These 5 Energy Stocks Surged More Than 100% This Week

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Image Source: LINN Energy LLC

After taking a pounding for the better part of two years, energy stocks took a big step away from death's door this week. While that was somewhat due to a bit more oil-price stability, the primary fuel

behind this week's fierce rally was a glimmer of hope that these companies might not be sliding toward an inevitable bankruptcy

after all.

This occurred after news of lenient lenders and a potential big-investor bailout caused short-sellers to flee, sending several oil

stocks up triple digits. Leading the way, according to S&P Capital IQ data, were LINN Energy (NASDAQ: LINE), Ultra Petroleum (NYSE:

UPL), Seadrill (NYSE: SDRL), California Resources (NYSE: CRC), and Unit Corporation (NYSE: UNT).

What:LINN Energy (NASDAQ: LINE) jumped 107% this week.

So What: Key driver: Announcement of an

extension to file its Form 10-K The company announced it had filed

an extension with the SEC to give it more time to file its annual report

LINN also noted that it currently has “adequate resources to continue the efficient operations of its assets and intends to continue making payments in full under normal terms to all of its vendors, suppliers and partners”

Now What: Overall, the company has

more than $1 billion in liquidity to pursue options to bring about financial stability

Also helping matters was Ultra Petroleum’s news that its creditors were being lenient Key takeaway: Investors saw this as a ray of hope that bankruptcy might not be a foregone conclusion

What:Unit Corporation (NYSE: UNT) surged 112% this week.

So What: Key driver: A snap-back

rally after a post-earnings plunge

Last week, shares of Unit Corp were cut in half after it reported weak fourth-quarter results and a bleak outlook for 2016

Now What: In particular, investors didn’t like

that Unit Corporation was planning to cease drilling activity by the end of the first quarter

Investors saw it as possible financial distress instead of prudent financial management

Key takeaway: After having time to think things over, investors realized that Unit isn’t in financial distress

What:

Seadrill (NYSE: SDRL) leapt 224% this week.

So What: Key driver: Chairman John

Fredrikson raises cash Seadrill is in the midst of

putting together a funding plan to address its debt burden

The market is speculating that Chairman and 24% shareholder John Fredrikson might bail out the company

Now What: This speculation arises from

the fact that he freed up $510 million in cash after selling a stake in another company

Key takeaway: Investors see a light at the end of the tunnel that this deepwater driller might not sink into the abyss

What:Ultra Petroleum (NYSE: UPL) surged over 240% this week.

So What: Key driver: A waiver from its

lenders Ultra Petroleum’s lenders agreed

to postpone and defer $100 million in upcoming credit payments

The company had a $62 million maturity and a $40 interest payment due earlier this week and a $26 million interest payment due the first of April

Now What: This waiver gives the

company more time to come up with a comprehensive plan to address its debt

Key takeaway: Investors see this as a sign that the company just might be able to restructure its debt outside of a bankruptcy court

What:California Resources (NYSE: CRC) surged more than 250% this week.

So What: Key driver: Fourth-quarter

results and its 2016 plan The company noted that it

had recently reached an agreement with its banks to amend its credit facility to provide it with sufficient liquidity and covenant relief in 2016 at current commodity prices

Now What: It also announced a very

conservative plan for 2016, cutting its capex from the $401 million it spent last year to only $50 million this year to preserve its liquidity and save its opportunities for the future

Key takeaway: Investors are starting to think that the company just might be able to squeak by and make it through the downturn without having to restructure its debt in bankruptcy

This could be the next billion-dollar iSecret