In this part, we’ll discuss the top percentage gainers from the upstream sector in the US for the current week starting on March 26, 2018. To compile the list of the top upstream gainers, we used oil and gas producers with market capitalizations greater than $100 million and an average trading volume greater than 100,000 shares last week.
Legacy Reserves LP
In the week starting on March 26, 2018, Legacy Reserves LP (LGCY) increased from last week’s close of $4.47 to $4.94 on March 26—an increase of ~11%. Legacy Reserves increased ~11% on Monday on more than the 30-day average volume after the company announced a corporate transition.
On March 26, 2018, Legacy Reserves LP announced the key elements of its transition to Legacy Reserves. According to Legacy Reserves LP’s press release, each unit of the old Legacy Reserve LP will receive one common stock of the new Legacy Reserves. The Old Legacy Reserves’ Series A (LGCYP) and Series B (LGCYO) preferred units will be converted to 1.9620 and 1.72236 shares of common stock of the new Legacy Reserves.
While commenting on the transition, Legacy Reserves’ Chairman and CEO Paul T. Horne, said, “As a result of the Transaction, Legacy will become a newly-traded C-Corp stock with a less complicated balance sheet and an enhanced opportunity to raise capital and grow the business.”
In 2018, Legacy Reserves LP has risen ~207% year-to-date.
Other upstream stocks
Other upstream stocks on the list of the top gainers this week are Denbury Resources (DNR), Parsley Energy (PE), Diamondback Energy (FANG), and California Resources (CRC). They have risen ~4.8%, ~4.3%, ~4.1%, and ~3.7%, respectively.
Last month, Diamondback Energy initiated an annual cash dividend of $0.50 per common share. The dividend is payable quarterly beginning in 1Q18. According to S&P Global Market Intelligence, Diamondback Energy became the first US shale oil company to start a dividend since crude oil’s downturn started in 2014.
These stocks also managed to beat the SPDR S&P Oil and Gas Exploration & Production ETF (XOP). XOP represents an index of stocks across the energy industry. XOP has ~78.5% exposure to the oil and gas exploration and production industry. XOP has risen ~1.9% this week.
Next, we’ll discuss the upstream stocks that are trending down this week.