Why Centennial Resource Development Stock Rallied 11.5% Today
Shares of U.S. exploration and production (E&P) company Centennial Resource Development (NASDAQ: CDEV) rose as much as 11.5% in the first hour of trading on Sept. 22. That comes just a day after the stock fell sharply. The story is basically the same, just in opposite directions.
The energy sector is dealing with a huge supply/demand imbalance and oil and natural gas prices are painfully low. It's hard for energy producers to turn a profit. Centennial Resource Development is muddling through as best it can, noting that it has a material amount of leverage. That fact makes life even more difficult and leaves the stock prone to often volatile price swings as investors vacillate between fear and greed.
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Source Fool.com