Shares of U.S. exploration and production companies Centennial Resource Development (NASDAQ: CDEV) and Range Resources (NYSE: RRC) rose as much as 16% in morning trading on Jan. 12. Antero Resources (NYSE: AR) peaked at roughly 13%, and Southwest Energy (NYSE: SWN) jumped about 12%.
By noon EST, all four had pulled back a little from their peaks but were still up notably. Southwest and Antero were holding on to roughly 10% advances, while Range was up 14.5% and Centennial up 15%. There’s a simple reason for the advance and a more nuanced one, which might hint at what the future holds for energy markets.