Top E&P Gainers for the Week Ending August 17


Energen (EGN) was the top E&P (exploration & production) gainer in the week ending August 17—it gained 6.2%. Energen stock rallied following Diamondback Energy’s (FANG) announcement that it will acquire the company in an all-stock deal. According to the deal’s terms, each Energen shareholder would receive 0.6442 shares of Diamondback Energy’s common stock—a value of $84.95 per share. Energen was trading at $71.4 per share before the acquisition announcement.

Top E&P Gainers for the Week Ending August 17

Viper Energy Partners

Viper Energy Partners (VNOM), a mineral interest owner structured as an MLP, was the top E&P gainer last week. Viper Energy Partners rose 3.5% last week. Last week, the partnership’s rally could be attributed to positive rating upgrades and higher target prices. Viper Energy Partners has risen 19.0% since the beginning of August. The rise could mainly be due to the partnership’s strong second-quarter earnings and increased production guidance for fiscal 2018. Viper Energy Partners expects its 2018 production to be 16,500 boe/d–17,000 boe/d (barrels of oil equivalent per day). At the midpoint, the production range represents a 52% increase compared to the production in 2017. Overall, Viper Energy Partners has gained 64.5% YTD.

Other top E&P gainers

Unit (UNT) and Denbury Resources (DNR) were the only other two E&P stocks that ended in the green last week. Next, we’ll discuss analysts’ rating updates last week.