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The oil and gas sector has a mixed year so far. While oil prices have remained strong, oil majors have been under pressure due to their high capital expenditure and declining production. However, investors have been generally been bullish on independent oil and gas companies. One such company is a small-cap stock by the name of Endeavour International Corporation (END) , which has producing fields in the U.K. and development projects in the U.S.
Endeavour Shares Skyrocket
Shares of Endeavour International skyrocketed Tuesday, jumping over 53% to close at $1.60 on volume of 22.8 million, which is significantly above the daily average volume of 1.32 million.
Despite the huge rally today, Endeavour shares are still trading well below their 52-week high of $7.50. Also, the stock is still down more than 67 percent for the year so far.
In fact, a sharp fall in stock price even prompted the company to issue a statement. The company said that it has received numerous calls from analysts and investors regarding the recent market activity in its stock. The company said that it is unaware of any reason why recent trading of the stock has led to a substantial drop in price over the last few days.
However, on Tuesday, the stock rebounded sharply, and the reason for the rebound is the company’s updated projections.
Guidance Boosts Shares
Endeavour shares surged after the company revised its second-quarter production guidance. The company now expects production of 10,500-11,500 barrels of oil equivalent per day (boepd), up from its previous guidance of 9,000-10,000 boepd.
William L. Transier, CEO of the Houston, Texas-based company, said that Endeavour remains committed to generating value for its shareholders through exploitation of its assets, operational efficiencies and managing the capital structure.