Oil & Gas Stock Roundup: Who Needs OPEC?

f

Oil barely budged this week, closing down less than 2% and just below $48.50 per barrel.

That was actually a surprisingly tame response to another failed OPEC meeting, after the organization couldn't come to an

agreement on a production ceiling. OPEC's failure didn't seem to faze oil stocks, many of

which rallied sharply this week.

What:

Enerplus (NYSE: ERF) rallied 11% this week.

So What: Key driver: Closing its equity

offering In early May, Enerplus launched a

C$200 million equity offering, agreeing to sell more than 33 million shares at C$6.90 per share

The company intended to use that cash to reduce debt under its bank credit facility, fund capital expenditures, and for general corporate purposes

Now What: The deal finally closed this week,

with underwriters also exercising the full over-allotment option

That yielded C$230 million in gross proceeds for Enerplus, which gives it the cash it needed to strengthen its balance sheet

Key takeaway: With its balance sheet much improved, investors are buying into Enerplus’ ability to make it through the downturn

What:Capital Product Partners (NYSE: CPLP) jumped more than 15% this week.

So What: Key driver: Oil and credit

market improvements Weakening oil and credit

markets caused Capital Product Partners to significantly reduce its distribution in order to create a capital reserve for future debt repayment

Now What: However, with oil prices rising

it has started to thaw the credit markets

This could open the door not only for Capital Product Partners to refinance its debt, but it could also open up new opportunities

Key takeaway: Investors are starting to see some positives for Capital’s future

What:

EXCO Resources (NYSE: XCO) surged 17% this week.

So What: Key driver: Follow through from last

week’s capex and restructuring update

EXCO continued to rally this week after announcing an updated capex budget as well as its progress on restructuring debt

Investors were particularly pleased with the company’s progress on debt reduction, with its net debt now down to $1.1 billion, which has decreased 28% since last September

Now What: Moreover, investors are

relieved to see that the company has $250 million in liquidity and only expects to burn through $10 million a month this year

Key takeaway: Investors continue to buy into EXCO’s turnaround plan

What:Energy Transfer Equity (NYSE: ETE) jumped 23% this week.

So What: Key driver: Its merger partner

appears finally willing to renegotiate

Energy Transfer has been engaged in a rather bitter battle with merger partner Williams Companies over the terms of their proposed merger

It is a deal that ETE refuses to close under its current terms

Now What: Williams has refused to

renegotiate, instead suing ETE due to alleged contract breaches

However, according to recent reports Williams has had a change of heart and is open to considering a new offer

Key takeaway: Investors see this newfound openness as a sign that the deal could still be closed but at more favorable terms

What:NGL Energy Partners (NYSE: NGL) leapt 29% this week.

So What: Key driver: Earnings

follow-through and an analyst upgrade

After an initial post-earnings sell-off, NGL Energy Partners rallied sharply this week

Now What: Fueling the buying was the fact

that investors liked the company’s liquidity enhancements and the re-iteration of its 2017 guidance

Those factors also led analysts at Stifel to upgrade the company from hold to buy

Key takeaway: Investors are starting to believe that the worst is over for NGL Energy Partners

This could be the next billion-dollar iSecret