Comparing WLL, OAS, PDCE, and CXO
This series will compare the performances of Whiting Petroleum (WLL), Oasis Petroleum (OAS), PDC Energy (PDCE), and Concho Resources (CXO). First, let’s look at the one-year returns for these companies compared to the broader industry.
PDC Energy has performed better than its peers between March 2015 and March 2016, and Concho Resources has been a close second. Both stocks have outperformed the broader industry ETF, the Energy Select Sector SPDR ETF (XLE).
Oasis Petroleum and Whiting Petroleum have performed poorly compared to their peers as well as to XLE. It’s interesting to note that Oasis was the top-performing stock at the beginning of the period under discussion. Whiting, on the other hand, has underperformed its peers as well as XLE throughout the period.
All of these companies make up a combined 4.6% of XLE. They also make up 4.5% of the iShares U.S. Oil & Gas Exploration & Production ETF (IEO).
PDCE was the outlier
All the above-mentioned stocks started falling in December 2015 thanks to the beginning of the sub-$40 oil price phase. However, the fall was relatively muted for PDCE.
PDCE is the only stock to have given positive returns between March 2015 and March 2016. PDCE’s lower cost structure, hedges, and strong financial position have boosted the market’s optimism for the stock, explaining its superior performance versus those of its peers.
While CXO also fell in December 2015, it has since recovered, as can be seen in the graph above. WLL and OAS fell in the same period and have failed to touch their pre-December levels.
While all these stocks have been rallying recently due to the recent rally in crude oil prices, WLL and OAS remain quite low compared to last year’s levels.