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Transatlantic Petroleum Ltd. Reports Operating Results (10-Q)

November 15, 2010 | About:
10qk

10qk

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Transatlantic Petroleum Ltd. (TAT) filed Quarterly Report for the period ended 2010-09-30.

Transatlantic Petroleum Ltd. has a market cap of $1.01 billion; its shares were traded at around $3.31 with and P/S ratio of 34.51. TAT is in the portfolios of Michael Dell of MSD Capital, T Boone Pickens of BP Capital, T Boone Pickens of BP Capital, George Soros of Soros Fund Management LLC.

Highlight of Business Operations:

Net Loss Attributable to Common Stockholders. Net loss attributable to common stockholders for the nine months ended September 30, 2010 was $39.9 million, or $0.13 per share (basic and diluted), compared to $33.5 million, or $0.18 per share (basic and diluted), for the nine months ended September 30, 2009. The increase in net loss attributable to common stockholders was primarily due to increased costs and expenses resulting from increased production and the abandonment of eleven wells during the first nine months of 2010 as compared to the abandonment of two wells during the same period in 2009.

Comprehensive Loss. The comprehensive loss for the nine months ended September 30, 2010 was $25.2 million, or $0.08 per share (basic and diluted), compared to a comprehensive loss of $20.1 million, or $0.11 per share (basic and diluted), for the nine months ended September 30, 2009. The comprehensive loss for the nine months ended September 30, 2010 was primarily composed of production expenses of $14.2 million, exploration, abandonment and impairment expense of $21.2 million, general and administrative expenses of $19.6 million, and depreciation, depletion and amortization expenses of $16.6 million and a foreign currency translation gain of $14.7 million.

Revenue. Total oil and gas revenue increased to $18.3 million in the quarter ended September 30, 2010 from $9.1 million realized in the same period in 2009. The increase was the result of increased production in the Selmo oil field, additional production in the Arpatepe oil field and new production in the Edirne and Alpullu gas fields. In addition, we recorded $5.9 million in oilfield services revenue during the third quarter of 2010 compared to $204,000 in oilfield services revenue during the same period in 2009.

Net Loss Attributable to Common Stockholders. Net loss attributable to common stockholders for the quarter ended September 30, 2010 was $12.1 million, or $0.04 per share (basic and diluted), compared to $13.1 million, or $0.05 per share (basic and diluted), for the quarter ended September 30, 2009. The decrease is primarily due to increased oil and gas sales and increased oilfield services revenue, partially offset by higher costs and expenses.

Comprehensive Income. Comprehensive income for the quarter ended September 30, 2010 was $10.0 million, or $0.03 per share (basic and diluted), compared to a comprehensive loss of $7.7 million, or $0.03 per share (basic and diluted), for the quarter ended September 30, 2009. The comprehensive income for the third quarter of 2010 was primarily composed of foreign currency translation gains of $22.1 million, oil and gas revenues of $18.3 million, and oilfield services revenue of $5.9 million, offset by production expenses of $5.3 million, exploration, abandonment and impairment expense of $3.4 million, general and administrative expenses of $6.6 million, and depreciation, depletion and amortization expenses of $7.5 million.

For the nine months ended September 30, 2010, we incurred $219.5 million in capital expenditures compared to capital expenditures of $136.6 million for the nine months ended September 30, 2009. For the quarter ended September 30, 2010, we incurred $141.8 million in capital expenditures compared to capital expenditures of $48.5 million for the quarter ended September 30, 2009. The increase in capital expenditures was primarily due to the acquisition of Amity and Petrogas. In the third quarter of 2010, our capital expenditures also included drilling and exploration activities and the purchase of drilling services equipment. In the third quarter of

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