Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message| ()  

Executives

Lynn Peterson - Chairman and CEO

James Catlin - EVP Business Development

Jimmy Henderson - Chief Financial Officer

Russ Cunningham - EVP, Exploration

Analysts

Hsulin Peng - Robert W. Baird

Charlie Silly - Wells Fargo Advisors

Scott Hanold - RBC Capital Markets

Curtis Trimble - Global Hunter

Paul Grigel - Macquarie

Kodiak Oil & Gas Corp. (KOG) Q1 2013 Results Earnings Call May 3, 2013 11:00 AM ET

Operator

Good morning. My name is Lorrie and I will be your conference facilitator today. I would like to welcome everyone to the Kodiak Oil & Gas Corp. First Quarter Earnings Conference Call and Webcast. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer period. (Operator Instructions)

Please be advised that our remarks today, including answers to your questions, includes statements that we believe to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those currently anticipated. Those risks include among others matters that we have described in our financial and operating results, news release issued yesterday and in our filings with the Securities and Exchange Commission.

We disclaim any obligation to update these forward-looking statements. While the company believes that these forward-looking statements are reasonable, they are subject to factors such as commodity prices, competition, technology, and environmental and regulatory compliance. Our drilling schedules, capital plans, and other factors may cause our results to differ materially.

I would now like to turn the call over to Lynn Peterson, Kodiak’s Chairman and CEO.

Lynn Peterson

Thank you, Lorrie. Good morning everyone. As usual we’ll take your questions at the end of the call, but before we begin let me introduce the members of our management team that are on the call today. Jim Catlin, Jimmy Henderson and Russ Cunningham. Please reference the news release and our filing on Form 10-Q, both of which were made available last evening for further details and full disclosure of the topics we are discussing this morning.

Last evening we reported fully diluted GAAP earnings per share of $0.07 per share for the quarter ended March 31, 2013. We also reported adjusted EBITDA of 124 million for the first quarter driven by oil and gas sales of 165 million. The 165 million represents a 26% growth in the previous quarter ended December 31, 2012 and a 107% growth over the same period ended March 31, 2012.

Crude oil revenue accounted for approximately 94% of oil and gas sales reported in the period. Our daily average sale volume increased 90,230 Boe per day during the three months period ended December 31, 2012 to 21,700 Boe per day for the three months ended March 31, 2013 representing a 19% increase over the quarter over quarter and 105% increase for the same period last year.

During the first quarter of 2013 we invested $256 million on drilling and completion operations, related infrastructure and leasehold acquisitions. We spent $210.5 million on our operated properties, $38.5 million on our non-operated properties and $70 million on infrastructure and acreage acquisitions.

At this time, I’m going to turn the call over to Jim Catlin for some comments. Once Jim has done, Jimmy Henderson, our CFO will hit some of the key financial points and finally, Russ Cunningham will discuss progress on our well density pilot project. After they finish, I will rejoin the call and walk everyone through the two areas that we get asked in nearly every meeting. What is your production and what are your capital expenditures? Jim?

James Catlin

Thanks, Lynn, and good morning, everybody. Kodiak had a solid first quarter and we are making progress towards the milestones that we set out for the year. The company continues to operate seven drilling rigs, currently our average days from sPUD to total debt along with liner seeing in the hole is approximately 20 days. During the first quarter of 2013, we drilled our commenced drill on 21 gross, 17 net operated wells. We also participated in three net non-operated wells.

Kodiak intent to release one drilling rig in later May 2013. We retain the seventh rig for an additional four well pads that should have been finished this coming month. At our currently drilling pace, we are scheduled to exceed the total of 61 net operated wells that we set forth in our year guidance. As Lynn noted, he will address the CapEx in more detail later on.

We are currently utilizing one full completion crew. We dropped one crew during March and April and expect to bring a second crew in around mid May. During the quarter ended March 31, 2013, we completed 20 gross and 14.5 net operated wells. We also participated in the completion of four net non-operated wells.

As a result of the work accomplished in the first quarter in planned operation for the remainder of the year, we reaffirm that we are on schedule to achieve our production guidance for the year and Lynn is going to break this down in detail also later this morning.

With that, I’d like to turn the call over to Jimmy Henderson.

Jimmy Henderson

Thanks, Jim. Thanks everybody for joining us this morning. During the first quarter of 2013 we continue to see improvement in our oil price realization with an average differential of about $3.50 per barrel from WTI pricing.

With WTI trading in the range of $90 to $95 per barrel, we continue to spend some very solid economics with our drilling program, with cash margins in the $50 to $60 per BOE range.

Along with that we continue to maintain our hedging program to protect our CapEx with approximately 17,000 barrels per hedged through remainder of 2013, mostly through swaps with approximate average price of around $95 per barrel.

We have also hedged out just over 11,000 barrels per day in 2014, again mostly through swaps at approximately $90 per barrel. We will continue to be opportunistic with our hedging program and layer on additional volumes as proved reserves are adding.

Kodiak and our mid-stream partners are continuing to build out infrastructure in our Forks area which will come online in the upcoming weeks. Once that project is completed, our total oil moving by pipeline should be over 80% the company’s production and we’ve made steady gains on gas plant, as well as we expect to capturing natural gas revenue to improve as mid-stream facilities and projects in our cooperating area completed in the coming months.

Financially, commensurate with the growth in our proven reserves, we’ve increase borrowing base on our revolver to $650 million, while limiting the aggregate commitments to $550 million.

Concurrently, we extended the term of the agreement and reduce the interest sPUD on the facility. As always we appreciate the efforts of our banking syndicates in getting all of this accomplished this quarter.

As we’ve mentioned in the past, we believe our balance sheet liquidity are in great share. With the availability under our revolver continuing increase in operating cash flows we believe our CapEx program is funded for the remainder of the year and sets us up to have plenty of [dry power] in 2014.

Now shifting to our well density pilot projects, I’m going to turn over to Russ Cunningham.

Russ Cunningham

Thanks, Jimmy. I’d like to spend some time this morning to discuss our two pilot programs. We are moving ahead on both of our pilot projects where we are drilling six wells in the Middle Bakken and six wells in the Three Forks in the same drilling and station unit. Our Middle Bakken well are being drilled approximate 800 to 850 feet apart, wells in the Three Forks are located the same distance apart but the wells are being drilled on an alternating thickness between the effort and metal intervals.

In our Polar area in Williams county we currently two rigs operate. We’ve drilled 10 wells with two more wells dried. It should be finished with the drilling operations in late May before our completion authorization commenced. In the McKenzie county where the Smokey part of the program is located, we have drilled 8 of the wells. Currently we have two rigs drilling in Smokey as well.

Drilling operations will be completed late in the second quarter. The main objectives of both pilot programs are reservoir characterization, defining optimum well spacing and understanding the interactions between reservoirs both during and after fracture stimulation. Clearly this is our most detailed effort to evaluate well bore density. Much of the work we are doing with well bore placement and (inaudible) exploratory and we will adjust our plans if necessary.

We recovered full (inaudible) in the entire Bakken, Three Forks, Rock Sea cliffs and the Polar type program. The course and high resolution wireline loss is being analyzed. In conjunction with the seismic consulting firm, we have designed a micro-sizing project in the Polar area to gather additional information during the completion process. These data will contribute to our understanding the fracture geometry. Upon completion of all this work, we should have a better understanding of the various reservoir intervals and how those reservoirs may or may not communicate over the productive economic life of the wells. Completion operations in the Polar area are scheduled to commence in late May and early June and we will continue shooting that. We would expect all of the wells being on full production by mid-July.

Competition operations in the Smokey area will be done in a different manner. We completed two of the Smokey wells in the fourth quarter of 2012. We will be completing three additional wells during the quarter of 2013. The remaining 7 wells will be completed in the second half of the year.

Oil, gas and saltwater disposal infrastructure nearly complete in each of the pilot areas with the expectation of them being fully operational prior to completion operations. The two pilot programs represent about a third of our operated drilling programs and the information gained from these two pilots will have a significant impact on how we design our future development.

This is clearly an ambitious program but we have the practice and confident people and we feel that we will be able to execute this and be successful in the coming years.

With that, I will turn back to Lynn.

Lynn Peterson

All right. Thanks guys. So I am going to start out with our production projections for the year. During the first quarter of 2013 we averaged 1700 Boe for the three months period. We had a slow January as we took down several wells in December during the completion work. As we moved through February, March we averaged between 23 and 24,000 Boe per day.

Looking into the second quarter, we’ve already completed five gross, four net operating wells and we are expecting to complete 22 gross, 19 net operating wells during May and June for a total of 23 net operated wells in the quarter. This compares to 14.5 net operated wells completed during the first quarter. We had fewer completions in March and April as we were operating only one completion crude. Furthermore we completed four wells during the first quarter that was single wells as you recall that we drilled the wells that had early mechanical failures. The point of this is that we can complete two and three wells path as nearly the same time of the single well path when we utilize the triple bag technique.

As we move into May, where the weather should be more predictable we will be bringing a second crew end of -- some time in mid months and they will continue to study completion work for the next several months. During the first quarter of 2013, we experienced nearly a 20% growth in daily production on a sequential quarter basis when compared to Q4 202. We expect a similar sequential quarter growth for our second quarter when compared back to Q1 2013.

While we will see little impact during the second quarter on the wells completed in June, we will start to see the production growth impact reflected in our third quarter 2013 production numbers, where we could start to see significant growth over the second quarter continuing in the trend upward. Looking one more quarter in the future, we anticipate an active completion schedule that more or less mirrors the second quarter.

Turning to our capital expenditures, I’d like to talk about where we are today on projected expenditures over the rest of the year. During the first quarter, we incurred nearly a third of our total projected expenses of $775 million for the year.

We anticipate a modest decrease in our CapEx spend in the second quarter with further decreases in last two quarters as our rig count is reduced. A significant portion in the first quarter 2013 capital expenditures can be directly related to anticipated weather conditions and to an operational change.

When we set forth our program in late 2012, we attempted to anticipate weather conditions in the winter and it flocks into spring breakup that we experienced each year in North Dakota. We primarily scheduled all the drilling rigs on four well pads in January. As the rigs were drilling multi well pads, it slowed our completion schedule to allow us to drop one of our completion rigs in early March.

As a result, the costs associated with our wells in progress increased nearly $15 million for the three months ended March 31 2013 compared with the same period end of December 31, 2012. As drillings on these multi-well pads finished in late first quarter, we now expect to pick up the second completion crude mid May.

Also during the first quarter of 2013, we begin pre-setting surface casing with surface rig ahead of the drilling rigs. This required us to build roads in locations earlier to accommodate the surface rig with accelerated cost into the first quarter that historically would not have been incurred until the second quarter.

At our current phase, we would expect to drill six to eight additional wells in 2013 that were not included in our original projections. Additional wells can be directly attributed to two items, first we kept our seventh rig with one additional four-well pads. We had initially planned to drop the rig in mid first quarter and due to the strong oil prices and internal planning, we decided to drill the additional pads.

Secondly, we continue to see improvements in our drilling times primarily related to pre-setting sub-casing which then requires fewer days to the big drilling rig. As a result, we anticipate that our overall well count will increase slightly.

We will be dropping our rig at the end of May when we’ve completed the drilling on its first well pad. This will start to reduce our overall capital investment in late second quarter which we continued through the second half of the year.

As we will move through the second quarter, we continue to monitor our capital expenditures and well count. As we have five of our drilling rig contracts terminating during 2003 -- 2013, we’ll have ample opportunity and flexibility to adjust our rig count later this year, if we chose to do so for economic reasons.

That said if oil remains in the $85 to $95 per well range and our production increases as we project, we believe that this certainly justifies our incremental capital required to maintain our current phase of development.

With that, we want to thank our listeners this morning to join the call. I’ll turn it back to the moderator and we’ll be happy to take your questions.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of Ryan Oatman of SunTrust. Ryan, your line is open, please state your question. That question has been withdrawn. Your next question comes from the line of Hsulin Peng of Robert W. Baird.

Hsulin Peng - Robert W. Baird

So, well, if I heard you right, you mentioned six to eight additional wells for 2013. Is that gross or net?

Lynn Peterson

That’s a gross number.

Hsulin Peng - Robert W. Baird

Okay.

Lynn Peterson

Mostly these wells are -- they are just sitting on high working interest, so gross net value can be somewhat similar.

Hsulin Peng - Robert W. Baird

So similar, if I was to ballpark the potential CapEx increase, if I assume 10 million per well I kind of get to a new CapEx number?

Lynn Peterson

Well, yeah and again just please understand, we certainly have some flexibility there. We are going to monitor this, we’re going to see where it goes. We can certainly stay within our announced CapEx, we would just go down on the ridge but we will get the same number of wells drilled that we put out for everybody. All I am saying is that oil remains high, this is a great play. Our economics are robust and we are going to continue to push forward. So you could see a small incremental increase but we will be drilling more wells.

Hsulin Peng - Robert W. Baird

So with your current pace, you feel pretty comfortable with your current production guidance and open exit rate for ’13?

Lynn Peterson

Yes we do. Again I think we try to talk to everybody, we’ve seen this thing. We know that our wells were being drilled in the first quarter, we haven’t scheduled start completion work during mid-May. We are going to see a significant ramp up. These wells are all being drilled down to the core of our properties and by that I mean in terms of our Polar block, Cola blocks, Smokey blocks and Dunn county acreage. We drilled enough wells, we have a very good understanding of the quality of the wells and we are very comfortable where we are at production wise.

Hsulin Peng - Robert W. Baird

Are your Polar ted, the four wells you have there, I know you are considering -- you mentioned there is completion scheduled for May, can you just remind me how many gross will be completed in May?

Lynn Peterson

Well, again, let’s go to month to month. We’ve got 12 wells to complete up there. We are going to start our work in kind of that mid, late May up there, it’s going to continue into June. We hope to have really most of them completed again. I can assure that they are all going to be done by June 30, we could go into the first week of July. But in that timeframe all wells will be completed and put on production.

Operator

Your next question comes from the line of Charlie Silly of Wells Fargo Advisors.

Charlie Silly - Wells Fargo Advisors

I just have a couple questions on, first looking into the back half of this year, looks like you guys get close to fully funding the capital program through cash flow, leverage metrics had down pretty quickly. Can you just talk about maybe strategically how you look at 2014 and beyond, you get the room financial to do something, do you do it to expand the portfolio at all?

Lynn Peterson

Well I think that’s where we are at, I think compliance, we want really good data out of our two pilot programs here. We are trying to have a better understanding of the spacing of these wells. Again there are other operators going to more wells. So we want to see what we call which will help us lay out future development here. We’ll try not to get too far ahead of ourselves as we go in and put wells, development wells and (inaudible) really good. I think generally speaking we’re going to be looking at the kind of same type of capital expenditure we have this year, kind of a similar type of rig count as we move into 2014.

Charlie Silly - Wells Fargo Advisors

And that second crew, do you think it will be something similar in the next winter and go back down to one crew?

Lynn Peterson

We are absolutely positive but we are now returning every year to North Dakota and we find that’s pretty helpful to kind of slow our operations down from a completion standpoint, kind of get ready after spring breakup and push forward kind of like we are doing this year kind of late May and into the second and third quarter here. So drilling wise, we are comfortable, certainly all winter, we are trying the completion, we will probably do a little quicker work and little cheaper work as we get away from the colder months.

Charlie Silly - Wells Fargo Advisors

Okay. Thanks. And the last one I had is just on the reservation with your partner out there. Are there doing anything differently, are you guys seeing anything different from them just as far as their thoughts going forward?

Lynn Peterson

No. I think we will continue with almost three rigs, drilling wells and continue to surprise us.

Charlie Silly - Wells Fargo Advisors

Okay. Thanks, guys.

Lynn Peterson

Thanks, Dan.

Operator

The next question comes from the line of Scott Hanold of RBC Capital Markets.

Scott Hanold - RBC Capital Markets

Good morning, guys. Can you talk about the CapEx trend you all expect to see this year? Sounds like you are moving towards that 10, 5 now. What are some of the recent ASPs that you have on your operated wells and if we were to have this conversation a year from now or even by the end of the year, what would you suspect it would be?

Lynn Peterson

Those kinds of deals, maybe actual costs imposing these. But what we are saying, I mean, kind of in the first quarter as we said, I think our well costs kind of were in this 10, 5. And we are talking all in cost, Scott. This isn’t just a drilling complete well. We are going to put them on production and so these numbers get put up deposit [inventories] from different operators. But that is a full cost of the well there.

Now, we’ve made some changes, we’ve renegotiated some items kind of early first quarter. We anticipate we will see these costs reductions coming in, as we go through the second quarter, certainly, as we did our budget we kind of started out with the 10.5 number. In the first part of the year, we kind of went to a 10 in the middle of the year, down to 9.5 towards the end of 2013. But I think we are absolutely on that trajectory to achieve those types of numbers.

So, again, I think that will impact our CapEx as well. I mean, again, we are getting higher costs wells in the first part of the year. We will see these numbers come down on a per well basis. I think our team is certainly making headway both on the drilling side and on the completion side here. So, I do feel comfortable with our costs and I do think we can get these things down to about 9.5.

Now, I’m not talking all of our acreage of 9.5, Scott. These are other wells in the deepest part of the basin. We continue to use 100% ceramic type completion effort. So, I’m not trying to bring this well cost down by averages. Later on the year, we are going to do some work again, up towards [White] County. Those wells are going to be a lot cheaper. But we think that the numbers that we are seeing down through the deep part of the play, the overpressure part of the play, we will be making some really good wells.

Scott Hanold - RBC Capital Markets

Okay. And thanks for the clarity on it that I was looking forward. And one other question. When do you expect that you will start providing some near information on your down spacing parts? Maybe second quarter is way too early, but is this a third quarter or even a fourth quarter conference call type of event where you are really capable of like playing out, what you think or when does that come?

Lynn Peterson

Again, realistically, we are looking towards the latter part of the year and certainly into next year or eight months and there will be a little bit of ongoing. We are going to get some early indications but I think generally speaking, as we’ve said previously we would like to kind of keep our rig moving along to certainly kind of the end of the year going into early 2014, where we start to gather data that we fill more comfortable with. So Russ, Jim, do you guys have comments to that?

Russ Cunningham

Well, not only are we going to be producing after we complete the wells but we will be doing some interference testings, so some of the wells will be shut occasionally while we do some interference testing. We will do pressure testing. So there is going to be a lot of work that’s ongoing. So to think that that just because we complete by the, say the end of June, first of July, doesn’t mean we are going to have meaningful results until certainly probably year end.

Scott Hanold - RBC Capital Markets

Okay. Thanks.

Operator

The next question comes from the line of Curtis Trimble with Global Hunter.

Curtis Trimble - Global Hunter

Thank you. Good morning, everyone. I was hoping you might be able to give me a little bit idea on the OpEx side and expectations obviously with the production ramping, maybe what you are looking at a per unit basis for the next quarter end versus the full year?

Lynn Peterson

Hey, Jim, do you want to take that one?

Jimmy Henderson

Sure. I think, Curtis, we are still pretty comfortable with what we’ve laid out before is $6 will be OE average for the year. It was obviously higher in the first quarter, as we’ve had -- the production was down compared to January and the workover costs to get those wells back to producing, et cetera kind of the significant projects that we are doing to address costs are continuing to be on the water side and giving our saltwater disposal wells drilled and operational and put up to 10 to 11 wells. We have the Three Forks is operational at this point, so that’s drive cost down as we move into the future quarters and then also putting the gathering systems in the ground to gather that water, so we are completely off of the trucks culling that water. So I think it will continue to come down as we go through the year and certainly we will do some leveraging effect, production increases versus the fixed operating costs. So I think we will see a trend down -- first quarter of the year is always a bit higher than rest of the year. So I think hopefully peak out here and see that continuing down through the year.

Russ Cunningham

I also might add to that, over the east side in Dunn county there has been some continued drill-up, refining of that whole system. I think we will start to see some improvement from our water handling sample, certainly with the ongoing drilling over there and our just in production, we think well costs will come down which will help us, which leads back to that kind of $6 number. But then like over the last year or so we’ve had few terms over here, we are starting to get address right now. We are seeing some improvements.

Curtis Trimble - Global Hunter

Now looking at the marketing section, give me an idea of kind of maybe the activities over the last six to 12 months and within that year, (inaudible) doing thing additional in the marketing side, whether the process is in place and you’re selling through those increased barrels on a go forward basis?

Lynn Peterson

I think we like our strategy so far -- all of our wellhead, or CDP under couple of gathering systems that we work through, we stayed away from taking any capacity downstream, we just think there is planning full capacity, being built up partially with the rail facilities. So it works very well for us, we had no problem with the barrels, we’ve got a really good partners, to the sell-through both marketers and larger refiners, basically this works quite well with each of those. So I don’t see you can change herds, I think that we are continuing to see the growth out of capacity of our basin and it’s keeping up the production, or even helped production a little bit. We feel pretty good about where we are at.

Curtis Trimble - Global Hunter

Just looking at the pilot programs on Polar, Smokey, are you planning on -- and you did a completion method any at all or is it going to be static competition and not monitor everything on the micro-seismic production prefer side of things?

Lynn Peterson

We’re probably not going to put all of our completion work for the domain at this point. Our team is working through this. We are going to try something as we go through that site, I prefer not to what’s out there right now.

Operator

The next question comes from the line of Paul Grigel of Macquarie.

Paul Grigel - Macquarie

On the fourth quarter call a couple of months ago I guess you talked about the completion procedures, given aside a few more wells, you get more time. Could you comment on the results that you have seen from this --

Lynn Peterson

I don’t know if -- we didn’t significantly changed, I think we continue to adapt to Three Forks, it’s a little different reservoir and we have seen Middle Bakken. So I think generally speaking we are putting us on track, we are using approximately 28 basis in the 10,000 foot wellbore somewhere around 325 feet per stage. Our bonds are process, it could vary, we believe that the water wells generally we’re pretty comfortable where we are at. We continue to work with folks. I think our team is trying to be progressive as we move ahead trying to put down the costs and yet they achieved the well results. Jim, yes and --

James Catlin

Well, I don’t really think -- we know we are obviously always looking at what other people are trying to lean, we think it’s a little different. Other than the fact that we are using ceramic problem and as Lynn mentioned kind of the general lumber stages, we really don’t want to discuss into more detail but exactly what we are doing to water wells. So we tweaked a little bit from time to time with no major changes.

Paul Grigel - Macquarie

Okay. Understand. And as you can look at the down spacing pilot program drilling those wells. Is there a significant amount of science cost as you can grow through microseismic to confirm the analysis for those programs?

Lynn Peterson

Yeah. I’d say as compared to the total cost, I think we’ve drilling 12 wells at here and we’re running roughly $10 million per well. The geoscience costs that we’re incurring is pretty small. So we’ve never shied at microseismic program ourselves, other operators have. We want to do this type of thing, the core that we took that Russ alluded to. It’s part of our business and what we’re doing here. So I would say it’s not significant cost to our call.

Paul Grigel - Macquarie

Okay. Perfect. And then lastly, Lynn, you mentioned the [White] Country toward year end. Do you guys have any more kind of details on what exactly you want to explore up there, go back and drill your first operator as well there?

Lynn Peterson

I think we commented here a quarter or so ago that we completed wells, seen some different production out of three forks, encouraged us. And the well continues to kind of fit the profile we were hoping for. So I think as we move into the fourth quarter we are going to go up there and HBP some of our drilling units. We're working on a completions there. Well costs will be significantly lower than the numbers we talked about this morning. And we kind of keep you guys posted as we head really into third and fourth quarters.

Paul Grigel - Macquarie

Okay. That’s it for me. Thank you.

Operator

Ladies and gentlemen, we have reached the allotted the time for question and answers. I will now turn the call back to Lynn Peterson for any additional or closing remarks.

Lynn Peterson

Okay. Thank you. I give a big shout out to all of employees. About 18 months ago, we experienced a series of well failures due to mechanical issues within the horizontal portion of the wells. We heard all the comments some of which were very complementary. And I’d like to report that all these wells have now been recompleted or they’ve been redrilled and completed here in 2013. I’m pleased to report that we just reached 60-day production numbers on one of the redrills in AMI acreage in Dunn County. And the well has produced 70,000 barrels of oil and 42 million cubic feet of gas during this time for an average of 1280 barrels of oil equivalent per day for the 60-day period. It’s a great well.

Also this week, we hired people last for the rig completions in our Smokey acreage block in the McKenzie County. The well I feel 2,308 barrels of oil and 4.4 million cubic feet of gas on an average 35/64-inch choke and had average flowing pressures of about 2800 PSI.

Again, I want to thank our entire team for the perseverance and hard work and continued loyalty. I think they’ve done a great job and I’m very proud of what we’ve accomplished. I think as we look forward to the next quarter, staying up at Williston last week, there has been a great improvement of all conditions. I think everybody’s attitude was great. It’s exciting to see our pilot program come together. Certainly, oil prices have been very resilient.

We seem to be holding this $90 plus or minus this play with path of reserves we’ve seen on these wells, production. The consistency we’ve seen between all the wells, we’re excited about where we’re headed here. We think we’re going to have a great second, third and fourth quarters of the year. We appreciate everybody’s patience here as we move through the year. We’ll be on the road as the conference circuits starts next week for us.

We’ve got a steady stream almost on a weekly basis here for a while. We’ll be reaching out to our investors that we’ll move through this grade and we like to thank everybody for your time this morning. So have a great weekend and we’ll talk to you soon.

Operator

Thank you for participating in Kodiak Oil & Gas Corp. first quarter earnings conference call and webcast. You may now disconnect.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Kodiak's CEO Discusses Q1 2013 Results - Earnings Call Transcript
This Transcript
All Transcripts