Kodiak Oil & Gas Corp (USA) (NYSE:KOG) Acquisition Render It Attractive For Buyout


Dallas, Texas 10/16/2013 (Financialstrend) – Kodiak Oil & Gas Corp (USA) (NYSE:KOG) is a $3.35 billion market capitalized oil and gas exploration and drilling company. Over the trailing 12 months period it had posted sales of $581 million with net income of $100.5 million. In the past 6 months, the stock has appreciated by 63% after showing an impressive 102% increase in sales over the previous quarter, when it reported results for its 2Q operations which ended on June 30.

In early September Kodiak Oil had acquired an additional 42 thousand acres for lease in Bakken shale. Company officials have been commenting on the fact that this was a very successful investment. This is because post the takeover, per day production of KOG has gone up by 7.5%. Reacting to a question by a interviewer, KOG Chief Executive Officer Lynn Peterson had commented that he has plans to sink in $950 million for developing 100 new wells over the next 18 months. Peterson is quoted as saying that “We don’t worry about initial production too much. You can usually get a well to do whatever you want at first.” in response to a question on the quantity of oil production in its new wells.

 It is this profitable operations and asset quality which is attracting bigger suitors to look at KOG as a acquisition target. Since September 15, the stock of KOG has been at the receiving end of speculator interest ever since Wall Street Journal reported that Chinese government backed petro chemical giant Repsol has been moving around with a cash chest in order to acquire oil properties which will give it an entry into the lucrative oil markets of U.S.

At October 15 closing price the stock of this oil mid cap has been trading at $12.61 per share down 0.39% from its previous day close.