In the week ending on August 31, California Resources (CRC) was the top E&P (exploration & production) gainer for the second consecutive week. California Resources rose 16.1% last week. Overall, the company has gained ~42% in the past two weeks. The recent rally in California Resources could be attributed to massive short covering amid gains in crude oil prices. California Resources is still trading below its 52-week high of $48.9. So far, the company has risen 113.7% in 2018.
Talos Energy (TALO), which is involved in offshore E&P, was the second-highest E&P gainer in the week ending August 31. The company rallied 11.9% last week. Talos Energy’s gains could be attributed to a new coverage initiation at Seaport Global Securities. Seaport Global Securities started with a “buy” on Talos Energy and assigned a target price of $45, which implies ~30% upside potential from the current price levels.
Halcon Resources (HK), an E&P company in the Delaware Basin, was the third-highest E&P gainer last week. Halcon Resources ended the week 10.4% higher. Despite the recent gains, Halcon Resources has lost ~40% since the beginning of 2018.
Denbury Resources (DNR), which is involved in enhanced oil recovery, continue to be among the top E&P gainers for the second consecutive week. The company rallied 6.7%. Overall, Denbury Resources has gained 152.0% since the beginning of 2018. Denbury Resources’ strong YTD gains could be attributed to the company’s strong earnings growth. The company posted an adjusted EBITDAX of $153 million in the second quarter—compared to $86 million in the same quarter the previous year, which represents an increase of ~78% YoY.
Other top E&P gainers
Next, we’ll discuss the lowest-performing E&P companies last week.