Kodiak Oil sees lower Q2 profit despite sales gains

Kodiak Oil & Gas Corp. of Denver

Staff Denver Business Journal

Kodiak Oil & Gas Corp. saw a decline in profit in the second quarter despite a rise in sales.

The Denver energy company (NYSE: KOG) late Thursday posted net income of $44.3 million, or 17 cents a share, down from $93.1 million, or 35 cents a share, in the same period of 2012.

Kodiak said its reported Q2 earnings were boosted by 5 cents a share by an unrealized hedging gain. And its earnings in Q2 2012 were lifted by 25 cents a share by one-time items.

Oil and gas sales grew to $173.5 million in the most recent quarter from $85.8 million a year earlier. But operating expenses also rose sharply, to $110.3 million from $59.5 million a year earlier.

Analysts on average had expected adjusted earnings of 13 cents a share on revenue of $180.3 million, Thomson Reuters reported.

"We are pleased with the progress that we achieved during the second quarter," said Chairman and CEO Lynn Peterson. "We are on course to deliver accelerating production growth in the second half of the year and into 2014."

Kodiak closed in July on a $732 million purchase of 42,000 acres of producing properties and undeveloped leasehold in North Dakota's Williston Basin from another Denver company, privately held Liberty Resources LLC.

> Click here for Kodiak's earnings report.

Compiled by Mark Harden | mharden@bizjournals.com

Source: http://feedproxy.google.com/~r/vertical_16/~3/EeO8OnNmYhU/kodiak-oil-sees-lower-q2-profit.html

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