Kodiak Oil & Gas (KOG) 2013/2014 Price Target $20-$30

Kodiak Oil & Gas (KOG) is one of the best small/mid cap oil stocks you can buy.  The company drills for oil in the Bakken Shale located in North Dakota ( http://oilshalegas.com/bakkenshale.html ) where it currently has 155,000 acres.

Kodiak Oil & Gas (KOG) stock recently hit a 52 week high located at $10.41.  Since that high, the stock has pulled back to $9 per share.   While the chart doesn't look so good in the short term, KOG is a strong buy from here on out for the long term.  I am hoping to get a pullback to around $7 or less by the summer of 2012.  Historically, between August -September has been a great time to buy the stock.  This doesn't mean the same will happen in 2012 so you might want to get your feet wet if we see the low $8's.

Kodiak Oil & Gas (KOG) is a volatile stock so you do have to be able to stomach the swings.   Volatility can help you accumulate more shares though if you plan to trade it.

Here is a list of past, present, and future earnings

2010 - $0.03 EPS

2011 - $0.23 EPS Expected - $0.12 of that is expected 2/28/12

2012 - $1.09 EPS Expected

Revenue is expected to grow from $136 million in 2011 to $675 million in 2012.

With a stock price of $9.04. Kodiak Oil & Gas (KOG) is trading at 8.3 times 2012 earnings.  I expect earnings to grow at a fast pace in 2013 and 2014 but not as fast as they did from 2011 to 2012.

By 2013-2014, Oil should be $120-$140 if not higher.  Even if oil remains between $90-$100, I am sticking by my price target due to earnings growth alone.

KOG 2013/2014 Price Target - $20-$30 per share

I spoke about this in chat the other day but I wanted to put this on a forum thread for everyone to look at.