Why Are Investors Piling Into These Stocks on Friday?

Southwestern Beats on Earnings

Southwestern Energy Company (NYSE:SWN) shares have surged 15.5% on the back of a strong earnings report and higher energy prices. For its first quarter, Southwestern lost $0.08 per share on sales of $579 million, beating estimates by $0.13 per share and $48.99 million. CEO Bill Way said:

“While adjusting activity levels to align with the commodity prices, we exceeded guidance on production volumes and associated costs by continuing our laser focus on efficiency improvements. The actions we are taking to further strengthen our balance sheet, enhance operating margins and optimize cash flow will continue to provide benefits in the current environment, and will enable us to enhance shareholder value as commodity prices improve.”

Adding to today’s surge is the fact that WTI is 2.7% higher and natural gas futures are about 1% higher on the day. A total of 32 funds among those we track owned $468.82 million worth of Southwestern Energy Company (NYSE:SWN)’s shares, which accounted for 17.10% of the float on December 31, versus 38 funds and $569.33 million, respectively, a quarter earlier.

NGL Energy Partners LP Spikes on Oaktree Capital Management Investment

NGL Energy Partners LP (NYSE:NGL) shares have spiked 30% out of the gate after the company announced an investment from funds managed by Oaktree Capital Management. The investment was worth $200 million private placement of 10.75% Class A convertible preferred units and Oaktree will acquire 16.6 million units at a price of $12.03 apiece as well as 3.6 million warrants subject to various conditions. NGL’s CEO Mike Krimbill said:

“I believe this is a very positive transaction for NGL and I look forward to having Oaktree as a partner and represented on our Board. The investment by Oaktree is a strong endorsement of our business model, strategy and future growth projects. In other news, the company cut its quarterly distribution to $0.39 per unit from $0.64 per unit and trimmed its full year adjusted EBITDA guidance to $420-$430 million from the previous $450 million.”

Elite quant Jim Simons’ Renaissance Technologies was one of the top holders of NGL Energy Partners LP (NYSE:NGL) at the end of 2015.

Earnings Power Skechers’ Stock

Skechers USA Inc (NYSE:SKX)’s stock has gained 5.39% after the company turned in an excellent first quarter. For the time period between January 1 and March 31, Skechers USA posted earnings of $0.63 per share on sales of $978.8 million, beating estimates by $0.09 and $61.55 million, respectively. However, the company’s guidance for second quarter includes sales in the range of $875 million to $900 million, versus estimates of $914 million. Of the around 786 elite funds we track, 28 funds owned $342.91 million worth of Skechers USA Inc (NYSE:SKX)’s shares, which represented 7.30% of the float on December 31, versus 36 funds and $599.89 million, respectively, on September 30.

Disclosure: none