Tag Archives: KOG

Bakken: The Rail Revolution – Everything Investors Need To Know

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ByRichard Zeits:

A Big Year Ahead For Bakken

(click to enlarge)
(Source: ND Pipeline Authority; Zeits Energy Analytics)

2013 is shaping up as a strong year for the Bakken, in contrast to 2012 when the play was hurting from skyrocketing drilling and operating costs, severe infrastructure bottlenecks, exploding basis differentials, and disappointing economics, forcing some operators to scale back their drilling plans. Looking forward, several positive factors are at work that should filter through to favorable year-on-year financial comparisons and contribute to a brighter outlook for the play in general:

  • Crude oil takeaway issues have been largely resolved, with ample rail availability and major pipeline capacity additions expected in 2014-2016.
  • Natural gas and NGLs should become increasingly bigger contributors to operators’ bottom lines as the build-out of processing and pipeline infrastructure is beginning to bear fruit and should catch up with production within next two years.
  • Deeper Three Forks exploration is gaining


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A Trade Idea For This Rangebound Bakken Stock

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By Northrop Puckett:

Back in January, we listed Kodiac Oil and Gas (KOG) as one of our picks for Best 13 Stocks for 2013. Since that time the stock has barely budged. This Bakken Formation darling has potential, but it is also obvious that the stock is not moving, so what is an investor to do?

The good: Kodiac has grown its oil production more than 100% in each of the last 3 years. It has 150,000 acres of land and seven drill rigs operating. Kodiac has quarterly EPS growth of 181% and quarterly revenue growth of 137%. It is forecast to increase EPS 50% per year for the next 5 years, giving it a miniscule PEG of .37. This year’s EPS are expected to be up 2400% over last year’s. It is run well too, with gross margins of 79% and operating margins of 32.5%.

The bad: Kodiac has increased debt


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5 Speculative Stocks That Could Soar By 2014

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ByCorvetteKid:

You’re tired of safe investments. You’ve built your investment-grade core stock portfolio of dividend growers. You have the high-yielding, double-digit yielders. You have some of the 8-10% yielders among the quasi-private equity plays. You even disregarded all the ‘bond bubble’ nonsense and bought some quality bond funds for portfolio ballast – just in case.

But now you have a little “play money” and want to speculate. You don’t trust the Revel coming out of bankruptcy in Atlantic City, Las Vegas is too far away (or maybe AC is too far away), and some other guy in New Jersey just won the Mega-Millions jackpot. What’s a gambler, er, speculator to do?

I always caution that a speculation – either betting on a risky company or betting against time (as with options) – is qualitatively different than investing. The only thing you can do to control your


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