Brigham Exploration Company (Nasdaq:BEXP) reported rapid production growth in the third quarter of 2010, as it continued to benefit from its early investment in the Williston Basin. The company also solidified its place as one of the leaders in the Bakken, one of the hottest oil and gas plays in North America.


IN PICTURES: Learn To Invest In 10 Steps

Q3 Summary
Brigham Exploration Company reported average daily production of 8,509 barrels of oil equivalent (BOE) during the third quarter of 2010. This represented production growth of 64% year over year, and 10% sequentially.

Another company with rapid production growth is Petrohawk Energy (NYSE:HK), which turned in 34% year over year production growth in the most recent quarter.

Seventy five percent of Brigham Exploration Company's production was crude oil in the most recent quarter, compared to only 50% in the third quarter of 2009. This percentage should continue to move higher as the company's investments are being allocated mostly to oily plays in the United States.

Brigham Exploration Company also forecasts that this strong production growth would continue for the balance of the year. The company expects average daily production for the fourth quarter of 2010 to be in a range from 10,200 to 10,800 BOE per day.

Williston Basin
Brigham Exploration Company is putting most of its exploration and development capital into the Williston Basin, where the company is developing the Bakken and Three Forks formations in North Dakota and Montana. Brigham Exploration Company is operating six rigs in three separate project areas, and will move up to eight rigs by May 2011.

Brigham Exploration Company has allocated $466.1 million in exploration and development capital in 2010, which will cover drilling nearly 45 wells in the Williston Basin and five wells in other areas the company is developing.

This investment continues to pay off for the company as demonstrated by three recent wells drilled and completed to the Bakken formation. Brigham Exploration Company reported that the wells had initial production rates ranging from 2,417 to 5,061 BOE per day.

Other Companies
The Williston Basin has become ground zero in North America for the oil and liquids frenzy currently gripping the exploration and production industry. Another company active in this basin is Continental Resources (NYSE:CLR), which has approximately 865,000 net acres under lease that are prospective for the Bakken and Three Forks formations in North Dakota and Montana. Continental Resources reported average daily production of 20,160 BOE per day from its Bakken wells in the third quarter of 2010.

Oasis Petroleum (NYSE:OAS) is also developing the Bakken and Three Forks formation on its 292,000 net acres under lease in the Williston Basin. The company estimates that it has just over 1,000 net locations to drill on its properties.

Bottom Line
Brigham Exploration Company continued its top-tier production growth in the third quarter of 2010, as the company reaped the benefit of its early move into the Williston Basin. (For related reading, take a look at How Does Crude Oil Affect gas Prices?)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Personal Finance

    A Day in the Life of an Equity Research Analyst

    What does an equity research analyst do on an everyday basis?
  2. Mutual Funds & ETFs

    ETF Analysis: PowerShares S&P 500 Downside Hedged

    Find out about the PowerShares S&P 500 Downside Hedged ETF, and learn detailed information about characteristics, suitability and recommendations of it.
  3. Mutual Funds & ETFs

    ETF Analysis: iShares Morningstar Small-Cap Value

    Find out about the Shares Morningstar Small-Cap Value ETF, and learn detailed information about this exchange-traded fund that focuses on small-cap equities.
  4. Mutual Funds & ETFs

    ETF Analysis: ProShares Large Cap Core Plus

    Learn information about the ProShares Large Cap Core Plus ETF, and explore detailed analysis of its characteristics, suitability and recommendations.
  5. Mutual Funds & ETFs

    ETF Analysis: iShares Core Growth Allocation

    Find out about the iShares Core Growth Allocation Fund, and learn detailed information about its characteristics, suitability and recommendations.
  6. Mutual Funds & ETFs

    ETF Analysis: iShares MSCI USA Minimum Volatility

    Learn about the iShares MSCI USA Minimum Volatility exchange-traded fund, which invests in low-volatility equities traded on the U.S. stock market.
  7. Stock Analysis

    Should You Follow Millionaires into This Sector?

    Millionaire investors—and those who follow them—should take another look at the current economic situation before making any more investment decisions.
  8. Professionals

    What to do During a Market Correction

    The market has corrected...now what? Here's what you should consider rather than panicking.
  9. Mutual Funds & ETFs

    ETF Analysis: WisdomTree SmallCap Earnings

    Discover the WisdomTree Small Cap Earnings ETF, a fund with a special focus on small-cap and micro-cap stocks with positive earnings.
  10. Mutual Funds & ETFs

    ETF Analysis: iShares US Regional Banks

    Obtain information and analysis of the iShares US Regional Banks ETF for investors seeking particular exposure to regional bank stocks.
RELATED TERMS
  1. Equity

    The value of an asset less the value of all liabilities on that ...
  2. Profit Margin

    A category of ratios measuring profitability calculated as net ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis ...
  4. Debt Ratio

    A financial ratio that measures the extent of a company’s or ...
  5. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing ...
  6. Net Present Value - NPV

    The difference between the present values of cash inflows and ...
RELATED FAQS
  1. What is the formula for calculating compound annual growth rate (CAGR) in Excel?

    The compound annual growth rate, or CAGR for short, measures the return on an investment over a certain period of time. Below ... Read Full Answer >>
  2. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  3. When does the fixed charge coverage ratio suggest that a company should stop borrowing ...

    Since the fixed charge coverage ratio indicates the number of times a company is capable of making its fixed charge payments ... Read Full Answer >>
  4. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  5. What is the difference between the return on total assets and an interest rate?

    Return on total assets (ROTA) represents one of the profitability metrics. It is calculated by taking a company's earnings ... Read Full Answer >>
  6. How does additional paid in capital affect retained earnings?

    Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!