The five best performing stocks on the Zacks #1 Rank List last week were: Continental Resources, Inc. (CLR), GMX Resources, Inc. (GMXR), Massey Energy Company (MEE), Concho Resources Inc. (CXO) and Whiting Petroleum Corporation (WLL).
Continental Resources, Inc. (CLR) makes its second appearance in three weeks on the Zacks #1 Rank Top Performers List, as shares gained 16.1% for the week ended Jun 6. Supported by historic highs in oil, CLR announced strong first-quarter results in early May and is enjoying rising earnings estimates. Analysts have enhanced their expectations for this year by 15.2% over the past two months and 5.2% in just the past seven trading days.
CLR earned 53 cents per share in its first quarter, which eclipsed the consensus by approximately 10.4%. In the year-ago quarter, earnings per share reached 34 cents. Total revenues advanced 88% to $227.7 million from $121.1 million. On May 20, the oil & gas company announced better-than-expected production in the initial seven days of a North Dakota well – CLR's first to be completed in the Three Forks/Sanish formation.
GMX Resources, Inc. (GMXR) is making its second consecutive appearance on the Zacks #1 Rank Top Performers List. Shares gained 13.9% last week after moving higher by more than 17% in the preceding week. Meanwhile, earnings estimates continue to trend higher for this oil & gas company. Expectations for this year are up 42.5% in two months, which includes an advance of 2.7% in the past seven sessions.
In late May, a natural gas well – in which GMXR partners with Penn Virginia Corporation – showed the possibility for a greater-than-expected production rate. In addition to the gain in shares, GMXR also enjoyed fresh 52-week highs and a brokerage upgrade. Earlier in the month, the company announced earnings per share of 40 cents for its first quarter, which was ahead of the consensus by about 21.2%. Oil & natural gas sales surged 106% while production moved higher by 60%. GMXR also raised its guidance for 2008 revenue, total production and cash flow, along with its capital expenditure budget.
Massey Energy Company (MEE) is benefiting from high coal prices, which many expect to continue gaining in cost as energy demand soars. Due to this environment, MEE enjoyed a brokerage upgrade last week, which helped the company secure a spot on the Zacks #1 Rank Top Performers List. Shares moved higher 13.6% last week.
Earnings estimates for this year have been moving in an upward direction for a while now, having advanced as much as 37.5% in two months. The past seven days have seen a gain of 2.7%. In its first quarter, earnings per share of 52 cents easily increased year over year from 40 cents, while also trouncing the consensus by 62.5%. Produced coal revenue was up 4.5%. Massey Energy was very active during the quarter in its expansion and cost reduction projects. The company expects productivity to improve in the second quarter and beyond. Earnings estimates for that quarter are also up, gaining 35% and 3.8% in the past two months and seven days, respectively.
Concho Resources Inc. (CXO) announced last week that it agreed to acquire all the outstanding general partner, limited partner and membership interests of privately-held Henry Petroleum for $565 million in cash. Details of the acquisition include 163 billion cubic feet equivalent (Bcfe) of proved reserves, approximately 33 million cubic feet equivalent per day (Mmcfe/d) in current production, and 283 Bcfe of identified unproved reserves. The company stated that Henry's properties are a perfect complement to its existing Southeast New Mexico core asset.
The news sent shares of Concho sharply higher on Thursday. For the full week, shares jumped 13.2%, which made it one of the top performing Zacks #1 Rank companies. Earnings estimates for this year have climbed 54% in the past two months and 1.2% in the past seven days.
Whiting Petroleum Corporation (WLL) earnings estimates for the full year and second quarter are each up in the past seven days by 8.6% and 17%, respectively. The independent oil & gas company made the Top Performing Zacks #1 Rank List for the week ended Jun 6 with a gain of 10.7%. The company was also featured as a Value Stock of the Day at Zacks.com on Jun 9.
Late last month, the company completed its acquisition of interests in the Flat Rock field in Uintah County, Utah for $365 million in cash. WLL purchased the interests from Chicago Energy Associates, LLC. Net production from the properties was 19 million cubic feet of gas equivalent. Earlier in the month, Whiting announced first-quarter earnings per share of $1.47, which topped the consensus by almost 16.7% and easily surpassed the year-ago result several times over. Revenues moved higher by 65% to $264.1 million. Earnings estimates over the past two months are up 31.6% for this year.
James Giaquinto is an Editor at Zacks Investment Research who covers the Zacks #1 Rank Top Performers of the Zacks Rank Buys. The Zacks Rank Buys are stocks with a short-term "Buy" or "Strong Buy" recommendation. To learn more about visit www.zacks.com/newsroom/commentary/?id=7817.
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