Dec. 5, 2014, 10:38 AM
- Indebted U.S. shale companies are facing financial pressure from falling oil prices, raising fears that liquidity could dry up for companies with the greatest debt burdens, but Fitch thinks they may find their lenders are inclined to go easy on them.
- The rating agency believes that, as in the previous oil price crash of 2008-09, banks are likely to show forbearance rather than pushing many companies towards restructuring or bankruptcy.
- Fitch identifies Kodiak Oil and Gas (KOG -2.9%), which has already accepted a takeover offer from Whiting Petroleum (WLL -2.6%), as showing the most warning signs.
- Linn Energy (LINE -0.9%), Breitburn Energy (BBEP -2.6%) and Energy XXI (EXXI -2.8%) are among the companies that have less than half of their revolving credit facilities still unused and available, while Clayton Williams (CWEI -3.5%) had hedged less than half its production for next year, according to Fitch.
Dec. 1, 2014, 9:13 AM
Nov. 28, 2014, 10:28 AM
- Ladenburg Thalman throws in the towel on Oasis Petroleum (OAS -30%), Denbury Resources (DNR -14.9%), Resolute Energy (REN -18.3%) following OPEC's decision yesterday to hold production levels and the resulting tumble in crude oil, with WTI crude -6.4% to $69.95 per barrel.
- Some others: Bonanza Creek (BCEI -21.5%), Northern Oil & Gas (NOG -16.2%), Warren Resources (WRES -16.3%), Halcon Resources (HK -22%), Triangle Petroleum (TPLM -21%), Emerald Oil (EOX -26.4%), Kodiak Oil & Gas (KOG -19.3%).
Nov. 28, 2014, 9:17 AM| 13 Comments
Aug. 15, 2014, 5:35 PM
Jul. 16, 2014, 5:39 PM
Jul. 14, 2014, 3:45 PM
- Shares of Whiting Petroleum (WLL +7.8%) surge to a new all-time high as analysts agree that WLL pulled off a great deal for Kodiak Oil & Gas (KOG +4.6%), paying ~2% less than KOG's Friday close and just 5% above the 60-day average (earlier).
- WLL’s story grows even more compelling with an accretive deal that gives it a premier position in both the Bakken and Niobrara that should boost growth dramatically, likely with improved metrics across the board that already are at compelling levels vs. peers, Wunderlich says in reiterating its Buy rating.
- In raising its price target to $102, Brean Capital says it would not be surprised to see a competing bid for KOG, but assuming the deal closes as currently constituted, its opinion of WLL is only enhanced as the most attractive opportunity in its coverage universe (Briefing.com).
- Meanwhile, KOG’s decision to sell now is “curious,” according to Sterne Agee's Tim Rezvan, with a Q2 earnings miss possibly explaining the move; KOG has not set a date to release Q2 results.
Jul. 14, 2014, 2:21 PM
- Whiting Petroleum's (WLL +7.4%) $6B buyout of Kodiak Oil & Gas (KOG +5.1%) is renewing investor attention on independent energy firms with operations in the Bakken Shale, especially those significantly owned by hedge funds; Paulson & Co. is the single biggest owner of KOG stock, with just under 10% of shares outstanding as of the last filing date.
- While many of the largest Bakken producers are huge companies or parts of huge companies - Hess (NYSE:HES), EOG, Statoil (NYSE:STO), Marathon Oil (NYSE:MRO), XTO Energy (NYSE:XOM) - a few small and mid-cap independent players show hedge fund interest, CNBC's Brian Sullivan writes.
- The single biggest holder of Oasis Petroleum (OAS +0.5%) also is John Paulson's hedge fund, which owns 9.9M shares (~9.8% of shares outstanding), Jana Partners owns 16M-plus shares in QEP Resources (QEP +1.4%), and WPX Energy (WPX +1.1%) has substantial hedge fund ownership.
May. 2, 2014, 7:56 AM
- Kodiak Oil & Gas (KOG) -7.5% premarket after Q1 earnings and revenue miss Wall Street estimates, as weather adversely affected activity during the period.
- Q1 production of ~34K boe/day was more than 2.5K boe/day below estimates and declined Q/Q, as non-operated slowdowns and weather issues caused delays across KOG's Williston acreage.
- KOG cut its FY 2014 production guidance to 39K-42K boeday.
Feb. 11, 2014, 9:48 AM
- Kodiak Oil & Gas (KOG +2.7%) reports Q4 sales volumes of 36.1K boe/day, up 98% Y/Y and 2% Q/Q; for FY 2013, average daily sales volumes of 29.2K boe/day represented 103% Y/Y increase.
- Estimated total proved reserves at Dec. 31, 2013 rose 77% Y/Y to ~167.3M boe vs. 94.7M boe at year-end 2012.
- Drilling operations continue with seven operated rigs which KOG plans to maintain throughout 2014.
Jan. 2, 2014, 2:21 PM
- Some companies that produce oil in the Bakken region are seeing weakness amid lower crude prices and concerns about safety issues of transporting crude oil following the recent rail accident in North Dakota.
- The Pipeline and Hazardous Materials Safety Administration today issued a safety alert noting the type of crude oil being transported from the Bakken region may be more flammable than traditional heavy crude oil.
- Experts have said that unusually large amounts of naturally occurring and highly flammable petroleum products such as propane and ethane may be coming out of the ground with the Bakken crude.
- Among Bakken producers: NOG -5.3%, OAS -5.2%, CLR -4.9%, KOG -4.6%, WLL -3.5%, EOX -3.1%.
Oct. 23, 2013, 12:56 PM
- Continental Resources (CLR -5.5%) falls sharply after Global Hunter downgrades shares to Neutral from Buy because the price has breached the firm’s $120 target.
- Despite CLR’s “strong production growth trajectory,” the firm is no longer urging investors to accumulate shares “due to limited estimated upside.”
- Global Hunter downgraded several other energy companies to Neutral: PDCE -4.3%, REXX -6.5%, EOX +0.2%, EPL -7.8% and OAS -0.4%.
- The firm upgraded RRC, SFY and KOG to Buy, and KOG to Accumulate.
Oct. 22, 2013, 8:36 AM
- Kodiak Oil & Gas (KOG) reports average daily sales volumes of 35.4K boe/day for Q3, a 123% Y/Y increase and a 54% Q/Q increase; crude oil accounted for 90% of Q3 2013 sales volumes.
- KOG estimates average daily production for FY 2013 at ~30K boe/day vs. FY 2012 of 14,400 boe/day, and estimates its full-year capital budget at ~$1B which contemplates 100 net wells in 2013.
- KOG +2.1% premarket.
Oct. 18, 2013, 3:34 PM
- Hedge fund manager John Paulson sees Kodiak Oil & Gas (KOG +4.2%) and Pioneer Natural Resources (PXD +4.1%) as potential takeover targets, sending shares in the two energy E&P companies sharply higher.
- KOG is attractive because it provides both rapid growth and long life reserves, while PXD boasts significant proved reserves and production in low-risk, predictable basins in the U.S., he says.
- Paulson owns 15M KOG shares and 2.4M PXD shares.
Sep. 17, 2013, 5:05 PM
- In an apparent delayed reaction, companies mentioned as possible takeover targets for Repsol (REPYY.PK, REPYF.PK) as it reportedly looks to make a North American oil acquisition in the $5B-$10B range moved higher today.
- After showing only mild action yesterday, Whiting Petroleum (WLL +3.7%) and Kodiak Oil & Gas (KOG +1.6%) posted strong gains gains; strength in SandRidge Energy (SD +6%) also may have been sparked by Respol speculation, although SD wasn't mentioned in this weekend's WSJ article.
Aug. 28, 2013, 11:59 AM
- Energy stocks (XLE +1.9%) lead the way this session as West Texas crude tests $110, with tensions over Syria continuing to feed Middle East supply concerns; Syria concerns and Libyan export cuts are trumping the bearish influence from a surprise gain for U.S. crude supplies.
- Among sector leaders: MRO +3.3%, EOG +3.1%, CVX +2.5%, TOT +2.4%, WLL +2.4%, APC +2.2%, RDS.A +2.1%, XOM +2.1%, HAL +2%, SLB +2%, COP +1.8%, PSX +1.7%, BP +1.6%, APA +1.6%, HES +1.5%, KOG +1.3%.
- ETFs: ERX, VDE, DIG, IEO, IEZ, IYE, PXE, PXI, XES, XOP, RYE, FXN, OIH, PXJ, PSCE, ERY, DUG, DDG, FRAK.
- After big losses yesterday, gold miners (GDX +2.4%) are strong today despite only a slight gain in the metal.
- Miners: ABX +3.6%, GG +3.2%, NEM +2.2%, KGC +2%, SLW +2%, GFI +1.2%.
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