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Linn Energy, LLC (LINE) Message Board

  • rlp2451 rlp2451 Mar 20, 2013 9:38 PM Flag

    OT: Motley Fool and KOG

    Since SOB loves the Motley Fool as he is always quoting the articles there, here is a good one that tells the truth on Kodiak:

    2 Bakken Beauties and One with Warts (PS the "One With Warts is Kodiak)

    Revenues, some earnings but no capital gains, I’ll pass

    On the other hand, Kodiak Oil and Gas (NYSE: KOG) attracts some attention, but I see something wrong. The company produces oil and gas and generates revenues, but unlike Continental, earnings fluctuate instead of paralleling revenues. Even worse, Kodiak experienced virtually no capital gains for the past year or so. The company’s latest annual earnings report sounded terrific, but despite huge increases in revenue, net income, and proven reserves, the stock barely budged.

    Kodiak wants to capitalize on Bakken shale plays, but has had struggles. For example, in Q3 2012 Kodiak reported record revenues, but earnings came in at $0.01. Increased expenses derailed earnings as the company expanded its payroll. Kodiak faces relatively high costs per well (roughly $10 million compared to Continental’s $8.5 million), hefty debt, and cash depletion. Kodiak also went over its 2012 budget for drilling expenses.

    Additionally, during the conference call, CEO Lynn Peterson suggested that production guidance could change as the company experiments with new production methods. If these new methods work, significant production improvement could be realized, but only in the back half of 2013. I suspect this uncertainty played a significant role in the muted stock response to a favorable earnings report.

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    • It seems that you are still trying to be a clown. Guess not much changes.

      There is an important conference that will be held and Professor Engelder is one of the speakers.
      Lots of very interesting speakers......even you might be able to learn something new..
      ....oh, I forgot, you already know it all. (LOL).

      "Over 20 Expert Speakers From Companies Actively Operating In The Bakken & Three Forks
      DAY 1: COMPLETIONS AND WELL OPTIMIZATION
      DAY 2: SWEET SPOT IDENTIFICATION AND DRILLING COSTS

      "BAKKEN & THREE FORKS COMPLETIONS CONGRESS 2013
      Having seen huge production growth in recent years, the Bakken has surpassed the exploration phase and is now into full-blown development. And with the developmental phase come new challenges and opportunities; most notably opportunities to drive down the cost of completions and sustain production at economic rates. It is therefore commercially imperative that completions are carried out in a commercially focused way to ensure the fastest, most efficient and most cost-effective recovery of reserves.
      The role of the Three Forks reservoir is another opportunity rapidly arising for operators working in North Dakota, Montana and Saskatchewan. The play is becoming ever more prevalent within the Williston Basin, the big question being; what effect is the Three Forks having on Bakken wells? How can we tap into the Three Forks to maximize overall basin recovery?
      The mission of the 3rd annual Bakken & Three Forks Completions Congress is to identify the optimal techniques for completing Bakken wells and deliver E&P insights that will enable operators to cost-effectively recover oil from the Three Forks.
      Now in its third annual year, the summit will bring together the biggest and most active players in the Bakken and Three Forks to show real-time case studies showing how different key industry players have discovered different techniques to optimize completions at faster and more economic rates than initially thought

 
LINE
13.66-0.28(-2.01%)May 4 4:00 PMEDT