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UPDATE: Wunderlich Securities Downgrades Kodiak Oil & Gas Following 1Q14 Results Miss

Dwight Einhorn

In a report published Friday, Wunderlich Securities analyst Jason A. Wangler downgraded the rating on Kodiak Oil & Gas Corp. (NYSE: KOG) from Buy to Hold, and lowered the price target from $17.00 to $14.00.

In the report, Wunderlich Securities noted, “Kodiak Oil & Gas (KOG) last night reported its 1Q14 results that saw EPS of $0.14 that was below our $0.21 expectation and the Street's $0.18 forecast as lower revenues and production caused the miss. Production was over 2,500 boe/day below estimates and actually saw sequential declines, non-operated slowdowns and weather issues caused delays across Kodiak's Williston acreage.

"Additionally, the company had acreage to hold in Williams county where wells are not as prolific as its more core areas so the production losses could not be made up. Because of these issues Kodiak lowered its production guidance significantly and as such we have reduced our figures accordingly. Based on our new numbers we calculate a $14 price target and therefore downgrade to Hold at this time.”

Kodiak Oil & Gas closed on Thursday at $12.47.

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