oAs falling oil prices have ripped through energy stocks this year, five U.S. corporate spin-offs in the sector have not escaped the share price carnage and face a tougher road to recovery than more-established companies. Shares of three of the newly independent companies have tumbled more than 60 percent each since separating this summer: Paragon Offshore Plc, Noble Corp's spin-off of drilling assets; Civeo Corp, which provides oilfield "man camps" and split from Oil States International ; and Seventy Seven Energy, an oilfield services firm that had been part of Chesapeake Energy.Their small sizes, recent debuts as independent companies, and, in some cases, positions in niche energy businesses, put the spin-offs at a disadvantage as oil hovers at five-year lows, analysts say."They don't have a track record," said Mike Breard, an energy stock analyst for Hodges Capital Management in Dallas. "You feel better buying something you know when you're trying to catch a falling knife."A Reuters survey released on Monday projected an oil recovery in the second half of 2015. Even if that does materialize, "these companies are smaller in market cap, and investors are likely to purchase larger, more liquid shares initially," said James West, an analyst at Evercore ISI.
Chesapeake Energy Corporation (Chesapeake) is a natural gas and oil exploration and production company. Shares of CHK fell by 1.18% or $-0.24/share to $20.05. In the past year, the shares have traded as low as $16.41 and as high as $29.92. On average, 14651000 shares of CHK exchange hands on a given day and today's volume is recorded at 4188309.
Oil States International, Inc. (Oil States) through its subsidiaries, is a provider of specialty products and services to natural resources companies worldwide. Shares of OIS fell by 1.85% or $-0.91/share to $48.20. In the past year, the shares have traded as low as $41.51 and as high as $65.77. On average, 1088050 shares of OIS exchange hands on a given day and today's volume is recorded at 118119.
Paragon Offshore plc is a provider of offshore drilling units serving the oil and gas industry. Shares of PGN fell by 5.78% or $-0.17/share to $2.77. In the past year, the shares have traded as low as $2.64 and as high as $17.50. On average, 2432330 shares of PGN exchange hands on a given day and today's volume is recorded at 427710.
Shares of SSE remained unchanged at $6.67. In the past year, the shares have traded as low as $21.89 and as high as $28.34. On average, 1391830 shares of SSE exchange hands on a given day and today's volume is recorded at 188717.
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