Kodiak Oil & Gas to fund capex using cash flow, available liquidity

By Lisa Kerner

Charlotte, N.C., Oct. 2 - Kodiak Oil & Gas Corp. tries to stay "pretty clean from a liquidity standpoint," chief executive officer Lynn Peterson said during a presentation at the Johnson Rice & Co. Fourth Annual Energy Conference in New Orleans on Tuesday.

The company currently has $800 million of outstanding 8 1/8% senior notes due 2019.

In addition, Kodiak has a $750 million foreign-based facility with little drawn on the available $375 million borrowing base, said Peterson.

Total liquidity is about $400 million.

Kodiak expects to fund its $650 million of capital expenditures using cash flow and liquidity. The bulk of the expenditures - $640 million - will be used for drilling, completion and related facilities. An additional $10 million will be used to acquire additional acreage.

The Denver-based energy exploration and development company will continue with its disciplined financial approach with low leverage, according to Peterson.

Kodiak is targeting a long-term debt-to-EBITDA ratio of less than 2 times.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.