What: Origin Energy Ltd (ASX: ORG) shares have reversed an earlier slide to jump 1.0% in mid-afternoon trade on Friday in an overall subdued market which has seen the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) fall 0.4%.
So What: Origin's share price gain comes after the leading integrated energy company this morning released its September 2015 Quarterly Production Report for its Integrated Gas business.
The report showed a strong 13% increase in production to 47.8 PJe which reflected a ramp up at Australia Pacific LNG (APLNG) ahead of its first LNG cargo, along with the commencement of production at the new Yolla 5 and Yolla 6 production wells in the Bass Basin.
Somewhat pleasingly – considering the significant drop in oil prices and corresponding weakness in gas prices – Origin reported that revenue was down just 1% compared with the June quarter.
Now What: Few, if any oil and gas companies have been spared from the violent market sell off in energy stocks. Origin's share price is down 62% in the past year, Santos Ltd (ASX: STO) has seen its shares decline 53.5%, while Oil Search Limited (ASX: OSH) is now down just 7% after receiving a takeover offer from Woodside Petroleum Limited (ASX: WPL).
The latest quarterly report from Origin also noted that the group is just weeks away from its first APLNG cargo – a milestone which has been years and billions of dollars in the making. The fact that Origin achieved a flat revenue result is important in the context of the huge reduction in the market's appraisal of the company's value. While the outlook remains clouded, arguably the stock has been oversold at these levels.
