Forest Oil Shares Surged: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of oil and gas producer Forest Oil (NYS: FST) jumped as much as 10.8% in intraday trading today on eerily average trading volume.
So what: The company just announced that Canadian subsidiary Lone Pine Resources (NYS: LPR) will be fully spun off in the form of a share dividend to current shareholders. This move is no surprise, but it's always nice to see a company following through on established plans.
Now what:As fellow Fool Isac Simon points out, Forest Oil is arguably a more efficient producer than well-respected rivals Ultra Petroleum (NYS: UPL) and Southwestern Energy (NYS: SWN) . And those two laggards are good enough that The Fool invested real money in them. Will a leaner, meaner Forest Oil look even better after the Lone Pine spinoff? I don't know, but that's what we have watchlist services for.
- Add Forest Oil to My Watchlist.
At the time this article was published
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