Kodiak Oil & Gas Corp (USA) (KOG) Bulks up on the Bakken

When looking at Kodiak Oil & Gas Corp (USA) (NYSE:KOG), the story here is how quickly the company has boosted its production. While it’s still well behind more developed peers like Whiting Petroleum Corp (NYSE:WLL) and Hess Corp. (NYSE:HES), those companies have much larger operations which span several production basins. That’s given them the financial flexibility to reinvest capital produced elsewhere into the Bakken.

Therein lies a key risk for Kodiak, its putting all of its eggs in the Bakken basket. Its focus there has led to tremendous production growth over the past few years; however, the Bakken is still an emerging play and many worry about the rapid decline rates really holding back production growth. While it will be increasingly tougher for Kodiak Oil & Gas Corp (USA) (NYSE:KOG) to keep up its triple-digit-growth rates, the company is making all the right moves to keep growing with this latest deal as a prime example.

The article Kodiak Bulks up on the Bakken originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.