It’s a simple risk for this oil and gas explorer.
Arena Resources (NYSE: ARD, Stock Forum) made the BusinessWeek list of the 100 fastest growing small companies. The stock shows it, trading at over $51, about double its 52-week low.
The company’s stock price was not hurt when it recently offered 2.2 million new shares for sale. But the oil and gas exploration firm had a break-out quarter.
In the period ending March 31, revenue hit $45.3 million, up from $16.7 million the year earlier. Net income moved from $5.7 million to $18.3 million.
The risk is simple on ARD. Their average price per barrel sold in the last quarter was $87.64 compared to $49.46 in the period last year.
If oil and gas prices sell off, ARD won't be on the BusinessWeek list next year.
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