U.S. stocks fell on Thursday following another stimulus disappointment from the European Central Bank (ECB). ECB President Mario Draghi said the bank is not in a rush to boost its bond-buying program.
The S&P 500 fell 0.22% while the Dow Jones Industrial lost 0.25%. The Nasdaq Composite declined 0.46%.
Although Thursday was a glum day for the broader market, Apache Corporation (NYSE:APA), Chesapeake Energy Corporation (NYSE:CHK) and Rite Aid Corporation (NYSE:RAD) gave investors reasons to cheer.
Apache Corporation (APA)
Shares of independent oil and gas producer Apache Corporation climbed 7.1% on more than double the average daily volume after the company announced a massive new discovery in West Texas.
Houston-based APA said there could be up to 3 billion barrels of oil and 75 trillion cubic feet of natural gas in an area of the Permian Basin Apache is calling Alpine High. APA drilled 19 wells in the area, but only nine are currently operational.
The area is hard to access, indicating “that the field is likely to require significant investment before achieving its potential. Apache said only nine of its 19 wells were producing oil or gas, and those are pumping limited quantities because of the poor infrastructure,” reports the Associated Press.
It is believed APA can drill the area profitably with oil prices at $50 per barrel and a jump to $60 per barrel could prompt increased drilling of Alpine High.
Chesapeake Energy Corporation (CHK)
Shares of Chesapeake Energy Corporation, the second-largest U.S. natural gas producer, gained 13.7% on more than double the average daily volume following an encouraging financial update from the previously embattled company.
At a Barclays conference today, CHK said it expects capital spending for 2016 to be $1.3 billion to $1.8 billion this year, well below the nearly $15 billion seen several years ago. Oklahoma-based CHK said it expects 2017 production to be flat with this year’s output.
“Cash costs per barrel are nearly half over the same period, dropping from $7.80 to $4.10. Lease operating expenses have tumbled from $2.28 per barrel to just $0.80,” according to 24/7 Wall Street.
Chesapeake was also boosted by a report from the U.S. Energy Information Administration (EIA) out earlier today that said U.S. natural gas inventories rose to 36 billion cubic feet for the week ending September 2, below the 40 billion cubic feet analysts expected.
Rite Aid Corporation (RAD)
Shares of pharmacy operator Rite Aid Corporation jumped 5.9% on more than six times the usual turnover on signs the company’s merger with rival Walgreens Boots Alliance Inc (NASDAQ:WBA) will be allowed to proceed.
The Walgreens deal for RAD was announced nearly a year ago, but has been on hold due to concerns by U.S. regulators that the move could be anti-competitive for consumers. Walgreens previously pledged to sell or close 500 stores so the deal with Rite Aid could move forward, but that number could prove to be closer to 1,000 RAD stores.
Walgreens has over 8,100 U.S. stores while Rite Aid has nearly 4,600 locations in 31 states and Washington, D.C.
At the time of this writing, Todd Shriber did not own any of the aforementioned securities.
