Between November 30 and December 7, Gulfport Energy (GPOR) gained the most on our list of upstream energy stocks. However, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 3.9%—the second-largest fall among the major energy ETFs we discussed in the previous article.
Upstream stocks Laredo Petroleum (LPI), Continental Resources (CLR), PDC Energy (PDCE), and Devon Energy (DVN) were the second-, third-, fourth-, and fifth-largest gainers, respectively, on our list of upstream energy stocks for the week that ended on December 7.
Factors that might be behind the rise
The rise in oil prices because of OPEC and non-OPEC members’ decision to carry out a coordinated production cut of 1.2 MMbpd (million barrels per day) in 2019 may have influenced these upstream energy stocks. LPI, CLR, and PDCE operate with production mixes of at least 50% in liquids, according to their latest quarterly production data. Liquids include crude oil, condensates, and natural gas liquids.
GPOR operates with a production mix of ~89% in natural gas, but bullish sentiments in the oil market may have helped it to rise. Moreover, GPOR might soon be included in the S&P SmallCap 600 Index.
Last week, US crude oil January futures rose 3.3%, while natural gas January futures fell 3.1%.
Next, we’ll discuss the biggest declines in the upstream energy space.