Home / Sector / Energy Shares / Is something big about to go down with Origin Energy (ASX:ORG) shares?

Is something big about to go down with Origin Energy (ASX:ORG) shares?

Here's a closer look at what's happening with the energy giant's share price…

Posted by
Mitchell Lawler
Mitchell stumbled upon the concept of investing when in high school, devotedly urging his parents to put some money into a handful of technology companies with increasingly popular products among his demographic – many of which have gone on to great success. It wouldn’t be until 2017, some five years later, that Mitchell became an investor of his own money. Having studied and worked as a mechanical engineer in the building services industry, Mitchell takes a methodical and analytical approach to evaluating businesses. Rather than relying purely on numbers, Mitchell drills beyond a company’s metaphorical mantle to unearth obscure patterns or competitive advantages that would go otherwise unnoticed. His expertise resides within areas such as software, consumer goods, and building services equipment. However, his quest to find quality companies that set the industry standard and flex some degree of an impenetrable position has no limits – small cap to mega cap, cosmetics to healthcare – if it’s an exceptional business it’s on his radar.
Published
| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Origin Energy Ltd (ASX: ORG) share price weakened in afternoon trade, finishing the day down 2.44% to $4.80.

It comes amid reports the energy giant has decided to cancel its investor day, which was scheduled for next month.

While a formal announcement has not been made by Origin, the news might be sparking some questions.

Man in yellow hard hat looks through binoculars as man in white hard hat stands behind him and points.

Image source: Getty Images

Sparking speculation

Investors put downwards pressure on the Origin Energy share price today. This is despite there being no announcements posted by the S&P/ASX 200 Index (ASX: XJO) energy company.

However, The Australian has suggested Origin Energy has cancelled its upcoming investor day. As a result, onlookers could be wondering what would prompt such action. One query, in particular, is whether there could be a major shift in strategy planned.

For example, some market participants are asking if Origin could be on the table for another big oil and gas deal. This comes at a time when megadeals are being executed left, right, and centre.

Examples of these include the $23 billion merger of Oil Search Ltd (ASX: OSH) and Santos Ltd (ASX: STO). Another is Woodside Petroleum Limited (ASX: WPL) and the oil assets of BHP Group Ltd (ASX: BHP).

Specifically, some investors are wondering whether the company could be mulling the sale of its energy retail business. Any sale would be eyebrow-raising considering it was only last month the company executed an agreement to sell a 10% interest in Australia Pacific LNG worth $2.12 billion.

Origin Energy share price snapshot

While the Origin Energy share price has diverted a negative return in 2021 so far, it is still less than spectacular. Having gained 0.5% since the year commenced, Origin shares are underperforming the benchmark index by around 8%.

Unlike many other ASX-listed shares, the Origin Energy share price is still a long way off its pre-COVID levels. Prior to the market crash in March 2020, the energy retailer was fetching a price of around $8.74.

Finally, the company currently holds a market capitalisation of $8.56 billion.

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Energy Shares

a man in a business suit looks at a map of the world above a line up of oil barrels with a red arrow heading upwards above them, indicting rising oil prices.
Energy Shares

How ASX 200 energy shares like Santos, Beach and Woodside surged in March's sinking market

| Bernd Struben

March saw investors pile into ASX 200 energy shares like Woodside, Santos and Beach.

Read more »

A miner stands in front of an excavator at a mine site.
Energy Shares

Why is this ASX energy stock racing 7% higher today?

| Marc Van Dinther

A judicial review against a key project pushed the uranium share up.

Read more »

three businessmen high five each other outside an office building with graphic images of graphs and metrics superimposed on the shot.
Energy Shares

Why are AGL shares rising today?

| James Mickleboro

The energy giant's shares are in the spotlight on Wednesday.

Read more »

a man wearing old fashioned aviator cap and goggles emerges from the top of a cannon pointed towards the sky. He is holding a phone and taking a selfie.
Energy Shares

Guess which ASX 300 uranium stock is rocketing today on a 'fantastic milestone'

| Bernd Struben

Investors are piling into this ASX 300 uranium stock on Wednesday. But why?

Read more »

An oil refinery worker stands in front of an oil rig with his arms crossed and a smile on his face.
Energy Shares

4 ASX 200 energy shares rated buys

| Bronwyn Allen

ASX 200 energy shares have skyrocketed 14% over the past month.

Read more »

Oil worker using a smartphone in front of an oil rig.
Energy Shares

Are investors taking a massive gamble by chasing the Woodside share price higher?

| Aaron Teboneras

Woodside shares surge as oil prices and Middle East risks intensify.

Read more »

A man has a surprised and relieved expression on his face.
Energy Shares

Bell Potter says this ASX penny stock could rocket 90%

| James Mickleboro

This is a high risk, high reward pick from the broker.

Read more »

Oil worker using a smartphone in front of an oil rig.
Energy Shares

Down 40% last week, are Amplitude Energy shares now a buy?

| Aaron Bell

Should investors buy the dip?

Read more »