Why Callon Petroleum, SM Energy, and Kosmos Energy All Rallied Double Digits at the Open Today
Shares of U.S. energy company SM Energy (NYSE: SM) rose as much as 16% in early trading on Nov. 16. Close behind was offshore-focused Kosmos Energy (NYSE: KOS) with a 14% advance. And pulling up the rear was Callon Petroleum (NYSE: CPE) with a still notable 13% gain. At roughly 10:30 a.m. EST Callon Energy and Kosmos were up about 11% and SM Energy was higher by 13%. The driver here was oil.
Key U.S. energy benchmark West Texas Intermediate (WTI) rose sharply in early trading on Monday, so it's little surprise that U.S. onshore exploration and production (E&P) companies SM Energy and Callon Petroleum both advanced sharply in early trading, as well. Kosmos, which is focused on offshore drilling, benefited from international benchmark Brent Crude's early advance. The big-picture story for oil is that investors are excited about the prospects that a successful vaccine will help get energy demand back to normal. That view was bolstered by another positive vaccine update this morning, this time from Moderna. Getting from testing to widespread availability is still a ways off, but Wall Street often gets ahead of itself on news like this.
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Source Fool.com