Top Performer for Fri: Warren Resources (WRES)

Warren Resources, Inc. (WRES - Analyst Report) is a top-performing Zacks #1 Rank company for Friday with shares that have advanced approximately 12%.

WRES is an independent energy company engaged in the exploration and development of domestic oil and natural gas reserves. It is part of the oil-U.S. exploration & production industry, which is very well represented in today's Zacks #1 Rank List.

The 8 other companies on this list are Arena Resources, Inc. (ARD - Snapshot Report), Brigham Exploration Company (BEXP - Snapshot Report), Carrizo Oil & Gas, Inc. (CRZO - Snapshot Report), Concho Resources Inc. (CXO - Snapshot Report), EV Energy Partners, L.P. (EVEP - Snapshot Report), Plains Exploration & Production Company (PXP - Analyst Report), Stone Energy Corporation (SGY - Analyst Report) and Vanguard Natural Resources, LLC (VNR - Snapshot Report).

Volume for WRES today is at 1.15 million shares, well above the daily average of around 370,000.

Earnings Estimates

Earnings Estimates for WRES have been trending steadily higher for several weeks now. The Zacks Consensus Estimate for this year currently calls for a loss of 14 cents per share. However, two months ago the loss estimate was more than double that at 30 cents. There has also been a narrowing of 3 cents from a loss of 17 cents in the last 30 days.

Meanwhile, the past 60 days have seen a return to profitability in the Zacks Consensus Estimate for next year. Analysts expect a profit of 19 cents, compared to a loss of 2 cents from 2 months ago and a profit of 16 cents from 30 days ago.

Second-Quarter Report

The sharpest increases in earnings estimates over the past 3 months centered around WRES' second-quarter announcement from early August.

The quarter was certainly challenging for the company, but it was able to report earnings per share of 1 cent, which was nearly 117% better than the Zacks Consensus Estimate of a 6-cent loss.

Oil & gas revenues, however, declined 56% due primarily to lower realized sales prices for oil and gas.

"Although we confronted significantly lower crude oil and natural gas prices, we made steady progress in reducing our costs, particularly general and administrative and lease operating expenses," said Chairman/CEO Norman F. Swanton. "Our focus remains on enhancing our liquidity, which may include monetization of asset strategies, to best position WRES for future growth."