8 Nov

Upstream Gainers this Week: California Resources Leads

WRITTEN BY Nicholas Chapman

Upstream gainers

In this part of the series, we’ll look at the top percentage gainers from the oil and gas production—or upstream—sector in the United States this week. To compile our list of top upstream gainers, we used only oil and gas producers with market capitalizations greater than $100 million and average trading volume last week greater than 100,000 shares.

Upstream Gainers this Week: California Resources Leads

California Resources rising strongly this week

This week, California Resources (CRC) rose from last week’s close of $12.04 to $16.04 on November 7—a significant rise of ~33%. CRC rose more than 3% on Monday as the market opened after the company announced its 3Q17 earnings. In 3Q17, California Resources reported revenues of ~$445 million—lower than the Wall Street analyst consensus of ~$489 million. However, CRC beat earnings per share or EPS estimates by $0.37 in 3Q17. CRC reported an adjusted loss of $1.22 per share, whereas Wall Street analyst consensus was for a loss of $1.57 per share.

Riding on industry-wide bullish sentiment: DNR, JONE, CHK, and SN

Other upstream stocks on our list of the top gainers this week are Denbury Resources (DNR), Jones Energy (JONE), Chesapeake Energy (CHK), and Sanchez Energy (SN). These stocks rose 25.76%, 21.32%, 11.76%, and 10.37%, respectively.

Notably, today Denbury Resources (DNR) and Jones Energy (JONE) reported better-than-expected 3Q17 earnings. DNR reported adjusted EPS of $0.04, beating Wall Street analyst EPS estimates by $0.03, whereas JONE reported EPS of -$0.13 beating the Wall Street analyst EPS estimates by $0.06.

Chesapeake Energy (CHK) announced its 3Q17 earnings on November 2, reporting adjusted EPS of $0.12 and beating the Wall Street analyst EPS estimates by $0.01. After announcing 3Q17 earnings last Thursday, CHK fell ~8% in one session on heavy volume. However, Chesapeake Energy (CHK) reversed the trend immediately, and it’s been rising since Friday due to rising natural gas (UNG) prices. Since Friday, CHK is up more than 14%.

These stocks also managed to beat the SPDR S&P Oil and Gas Exploration & Production ETF (XOP)—which represents an index of stocks across the energy industry. XOP is up 3.68% this week

In comparison, the SPDR Dow Jones Industrial Average ETF (DIA) is 0.10% higher this week.

Next, we’ll look at the upstream stocks that are trending down this week.

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