Wall Street: Small Energy Companies Are Getting Smoked


With oil prices falling to new record-lows, even Wall Street is starting to sway: small-caps in the energy sector are getting destroyed, when will this hit the big fishes too ?


Some of us may have seen the bloodbath of Monday for the US small-caps operating in the energy sector. For those who didn’t, here’s what happened in one only day:

  • BreitBurn Energy (BBEP), down 18%
  • LinnCo (LINE), down 8%
  • EV Energy (EVEP), down 12%
  • Atlas Resource (ARP), down 15%
  • Oasis Petroleum (OAS), down 7%
  • Vanguard Natural (VNR), down 9%
  • Mid-Con Energy (MCEP), down 12%
And here’s a weekly picture, just to give you some context:

drillers 5 day

And a monthly chart as well:

drillers monthly

As we said, this is a complete bloodbath. But we’re still talking about small-caps, once (and if) this panic hits the large-caps, well, as Obama would say: “There will be costs”.


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