This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Political instability has pushed up oil prices

Stocks in this article: CLNE EGY GDP KWK RDS.A SN WTI XOP

By HCB Investment Management

The Tactical Energy portfolio climbed 1.3% during the month of May, outpacing its benchmark, the SPDR S&P Oil and Gas Exploration and Production ETF (XOP), which declined 0.7%. The S&P 500 Index (SPX) rose 2.1%.

Over the 365 days ending May 30th, the Tactical Energy portfolio has registered a 12.8% gain with 9.2% volatility, while its benchmark advanced 26.2%, with 19.9% volatility. The S&P 500 was up 18.7% while incurring 11.3% volatility over the same period.

In the energy markets, the July 2014 crude oil futures contract rose $3.60 during the month, settling at $102.71 on May 30th. This contract settled as high as $104.35 during May, a level it hadn't broached in over three years.

The 2015 strip price settled at $93.43, up $2.65 over the month.

Continuing turmoil in the Ukraine and in Syria contributed to strength in crude oil prices. In contrast, natural gas prices fell during May, with the July 2014 contract closing the month down 30 cents, settling at $4.542.

The 2015 strip price dropped 16.3 cents, finishing at $4.256. Even though overall natural gas inventories remain low, some weekly injections into storage were greater than expected, which led to weaker prices.

As always, there was a great deal of volatility among the individual components of the S&P Oil & Gas Exploration & Production Select Industry Index.

Clean Energy Fuels Corp. (CLNE) surged over 25 percent during May. Earlier in the month, Clean Energy Fuels reported earnings, and its revenue and physical volumes delivered exceeded analyst estimates. Towards the end of the month Morgan Stanley initiated coverage of the stock with a target price that was over 30 percent higher than where it had settled the previous day.

Sanchez Energy Corp (SN) was up almost 22 percent over the course of the month. Sanchez acquired acreage in the Eagle Ford from Royal Dutch Shell (RDS.A) that almost doubled their position there, and the stock market responded favorably to the news.

Goodrich Petroleum Corp. (GDP) climbed about 15 percent during May, continuing a rally that started in mid-February that has seen the stock more than double over the course of four months. During the four months prior to that, the company's stock lost over half its value.

There were some significant May price declines among index components as well. Vaalco Energy (EGY), for example, dropped almost 30 percent during the month, largely due to a first quarter earnings announcement in which it was revealed its production declined somewhat from the first quarter of 2013 due to planned maintenance.

Additionally, revenues were down over 30 percent from the same period a year ago because a crude lifting occurred one day too late for the associated revenues to be included in first quarter earnings.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs