Kodiak Oil & Gas reported its fourth-quarter and full-year financial results after the market closed today. The company reported net income of $26.6 million or $0.17 per share, which missed analysts' estimates by a penny. That was still 40% higher than the $33.3 million, or $0.12 per share the company earned in last year's fourth quarter.
Operating cash flow was also strong at Kodiak Oil & Gas. The company's net cash flow from operating activities was $168.1 million in the quarter. That was well above the $69.4 million the company reported in the fourth quarter of 2012.
Fueling earnings and cash flow growth was the company's surging production. Production volumes increased 98% from the fourth quarter of 2012 to 3.3 million barrels of oil equivalent this past quarter. However, the company's growth rate did slow sequentially, as production was up just 2% over the prior quarter.
Slowing sequential production wasn't the only headwind that Kodiak Oil & Gas faced in the quarter. The price it realized for its oil slipped 13% from just the prior quarter, though its average realized oil price is up 9% year over year. In addition to lower oil prices, Kodiak's lease operating expenses rose in the quarter by 4% over the prior quarter and is up 9% over the past year.
Despite the headwinds, Kodiak Oil & Gas reported a pretty strong quarter. Looking ahead, the company sees strong production growth again in 2014, though the rate will slow to 45%. The company remains well positioned to grow as it continues drilling in the oil-rich Bakken Shale.
The article Surging Production Fueled Earnings Growth at Kodiak Oil & Gas originally appeared on Fool.com.Matt DiLallo and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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