Short Sellers Looking for Cover in Oil and Gas

According to Sterne Agee CRT’s report:

Short interest for our coverage group of 20 securities decreased 3.7% over the back half of April. Aggregate short interest from a broad list of 60 E&P companies decreased 2.6% over the back half of April. This decrease came amid a -1.0% return for the S&P Exploration & Production ETF (XOP) over the same period. Only five of our twenty coverage companies saw an increase in short interest.

The largest increases in short interest included PetroQuest Energy Inc. (NYSE: PQ), Chesapeake Energy Corp. (NYSE: CHK) and Ultra Petroleum Corp. (NYSE: UPL).

PetroQuest saw its short interest increase 12.7% to 4.6 million shares (7.0% of shares outstanding, 9.5 days to cover). The previous reading was 4.1 million. Shares of PetroQuest were up about 2.4% at $2.15 Tuesday, in a 52-week trading range of $1.95 to $7.82.

Chesapeake Energy had an increase of 3.0% in its short interest to 151.6 million shares (22.8% of shares outstanding, 6.5 days to cover). The reading for the previous settlement date was 147.2 million. Shares of Chesapeake were up 3.1% at $15.65, within a 52-week trading range of $13.38 to $29.92.

Ultra Petroleum had an increase of 1.9% to 28.0 million shares short (18.3% of shares outstanding, 12.1 days to cover). The previous reading was 27.5 million. Shares of Ultra Petroleum were up 1.6%, at $16.30 in a 52-week trading range of $11.31 to $30.18.

ALSO READ: Short Sellers Worry That the Bottom in Oil Has Been Seen

The largest decreases in short interest included Approach Resources Inc. (NASDAQ: AREX), Occidental Petroleum Corp. (NYSE: OXY) and Denbury Resources Inc. (NYSE: DNR).

Approach Resources had the largest decrease in short interest, 22.2% to 6.2 million shares (15.2% of shares outstanding, 4.9 days to cover). The reading for the April 15 settlement date was 7.9 million. Shares of Approach Resources were up 3.6%, at $7.76 in a 52-week trading range of $4.28 to $23.07.

Occidental Petroleum saw its short interest decrease by 21.1% to 9.2 million shares (1.2% of shares outstanding, 2.1 days to cover). The previous reading was 11.6 million. Shares of Occidental were up 0.2%, at $76.83 within a 52-week trading range of $71.70 to $101.38.

Denbury Resources had a decrease of 15.4% in its short interest to 33.8 million shares (9.5% of shares outstanding, 2.8 days to cover). The previous reading was 40.0 million. Shares of Denbury were up 1.4%, at $9.41 on a 52-week trading range of $6.04 to $18.59.