This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Kodiak Oil & Gas Corp. Announces 2013 Capital Budget & Provides 2013 Sales Volumes Guidance

Stocks in this article: KOG

DENVER, Dec. 18, 2012 /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 announced that its Board of Directors has approved a $775 million 2013 capital expenditure ("CAPEX") budget allocated to Williston Basin oil and gas activities.  Kodiak's preliminary 2013 CAPEX budget is subject to, among other things, market conditions, oilfield services and equipment availability, commodity prices and drilling results.  The 2013 CAPEX budget compares to Kodiak's final 2012 CAPEX budget, which was $750 million.  The Company also today provided its 2013 outlook for oil and gas sales volumes.

2013 CAPEX Budget

The Company has allocated $600 million of the 2013 CAPEX budget to the drilling and completing of 75 gross (61 net) operated wells; $140 million to non-operated drilling and completion activities for 14 net wells; and $35 million for other items including water disposal systems, well connections, and acreage acquisitions. The 2013 drilling program is designed to provide flexibility in identifying suitable well locations and in the timing and size of capital investment. 



As part of the 2013 CAPEX budget, Kodiak expects to operate six drilling rigs during the majority of 2013, subject to, among other things, economic conditions (including commodity prices).  Kodiak's rig termination schedule allows for the Company to adjust CAPEX in reaction to economic conditions.  Kodiak expects to primarily utilize one dedicated full-time, 24-hour completion spread, while maintaining the option to add a second 24-hour crew on an as-needed basis. 

No CAPEX has been allocated to the Green River Basin in Southwestern Wyoming where Kodiak has a non-operated working interest in 30,000 gross acres (7,000 net acres).  Kodiak's participation in future wells in the Green River Basin is subject to prevailing Rocky Mountain liquids and natural gas prices at time of election. 

Kodiak expects to fund the 2013 CAPEX budget from existing working capital, operating cash flow and availability under its existing revolving credit facility agreement.  As of December 18, 2012, the borrowing base and total commitment for the revolving credit facility is $450 million.

2013 Sales Volumes Outlook

At this time the Company has two gross (1.6 net) wells on flowback, four gross (3.0 net) wells being completed, and anticipates that completion activities will commence on four gross (3.0 net) additional wells by year-end.  Based on the Company's anticipated 2012 exit rate, combined with activities contemplated under its 2013 CAPEX budget, Kodiak projects to average 29,000 to 31,000 BOE/d in sales volumes for the full-year 2013, which would exceed 80% year-over-year sales volumes growth.   The projected exit rate for 2013 sales volumes is expected to range from 38,000 to 40,000 BOE/d. 

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs