President Donald Trump’s decision to pull out of the Iran nuclear deal has pushed crude oil back above the $71-a-barrel threshold on fears the impact of economic sanctions (to say nothing of the threat of a military confrontation) on the output of Iranian crude into the marketplace.
Adding to the tailwind for energy markets was a surprise inventory drawdown despite soaring U.S. shale production.
This is a perfect combination for embattled U.S. producers. Prices are rising. OPEC is continuing to hold output down amid an ongoing effort to push up prices. And the possible prevention of Iranian oil coming to market is set to reduce market share.
A number of smaller U.S. oil and gas players are set to be the big winners in all this. Here are seven ready to move higher quickly:
Fast-Moving Energy Stocks: Eclipse Resources (ECR)
Eclipse Resources Corp (NYSE:ECR) shares are pushing above their 50-day moving average for the first time since January, pushing up and out of a three-month consolidation range. Merely a return to the 200-day moving average would be worth a 50%-plus gain from here.
Back in March, management issued updated projections on two of its Mercellus wells and initiated a strategic review. At the end of last year, production was up 22% from the year-ago period, with proved reserves up 211%.
Fast-Moving Energy Stocks: Northern Oil and Gas (NOG)
Northern Oil & Gas, Inc. (NYSEAMERICAN:NOG) shares are rising up and out of a massive wedge pattern going back to January, rising up and over its 50-day moving average this week. Watch for a return to the January highs near $3, which would be worth a gain of more than 40% from current levels.
The stock was initiated with a “buy” rating by analysts at Stifle on April 9, citing a differentiated asset performance and a focus on the Williston Basin. Moreover, the company is the only Bakken shale pure play at present.
When the company reported results on May 7, earnings of 17 cents beat estimates by five cents on a 62% rise in revenues.
Fast-Moving Energy Stocks: Chesapeake Energy (CHK)
Chesapeake Energy Corporation (NYSE:CHK) shares are punching up and out of a four-month consolidation range, breaking clear of its upper Bollinger Band to close in on its 200-day moving average, which it has not tested since early 2017. This is a reversal of the selling pressure seen in the wake of a downgrade from Citigroup analysts on April 17.
The company will next report results on Aug. 2 before the bell. Analysts are looking for earnings of 12 cents per share on revenues of $1.1 billion. When the company last reported on May 2, earnings of 34 cents per share beat estimates by seven cents despite a 15.4% drop in revenues.
Fast-Moving Energy Stocks: Noble Drilling (NE)
Noble Corporation PLC (NYSE:NE) shares are extending a 55%-plus rally off of its early April lows, closing in on the January high near $5.80, setting up a possible breakout from a long consolidation range going back to the summer of 2017.
The company will next report results on Aug. 2 after the close. Analysts are looking for a loss of 45 cents per share on revenues of $265.5 million.
When the company last reported on May 2, a loss of 55 cents per share beat estimates by a penny on a 35.2% decline in revenues.
Fast-Moving Energy Stocks: Ensco (ESV)
In a pattern similar to NE, Ensco PLC (NYSE:ESV) is rising powerfully off of its early April low for a rally that’s already booked a gain of 55% from the nadir. This caps a long consolidation range going back to the summer of 2017. Watch for a run at the early 2017 highs near $12, which would be worth a gain of more than 80% from current levels.
The company will next report results on July 25 after the close. Analysts are looking for a loss of 28 cents per share on revenues of $445 million. When the company last reported on April 25, a loss of 32 cents per share missed estimates by five cents on an 11.5% decline in revenues.
Fast-Moving Energy Stocks: Nabors (NBR)
Nabors Industries Ltd. (NYSE:NBR) shares look ready to lift up and out of a bowl-shaped consolidation range going back to the summer of 2017. It also involved a reset of the early 2016 lows near $5.50, setting up a solid base of support with which to rise out of. The oil and gas services provider is well placed to profit from the surge of U.S. output.
The company will next report results on Aug. 1 after the close. Analysts are looking for a loss of 23 cents per share on revenues of $757.2 million.
When the company last reported on May 1, a loss of 44 cents per share misses estimates by 15 cents on a 30.4% rise in revenues.
Fast-Moving Energy Stocks: Comstock Resources (CRK)
Shares of Comstock Resources Inc (NYSE:CRK), an independent oil and gas play focused in the onshore Gulf of Mexico area, has seen shares jump up and over their 50-day and 200-day moving averages since late April, setting up a run at the late-January highs … which would be worth a gain of 40% from current levels.
The company last reported results on Feb. 26, with a loss of 31 cents per share beating estimates by 66 cents. On April 2, the company announced a series of transactions in support of refinancing nearly all of its existing debt in an effort to lower its cost of capital and improve liquidity.