Last Week’s Strongest Exploration and Production Stocks

Black Stone Minerals (BSM), a mineral interest owner structured as an MLP, was the strongest E&P (exploration and production) stock last week, rising 11.1%. This growth may have been due to its strong second-quarter earnings and gains in natural gas prices. Its distribution rose 8% year-over-year during the quarter, and the partnership increased its 2018 production guidance. BSM has risen 6.4% this year, while peer Viper Energy Partners (VNOM) has risen 59%. For a comparison of the two royalty owners, read VNOM and BSM: A Comparative Analysis of Two Mineral Interest MLPs.

Kosmos Energy (KOS), which focuses on emerging regions in Africa and South America, was the second-strongest E&P gainer stock last week, rising 10.7%. KOS stock rallied following the company’s announcement of its acquisition of Deep Gulf Energy for $1.225 billion. According to a press release, the transaction “adds approximately 25,000 barrels of oil equivalent per day (boed) production (~85% oil), with an estimated reserves to production ratio of 8.8, growing 2018 pro forma production by 50% from approximately 45,000 to 70,000 boed.” KOS has risen 23.5% this year.

Unit (UNT), which is involved in E&P, contract drilling, and natural gathering and processing, was the third-strongest E&P stock last week, rising 9.6%. The gain may have been due to natural gas prices rising and the company’s robust Q2 earnings. Overall, UNT has risen 18.3% this year.

Southwestern Energy (SWN), Callon Petroleum (CPE), Alta Mesa Resources (AMR), Oasis Petroleum (OAS), Resolute Energy (REN), Matador Resources (MTDR), and Centennial Resource Development (CDEV) were among the ten strongest E&P stocks last week.