Why Ovintiv, Devon Energy, and Diamondback Energy Rallied Today
Shares of U.S. shale producers Ovintiv (NYSE: OVV), Devon Energy (NYSE: DVN), and Diamondback Energy (NASDAQ: FANG) rallied hard today, climbing 10.8%, 5.6%, and 5.8%, respectively, as of 2:52 p.m. ET.
Ever since the Federal Reserve hiked interest rates by 75 basis points back in mid-June, the high-flying energy sector has crashed, with many names down some 25% or more in just that short a period of time. However, with their stocks now at dirt cheap prices based on current oil price levels, investors may be getting back into these names.
In addition, bullish news on both the demand side and supply side has oil prices bouncing back higher today. In company-specific news, Ovintiv sold a big asset today, which will help it de-lever its balance sheet. That could be why the stock is moving higher than the others.
Source Fool.com
