TransAtlantic Petroleum (TAT)

Business description

TransAtlantic Petroleum is engaged in the acquisition, exploration, and production of oil and gas assets. It uses North American horizontal drilling and fracking technology to enhance production. Its main interests lie in Turkey and Bulgaria.

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Stock data

Market cap.US$320.5m
Last closeUS$8.300
High / Low (52 weeks)US$1.1 / US$0.7
Stock market listingNYSE MKT
Forecast net debt (m)N/A
Forecast gearing ratio (%)N/A
TeamResources - Oil & Gas
SectorOil & Gas

Price performance

%1m3m12m
Actual12.4(2.2)(21.8)
Relative *5.0(6.9)(35.7)

* % Relative to local index

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Investment summary

The recently announced farm-in with San Leon/Hutton is expected to entail a two-well drilling programme and four completions in exchange for operatorship and a 50% stake in nine Polish concessions. We consider this a good fit for TransAtlantic, making use of its unconventional drilling experience while adding diversification to the company's portfolio. We have modelled a US$20m spend over the next two years, with the first stage of drilling expected to be completed by year-end 2015. Reporting slightly lower than expected FY13 results, we have shaved our core NAV to US$11.9/share, (previously US$12/share, noting that reported year-end increases to reserves offset most of the downward revisions to our 2014 and 2015 forecasts. Trading at a 30% discount to our core NAV, we continue to see untapped value in TransAtlantic's application of North American drilling technology in Turkey, Bulgaria, and now Poland.

Last updated on 02/04/2014

Y/E Dec Revenue (m) EBITDA (m) PBT (m) EPS () P/E (x) P/CF (x)
2012A 134.1 38.7 4.6 N/A N/A N/A
2013A 127.3 44.1 0.2 N/A N/A N/A
2014E 184.8 107.8 61.2 N/A N/A N/A
2015E 252.5 159.6 101.7 N/A N/A N/A

Last updated on 03/04/2014

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Executive Interview - TransAtlantic Petroleum

Industry outlook

TransAtlantic is pioneering North American drilling and fracking technology in Turkey and applying unconventional methods to new shale plays, as well as to existing conventional assets. We believe that markets have yet to fully price in the potential production boost and upside from the successful application of North American horizontal drilling and fracking techniques to Turkey’s oil and gas basins.

Last updated on 31/03/2014

Key management

Malone Mitchell , CEO
Wil Saqueton , CFO
Ian Delahunty , President

Company address

16803 Dallas Parkway
P.O. Box 246 ADDISON
TX 75001-0246
United States
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