John Rogers (Trades, Portfolio) of Ariel Investment LLC has increased his portfolio stake in Contango Oil & Gas Company (MCF, Financial). Rogers is the founder of Ariel Investment LLC which manages approximately $8.9 billion in equity assets. On July 31 he added 467,473 shares of Contango to his portfolio, increasing his allocation in the oil and gas sector to 4.96% and his portfolio position in Contango to 0.50%. After the share increase on July 31, Ariel Investment LLC holds 25% of the outstanding equity shares of Contango.
Contango is 1 of 10 oil and gas holdings in John Rogers' (Trades, Portfolio) portfolio. With a market capitalization of $165 million it ranks ninth in market capitalization among its oil and gas peers.Contango Oil & Gas is an exploration and production company focused on resources in the Gulf of Mexico. The company recently released its earnings for the second quarter of 2015, reporting $35.3 million in revenue. In the second quarter the company reported a net loss of $19.5 million resulting in a loss per share of $1.03.
Like other oil and gas companies, Contango has suffered from lower oil prices decreasing the value of its energy products. In the second quarter, Contango’s revenue fell 55% from the comparable quarter. For the first half of the year revenue is also down 58%.
In the day following the second quarter earnings report the stock was down 7.05% to close at $8.14. While the stock has moved lower in recent trading, Rogers’ active stake shows his commitment for the long-term. As oil and gas companies continue to struggle with the industry’s oversupply and lower prices many investors see the dip as a long-term buying opportunity. While oil spot prices continue to hover around $45 per barrel, speculators believe prices could move higher in the near term, reaching $61 peak levels achieved in June 2015.
