These 3 Oil Stocks Skyrocketed in November (and Could Have Further to Fly)

These 3 Oil Stocks Skyrocketed in November (and Could Have Further to Fly)

Oil prices jumped more than 5% in November and ended the month over $57 a barrel thanks to improving oil market data and the belief that OPEC would continue supporting prices. While the improvement in oil prices provided several oil stocks with the fuel needed to rise last month, it wasn't the primary driver of the big moves in Denbury Resources (NYSE: DNR), California Resources (NYSE: CRC), and Continental Resources (NYSE: CLR).

Denbury Resources led the way after it rallied an impressive 39% last month on the heels of stronger-than-expected third-quarter results. The company earned $0.04 per share, which was $0.03 per share ahead of analysts' expectations despite the impact from Hurricane Harvey. One of the highlights of the quarter was that the company finally turned around the decline in its production, which had steadily fallen since early 2015. As a result, Denbury now expects output to increase for the foreseeable future.

Furthermore, the company also noted that it hopes to start generating excess cash, which should help it start paying down debt. Denbury pointed out that while borrowings under its credit facility hit $495 million last quarter, they should fall to $450 million-$475 million by year-end as long as oil stays in the low- to mid-$50's. That improvement in production and the company's balance sheet suggests it's finally heading in the right direction. 

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Source: Fool.com