Stock Spotlight: KODIAK OIL & GAS CORPORATION (NYSE:KOG)
KOG is an independent energy company focusing on exploration / exploitation / acquisition / production of crude oil & natural gas in North Dakota. The company was created in 1972 in the name of “Pacific Talc Ltd” and was ultimately renamed as Kodiak Oil & Gas Corp.USA which was incorporated in Denver, Colorodo in 2003.
As of January 31, 2012, the Kodiak Oil & Gas had approximately 1,69,000 acres (net) of land under lease mainly in the Bakken oil play in the Williston Basin of North Dakota and Montana. KOG operates or has an interest in, a total of 137 gross (60.2 net) producing wells in the Williston Basin. It also has proven / probable reserves of oil & LNG of 35.5 million bpd & 70 million bpd. Natural gas reserves are 25.5 million CBM and 5.97 billion CBM respectively. PV10% (pretax) of these reserves is $ 659.9M. Capex budget for 2012 was $585.0 million. (source: KOG-Annual Report 2011& www.kodiakog.com)
The company has a current market capitalization of $2.43B with sales being $115.6M in 2011 ($10.6M in 2009). The corresponding net income in 2011 was around $ 3.86M (net loss of $2.56M in 2009). In the TTM, KOG has reported sales of $ 333M with net income of $64.53M (NPM of 19.39%). Return on equity & return on assets were 5.26% & 8.53% respectively.
KOG’s diluted EPS is 0.25 which translates to a P/E of around 37. Considering the exponential growth of the company in the recent years, extrapolation leads PEG (five year estimate) of 0.41. Price to Book ratio is 2.43. The debt on books is $ 920.78M and the Debt-Equity ratio for the company is 92.32. It has not paid any dividend in its recent history. Earnings for the last quarter will be declared on 25th Feb 13. Insiders are holding a substantial (10%) stake in the company with institutions holding around 64%.
As evident from the chart, the KOG stock is trading above its 50 and 200DMA with 50DMA being higher than the 200DMA. The 52W high / Low for the stock is around $6.92 & $10.9 respectively and the stock has risen 84% during the last 12 months. The beta for the stock is 2.52. (Source: Yahoo finance)