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KOG bought
Posted: Sun Jul 13, 2014 8:46 pm
by wilmawatts
By whiting petroleum
Re: KOG bought
Posted: Mon Jul 14, 2014 10:08 am
by wilmawatts
Wow, the acquired company (KOG) agreed to be bought at a price below market based on Fridays close.
But KOG is up a bit today, 4%
Certainly not the premium I would expect as a shareholder for their Bakken assets.
Glad I am not a shareholder of KOG
Re: KOG bought
Posted: Mon Jul 14, 2014 11:25 am
by dan_s
KOG shareholders should be happy. IMO they are getting very close to Fair Value for the shares in a tax free exchange. They will have a lot more upside with WLL.
Something to consider is that WLL will quickly eliminate over half the KOG G&A expense shortly after the merger.
I am working on a proforma financial statement for WLL now.
Re: KOG bought
Posted: Mon Jul 14, 2014 4:44 pm
by ghrcap
Deal metrics estimated:
1.7 X their proved PV-10 as stated in their June presentation
$35.86 per proved BOE
$150,000 per flowing BOE
Re: KOG bought
Posted: Mon Jul 14, 2014 6:35 pm
by dan_s
Remember that P2 reserves in the Bakken are darn near P1. KOG's acreage has a lot of running room and a high percentage is de-risked and HBP.