KOG Posts 2013 Proved Reserves, Production; Does Not Post Net Acreage

Quick: for newbies -- how does one evaluate a year-end operational report or a quarterly/annual financial statement that has just been released? Easy: look at what the market is doing. [And how did the market respond? Investors must have liked the annual operational report -- KOG is trading at new highs, and is up 3.5%. It's quite incredible. I always felt $8.00 was a nice entry point (starting back in early 2013; prior to that, the entry point was $6.00)]

Disclaimer: this is not an investment site. Do not make any investment decisions based on what you read here or think you might have read here.

KOG just released their year-end operational report.

KOG was up 1.41% at 4:30 p.m. yesterday, after market close. [Pre-market, 9:07 a.m. ET: up one penny.]

In another hour or so, we will see how the market responds to KOG's year-end 2013 proved reserves. In the press release, KOG also provides quarterly and annual sales volumes (for newbies, a quick snapshot of KOG will bring you up to speed):

• 2013 proved reserves: 167 million boe
• 77% growth y/y
• PV-10 value: $3.5 billion (KOG's market cap: $2.9 billion)
• annual sales volumes averaged 29K boepd, a 103% increase

Now, some comments. From the snapshot linked above:

• Mid-2012: 24,000 (est Nov 11; after North Plains acquisition); exit 2012, 30,000 boepd

Note: in mid-2012, KOG planned to exit 2012 with 30,000 boepd; and here, one year later, the company is reporting an average slightly less than 30,000 boepd. It will be interesting to see how the market reacts to the "red queen."

On the other hand, KOG averaged 36,000 boepd in 4Q13. I think investors will be pleasantly surprised with market action later today. 

Operations update:

• seven operated rigs, which the company plans to maintain through 2014
• one full-time 24-hour frack crew
• a second frack crew as required by activity level

Interestingly, unless I missed it, one of the most important metrics, the number of net acres owned/controlled by KOG was not in the report.