Triangle Petroleum: Finding Value In The Shale ‘Bubble’

There's no doubt that the U.S. shale oil boom is an overcrowded trade, and for investors seeking value, there are few opportunities to take advantage of in the sector. However, there is one domestic oil producer that has recently caught my attention; Triangle Petroleum.

Triangle Petroleum Corporation (NYSEMKT:TPLM) is essentially a holding company for three oil-industry subsidiaries. The subsidiaries are, wholly owned Tusa (an exploration and production company), RockPile (a wholly owned energy services subsidiary), and Caliber Midstream (of which Triangle is the majority owner).

Triangle Petroleum’s Tusa subsidiary undervalued by 80%

And this is where the value is to be found. A sum-of-the-parts valuation reveals that Triangle Petroleum's Tusa...