Broad stock market rally helps lift Oklahoma stocks

More than three-quarters of Oklahoma stocks tracked by The Oklahoman posted gains in share prices in 2013 as most of the major stock market indexes had the best year in more than a decade.
by Paul Monies Published: January 1, 2014
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The red-hot stock market of 2013 benefited investors in Oklahoma companies as three-fourths of the companies tracked by The Oklahoman posted gains for the year.

Leading the way was Aaon Inc., the Tulsa-based maker of industrial heating and cooling equipment. Its stock rose 130 percent in 2013, closing Tuesday at $31.95. Another Tulsa company, Matrix Service Co., rose 112 percent, while shares in Oklahoma City drive-in chain Sonic Corp. almost doubled in price to end the year at $20.19.

Pipeline operator Access Midstream Partners LP also had a good year, with its stock price rising to $56.58, a gain of 69 percent. SemGroup Corp., which operates pipelines and storage terminals, rounded out the top five, with an increase of 67 percent in its share price.

It was a rough year for some energy-related partnerships as royalty trusts connected to SandRidge Energy Inc. and Chesapeake Energy Corp. were among the biggest losers. SandRidge Mississippian Trust II fell by 45 percent, while units in its sister trust, SandRidge Mississippian Trust I, dropped 44 percent in value in 2013. Chesapeake Granite Wash Trust units fell to $10.60, a decline of 36 percent.

The booming stock market helped lift many publicly traded Oklahoma companies, with 30 of the 43 stocks posting double-digit increases in 2013. One company, Oklahoma City's GMX Resources Inc., filed for bankruptcy protection in April and fell off the stock exchange.

Most of the major stock indexes posted their best years since the technology boom of the late 1990s. The Dow Jones industrial average was up 26 percent for the year and closed Tuesday at 16,576.66. The tech-heavy Nasdaq composite surged 38 percent, while the broader Standard & Poor's 500 index grew by 30 percent in 2013.

“The economy appears to be improving, albeit slowly. Interest rates are still very low, but could continue to rise in the coming months as the economy improves,” said Greg Womack, who runs Edmond-based Womack Investment Advisers Inc. “Rising interest rates are not good for bonds, and you aren't making any money at the bank, so stocks and alternatives are the preferred investments.”

Companies outside of the energy sector, like Aaon and Sonic, are benefiting from a better economy, said Jake Dollarhide, CEO of Longbow Asset Management in Tulsa.

Many of Aaon's customers are in the commercial and industrial sectors, which need heating and air equipment for new retail outlets or factories. Sonic stock has outperformed that of larger hamburger chains such as McDonald's Corp. and The Wendy's Co. with a creative menu and locations in rural and urban areas, Dollarhide said.


by Paul Monies
Energy Reporter
Paul Monies is an energy reporter for The Oklahoman. He has worked at newspapers in Texas and Missouri and most recently was a data journalist for USA Today in the Washington D.C. area. Monies also spent nine years as a business reporter and...
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Related Articles

Oklahoma stocks

Top

Aaon Inc.+130 percent

Matrix Service Co. +112 percent

Sonic Corp. +94 percent

Access Midstream Partners LP+69 percent

SemGroup Corp. +67 percent

Bottom

PostRock Energy Corp.-20 percent

SandRidge Permian Trust-30 percent

Chesapeake Granite Wash Trust-36 percent

SandRidge Mississippian Trust I-44 percent

SandRidge Mississippian Trust II-45 percent

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