Oilfield service stocks
In this part of our series, we’ll analyze the top percentage gainers from the oilfield service sector in the United States this week. To compile our list of the top oilfield service gainers, we used oilfield services companies with market capitalizations greater than $100 million and average volumes greater than 100,000 shares last week.
Basic Energy Services gaining the most this week
This week, Basic Energy Services (BAS) is at the top of our list of gainers from the oilfield service space. BAS rose from last week’s close of $17.24 to $18.91 on September 27—a sizeable increase of ~10%. Interestingly, there’s been no news release from the company about this move this week. For the last two weeks, the entire energy sector has been rising strongly on the back of strong crude oil (USO)(USL) and natural gas (UNG)(BOIL) prices. Last week, BAS was leading the mid-week gainers. It finished last week with gains of ~14%.
The key highlight this week includes BAS clearing its 50-day moving average on Tuesday with heavy volume. Currently, BAS is trading at $18.91, whereas its 50-day moving average stands at $18.37.
Despite strong gains in recent weeks, Basic Energy Services is still in a strong declining trend in 2017. It his a new 52-week low of $14.03 in August. Year-to-date, BAS is down ~47%. Basic Energy Services started trading on the NYSE (New York Stock Exchange) in December 2016 after Chapter 11 reorganization.
Moving up: EXH, TESO, WFT, KEG
In our list of gainers this week, Basic Energy Services (BAS) is followed by Archrock (EXH), Tesco Corporation (TESO), Weatherford International (WFT), and Key Energy Services (KEG). EXH, TESO, WFT, and KEG rose 6.72%, 5.71%, 5.63%, and 5.04%, respectively, so far this week.
On September 21, Key Energy services (KEY) announced the closure of its divestment of a well intervention business in Russia for an undisclosed amount. This sale was part of KEY’s strategy to exit businesses outside the United States.
In general, there’s very positive sentiment about oilfield service stocks this week, which is evident in the decent gain of 3.01% in the VanEck Vectors Oil Services ETF (OIH), representing an index of stocks from the industry.
In comparison, the SPDR Dow Jones Industrial Average ETF (DIA) is down marginally by 0.04% this week.