Oil & Gas Stock Roundup: Cimarex's Acquisition, Helmerich & Payne's Q4 & More
Zacks Investment Research | Nov 20, 2018 11:25PM ET
It was a week where oil prices sank to the lowest finish of 2018, while natural gas futures hit more than four-year highs.
On the news front, shale producer Cimarex Energy Company (NYSE:XEC) agreed to buy smaller rival Resolute Energy Corporation (NYSE:REN) in a $1.6 billion deal, while contract driller Helmerich & Payne Inc. (NYSE:HP) reported strong fiscal fourth-quarter 2018 results.
Overall, it was another mixed week for the sector. While West Texas Intermediate (WTI) crude futures lost 6.2% to close at $56.46 per barrel, natural gas prices surged 14.9% to $4.272 per million Btu (MMBtu).
The U.S. crude benchmark tumbled to its lowest settlement of the year, reflecting rising supply from major producers and fear that an economic slowdown will dampen the outlook for demand. U.S. waivers on Iranian sanctions and data showing drillers in the United States adding oil rigs also contributed to the losses.
Meanwhile, natural gas prices reached their highest point since February 2014 as inventories remain significantly below their five-year average amid predictions of strong demand with the early onset of cold weather.
Recap of the Week’s Most Important Stories
1. The Permian deal frenzy continues to sweep the U.S. oil industry, which has created a trend of consolidation in the prolific shale play. The latest energy player to join the bandwagon is Cimarex Energy. The Zacks Rank #2 (Buy) company is set to acquire Resolute Energy in a deal valued at about $1.6 billion to bolster Permian presence.
You can see Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.