NEW YORK (TheStreet) -- Shares of Vanguard Natural Resources (VNR) are higher by 11.84% to $1.68 in early afternoon trading on Friday, as the surge in oil prices gives the energy sector a boost today.
Crude oil (WTI) is up by 5.77% to $39.41 and Brent crude is soaring by 5.53% to $41.61 per barrel this afternoon.
Vanguard Natural Resources is a limited liability company focused on the acquisition and development of oil and natural gas properties in the U.S.
Oil is popping by more than 5% this morning on new hopes that oil producers will freeze production output and strong economic indicators out of the U.S. and Germany that show potential for fuel growth demand, Reuters reports.
It is possible that Russia's oil production will fall in April, sources told Reuters. Russia's energy minister is hopeful that nations producing oil will be able to agree on an output freeze when the meet in Doha later this month.
"You have declining supply in the United States and a declining rig rate," Bjarne Schieldrop, chief commodities analyst with SEB Bank told Reuters. "You mix that with outages in Nigeria ... and put Doha on top of it, and your eyes are looking towards the tightening of the market."
Separately, TheStreet Ratings has set a "sell" rating and a score of D on Vanguard Natural Resources. This is driven by several weaknesses, which TheStreet Ratings believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks it covers.
The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. T
You can view the full analysis from the report here: VNR