Who Were the Biggest Upstream Losers Last Week?
Having looked at the gainers in the oil and gas production sector last week, we’ll now move on to the losers for the week ending September 8, 2017. For our analysis, we have used the oil and gas producers with market capitalizations of more than $100 million and a volume of greater than 100,000 shares.
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Resolute Energy was biggest loser last week
In the week ending September 8, 2017, Resolute Energy (REN) fell from $29.63 to $24.28, a decrease of ~18%. There weren’t any specific news events that moved the stock. However, REN has been in a strong downtrend since it hit the 52-week high of $49.14 in February 2017. Since then, REN has lost more than 50% of its market capitalization, and currently, it’s trading close to its 52-week low of $20.47.
Another significant loser from the oil and production industry for the week was Carrizo Oil & Gas (CRZO). Carrizo fell almost 17%, mainly due to the announcement that it will divest most of its Utica Shale assets for ~$62 million in cash. CRZO will also receive contingent payments up to $15 million as a part of the agreement. The transaction is expected to close in 4Q17.
On the list of top losers in the sector, Resolute Energy (REN) and Carrizo Oil and Gas (CRZO) were followed by Whiting Petroleum (WLL), which fell from $4.58 to $4.00 or by ~13%. The decline in Whiting Petroleum can be attributed to the plan it announced on September 7, 2017, to undertake the reverse stock split at a ratio ranging from one-for-two to one-for-six. WLL’s stock has been in a steep downtrend in 2017 and fell from $12.02 to $4.00, a year-to-date decline of almost 67%.
Other top decliners from the oil and gas production industry include Southwestern Energy (SWN) and Approach Resources (AREX), which saw declines of ~9% each. Overall, the SPDR S&P Oil and Gas Exploration & Production ETF (XOP), which represents an index of stocks across the energy industry, was weaker last week and fell ~2%.