KeyBanc Raises Price Target on Kodiak Oil & Gas (KOG) Financially Secure Following Stock Offering

KeyBanc is reiterating its Buy rating on shares of Kodiak Oil & Gas (NYSE: KOG) and is raising its price target from $8 to $10 following the completion of 27.6 million stock offering.

The offering raised $159.4 million in equity and the firm believes that it allows the company to accelerate its high rate of return development plan in the Bakken/Three Forks by bridging the gap between 2011/2012 capex and internally generated cash flow.

Due to the firm's new outlook of 45 net wells for 2012, it increased its 2012 production estimate from 12.3 Mboe/d to 13.5 Mboe/d. This increase represents a year-over-year growth of 199.7 percent.

KeyBanc is also tweaking its 2011 and 2012 EPS estimate from $0.30 and $0.57 to $0.26 and $0.62. To reflect a higher production level, the firm also raised its 2012 cash flows estimate from $262.1 million to $300.7 million.

For more ratings news on Kodiak Oil & Gas click here and for the rating history of Kodiak Oil & Gas click here.

Shares of Kodiak Oil & Gas closed at $6.40 yesterday.

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