Oil drilling stocks surge after Colorado voters reject restrictions on industry

Helen H. Richardson | Denver Post | Getty Images

A large fracking operation becomes a new part of the horizon with Mount Meeker and Longs Peak looming in the background on December 28, 2017 in Loveland, Colorado. 

Oil and gas companies with operations in Colorado are seeing their shares jump after voters rejected a ballot proposal that would have placed tough restrictions on drilling in the Centennial State.

Colorado’s proposition 112 would have prohibited energy companies from drilling within about half a mile from homes, schools, businesses and water sources. The measure would have cut the state’s projected oil and gas output roughly in half by 2023, according to an estimate by S&P Global Platts Analytics.

Shares of Bonanza Creek Energy and Extraction Oil and Gas, two drillers that produce solely from Colorado’s Wattenberg Field, surged about 9.5 percent and 13.5 percent, respectively. Shares of PDC Energy, another Wattenberg player, were up nearly 8 percent shortly after the opening bell on Wednesday.

Shares of more diversified drillers with a footprint in Colorado were also higher. Anadarko Petroleum‘s shares rose 6.5 percent in premarket trading, while Noble Energy‘s stock price jumped nearly 4 percent.

While Colorado voters rejected prop 112, they made Democratic Jared Polis their new governor. Polis campaigned on generating 100 percent of Colorado’s electric power from renewable energy sources by 2040.

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