Oil-weighted stocks’ returns

Between March 6 and March 13, our list of oil-weighted stocks rose 2.4% compared to the 3.6% rise in US crude oil April futures. On average, our list of oil-weighted stocks underperformed US crude oil prices.

California Resources Making Large Move amid Oil’s Rise

Outperformer among oil-weighted stocks

Let’s take a look at the oil-weighted stocks that have outperformed their peers in the last five trading sessions:

  • California Resources (CRC) rose 11.3%.
  • Oasis Petroleum (OAS) rose 7.4%.
  • Carrizo Oil & Gas (CRZO) fell 6%.

CRZO had the fifth highest positive correlation with US crude oil futures, which we discussed in the previous part. Moreover, CRC and OAS had over a 70% correlation with US crude oil futures. In fact, on March 13, CRC rose 6.3% with a rise of 2.4% in US crude oil prices. Moreover, in the last three trading sessions, CRC rose 22.7% with just a 3.9% rise in US crude oil. Since its earnings results on February 27, CRC outperformed US crude oil gains in almost all instances. On February 27, California Resources announced an adjusted net income of $0.53 per diluted share for the last quarter, nearly 600% above analysts’ consensus estimates.

Underperformer among oil-weighted stocks

Now, let’s look at the oil-weighted stocks that underperformed their peers in the last five trading sessions:

  • Pioneer Natural Resources  (PXD) fell 2.2%.
  • Concho Resources (CXO) fell 3.1%.
  • EOG Resources (EOG) fell 3.7%.

Despite a higher correlation, EOG ended in the red. The losses earlier in the period dragged down EOG. CXO had the least positive correlation with US crude oil futures during this period.

These oil-weighted stocks are part of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). They operate with production mixes of at least 60% in liquids based on the latest quarterly production data.

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