Why are Origin shares burning 4% brighter today?

It's another day in the green for Origin shares.

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Key points
  • The Origin share price is lifting more than 4% right now to trade at $5.795
  • That's despite no news from the company today
  • However, brokers have reportedly upped their outlook for Origin in the wake of its recent quarterly update

The Origin Energy Ltd (ASX: ORG) share price is powering up for a second consecutive day following the release of the company's quarterly update on Monday.

Its Tuesday gains come amid news analysts have upgraded their outlook on the company's stock and reports that state and federal governments are still considering ways to dampen surging domestic gas prices.

At the time of writing, the Origin share price is $5.795, 4.04% higher than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 1% while the S&P/ASX 200 Utilities Index (ASX: XUJ) is currently outperforming all other sectors, posting a 2.14% surge.

 Let's take a closer look at what's been going on with Origin lately.

A woman sits on a chair with laptop on her lap and a smile on her face with a graphic image of a climbing jagged arrow tangled around her feet and lifting it comfortably so it is raised against a backdrop of many lightbulbs with one large lightbulb showing a dollar sign.

Image source: Getty Images

What's going right for the Origin share price today?

The Origin share price is off and racing once more today, following yesterday's near-3% lift.

That gain came on the back of the company's earnings for the September quarter. Speaking on the release, CEO Frank Calabria said:

Market conditions have improved following the incredibly challenging June quarter during which we experienced significant power supply challenges and elevated wholesale prices across the [National Energy Market].

Australia Pacific LNG's revenue stayed relatively steady quarter-on-quarter at around $2.77 billion despite wet weather and planned maintenance.

Perhaps in response to the company's latest release, investment group CLSA has upped its outlook for the Origin share price. It has slapped the stock with an accumulate rating, The Australian reports.

The company also provided an outlook for its LNG trading business. It has hedged around 70% of volumes and expects the business' financial year 2025 earnings before interest, tax, depreciation, and amortisation (EBITDA) to come in between $350 million and $550 million.

Finally, it announced its 20%-owned Octopus has become the United Kingdom's second-largest domestic energy supplier by customer accounts. The milestone was surpassed after it inherited 2.5 million customer accounts following the collapse of former competitor Bulb.  

All this came amid continued talks of potential government-enforced price caps and export curbs on gas. Such moves have been heralded by some as a way to drive down the domestic price of the energy commodity.

Industry representatives of energy users and producers are at odds about the effectiveness of such measures, The Guardian reports.

Motley Fool contributor Brooke Cooper 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 Scott Phillips.

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