Rice Energy’s Stock Rose on Strong 1Q16 Earnings
Rice Energy’s stock performance
Following Rice Energy’s (RICE) 1Q16 earnings release on May 4, 2016, its stock rose ~0.2% and continued to surge the next day, rising ~9%. RICE’s stock has fallen ~26% YoY (year-over-year).
In comparison, RICE’s peers EQT Corporation (EQT), Antero Resources (AR), and Cabot Oil & Gas (COG) have fallen 33%, ~41%, and 29%, respectively, on a YoY basis. These companies make up 5.6% of the iShares U.S. Oil & Gas Exploration & Production ETF (IEO).
In the above graph, we can see RICE’s stock performance with respect to movements in the broader industry and the broader market.
In the period under discussion, that is, April 21 to May 5, RICE outperformed the broader energy industry (XLE), which fell 1%. RICE rose ~7.7% during the same period. RICE also outperformed the broader market (SPY), which fell ~1.9% during the period.
In the above graph, it’s clear that RICE’s performance has been driven mostly by natural gas prices (UNG) and WTI (West Texas Intermediate) crude oil prices (USO). These were also the major drivers of XLE.
Following RICE’s 1Q16 earnings release on May 4, its stock rose as a result of its earnings beat. A 2.6% rise in natural gas prices also drove RICE’s stock higher. Read Part One of this series to learn about RICE’s performance in 1Q16.
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