Kodiak Oil and Gas Corp. (KOG) is an oil and natural gas company operating in the United States. In September the company announced that it will buy a leasehold of potential oil mining area in the Bakken (located in North Dakota, US). The company also has operations in Montana, Wyoming and Colorado. Kodiak will pay 235 million dollars for this leasehold which should add to the company’s profitability.
The stock has been going up since 2009 but in the last 2 months has dropped buy 15% (one point) with the market. The stock is trading at 6.32 which is over the 50-day moving average of 6.13 and just under the 200-day moving average of 6.38. Market capitalization is 1.32 billion dollars and the trailing P/E foe the last 12 months is 351.11. Management stated that second quarter sales figures were up 261% to $22.1 million. According to management, expenses rose due to the hiring of new employees to expand production. The management said that 5 wells have been finished during the last 2 months. Kog is increasing production and should be going up and taking profits with it.
As with all stock purchases full investment analysis should be conducted before purchasing.
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