Oasis Petroleum’s stock performance
Following Oasis Petroleum’s (OAS) 2Q17 earnings release after the market closed on August 2, 2017, its stock rose to a high of $7.76 in after-market trading—compared to a market close of $7.36 the same day, which was an increase of 5%.
As you can see above, Oasis Petroleum stock has mostly mimicked crude oil price movements this year. However, its relative performance has been far more dismal. While Oasis Petroleum stock has fallen 53% since the beginning of the year, crude oil prices have fallen 5.4% during the same period. While crude oil prices had their fair share of lows this year, there have been signs of recovery. On July 31, crude oil prices rose above $50 per barrel for the first time in two months. However, prices fell below $50 the next day.
Crude oil prices and natural gas prices have also driven the Energy Select Sector SPDR ETF’s (XLE) movements. XLE has fallen ~13% since the beginning of the year.
Since the beginning of the year, Oasis Petroleum stock and XLE have underperformed the SPDR S&P 500 ETF (SPY). SPY has risen ~10% since the beginning of the year. The energy sector makes up ~7% of SPY.
As we saw above, Oasis Petroleum stock rose in after-market trading following the announcement of its 2Q17 earnings on August 2, 2017. In 2Q17, its earnings and revenue were in line with analysts’ expectations. So, the positive movement in crude oil prices could have supported the increase. While crude oil prices fell from the $50 per barrel mark on August 2, crude oil prices rose to $49.59 per barrel—compared to the previous close of $49.16 per barrel.
Next, we’ll discuss Oasis Petroleum’s implied volatility.