Chesapeake Energy's stock nearly triples on heavy volume after OPEC agreement

Shares of Chesapeake Energy Corp. CHK, +181.93% nearly tripled in active trading, and have soared more than 5-fold in two days (up 421%), as an agreement by major oil producing nations over the weekend to extend production cuts and recent better-than-expected economic data helped fuel optimism over continued gains in crude oil prices. Trading volume was 8.3 million shares, already more than triple the full-day average of 2.6 million shares. The oil and gas company's stock shot up 195% in midday trading, which would be a one-day record gain by far, a day after soaring 76.5% on Friday. The previous record one-day gain was 96.0% on March 13. The stock has now rocketed more than 8-fold since closing at a record low of $8.71 on May 14, and 350% since April 15, when a 1-for-200 reverse stock went into effect. The company has not responded to a request for comment. The surprisingly strong May jobs report out Friday boosted hopes for a quicker-than-expected return in demand, while the agreement by OPEC and allied nations over the weekend to extend production cuts helped assuage concerns over a supply glut. The SPDR Energy Select Sector ETF XLE, +4.50%, which rose 2.7% on Monday, and the Dow Jones Industrial Average DJIA, +1.70%, which climbed 223 points, or 0.8%, on the day, were both headed for a sixth-straight gain. Crude oil futures CL00, -1.93% fell 3.5% Monday, but have nearly doubled (up 99%) since the end of April.

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