Kodiak Oil & Gas Corp. Announces
Third Quarter 2013 Results
Q3-13 Oil & Gas Sales of $300 million, 167% Increase from Q3-12 and a 73% Increase from Q2-13
Q3-13 Adjusted EBITDA of $214 million, 140% Growth from Q3-12 and a 63% Increase from Q2-13
DENVER - October 31, 2013 /PRNewswire-FirstCall/ -- 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 reported financial results for the third quarter ended September 30, 2013. The Company previously furnished an operations update and reported sales volumes in a news release on October 22, 2013.
For the third quarter-ended September 30, 2013, the Company reported oil and gas sales of $299.6 million, as compared to $112.1 million during the same period in 2012 and $173.5 million in the second quarter 2013, representing increases of 167% and 73%, respectively. For the nine-month period ended September 30, 2013 Kodiak reported oil and gas sales of $638.1 million, as compared to $277.8 million for the same period in 2012. Kodiak reported an overall 54% increase in sequential equivalent sales volumes with 3.3 million barrels of oil equivalent (MMBOE) sold, or an average of 35,400 BOE per day (BOE/d) during the third quarter of 2013, as compared to 2.1 million BOE, or an average of 23,200 BOE/d in the second quarter of 2013. Crude oil revenue accounted for approximately 96% of oil and gas sales recorded during the third quarter 2013.
Adjusted EBITDA was $214.1 million for the third quarter 2013, as compared to $89.1 million in the same period in 2012. For the nine-month period ended September 30, 2013 Kodiak reported adjusted EBITDA of $469.6 million, as compared to $210.5 million in 2012. Adjusted EBITDA is a non-GAAP financial measure. For additional information please refer to the reconciliation of this measure at the end of this news release.
For the third quarter 2013, the Company reported net income of $31.2 million, or $0.12 per diluted share, compared to net income of $3.5 million, or $0.01 per diluted share, for the same period in 2012. Kodiak reported net income during the nine-month period ended September 30, 2013 of $94.8 million, as compared to $98.3 million for the same period in 2012.
Kodiak reported net cash provided by operating activities during the third quarter 2013 of $152.6 million, as compared to $89.2 million during the same period in 2012, an increase of 71%. Kodiak reported net cash provided by operating activities during the nine-month period ended September 30, 2013 of $385.5 million, as compared to $203.3 million for the same period in 2012.
General and administrative expenses (G&A) for the third quarter 2013 totaled $12.6 million, or $3.86 per BOE, compared to $9.1 million, or $6.26 per BOE, in the third quarter 2012. The increase in total G&A expense for the third quarter 2013, as compared to the same period in 2012, is attributed primarily to the hiring of new personnel as the Company continues to expand its oil and gas operations. G&A expense on a per unit basis improved sequentially from $4.89 per BOE in the second quarter of 2013 to $3.86 per BOE in the third quarter primarily attributable to increased production. As of September 30, 2013, Kodiak had 172 employees, as compared to 104 employees as of September 30, 2012.
Lease operating expenses (LOE) for the third quarter 2013 totaled $20.4 million or $6.28 per BOE, a 9% increase per BOE over the third quarter 2012 and a decrease of 1% over the second quarter of 2013. The Company continues efforts to decrease operating costs primarily by addressing water disposal costs, the largest component of LOE. Gathering and connection work continues on water disposal wells which helps to reduce the Company's dependence on third-party services and minimize trucking requirements.
During the third quarter ended September 30, 2013, Kodiak recognized total interest expense related to its outstanding senior notes and credit facility of approximately $21.0 million. The Company capitalized interest costs of $9.7 million for the third quarter 2013.
The following table summarizes the Company's costs on a per-unit basis for the periods shown:
Kodiak Oil & Gas Corp.
Unit Cost Analysis
Sales Volumes in Barrels of Oil Equivalent (MBOE)
Average Price Received Oil ($/Bbl)
Average Price Received Gas ($/Mcf)
Average Price Received BOE ($/BOE)
Lease Operating Expense ($/BOE)
Production Tax ($/BOE)
DD&A Expense ($/BOE)
Gathering, Transportation & Marketing Expense ($/BOE)
Total G&A Expense ($/BOE)
Non-cash Stock-based Compensation Expense ($/BOE)
2013 Capital Expenditures
Year to date, Kodiak has invested approximately $809.8 million related to its oilfield operations and leasehold acquisitions compared to its full year capital expenditure guidance of approximately $1 billion. The Company expects its fourth quarter capital spend to be less than that of the third quarter due to lower well costs on a quarter over quarter basis and fewer net wells completed in the fourth quarter as compared to the third quarter. This is mainly attributable to one less non-operated rig drilling in Dunn County and lower working interest spacing units being drilled in the fourth quarter.
Kodiak Oil & Gas Corp.
Capital Expenditures ($MM)
Sept 30, 2013
June 30, 2013
Sept 30, 2013
Drilling and completion costs
Salt water disposal wells and facilities
Total Capital Expenditures
Asset retirement obligations
Total Capitalized Costs
The following information was filed by Whiting Canadian Holding Co Ulc (KOG) on Thursday, October 31, 2013 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.