The warning by President Donald Trump that the U.S. is “locked and loaded” ready to attack Iran over suspicion that it was behind the drone attacks on refineries in Saudi Arabia not only sent crude oil prices surging but also saw upstream stocks climbing.
In a tweet, Trump also suggested that the U.S. will boost production and supply by expediting the approval of pending pipelines. Consequently, in a show of confidence by the market that this will benefit the U.S. oil exploration and production firms, the stocks of upstream oil companies soared.
Per MarketWatch, virtually all the major pre-market gainers on Monday were hydrocarbon exploration firms.
Here are three of the biggest pre-market gainers:
Chesapeake Energy Corp was the biggest pre-market gainer not just among oil stocks but across the board. It rose by nearly 20.79%.
The firm which is headquartered in Oklahoma City currently operates in its home state, Louisiana, Texas, Pennsylvania and Wyoming. Chesapeake claims to have proven reserves amounting to 1.448 Billion of Barrels of Oil Equivalent (bboe). Around 190 Million Barrels of Oil Equivalent (mmboe) are currently in production.
The Denver-headquartered Centennial Resource Development boasts a producing area measuring over 80,000 acres in the Delaware Basin. It has approximately 2,400 drilling locations of which 90% are operational.
With the firm likely to be a beneficiary of an increase in U.S. oil exports as well as domestic consumption, the market rewarded this upstream stock by sending it surging by 19.95% in premarket hours.
The Oklahoma City-based Devon Energy boasts a net acreage of approximately 3.8 million with the number of wells that are in production being over 21,000. Last year Devon Energy produced an average of 535,000 barrels of oil equivalent per day. It surged by 12.29% during the pre-market hours.
Last modified: September 23, 2020 1:01 PM