Today's Top 3 Oil and Gas Stocks

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Oil prices and stocks were on the move today after the release of weaker-than-expected manufacturing data. At 5:00 p.m. ET, Brent crude was up 0.87% to $110.92, and WTI crude was down 0.33% to $96.90. U.S. natural gas was up 0.15% to $4.03. The VIX (VOLATILITYINDICES: ^VIX  ) was up 6.93% to 13.58.

Today's top 3 stocks
Among companies with market caps greater than $100 million, today's oil and gas stocks leader was Quicksilver Resources (NASDAQOTH: KWKAQ  ) , up 15.56% to $2.60. After the market close last week, Quicksilver announced that it will sell a 25% stake in its Barnett shale assets to Tokyo Gas for $485 million. The company plans to use the cash to pay down debt, which currently stands at $2 billion. It has $388 million outstanding on a bank credit line, followed by $438 million in bonds due in 2015, with the remaining $1.2 billion due between 2016 and 2019. With so much debt here, I'd pass on this stock.

Second among oil and gas stocks today was Gastar Exploration (NYSEMKT: GST  ) , up 14.20% to $2.01. Today, Gastar announced an agreement with Chesapeake Energy (NYSE: CHK  ) to purchase from Chesapeake land adjoining Gastar's existing Mid-Continent acreage, settle all existing litigation, and repurchase Chesapeake's holdings of Gastar exploration all for $85 million. The land includes 176 producing wells with an estimated present value of $32.4 million.

The repurchase was of 6,781,768 shares of Gastar Exploration for $1.44 per share. To fund the purchase, which has a closing date of June 7, Gastar plans to sell some East Texas assets and issue debt or preferred stock.

And third today was Callon Petroleum (NYSE: CPE  ) , up 3.51% to $3.83 after hitting a 52-week low of $3.62 last week. Callon owns wells both onshore and offshore Texas and Louisiana.

Source: Callon Petroleum Investor Presentation.

Two weeks ago, Callon Petroleum reported earnings and guidance that were below analyst expectations. The company expects to spend more this year on developing its current portfolio and making it more efficient rather than taking on more leases. It plans to undertake its new strategy primarily through an increased focus on horizontal drilling, with 14 horizontal completions expected, compared with just three last year. Analysts have been turning away from the stock, and with it hitting new lows, this could be a good time to take a further look at Callon Petroleum.

Another idea
It's easy to forget the necessity of midstream operators that seamlessly transport oil and gas throughout the United States. Kinder Morgan is one of these operators, and one that investors should commit to memory because of its sheer size -- it's the fourth largest energy company in the U.S. -- not to mention its enormous potential for profits. In The Motley Fool's premium research report on Kinder Morgan, we break down the company's growing opportunity -- as well as the risks to watch out for -- in order to uncover whether it's a buy or a sell. To determine whether this dividend giant is right for your portfolio, simply click here now to claim your copy of this invaluable investor's resource.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2340279, ~/Articles/ArticleHandler.aspx, 9/24/2016 8:18:51 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 23 hours ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:14 PM
^VIX $12.29 Up +0.27 +2.25%
Volatility S&P 500 CAPS Rating: No stars
CHK $6.63 Down -0.24 -3.49%
Chesapeake Energy CAPS Rating: ***
CPE $14.19 Down -0.66 -4.44%
Callon Petroleum CAPS Rating: **
GST $0.87 Down -0.02 -2.61%
Gastar Exploration CAPS Rating: ****
KWKAQ $0.00 Down +0.00 +0.00%
Quicksilver Resour… CAPS Rating: ***