This Week in Energy: Kinder Morgan, Southwestern, Schlumberger, and More

Although the fact that it’s a high beta stock makes Oasis’ gain of 3% for the week less impressive, Oasis Petroleum Inc. (NYSE:OAS) nevertheless did well given the circumstances. Apparently, the company’s issuance of 48 million shares of common stock (plus up to 7.2 million shares more for underwriters) at $10.80 a piece wasn’t enough to satiate the bulls, as Oasis shares closed at $11.42 per share on Friday. With the price action, it seems that some in the market believe the benefits of Oasis buying SM Energy’s Bakken assets outweigh the short term negatives of an offering. The smart money was also somewhat bullish on Oasis. According to our data, the number of elite funds with holdings in Oasis Petroleum Inc. (NYSE:OAS) rose by four quarter-over-quarter to 33 at the end of June.

In contrast to its previous major Texas buy, SM Energy Co (NYSE:SM) shares didn’t rally much this time around (up by 1.2% for the week) after the company announced that it has agreed to buy 35,700 net acres in West Texas to expand its Midland Basin footprint to around 82,450 net acres. SM will pay $1.1 billion in cash and will offer 13.4 million shares of common stock to the seller, QStar LLC. To cover some costs, SM announced that it has entered into a definitive agreement to sell its Williston Basin assets outside of Divide County for $785 million to Oasis Petroleum. Shares of SM Energy have upside if crude prices continue rallying. A total of 20 funds were long SM Energy Co (NYSE:SM) at the end of June, up by one from the previous quarter.

Last but not least, Schlumberger Limited. (NYSE:SLB) shares inched down by 1% for the week as oil prices mostly stayed in a tight range. Although the company sees some early signs of recovery in many parts of the market, those green shoots didn’t do much for Schlumberger’s third-quarter earnings. During the period, the service company earned $0.25 per share on revenue of $7.02 billion. Those numbers are $0.03 per share better for the bottom-line and $60 million worse for the top-line versus Wall Street’s average estimate. The number of elite funds with holdings in Schlumberger Limited. (NYSE:SLB) fell by one quarter-over-quarter to 55 at the end of June.

Disclosure: none