Energy stocks post another day of losses despite gains in oil prices

Energy stocks post another day of losses despite gains in oil prices

Today's energy market summary:

  • After last week's meltdown, equity markets had a relatively quiet day, with the TSX ending Monday roughly unchanged, while and the S&P 500 dipped 0.6%.

  • Geopolitical tensions between the US and Saudi Arabia returned to the headlines with President Trump threatening sanctions over the disappearance of a Saudi journalist (and US resident), and the Saudi kingdom threatening to retaliate in kind. 

  • World oil prices bounced slightly today, with Brent and WTI gaining 0.4% and 0.6%, respectively. Canadian crude benchmarks, WCS and Canadian Light, gained almost 2% despite little change in differentials.

  • Alberta’s AECO gas rose 4% for the day, while Henry Hub gained 2.6%.

  • Both the TSX and S&P 500 energy sectors declined about 0.8% for the day.

  • Among TSX energy names, producers suffered the most losses for the day, partially offset by gains in midstream and large-cap integrated stocks. In US markets, refining stocks posted another day of heavy losses, despite little change in gasoline prices.

  • ADRs reversed their recent downtrend, with most gaining almost 1% due to a lower US dollar.

Today's market movers:

  • Gibson Energy (GEI.TO -0.4%) sanctioned the addition of another million barrels at its Hardisty Terminal. The company says it already has contracts in place for the new tanks, which are expected to be in service by Q1/2020.

  • Enbridge (ENB.TO +0.7%) continues working towards restoring natural gas supplies after last week's explosion near Prince George knocked out flows to the US and parts of BC. The company is working on a temporary access road before repairs can begin later this week. Gas supply to the US is still currently running at about 30% of capacity.

  • Occidental Petroleum (OXY -6.1%) has abandoned plans to extend its contract with Qatar Petroleum in the development of a Qatari offshore oil field. The current contract expires in October 2019, after which Qatar Petroleum will takeover operation of the field. The company says it will instead redirect its resources to projects with higher returns.

  • Range Resources (RRC +5.3%) announced the sale of a 1% overriding royalty in its Pennsylvania leases for gross proceeds of US$300 million.

  • Equinor (EQNR +0.7%) announced the sale of its 78% operated stake in its undeveloped King Lear property in the Norwegian North Sea to Aker BP for US$250 million. The company also announced the start-up of a new unmanned platform in the Norwegian Continental Shelf. The US$800 million facility was 20% under budget, and has an estimated break-even of US$20 per barrel.

  • Total (TOT +0.9%) announced the opening of a new lubricants oil blending plant in Russia. The US$50 million facility is designed to produce 40,000 t/y of automotive and industrial lubricants, with the potential for expansion to 70,000 t/y. 

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$80.78▲0.455.62
 
86.29
WTI$71.78▲0.649.29
 
76.41
CDN LT$45.00▲1.843.17
 
69.32
C5+$63.94▲0.451.08
 
71.40
WCS$26.33▲1.725.80
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ OCT 15   █ OCT 8   █ OCT 1   █ SEP 24   (USD/BBL)
MARKET OVERVIEW
MARKETS
CURRENCIES & YIELDS
    TSX SECTORS
52-WK
    SPX SECTORS
52-WK
ENERGY SECTORS
ENERGY SUB-SECTORS

TSX ENERGY SUB-SECTORS

SPX ENERGY SUB-SECTORS
TSX ENERGY STOCKS
TSX BULLISH INDICATORS
TOP 5
  • Trican Well (TCW +1.9%)
  • Imperial Oil (IMO +1.9%)
  • Secure Energy (SES +1.8%)
  • Mullen Group (MTL +1.3%)
  • Advantage Oil & Gas (AAV +1.2%)
  • 12-MO HIGHS
  • Parkland Fuel (PKI +1.2%)
  • 10-YR HIGHS
  • Parkland Fuel (PKI +1.2%)
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • CES Energy Solutions (CEU -4.4%)
  • Nuvista Energy (NVA -3.7%)
  • Cenovus Energy (CVE -3.6%)
  • Whitecap Resources (WCP -3.2%)
  • Vermilion Energy (VET -2.7%)
  • 12-MO LOWS
  • Shawcor (SCL -0.1%)
  • PrairieSky (PSK -0.5%)
  • Vermilion Energy (VET -2.7%)
  • Whitecap Resources (WCP -3.2%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    SuncorSU47.84▲0.240.49
     
    55.4754D   W
    Imperial OilIMO43.53▲1.933.43
     
    44.9194D   W
    Husky EnergyHSE19.97▼-1.415.09
     
    22.9979D   W
    MIDSTREAM
    EnbridgeENB41.98▲0.737.36
     
    52.0956D   W
    TransCanadaTRP51.60▲0.650.28
     
    65.1835D   W
    Pembina PipelinePPL43.81▼-0.337.60
     
    47.8485D   W
    Inter PipelineIPL21.69▲0.121.36
     
    27.9224D   W
    Keyera KEY34.76▲0.931.20
     
    39.3163D   W
    Gibson EnergyGEI20.85▼-0.415.68
     
    21.6496D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ37.39▼-1.236.88
     
    49.0811D   W
    EncanaECA14.69▼-0.112.37
     
    18.5422D   W
    Cenovus EnergyCVE11.01▼-3.69.03
     
    14.8414D   W
    TourmalineTOU20.68▼-2.417.78
     
    27.2623↓D   W
    Seven GenerationsVII15.00▼-1.813.62
     
    21.2534↓D   W
    SERVICES
    ShawcorSCL23.60▼-0.123.22
     
    29.5022D   W
    Pason SystemsPSI20.09▼-0.116.05
     
    22.1088D   W
    Mullen Group MTL15.01▲1.314.10
     
    17.1262D   W
    EnerflexEFX16.76▼-0.313.55
     
    18.5992D   W
    Secure EnergySES8.07▲1.86.98
     
    9.8278D   W
    REFINING & MARKETING
    Parkland FuelPKI46.52▲1.223.41
     
    46.9798D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • EQT Corp (EQT +3.4%)
  • Cabot Oil & Gas (COG +2.2%)
  • Marathon Oil (MRO +1.6%)
  • Noble Energy (NBL +0.9%)
  • Ntl-Oilwell Varco (NOV +0.6%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Occidental Petroleum (OXY -6.1%)
  • Valero Energy (VLO -4.1%)
  • Marathon Petroleum (MPC -2.9%)
  • HollyFrontier (HFC -2.7%)
  • Phillips 66 (PSX -2.1%)
  • 12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM80.82▼-0.772.16
     
    89.3062D   W
    ChevronCVX116.94▼-0.7108.02
     
    133.8848↓D   W
    MIDSTREAM
    Kinder MorganKMI17.54▲0.214.69
     
    19.8376↓D   W
    Williams CoWMB26.77▲0.424.00
     
    33.6757D   W
    ONEOKOKE64.81▼-0.349.65
     
    71.9970D   W
    LARGE CAP E&P
    ConocoPhillipsCOP73.27▼-0.848.97
     
    80.2489↓D   W
    EOG ResourcesEOG122.57▲0.395.36
     
    133.5384↓D   W
    Occidental PetroleumOXY72.24▼-6.162.47
     
    87.6734D   W
    Anadarko PetroleumAPC67.630.046.75
     
    76.7082D   W
    Concho ResourcesCXO151.08▲0.4123.63
     
    163.1175↓D   W
    SERVICES
    SchlumbergerSLB59.55▲0.458.30
     
    80.3524D   W
    HalliburtonHAL39.80▲0.535.75
     
    57.8619D   W
    National-Oilwell VarcoNOV42.18▲0.631.47
     
    49.0873D   W
    TechnipFMCFTI30.08▼-0.124.53
     
    35.0048D   W
    Baker HughesBHGE30.69▼-0.525.53
     
    37.7634D   W
    REFINERS
    Phillips 66PSX107.21▼-2.189.14
     
    123.9751↓D   W
    Valero EnergyVLO103.79▼-4.175.84
     
    126.9840D   W
    Marathon PetroleumMPC77.79▼-2.955.68
     
    88.4560D   W
    HollyFrontierHFC64.66▼-2.735.49
     
    83.2876D   W
    NYSE ADRs
    ADRs BULLISH INDICATORS
    12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • ADRs BEARISH INDICATORS
    12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    Royal Dutch ShellRDS.A65.41▲0.260.43
     
    73.8655D   W
    TotalTOT62.12▲0.953.37
     
    65.6975D   W
    BPBP44.50▼-0.136.15
     
    47.8379D   W
    EniE36.38▲0.731.58
     
    40.1558D   W
    EquinorEQNR27.06▲0.719.74
     
    28.9385D   W
    ANALYST RATINGS

    UPGRADES

    • Carrizo & Gas (CRZO): Upgraded from Hold to Buy at Jefferies Financial.

    • Continental Resources (CLR): Upgraded from Neutral to Buy at Seaport Global Securities.

    • FTS International (FTSI): Upgraded from Equal Weight to Overweight at Capital One Financial.

    • Marathon Oil (MRO): Upgraded from Market Perform to Outperform at BMO.

    • Oasis Petroleum (OAS): Upgraded from Hold to Buy at Jefferies Financial.

    • W&T Offshore (WTI): Upgraded from Neutral to Buy at Roth Capital.

    DOWNGRADES

    • NCS Multistage (NCSM): Downgraded from Outperform to Market Perform at Wells Fargo.


    UPDATED: DAILY (END-OF-DAY)

    SOURCES:
    • OIL PRICES REFLECT NEAR MONTH CONTRACT FROM THE NYMEX/CME GROUP
    • EQUITY PRICES PROVIDED BY NYSE & TMX GROUP
    • CHARTPACKS COURTESY STOCKCHARTS.COM (DIVIDEND ADJUSTED)

    NOTES:
    • OIL PRICES, FUTURES AND DIFFERENTIALS IN USD/BBL
    • C5+ = EDMONTON CONDENSATE
    • FUTURES CURVES SHOW PRICES FOR NEAR-MONTH CONTRACT (C1) AND NEXT 5-MONTHS (C2-C6)
    • TSX SHARE PRICES IN CAD; S&P 500 PRICES IN USD
    • ADR: AMERICAN DEPOSITORY RECEIPTS LISTED ON NYSE IN USD
    • SHARE PRICE CHANGES (INCL. NEW HIGHS & LOWS) EXCLUDE DIVIDENDS

    RANK:
    • BASED ON STOCKCHARTS TECHNICAL RANK (SCTR)
    • REFLECTS RELATIVE STRENGTH AMONG OTHER ENERGY STOCKS (PERCENTILE RANKING)
    • RISING RANK (↑) REFLECTS INCREASING RELATIVE STRENGTH
    • FALLING RANK (↓) REFLECTS DECREASING RELATIVE STRENGTH.
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