The
article at the link was written prior to results of the presidential election were known. It's another superficial article by
Motley Fools but it will be interesting to look back on this article a year from now.
Momentum in the Bakken Shale play doesn't appear to be slowing down anytime soon, as companies drill as quickly as they can. Kodiak Oil & Gas' recent results show a huge spike in revenue because of the company's expansion of drilling in the region.
Third-quarter revenue jumped 280% to $112.1 million and average
production rose to 15,855 BOE/day from only 3,953 BOE/day a year ago.
It's unfortunate that this didn't result in a GAAP profit of more than
$3.5 million, or $0.01 per share, because of a loss of $36.7 million
from hedging activities. Some of this loss may have reversed in the
weeks since the third quarter ended because the price of oil fell.
Kodiak isn't the only company benefiting from the boom in the Bakken,
but it has started from one of the smallest bases, so the numbers are a
bit flashier. Bakken competitor Whiting Petroleum
is also increasing production, shooting for a 20% to 23% increase year
over year. In the third quarter, oil production increased 22% while
overall production jumped 17%.
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