Kodiak Oil & Gas (KOG)

[dan_s]

They report Q3 results after the market close today.

[dan_s]

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.

I will have the forecast model updated by 5:30 CT.

[dan_s]

PLEASE ignore the reported EPS of $0.12 for the 3rd quarter. That includes the mark-to-mark (non-cash) adjustment on their hedges. Without that BS adjustment, earnings were in-line with the First Call EPS estimate.

Focus on cash flow of $0.72/share which beat the First Call estimate by 6 cents. Cash flow is more important than GAAP EPS!

The most important thing for KOG is their year-end reserve report. They've drilled a lot of wells this year, so they should report a significant increase in proven reserves.