Kodiak Oil & Gas Corp. (KONG) shares August 8 2011

Indonesia stock info Kodiak Oil & Gas Corp. (KONG) shares August 8 2011 ; Block trades serve as a useful indicator for investors trying to understand the sentiment of large financial institutions. Yesterday, a total of 16 block trades were recorded, typically at least 10,000 shares of stock or more represent a single block unit. Further examination into yesterday's trading activity revealed that the bought value of the shares was $673,070 and the sold value was $200,661. The negative cash flow of $,557,530 out of the stock shows that investors have bearish sentiment.

Institutional investors also took positions in options where a total of 3,549 contracts was traded. Specifically, 2,425 call and 1,124 put contracts were traded during the last session yielding a 0.46 put/call ratio.

Shares of Kodiak Oil & Gas rose $0.05 (+0.87%) to $5.82 in yesterday's trading session. The price of KOG ranged between $5.80 - $6.57. Volume is 11,245,032 in relation to the three month average volume of 4,262,020 shares. KOG is trading below the 50 day moving average and lower than the 200 day moving average. The stock's 52 week low is $2.43 and 52 week high is $7.70. Within the last week, the shares have lost -13.78% of their value.

Kodiak (KOG) finally announced a very good quarter. Over the past four quarters Kodiak has come up short of expectations, but changed things in the second quarter. It beat on revenues and reported 8 cents in earnings, which was aided mark to market derivative gains of 3 cents. Without this it reported 5 cents per share which matched the high of 16 analysts covering its stock. Kodiak has some very good numbers year over year:

* Oil and gas sales had an increase of 261%
* Sales volumes increased 149% increase
* Adjusted EBITDA had a 377% increase

Kodiak has four rigs on drilling pads with two in McKenzie and two in Dunn County. A fifth rig will be mobilized sometime after its construction in the fourth quarter of this year. Kodiak plans to drill 7.5 net operated wells and 2 net non-operated wells in the third quarter. It completed two net wells in the second quarter with very good results:

1. Koala #3-2-11-13H (IP rate of 2514 Bopd)
2. Koala #3-2-11-14H (IP rate of 2816 Bopd)

In 7 days, these two well produced a total of 10946 and 12508 Boe. This was undoubtedly Kodiak's best quarter to date. It currently trades for 7.59 times forward earnings. With the possible growth in this stock, it seems incredibly cheap. Be careful, the market could continue to beat up some of the growth names as long as a double dip is still on the table.

Kodiak's earnings create optimism for pure Williston Basin Bakken names. On August 8th, these companies have earnings announcements:

* Brigham (BEXP) Estimated earnings of 31 cents/share and $91.33 million in revenue
* Northern Oil and Gas (NOG) Estimated earnings of 19 cents/share and revenue of 39.07 million
* Oasis (OAS) Estimated earnings of 16 cents/share and $63.73 in revenue

I believe that Kodiak Oil and Gas set the stage for good quarters in these three names pure Williston Basin Bakken names. Both Northern and Brigham are trading at around 11 times forward earnings. Weather in North Dakota is clearing up and I would expect companies to increase guidance. As for the sell off today, it may not be a bad idea to hide out in a bigger oil names until the smoke clears. I think that companies like EOG are good bets as hedging protects these companies from large moves in oil price. The situation seems to be the same as companies are starting to get wells on line as the weather in North Dakota has been better.


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