OSH upgraded its full-year output guidance to between 17 and 20 million boe, up from 14.5 to 17.5 million boe. Having commenced production early, OSH is in a good position to increase production and lower costs. The share price rise over the past few months suggests investors were anticipating some good news from the company. However, some brokers haven’t taken too kindly to the share price appreciation and are actually encouraging investors to take profits and possibly buy Santos instead, which has underperformed its peers this year.
From a trading perspective, the stock is in a great uptrend and continues to knock through all barriers. While I’m not a fan of chasing the price higher at these levels, I would prefer buying pullbacks into the $9.30 region. From there traders could then look to ride the price higher for a potential retest of the record highs. Stops could be placed below $9 which is a key support level.