SM - Why SM Energy Centennial Resource Development and QEP Resources Jumped at the Open Today
Shares of U.S. energy driller SM Energy (NYSE: SM) rose nearly 21% out of the gate on Nov. 18. QEP Resources (NYSE: QEP) jumped around 14%. And Centennial Resource Development (NASDAQ: CDEV) trailed a bit behind at a gain of 9%. The stocks of all three of these exploration and production (E&P) names cooled off quickly, however, with SM Energy up just 6% or so by 10:30 a.m. EST, Centennial 7%, and QEP Resources 11%. The big news was oil prices, but there's more to the picture than just that.
Oil prices rose quickly on Nov. 18 and then started to cool off. So it makes sense that this was the rough price action seen in the stocks of SM Energy, QEP Resources, and Centennial Resource Development. They are, after all, E&P companies, and their top and bottom lines are highly influenced by the ups and downs in the prices of oil and natural gas.
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Why SM Energy, Centennial Resource Development, and QEP Resources Jumped at the Open Today