Shares of Crestwood Equity Partners L.P. (NYS:CEQP) rallied 1.5% in morning trade Wednesday, on track to snap a six-session losing streak, as a bounce in Chesapeake Energy Corp.'s stock (USA:CHK) helped provide support. Crestwood's stock had plummeted 14% over the past six sessions to close Tuesday at an 8-month low. Stifel Nicolaus analyst Selman Akyol wrote in a note to clients earlier this week that the recent weakness in Crestwood shares was likely in large part due to concerns over Chesapeake Energy, since the oil and natural gas company is a customer of Crestwood, a midstream infrastructure company, in the Powder River Basin. Chesapeake's stock bounced 7.5% Wednesday, after plummeting 57% over the previous six sessions on the back of a "going concern" warning. Crestwood and Chesapeake shares have a correlation coefficient of 0.77 over the past three months, where a correlation of 1.00 is a perfect match. Over the same time, the correlation of Chesapeake's stock and the SPDR Energy Select Sector ETF (PSE:XLE) is 0.23, continuous crude oil futures (NYM:CL00) is 0.28 and the S&P 500 (S&P:SPX) is -0.29.
Nov. 13, 2019, 11:42 a.m. EST