Can Independent Oil And Gas Companies EXCO Resources and Emerald Oil Remain Stable?

Posted by Saimoon October 3, 2014 0 Comment 1520 views


New York, NY – GDP INSIDER  –  10/03/2014.

This article focuses on two independent oil and gas companies: EXCO Resources Inc(NYSE:XCO) and Emerald Oil Inc(NYSEMKT:EOX)

EXCO Resources Inc(NYSE:XCO) recently announced that it had entered derivative contracts that have a ceiling price of $4.45 per million British thermal units in 2015. As a result, if the price of gas were to exceed that mark, the natural gas producer’s profits would fall. The markets did not react well to the news, as the Dallas-based company fell to a new 52 week low closing price of $2.32 before finishing the day at a closing price of $2.90.

The natural gas producer, which announced it would be releasing its third quarter financial results on Oct. 28th, primarily explores in Texas, North Louisiana, and Appalachia.

Will EXCO Resources’ Derivative Harm The Company Down The Road? Receive A Free EXCO Analysis.

Colorado-based company Emerald Oil Inc(NYSEMKT:EOX), to contrast, has been focusing on expanding its operations. The company recently received three permits for Bakken Formation wells in Richland County, Montana. The company also recently announced that it had acquired the Williston Basin properties in North Dakota, a 4,250 net acre acquisition that could boost the company’s production from wells in the area.

Despite this recent expansion, however, Emerald Oil has been struggling. The company also traded for a new 52 week low of closing price of $5.33 before finishing the day at a closing price of $5.70. While the company’s recent investment could pay off in the long run, it appears Emerald Oil’s trading price may fall in the meantime.

How Will The Company’s Recent Expansion Affect Its Long-Term Outlook? View Our Free EOX Analysis.

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