In this part, we’ll look at the top gainers from the oil and gas production or upstream sector in the US this week (starting October 9). To compile our list of top upstream gainers, we’ve used only oil and gas producers with market capitalizations of higher than $100 million and an average trading volume greater than 100,000 shares.
Legacy Reserves rising strongly this week
This week, Legacy Reserves (LGCY) has risen from its last week’s close of $1.49 to $1.63 on October 10—a significant rise of more than 9%. Interestingly, there has been no news release from the company this week.
However, LGCY has been in a strong upward trend since August 22, 2017. LGCY crossed above its 50-day moving average in mid-September and is now trading ~10% below its 200-day moving average. As of October 10, 2017, LGCY closed at $1.63, while its 200-day and 50-day moving averages stood at $1.82 and $1.32, respectively. Since its low in August, Legacy Reserves has risen ~50%.
Riding on the industry-wide bullish sentiment
Other upstream stocks making it to the list of top gainers this week include Tellurian (TELL), SM Energy (SM), QEP Resources (QEP), and Halcon Resources (HK), which have gained 9.37%, 5.30%, 3.82%, and 3.51%, respectively, so far.
On September 27, 2017, SM Energy (SM) announced a cash dividend of $0.05 per share on its common stock. This dividend is payable on November 1, 2017, to stockholders of record as of October 20, 2017. Last week, QEP Resources (QEP) announced that they would release its 3Q17 earnings on October 25, 2017, after the market closes.
On October 10, 2017, Halcon Resources (HK) announced that it had completed the tender offer to purchase up to $425 million of its unsecured 6.75% senior notes due 2025.
These stocks managed to beat the SPDR S&P Oil and Gas Exploration & Production ETF (XOP), which represents an index of stocks across the energy industry. XOP has risen 0.18% this week, while the SPDR Dow Jones Industrial Average ETF (DIA) has risen 0.31% this week.
So far this week, ION Geophysical (IO) has risen from last week’s close of $8.85 to $9.20 on October 10—a rise of ~4%.
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