Did Kodiak Oil & Gas and Halcon Resources Just Hit the Brakes for 2014?

Even though estimates out there put capital spending in the energy industry at a record $700 billion plus in 2014, Kodiak Oil & Gas (NYSE: KOG  ) and Halcon Resources (NYSE: HK  ) don't seem as interested in joining the party as they may have previously. Kodiak and Halcon both recently announced that their capital budgets will be lower by 6% and 14%, respectively, than in 2013. It's not a major cut, but it is a bit curious considering the production pace these two have set over the past couple of years. 

How much will this affect each company's produciton? Halcon estimates average production for the year will be up 14%, while Kodiak is still shooting for a 45% gain by the end of 2014. All in all, pretty ambitious. To learn more about what these two companies are up to, and what fool.com contributor Tyler Crowe thinks you should watch in 2014 for these two companies, tune in to the video below. 

Three energy companies ready to run in 2014
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  • Report this Comment On December 23, 2013, at 6:35 PM, nevetz44 wrote:

    Mr. Crown;

    I respectfully wish to point out, Sir, that for the first time in its recent stellar history, KOG management indicated it would fund its capital budget from internally generated funds.

    In the past bloggers, including folks at Motley Fool, expressed concern about the amount of debt undertaken by KOG to fund its land acquisitions and drilling activities in the Baaken and elsewhere. Now, that its capital budget will be internally funded you are complaining about putting on the brakes?

    The growth in production and completion activities at KOG will continue to be impressive, even with a more modest capital budget outlay.

    I like the fact that completion activities will be funded with internally generated funds. That is a good thing.

    Please don't make it look like PUTTING ON THE BRAKES is necessarily bad or reflects poorly on KOG's success or its growth.

    I submit it clearly does not.


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