Shares of independent oil and natural gas producers followed the broader market higher Monday as crude futures wavered between gains and losses.
In late-morning trading, light, sweet crude for May delivery was down 19 cents to $101.65 a barrel on the New York Mercantile Exchange. Retail gasoline and diesel prices fell at the pump, while April natural gas futures rose 21 cents to $9.275 per 1,000 cubic feet on the Nymex.
Petroleum Development Corp., which last week posted a 2.5 percent gain in fourth-quarter profit, was among the sector's biggest gainers.
RBC Capital Markets analyst Leo Mariani said in a note to investors Monday that the company's cash flow during the quarter was better than expected because of surprisingly strong commodity prices. He also noted that the company's finding and development costs for new reserves last year were less than half the industry average. Mariani rates the company "Outperform."
SunTrust Robinson Humphrey analyst John Gerdes, meanwhile, reiterated his "Buy" rating on the company but lowered his price target by $3 to $81 per share to account for higher operating expenses and lower oil prices.
Petroleum Development shares jumped $3.97, or 6.8 percent, to $62.67.
Other gainers included Bois d'Arc Energy Inc., which rose 58 cents, or 3 percent, to $20.27. EOG Resources Inc. rose $2.66, or 2.4 percent, to $114.89, while XTO Energy Inc., was up $1.33, or 2.3 percent, to $58.83.
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