Thursday, March 1, 2012

Mike Filloon on KOG, NOG, GMXR, and Magnum Hunter Following 4Q11 Results

Link to SeekingAlpha here.

Regarding NOG:
The greatest impact on Northern's quarter was derivatives. It lost $2.7 million on settled derivatives and another $23.6 million on mark to market of derivative instruments. Derivative losses totaled half of Northern's fourth quarter revenue. It may have missed earnings but the effect of derivative losses pushed this stock back significantly, and could be a buying opportunity.
Regarding KOG:
Kodiak now has 137 gross or 60.2 net wells and over 157000 net leasehold acres. It now has six drilling rigs and six workover rigs. This growth has come at a price, as things have gotten much bigger and more complicated.
I would love to comment on KOG but I am not worthy. I was never an entrepreneur; I realized early on I don't have what it takes to be successful running a business.  So, I will not comment except to say that it will be interesting to watch, from the sidelines, how KOG does. KOG is only one of many companies in the Bakken about which this could be said: "This growth has come at a price, as things have gotten much bigger and more complicated."

2 comments:

  1. Last year I had a few extra dollars and decided to play around in the market. After buying a number of small shares of different oil stocks decided, on advice from my sister, to get a few KOG holdings. Over time I consolidated most all my modest funds in KOG. It's been quite a roller coaster ride, to say the least. Every morning, at opening bell, is like pulling the handle of a slot machine. Overall, unlike the slots, I'm sure it's a good bet...

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    1. One never knows. But yes, I often have the very same feeling.

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