Oil and Gas Stock Roundup: OPEC Optimism Brought These Oil Stocks Back to Life
On the one hand, it was a relatively quiet week in the oil market. While crude oil notched its third straight week of gains, it only rose about 1% to just over $50 a barrel. On the other hand, oil investors seemed to eye next week's OPEC meeting with optimism, driving them to bid up several financially challenged oil stocks this week, according to data from S&P Global Market Intelligence.
Beaten-down Canadian oil producer Pengrowth Energy (NYSE: PGH) led the way with a ferocious gain of more than 52% on the week. While Pengrowth Energy had no news-driven catalysts to ignite the rally, it has completed a slew of asset sales this year; those have helped lift some of the debt that has been a crushing weight on its financial situation. Overall, net debt is down 66% from the start of the year; the company has been in active negotiations with creditors to relax some of its financial covenants for the next two years, which would provide it with more breathing room. While Pengrowth Energy still has plenty of work to do before it's back on solid ground, traders are apparently growing more optimistic that it's on the path toward stability.
Image source: Getty Images.
Source: Fool.com
