Let’s look now at the top percentage gainers from the upstream sector in the United States from June 18–20. To compile the list, we only used oil and gas producers with market capitalizations greater than $100 million and an average trading volume greater than 100,000 shares last week.
Energy XXI Gulf Coast rising
From June 18–20, Energy XXI Gulf Coast (EGC) rose from last week’s close of $7.49 to $8.97, an increase of 20%. Most of the gains came on June 18 when EGC rose 19% on a higher-than-30-day-average volume.
On June 18, before the market opened, EGC announced the signing of a definitive agreement to be acquired by an affiliate of Cox Oil. According to the agreement, Cox Oil will acquire all the outstanding common stocks of EGC for $9.10 per fully diluted share in cash, for a total consideration of $322 million. The transaction is expected to close in the third quarter.
Riding on the industry-wide bullish sentiment: DNR, EPE, CRC, and FANG
Other upstream stocks making it to the list of top gainers from June 18–20 are Denbury Resources (DNR), EP Energy (EPE), California Resources (CRC), and Diamondback Energy (FANG). They rose 19.4%, 14.8%, 14.2%, and 12.1%, respectively, in that period.
On June 18, Denbury Resources announced that it has sanctioned a CO2 EOR (enhanced oil recovery) project at Cedar Creek Anticline. The project has targeted EOR potential of more than 400 million barrels. The first tertiary production is expected in late 2021 or early 2022.
These stocks managed to beat the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), which represents an index of stocks across the energy industry. XOP has 78% exposure to the oil and gas exploration and production industry. It rose 4.8% from June 18–20.
Next, let’s look at the upstream stocks that are on a downward trend this week.