Oil topped $50 a barrel this week, though it did close below that key price point. However, oil was still up 1.9% for the week, due to continued global supply disruptions as well as the looming OPEC meeting. That helped ignite a rally in oil stocks.
According to S&P Global Market Intelligence data, among the best-performing energy stocks this week were Chesapeake Energy (NYSE:CHK), Crestwood Equity Partners (NYSE:CEQP), Pioneer Energy Services (NYSE:PES), Fairmount Santrol Holdings (NYSE:FMSA), and EXCO Resources (NYSE:XCO)
While crude ignited this week’s rally, debt reduction announcements were a clear trend among most of the top movers. Chesapeake Energy’s move, for example, was also fueled by the announcement of another debt-for-equity swap. Meanwhile, both EXCO Resources and Crestwood Equity Partners announced updates to their own debt reduction strategies.
That said, debt wasn’t the only other fuel driving this week’s top-performing stocks. Analysts also played a role in the rally after not one, but two analysts upgraded Fairmount Santrol this week, both seeing strong potential for the company’s frack sand business as higher oil prices drive increased oil-field activities. Those higher oil prices, likewise, will drive improved activity for Pioneer Energy Services. In fact, the company noted at an analyst conference this week that utilization within its drilling and well services segments has already improved from April.
To learn more about why these stocks moved so sharply, check out the following slideshow.
Something big just happened
I don’t know about you, but I always pay attention when one of the best growth investors in the world gives me a stock tip. Motley Fool co-founder David Gardner (whose growth-stock newsletter was the best performing in the U.S. as reported by The Wall Street Journal)* and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations. Together, they’ve tripled the stock market’s return over the last 13 years. And while timing isn’t everything, the history of Tom and David’s stock picks shows that it pays to get in early on their ideas.
Click here to be among the first people to hear about David and Tom’s newest stock recommendations.
*”Look Who’s on Top Now” appeared in The Wall Street Journal in Aug. 2013, which references Hulbert’s rankings of the best performing stock picking newsletters over a 5-year period from 2008-2013.
Matt DiLallo has no position in any stocks mentioned. The Motley Fool recommends Total (ADR). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.