Kodiak Oil & Gas Corp. (NYSE: KOG), an oil and gas exploration and production company with primary assets in the Williston Basin of North Dakota, today announced financial results for the three and 12-month periods ended December 31, 2012. The Company furnished a comprehensive operations update and reported 2012 estimated proved reserves and production and sales volumes in a news release on February 20, 2013.
For the fourth quarter-ended December 31, 2012, the Company reported oil and gas sales of $130.8 million, as compared to $55.0 million during the same period in 2011, an increase of 138%. Kodiak reported an overall 153% increase in quarter-over-quarter equivalent sales volumes with 1.7 million barrels of oil equivalent (MMBOE) sold or an average of 18,200 BOE per day (BOE/d) during the fourth quarter 2012, as compared to 662 thousand BOE, or an average of 7,200 BOE/d in the same period in 2011. Oil and gas sales were $408.7 million for the year ended December 31, 2012, as compared to $120.0 million for 2011, representing a 241% increase. For 2012, Kodiak reported a 250% increase in oil sales volumes and a 532% increase in gas sales volumes, reflecting an overall 267% increase in equivalent sales volumes, compared to 2011. The Company reported sales volumes for 2012 of 5.3 MMBOE, as compared to 1.4 MMBOE during 2011. Crude oil revenue accounted for approximately 96% of oil and gas sales recorded during the fourth quarter and year ended December 31, 2012.
Adjusted EBITDA, a non-GAAP measure, was $106.6 million for the fourth quarter 2012, as compared to $35.0 million in the same period in 2011, reflecting a 205% increase. Kodiak defines Adjusted EBITDA as net income before (i) interest expense, (ii) income taxes, (iii) depletion, depreciation, amortization, and accretion (iv) amortization of deferred financing costs and debt premium, (v) impairment, (vi) non-cash expenses relating to share based payments recognized under ASC Topic 718, (vii) pre-tax unrealized gains and losses on foreign currency, and (viii) pre-tax unrealized gain and losses on commodity price risk management activities. Kodiak reported net cash provided by operating activities during the fourth quarter 2012 of $69.4 million, as compared to $10.8 million during the same period in 2011. For the full year ended December 31, 2012, Adjusted EBITDA was $317.1 million, as compared to $76.4 million for 2011, representing 315% growth. Kodiak reported net cash provided by operating activities during 2012 of $272.7 million, as compared to $53.9 million in 2011.
For the fourth quarter 2012, the Company reported net income of $33.3 million, or $0.12 per diluted share, compared to a net loss of $33.8 million, or $0.15 per diluted share, for the same period in 2011. Net income for the fourth quarter 2012 includes an unrealized loss of $5.3 million related to the mark-to-market of derivative instruments used for commodity hedging and $4.9 million in deferred income tax expense. The net effect of the non-cash hedging activities and non-cash deferred income tax expense decreased Kodiak's reported net income for the fourth quarter 2012 by $0.04 per diluted share. Detailed disclosure of the Company's derivative contracts is available in its filing on Form 10-K for the year-ended December 31, 2012.
By way of comparison, the net loss for the fourth quarter 2011 included unrealized derivative losses of $31.7 million attributed to the non-cash change in the value of derivatives utilized for commodity price risk management, which decreased Kodiak's reported net income for the quarter by $0.14 per basic and diluted share. Also included in the fourth-quarter 2011 net loss is$18.3 million in interest expense, of which $11.5 million was attributed to costs related to a stand-by bridge financing facility that the Company had obtained (but did not use) in conjunction with an asset acquisition transaction.
Kodiak reported record net income for the full year 2012 of $131.6 million, or $0.49 per diluted share, compared to net income of $3.9 million, or $0.02 per diluted share, for 2011. Included in the 2012 net income are unrealized derivative gains of $31.1 million attributed to the non-cash change in the value of derivatives utilized for commodity price risk management and $26.8 million in deferred income tax expense. The net effect of the non-cash hedging activities credit and non-cash deferred income tax expense increased Kodiak's reported net income for 2012 by $0.02 per diluted share. By way of comparison, net income for 2011 includes an unrealized loss of $16.2 million on mark-to-market derivative instruments, which reduced reported net income for 2011 by $0.08 per diluted share.
General and administrative expenses (G&A) for the fourth quarter of 2012 totaled $9.4 million, or $5.58 per BOE, compared to $6.4 million, or $9.71 per BOE, in the fourth quarter of 2011. G&A expenses for the full year 2012 totaled $34.5 million, or $6.57 per BOE, as compared to $19.5 million, or $13.62 per BOE, for the full year 2011. The increase in total G&A expense for the fourth quarter and full year 2012, as compared to the same periods in 2011, is attributed primarily to the hiring of new personnel as the Company continues to expand its oil and gas operations. As of December 31, 2012, Kodiak had 102 employees, as compared to 74 employees as of December 31, 2011.
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