KOG logoKodiak Oil & Gas Corp. (AMEX: KOG) hit the highest price since August 2007 on an increased volume. The stock closed at $5.05 Wednesday, June 18, 2008, gaining 29.5% over the day. The stock went down today after market opened, however the company seems to have already fixed on a long term uptrend.

Back in April we talked about Kodiak. Now the company is up about 70% from that time and seems to be heading further up.

During that time, Kodiak has reported its financial data for the first quarter of 2008. The operating revenue increased 13% to $1.8 million over a year period. The company also managed to reduce its net loss by nearly 82% compared to the first quarter of 2007. Still, the gross profit has decreased compared to the same period a year ago.

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The decrease in losses is also rather deceptive. Kodiak had to pay a $14 million impairment charge for the first quarter of 2007, which was a onetime event. So their non-GAAP based loss was only $455 thousand for that quarter last year. Seeing this, it might be assumed the company's performance has actually worsened.

Kodiak stated in their press release they have been forced to stop production from three wells in the Bakken Formation thus resulting in a 37% decrease in oil sales for the first quarter of 2008. This means the company's performance could improve during the second quarter of 2008 as wells are placed on production once again.

Also during the second quarter 2008, Kodiak planned drilling 2 new wells in their Horseshoe Basin Unit. The company acquired interest in part of the Fort Berthold Indian Reservation. All this adds to Kodiak's further expansion thus, if not yet adding to the revenues, at least increasing investor confidence in the company.

Analysts seem to agree on Kodiak's perspective future. With three strong buys and three buy ratings , this stock surely looks hot.

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