Oil Boom in North Dakota Continues

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Momentum in the Bakken Shale play doesn't appear to be slowing down anytime soon, as companies drill as quickly as they can. Kodiak Oil & Gas' (NYSE: KOG  ) recent results show a huge spike in revenue because of the company's expansion of drilling in the region.

Third-quarter revenue jumped 280% to $112.1 million and average production rose to 15,855 BOE/day from only 3,953 BOE/day a year ago. It's unfortunate that this didn't result in a GAAP profit of more than $3.5 million, or $0.01 per share, because of a loss of $36.7 million from hedging activities. Some of this loss may have reversed in the weeks since the third quarter ended because the price of oil fell.  

Kodiak isn't the only company benefiting from the boom in the Bakken, but it has started from one of the smallest bases, so the numbers are a bit flashier. Bakken competitor Whiting Petroleum (NYSE: WLL  ) is also increasing production, shooting for a 20% to 23% increase year over year. In the third quarter, oil production increased 22% while overall production jumped 17%.  

Falling oil prices in recent weeks may put a damper on these stocks short-term, but if the fiscal cliff is resolved and the economy picks up again, oil will rise, and so will stocks with exposure to Bakken. Kodiak, Continental Resources (NYSE: CLR  ) , Whiting Petroleum, and Statoil (NYSE: STO  ) are three of the largest landholders there, and each is increasing production as shale plays boom in the United States.

Keep an eye on growing production throughout the rest of the year and improving profitability if oil prices rise. As infrastructure is added in the region, margins should increase as well, meaning more to the bottom line for producers.

Ways to play the price of oil
If you're on the lookout for some currently intriguing energy plays, check out The Motley Fool's "3 Stocks for $100 Oil." You can get free access to this special report by clicking here.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2096725, ~/Articles/ArticleHandler.aspx, 10/24/2016 3:02:35 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,227.15 81.44 0.45%
S&P 500 2,150.76 9.60 0.45%
NASD 5,304.00 46.60 0.89%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/24/2016 2:46 PM
CLR $52.02 Down -0.83 -1.57%
Continental Resour… CAPS Rating: **
KOG.DL $0.00 Down +0.00 +0.00%
Kodiak Oil and Gas CAPS Rating: *****
STO $16.47 Down -0.05 -0.30%
Statoil CAPS Rating: ****
WLL $8.66 Down -0.04 -0.40%
Whiting Petroleum CAPS Rating: ***