Kodiak Oil & Gas Q1 Profit Surges, But Revenues Miss View; Lowers Output Outlook

(RTTNews) - Kodiak Oil & Gas Corp. (KOG) on Thursday reported a 50 percent surge in profit for the first quarter from last year on higher revenues. However, revenues for the quarter missed analysts' expectations.

Looking ahead, the company lowered its production outlook for 2014, citing lower than expected first-quarter production and the impact of asset divestitures. Shares of the company declined more than 7 percent in extended trades.

The Denver, Colorado-based company's net income for the first quarter was $29.11 million or $0.11 per share, up from $19.44 million or $0.07 per share in the comparable quarter last year. On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.18 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter surged 56 percent to $257.02 million from $165.05 million in the same period last year. Analysts had a consensus revenue estimate of $287.24 million for the quarter.

Kodiak's net sales volumes in the quarter were 3.06 million barrels of oil equivalent or MMBOE, up 57 percent from the year-ago period. Average daily sales volumes in the quarter were 34.0 MBOE per day, compared to 21.7 MBOE/d in the year-ago period. Crude oil revenue accounted for about 92 percent of oil and gas sales recorded during the quarter.

Average oil price for the quarter declined 2 percent from last year to $88.62 per Bbl, while natural gas price rose 32 percent to $8.56 per Mcf. Average price received per BOE declined 1 percent from the prior-year period to $83.93.

Looking ahead to 2014, Kodiak lowered its average full-year production guidance to a range of 39,000 to 42,000 BOE/d, or 35 percent to 45 percent year-over-year sales volume growth. Earlier, the company forecast full-year production of 42,000 to 44,000 BoE/d.

Kodiak's Chairman and CEO, Lynn Peterson said, "We have just completed a challenging quarter as weather adversely affected our activity level. Although the team worked tirelessly through the weather conditions, the impact on our operations was of a meaningful enough size that we believed it to be prudent to reset our full year production guidance."

KOG closed Thursday's regular trading session at $12.47, down $0.24 or 1.89 percent on a volume of 9.30 million. In after-hours, the stock further declined $0.97 or 7.78 percent to $11.50.