Lonestar Resources (NASDAQ:LONE) is an unlikely winner on Friday. Days after filing for Chapter 11 bankruptcy, LONE stock is up more than 100% in intraday trading. What is driving this move?
Texas-based Lonestar perhaps unsurprisingly deals with oil and gas. Its more than 50,000 net acres primarily are in the Eagle Ford Shale region of the state. However, it is that very identity that has made 2020 so rough. Since the start of the novel coronavirus pandemic, oil and gas companies have struggled. Demand is down along with manufacturing activity and the economy, and oil prices have struggled. Making matters worse was a price war between Saudi Arabia and Russia that flooded the market with cheap crude.
On the back of all that, Lonestar filed for bankruptcy at the end of