Last week was a good one for oil producers as crude prices hit their highest levels since 2014. Some of our big local energy firms got some love from Wall Street.
Chesapeake Energy shares rose more than 10 percent. Devon Energy stock jumped 8 percent. And Continental Resources stock gained more than 5 percent.
But our biggest gainer was Oklahoma City-based Gulfport Energy, which focuses on natural gas production. And, boy, did Gulfport produce some gas last quarter.
The company also obliterated analysts' expectations for the quarter. Analysts guessed adjusted profits would be about 42 cents a share. It was 56 cents a share.
The company bought back $100 million of its own stock during the quarter, reducing outstanding shares by about 5 percent. And Gulfport is authorized to repurchase another $100 million.
All that produced a gain of more than 15 percent last week for GPOR shares, which closed Friday at $10.31.
Jargon alert! The following sentence was uttered Thursday by the CEO of BlueKnight Energy Partners, last week's beagle stock: "The transition of the crude forward price curve from a contango structure into backwardation has impacted demand for storage."
When I read this to our energy editor, Adam Wilmoth, he replied: "Makes perfect sense."
He translated it thusly: The recent spike in crude oil prices means oil is worth more today than the futures contracts for oil, say, two years out. When oil prices were much lower, the futures contracts were worth more than the current wellhead price, which encouraged storage of vast quantities of crude.
In the current situation, everyone wants to get their oil to market, which is why BlueKnight has seen storage volume at its Cushing facilities fall 46 percent, CEO Mark A. Hurley told analysts.
That's one reason why BKEP shares slipped more than 15 percent last week, setting a new 52-week low on Friday.
The good news? Blueknight is joining forces with another firm to build a pipeline from the oil-rich STACK play.
Eagle & Beagle is a weekly look at the state's high-performing (eagle) and low-performing (beagle) stocks by Business Editor Don Mecoy.