- Oil exploration and production companies including Chesapeake Energy (CHK -3.8%), Range Resources (RRC -3.3%) and Anadarko Petroleum (APC -2.9%) are underperforming other energy stocks as lower crude demand after Hurricane Harvey - both from refineries that were forced to close and a lower use of transportation amid flooding - likely will keep crude prices constrained, Bloomberg analyst Vincent Piazza says.
- The risk is especially high for companies with exposure to flooding near the Eagle Ford shale, including CHK, Apache (APA -2%), EOG Resources (EOG -1.5%), Sanchez Energy (SN -3.8%) and ConocoPhillips (COP -1.4%), Piazza says.
- Edward Jones analyst Brian Youngberg says companies such as APA and APC with more exposure to Texan oil basins will feel the lingering impact from Harvey the most, as they will have fewer outlets for their oil.
- CHK earlier dropped as much as 5.3% to its lowest intraday reading since May 2016.
- Source: Bloomberg First Word
- Now read: Chesapeake Energy Downside Target Hit, Insider Buying Could Mark Bottom
Original article