Kodiak Oil & Gas (KOG)

[Timothy Smith]

In the remaining months of 2013 Kodiak seeks to finish constructing over 100 net wells as well as increase average daily production to 30,000 barrels of oil proportional per day and 34,000 boepd for 2013.

This is an extremely ambitious goal, which requires production in the second half of this year to be approximately 37,500-45,000 boepd in order for them to meet this target.

Keeping that in mind it is important to note that current average daily sales volumes are around 22,500 barrels of oil for the first six months, meaning that production volumes must increase 66-100% during the second half of the year.

In order to successfully achieve these ambitious plans Kodiak has issued debt financing. However, the company's debt to equity is currently at 130% already and therefore the market reaction to this news has only resulted in more uncertainty within the investing community.

Taking everything into account KOG appears to be taking many ambitious steps towards a successful and stable future position, however simultaneously investors should maintain caution in how the company directs itself in coming months as Kodiak's largest potential downfall will be spreading itself too thinly.

Out of 22 analysts polled about KOG, 8 analysts have rated the company a buy, 5 have given it an outperform, and 9 have ranked it as a hold.