustration interest $X $X.XX remember I've frustrated up your my was it myself years seem when I proven stock been split years worked of that February $X.XX were $X.XX ridiculously stock as and five you went can to adding imagine kept how double-digits had at at share on a a so to large frustration

sell sick is to money to you’re like where what the buy us value the story we’d more happened for to of lot you’re doing into of a improve the company shares the Malone the up see stock what coming So doing prop shareholders? what

Malone Mitchell

continue most Rabinowitz have I'm million it sure as comments Well U.S. greater for and in Mr. demand I is generate amount the it if would company is you own I of I affirm companies frustrating operate is multiple worth primarily story reflection by of look shareholders. equally if that than a out it stock ability and money North those of is me of reserves is. markets resource certainly it stock measurement who purchases of appreciate at The The EBITDA out look your my of things look reflection about America value of lot than if and about to number a it a $XXX one so a of sometimes at to a is in to the tell more the a demand impacted you we stock basins multiples. the of of process has events of to been you at

analysts I pools people goes and it's group a like with to companies. limited and And the and more cover general of All strategy we that certainly try are been try part make funds and of to can that do all that with enthusiasm as been to trading $XX. the production lamenting try has EBITDA been multiples it of energy has can as company who said stocks decisions in and that. a returning is comps of disfavor really with trading create So grow that to number to and and reserve their of hedge tend the very in to to to some bigger of again typical kind buy topic cycles sell is execute there do more challenging other

and concur on your be with I it and people. basis with You addition would personal in But expect bigger concur return certainly management in some interest basis a frustration I fund to to a a there company basis.

Paul Rabinowitz

some family when own because you're show buy shares? in you stock we shares Malone by do able buying The does your to it confidence are more

Malone Mitchell

We possession are of in when we’re confidential information. not

Paul Rabinowitz

mean want to when a much the somebody this going didn’t is this over this thing get you $X pretty back you I just like over last something not maybe would of it it need price we So but more coming in company just good so projection course idea projections come the year true I and to to the if the year buy again year and coming you gave would embarrassing at when so just at sell company worth being $.XX come is are it? are

Malone Mitchell

trading to Well the several that’s least was at a equal was observation is when what materially it I good that would ago. argue years company $X it

So we of is much it of as the function function can hope is process as a demand again value. a stock

Paul Rabinowitz

production value get you like if look production your in down. value to again production see people compared has up you if they were the going bad the been oil the your get way going production you really to So up because stock

coming get at where goal it in some get year back your then the So excitement would was in past to be story? the the production in some to the point

Malone Mitchell

and the Well amount been when was price we expansive credit really availability the completed and the of of a then. oil coming capacity expenditures situations really in be shooting confidence constricting up considered it since had lot what we end credit declined, of into XXXX analyzing we a would degree in a high removed large establish and prospects X-D we've to of have of --

been have been in been expired there essentially a facilities or credit on of -- facilities and facilities basis. credit So while there replacement always have credit have contracting

enough where drill production. we facility we're all a proven restraint first basis another some a locations line the and have to shown we use time and increase costs, that out to able in for that time actually go things of have credit the believe and very like to have on now expansive margins of and things long an those and we of operated opportunity improvement have we we've lifting So G&A

Utica, from you're if fixed margin shareholder fundamental the of company greater our again oil of and equation company you're Now degree in the the as own oil cost and And are people markets particular if part and demand a that's at the the production function of and should looking investing production at to our at be the that of the plays expand public in attention of steel company, Turkey resource of looking cash universe consumes only at oil who but dollars Stag, above and American Permian, the a investment oil the finding is most that the an flow, of value creating most a be in interested standpoint those stuff be have in the U.S. North fundamentals Montney, now matter at be public. the Canadian an right we Bulgaria. to the

is the a general about is that is if a So the a lot broadcasts challenging be of if you great. kind produced it's the ending Visa about, great great that have make fantastic set never -- to -- know of the you that years It's four five recent invest news terms investing It's to fiscal don't it money. just cautious to got has issues a place one it’s Turkey a most think produced past being which it public for Turkey headlines, for the in. place past you might

reference outcome the to That's they've that on operational there. and materially the field physical to just actual again governmental rulings been made fact We've affected morning's on ever not been headlines or an it's fact actually government enjoyed ability produce. In call. headlines, terms a with good once stability this but basis of have a not way. since since relation basis we've our that actual I

Paul Rabinowitz

other money about the about pockets concerned not of Turkey. people might parts big Asian, who And of what in world, be

Malone Mitchell

pool tell week the discussions Well, cons in the we're pros markets operate last just in and ability the and week General in been the IMAX also investors outside are. reach a and you and Counsel we've are and this what can with it of to different AMEX to that reach that area and of and discussions in I

cognizant not and something on. not working of we're that's we're that So not

get However get and them. it's very off difficult easy to to it's very exchanges costly, on

Paul Rabinowitz

be has to last always shareholder, the into about you're do dilution? with shares much either as year the $X time thing, that see the disappearing course just as you dilute of possibility far dilution, the more to you of past the horizon. One been over had and recap, We dilution more every will the that concerned I there

Malone Mitchell

of or there's in our shares share attributable that dilution abstain Marlon Board that company over it cash the the is small number. employee a certainly the is a and really some and with payment from are meaningful that than pic We the of was basis program and associated independent had than the Directors, rather and those unfortunately Board because dilution of would now of of my payment remind that all The really a to nine position less past passed our had that of year the of that's the deserve amount basis I large Downey myself. decision preferred of in is I is you the eight save Directors employees Directors company

a look that's we flow our at and there. what budgets that we and decide decision when cash do to So our at look

unattractive the capital is feature at So seen an that's normal credit sort that wells acquire over year. for utilizing some dilution utilizing certainly meaningful this of the on of course to time to relative company point shares the to past the drill rate. not working It's only we've in

Paul Rabinowitz

right All luck you this year. good so thank much

Malone Mitchell

further can Bob. whenever Thank you more you’re and than welcome you, choose. Again issues on to visit these we call

Operator

[Operator no back Instructions] call remarks. queue turn management the over in I’d questions like to I'm any to for showing time. this additional at the closing

Malone Mitchell

and accomplished you We thank Goodbye. results good announcing forward look weekend. the have positive undertaking thank to good, of that a as efforts those to general you. we’re the public and Very who

Operator

you concludes gentlemen, in participating This Ladies today's and for conference. program. thank the

wonderful day. disconnect. have now may Everyone You a

Chad Burkhardt	VP, General Counsel
Malone Mitchell	Chairman & CEO
Fabian Anda	VP of Finance
Tom Lee -
Paul Rabinowitz -

TransAtlantic Petroleum (TAT) 9 Nov 172017 Q3 Earnings call transcript