Chris Driftman
Long/short equity, value, growth at reasonable price

Warning Signs For Kodiak Oil And Gas

There is a lot of excitement about the Bakken shale. Companys like Kodiak Oil (NYSE:KOG), Oasis Petroleum (NYSE:OAS), Triangle Petroleum (NYSEMKT:TPLM) and Northern Oil (NYSEMKT:NOG) have shown spectacular production growth rates. However, all this growth was financed with debt. The fundamental value of the play remains hard to assess.

In this article I will look at Kodiak Oil . KOG is a prototype pure Bakken player with a reasonable acreage position in the core Bakken. After years of debt financed growth KOG announced last year its intention to live within cash flow. This provides us with an opportunity to measure the fundamental value of Kodiaks business model from a different view than...

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