January 10, 2013 / 4:52 PM / 5 years ago

TEXT - S&P rates Kodiak Oil & Gas

Jan 10 - Standard & Poor's Ratings Services today affirmed its 'B-' senior
unsecured debt issue rating on Denver-based Kodiak Oil & Gas, and at the same
time assigned its 'B-' issue rating (one notch lower than the corporate credit
rating) to the company's proposed $300 million senior unsecured notes due 2021.
The senior unsecured recovery rating is '5', indicating our expectation of
modest (10% to 30%) recovery in the event of a payment default. The 'B'
corporate credit rating on Kodiak and positive outlook are unaffected. The
exploration and production company intends to use proceeds to refinance
borrowings under its creditfacility. 

The ratings on Kodiak Oil & Gas reflect our view of its "aggressive" financial 
risk profile, "vulnerable" business risk profile, and "adequate" liquidity 
assessment. These assessments reflect the company's relatively small asset 
base and production levels, lack of geographical diversification, and high 
spending levels in excess of projected operating cash flows. In addition, our 
assessment also includes the company's significant exposure to strong crude 
oil prices, a favorable cost structure, and a solid resource play acreage 

For the complete recovery analysis, see the Standard & Poor's recovery report 
on Kodiak following this release on RatingsDirect.

     -- Revised Assumptions For Assigning Recovery Ratings To The Debt Of Oil 
And Gas Exploration and Production Companies, Sept. 14, 2012
     -- Recovery Price Deck For Exploration And Production Companies Revised, 
Sept. 14, 2012
     -- Key Credit Factors: Global Criteria For Rating The Oil And Gas 
Exploration And Production Industry, Jan. 20, 2012

Temporary contact number: Susan Ding (516-680-8119); Paul Harvey (914-539-1288)

Kodiak Oil & Gas
 Corporate credit rating                     B/Positive/--
 Senior unsecured debt rating                B-
  Recovery rating                            5

New Ratings
 Proposed $300 mil sr unsecd notes due 2021  B-
  Recovery rating                            5

Our Standards:The Thomson Reuters Trust Principles.
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