Penn Virginia (PVAC), a pure play Eagle Ford basin focused upstream company, was the lowest-performing exploration and production company in the week ending September 7. PVAC fell 16.3% last week amid weakness in crude oil and natural gas prices. Moreover, the sharp decline in PVAC could be attributed to concerns about the impact of hurricanes on production in the Gulf Coast.
Despite last week’s decline, PVAC is up 90.2% since the start of this year, which could be attributed to the company’s strong earnings growth resulting from strong production growth and improvement in operating margins. PVAC posted adjusted EBITDAX of $75.7 million in the second quarter of 2018, which represented a 227.1% YoY and 49.7% quarter-over-quarter increase.
Southwestern Energy Company
Southwestern Energy Company (SWN), an Appalachian-focused natural gas weighted exploration and production stock, was the second weakest upstream stock last week. It fell 14.1%. SWN’s decline last week could also be mainly attributed to the weakness in natural gas prices and a rating downgrade from BMO Capital, which we’ll discuss more in a later article. SWN entered the red with last week’s decline. It is now down 13.4% YTD (year-to-date).
Gulfport Energy (GPOR), another gas-weighted stock, was the third weakest upstream stock last week. GPOR ended the week 12.2% lower. GPOR has fallen 19.1% in 2018 so far.
Other lowest performers
Wildhorse Resource Development (WRD), Ring Energy (REI), California Resources (CRC), Range Resources (RRC), SandRidge Energy (SD), Continental Resources (CLR), and Denbury Resources (DNR) were among the top ten lowest-performing upstream companies last week.
In the next article, we’ll look into last week’s analyst rating updates.