Kodiak Oil & Gas (KOG)

[boo boo]

I understand. Economies of Scale should cover all aspects. There are some varaibles to consider. Thanks for responding.

[Timothy Smith]

@BOO - Usually it is going to be a combination of the two depending on economics and available capex budget as I indicated in the previous post. Its about extending production of existing PDP and expanding the reserve base for the particular well.

[boo boo]

That's it...downspacing. Everybody appears to be doing this instead of extending laterals... re BCEI

[Timothy Smith]

While I ultimately believe that downspacing in the Williston Basin is likely to succeed in some capacity, these results highlight the need for additional empirical data and well results before drawing any final conclusions.

On KOG, I would like to see this additional data as well as execution in integrating the Liberty acquisition to gain more confidence in the stock.

[Timothy Smith]

Many investors were excited by the 24-hour IP rates that Kodiak provided alongside of its 2Q13 earnings release. At that time, the company reiterated many times that more data would be needed.

[Timothy Smith]

Kodiak provided 30-day initial production results on its Polar downspacing pilot in which the wells averaged 977boe/d over the 30 days with a range of 779-1,231boe/d amongst the twelve wells.

[Timothy Smith]

Kodiak earned $493.80 million in revenue during the last 12 months.

In the company's latest quarterly report, total revenue of $165.05 million represented a 106.48% increase for the year compared to the earlier quarter of $79.94 million.

This kind of top line growth is typical of companies gaining market share and, if managed smartly, should produce strong profits in the next few quarters.

Also based on its latest report, profits grew very strongly last quarter when compared to the year earlier period and when measuring full year results.

[Timothy Smith]

Operational results for 2Q were strong:

Revenues for the quarter were $173 million, a 102% increase year over year

EBITDA of $131 million, 94% increase y-o-y

KOG closed on a private offering for $400 million in senior notes due in 2022. This gives it more flexibility for its drilling and down spacing program within its Bakken acreage.

Earlier this year the company added over 40,000 in North Dakota and 5.7 MBoe/d of production with the acquisition of assets from the Riverstone-sponsored entity.

This adds over 70 MMBoe of proved reserves. During the initial testing, the company found the wells produced an average 24-hour IP rate of over 2,500 Boe/d, in line with historical IP rates.

The company also increased its CapEX plans to $1 billion, from the previous $950 million guidance. Yet, the CapEx appears to be well funded. The company issued $400 million high-yield senior unsecured notes, and now the company has $500 million of available liquidity.

This should easily cover its $130 million funding gap through June 2014. The company is also on pace to become cash flow positive during 3Q 2014.

[Timothy Smith]

Hedge Funds Buying: Paulson & Co. reported nearly 15 million shares in Kodiak, which has long been speculated to be an acquisition target.

http://blogs.wsj.com/moneybeat/2013/08/14/paulson-co-added-stakes-in-kodiak-oil-gas-belo-and-smithfield-foods/

[ECole]

Imp earnings updates

Crude oil accounted for approximately 94% of revenues recorded in the period
http://www.earningsimpact.com/Transcript/82431/KOG/Q2-2013-Earnings-Call

[mikeyswizz]

Sold position at 10.12

[ECole]

Nice read before Earnings

http://www.earningsimpact.com/Transcript/81850/KOG/Kodiak-Oil-and-Gas-Corp----2013-GHS-100-Energy-Conference/Page/2

[Timothy Smith]

Kodiak earned $493.80 million in revenue during the last 12 months.

In the company's latest quarterly report, total revenue of $165.05 million represented a 106.48% increase for the year compared to the earlier quarter of $79.94 million.

This kind of top line growth is typical of companies gaining market share and, if managed smartly, should produce strong profits in the next few quarters.

Also based on its latest report, profits grew very strongly last quarter when compared to the year earlier period and when measuring full year results.

[dshade]

ok took some profit to move into another issue

[dshade]

heading to 35,000 BOE/d. "...23,200 barrels of oil equivalent per day (BOE/d) for the second quarter 2013. This represents an 83% increase over sales volumes of 12,700 BOE/d for the second quarter 2012, and an 8% increase over first quarter 2013 sales volumes of 21,700 BOE/d. Crude oil accounted for 87% of second quarter 2013 sales volumes."

[dshade]

not yet, still up pre market

[boo boo]

Position closed.

[boo boo]

Huge gap and I've been in accumulation mode. Letting half of my position go here. Got $8.88 and I've bought in the $8.3 to $8.65 range.

[dshade]

Kodiak Oil & Gas Corp. Completes Williston Basin Acquisition; Announces Expanded Credit Facility

Kodiak Oil & Gas Corp (NYSE:KOG)

Today : Friday 12 July 2013

Kodiak Oil & Gas Corp Charts.DENVER, July 12, 2013 /PRNewswire/ --Kodiak Oil & Gas Corp. (NYSE: KOG), an oil and gas exploration and production company with primary assets in the Williston Basin of North Dakota, today announces the closing of the previously announced acquisition of core Bakken and Three Forks producing properties and undeveloped leasehold in the Williston Basin from Liberty Resources ("Liberty"), a Denver-based private oil and gas company.
Included in the acquisition are approximately 42,000 net leasehold acres and net production of approximately 5,600 barrels of oil equivalent per day (average net production for June 2013) located in McKenzie and Williams Counties, N.D. The acquired leasehold includes 35 controlled drilling spacing units, based upon 1,280-acre units, and is 90% held by production. The southern Williams County lands, approximating 14,000 net acres, are adjacent to Kodiak's core Polar area. An additional 25,000 net acres are located in McKenzie County to the west of the Company's Koala and Smokey areas. Kodiak has also assumed Liberty's contract for one drilling rig, which has 13 months remaining on its term.
The announced purchase price for the asset package was $660 million. Post-closing adjustments were $52 million, including $31 million in working capital items and $21 million of cash flow adjustments to reflect the acquisition's March 1, 2013 effective date. The Company paid an additional $20 million for acquisition costs associated with increased working interests acquired by Liberty subsequent to the effective date.
Including today's acquisition, Kodiak's leasehold position in the Williston Basin is now approximately 196,000 net acres.
Expanded Credit Facility
The Company funded the acquisition through borrowings under its revolving credit facility. In connection with the acquisition and reflecting year-to-date completion activities, Kodiak and its lending group, led by Wells Fargo Bank, N.A., entered into an amendment to the Company's amended and restated credit agreement to increase the Company's borrowing base and aggregate commitments under its existing senior secured revolving line of credit facility to $1.1 billion. This compares to the prior-level borrowing base of $650 million. Upon closing of the acquisition, the Company's borrowings under the credit facility were $976 million. The Company continues to evaluate all available financing alternatives to support its capital requirements.
About Kodiak Oil & Gas Corp.
Denver-based Kodiak Oil & Gas Corp. is an independent energy exploration and development company focused on exploring, developing and producing oil and natural gas primarily in the Williston Basin in the U.S. Rocky Mountains. For further information, please visit www.kodiakog.com. The Company's common shares are listed for trading on the New York Stock Exchange under the symbol: "KOG."
Forward-Looking Statements
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Forward-looking statements in this document include statements regarding the Company's expectations as to the anticipated benefits of the acquisition transaction, expectations regarding the Company's operational, exploration and development plans. expectations regarding drilling plans, the Company's expectations regarding its anticipated capital requirements and its 2013 capital budget, and expectations regarding production, revenues, cash flows and recoveries. Factors that could cause or contribute to such differences include, but are not limited to, fluctuations in the prices of oil and gas, uncertainties inherent in estimating quantities of oil and gas reserves and projecting future rates of production and timing of development activities, competition, operating risks, acquisition risks, liquidity and capital requirements, the effects of governmental regulation, adverse changes in the market for the Company's oil and gas production, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission.
For further information, please contact:

Mr. Lynn A. Peterson, CEO and President, Kodiak Oil & Gas Corp. [phone]
Mr. Trevor P. Seelye, CFA, Director of Financial Planning & Investor Relations [phone]
Mr. David P. Charles, Sierra Partners LLC [phone] x11
SOURCE Kodiak Oil & Gas Corp.
Copyright 2013 PR Newswire

[dshade]

good news again there!

[dshade]

ah, so it was you?! lol

[boo boo]

Liquidated position at $9.30. Thinking inverted h&s. Started buy back at $8.65 today.

[dshade]

funny how yest wsj story comes right as shorts getting crushed???

[dshade]

output this year will exceed the equivalent of 32,000 barrels of oil per day, more than twice its average daily rate in 2012, while spending only about 10% more than it did last year.

[dshade]

9.62 AH. Btw, if you have pm or not, check ONV.O going to nyse thurs and now last pink 3D issue SGL.B .083 now from .025.

[Teedlum]

Patience is paying off. Nice and steady. 76% institutionally owned btw.

[dshade]

Almost there Teed.. 6 month high maybe tomorrow

[Teedlum]

Let's break $9.70 now. Nice consistent trend here.

[Teedlum]

Next resistance at $11.10 then blue sky!

[dshade]

Thanks. Seems good long term

[ECole]

Global Health Conferences

Finally found out in depth what really transpired at the Global Health Securities conferences. Worth reading
KOG
KOG at GHS
[url]
ABT
www.earningsimpact.com/Transcript/81724/ABT/Abbott-Laboratories---2013-Wells-Fargo-Securities-Research-and-Economics-Healthcare-Conference[/url][tag]ABT at Well Fargo[/tag]
HDY
HDY at GHS 100

[dshade]

they are trying to short fuel and energy stocks everywhere. glad to see Kodiak fight back a bit.

[Teedlum]

Slow and steady as she goes. I knew this had to happen eventually.

[dshade]

good move last few days. 3 month high started

[boo boo]

Looking to exit this trade today, probably this morning, at/near the open.

[boo boo]

Back in here below $8.60 and really not happy with my fill price, but a major discount to last sale.

[boo boo]

Thank you fine sir. I still hold a core position in this one. Good Luck.

[dshade]

nice. adding.

[boo boo]

Tongue Tossel here at the 200. Gotta cash in da chips with the purchase below $8.60.

[Timothy Smith]

Great value at this price IMO

[Wildbilly]

Yeah man, I don't go back
that far, but try not to look back too much, I'm pretty happy with
what I've done here so far.

The future looks undeniably bright.

[NateNate]

I've heard rumors of a few more target layers also in certain areas.
It's going to be interesting to see how the next 10-20 years of advancements in the tech work out.

Now if only I could get the 10k shares i bought at .44 and sold at 1.11 back.

[boo boo]

Hope you got to play that gap. I should've posted that message directly to you, but figured you were active on the board and would've seen it. My bad, I'll hit you up next time I see something interesting. I should've alerted Mr. Rink as well. I'll keep you guys in mind. I knew you'd find my profile pic entertaining. Admins haven't given me jail time yet, but if they do I have a great pic for when the time comes, compliments of mugshots.com. Nice hearing from you. Take care.

[Wildbilly]

That 'snake' stock been a good one boo.

Jeesh, I can't go to an energy board and see you haven't been posting on it already.

Interesting profile pic bud, lol.

[boo boo]

I've banked that gap already. Still have some shares below $8.60.

[dshade]

eps .55+ cheap @ 16 p/e

[boo boo]

[dshade]

added here

[boo boo]

Bought some of these shares back here below $8.60. Will buy more if gap fill from 5/16 occurs. Sup there WB, see you are doin fine with your FANG shares.

[Wildbilly]

Bakken Update: Kodiak's Purchase Of Liberty Resources Could Make Or Break Its 2013
Jun 4 2013, 07:50  |  about: KOG

http://seekingalpha.com/article/1479051-bakken-update-kodiak-s-purchase-of-liberty-resources-could-make-or-break-its-2013?source=email_rt_article_readmore

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. This is not a buy recommendation. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results, do not take in consideration commissions, margin interest and other costs, and are not guarantees of future results. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market or financial product does not guarantee future results or returns. For more articles like this check out my website at shaleexperts.com. Fracwater Solutions L.L.C. engages in industrial water solutions for oil and gas companies in North Dakota. This includes constructing water depots, pipelines and disposal wells. It also provides contracting services for all types of construction at well sites. Other services include soil remediation. Please contact me via email if you are interested in working with us. More of my articles and other pertinent information on the oil and gas sector, go to shaleexperts.com. (More...)

Kodiak (KOG) announced on June 3rd it was acquiring 42000 net acres in Williams and McKenzie counties. This added production of 5700 Boe/d. The acquisitions ups Kodiak's Bakken acreage to 196000 net acres. It will pay $660 million in cash. Kodiak continues to add acreage, and seems willing to pay market value (or a little more). Liberty Resources is a privately held company, and many believed it would be an IPO sometime in the near future. There are no indications Liberty was hurting financially, or was motivated to sell. I would guess Liberty got the deal it wanted, and Kodiak thought there was added value to the purchase.

Given the infrastructure and daily production, Kodiak received a reasonable deal. I also like the transaction, as Liberty is a very good operator and is on acreage I believe to be outside the top tier, but still very good. I do have some issues with respect to timing and leverage as Kodiak continues to add debt and difficulties for management to execute through 2013. Without the deal, Kodiak was well positioned to grow without worries of raising equity. My biggest worry is how it plans to pay for this deal. Kodiak will probably have to go back to its shareholders in the second half of the year. It probably won't be working with in cash flow for another year or two. Managing the new acreage could also be difficult as there have been difficulties with other bolt on acquisitions.

Looking at the acreage, it is still pretty good when considering pad development. Definitely not as good as the Koala Prospect, but it is better than most give credit. The middle Bakken is still productive in this area, but focus should be on the Three Forks. This acreage is in some of the deepest parts of the Williston Basin. With added depth we see higher well pressures, especially the deeper benches of the Three Forks. Not to get too far ahead of myself, but we also have to consider the Red River as a horizontal target.