Energy stocks move higher as equity markets continue relief rally

Energy stocks move higher as equity markets continue relief rally

Today's energy market summary:

  • Global equity markets staged a nice rally on Tuesday, with the TSX gaining over 1% and the S&P 500 rising about 2%. Gains were broadly based across most sectors.

  • The American Petroleum Institute is forecasting a US crude inventory drawdown of 2.1 million barrels for last week. Official numbers from the EIA are due tomorrow morning.

  • WTI had a rather uneventful day, ending Tuesday roughly unchanged, while Brent eked out a 0.8% gain. Henry Hub was also roughly unchanged for the day, while gasoline prices rose 1.6%.

  • The TSX energy sector rose 1%, with most components ending the day higher, except for a handful of service stocks and smaller producers.

  • The S&P 500 energy basket also rose almost 1%, with most names posting gains for the day. Large cap refiners were today's big winners, reversing most of yesterday's losses.

  • Analysts had a very busy Tuesday, upgrading Imperial Oil (IMO.TO 1.0%), Phillips 66 (PSX +2.5%) and HollyFrontier (HFC +4.0%), while downgrading several Canadian energy services stocks. Price targets for Pason System (PSI.TO +1.8%) and Valero Energy (VLO +2.0%) were also revised lower today.

  • After yesterday's late-day announcement of an expansion of its Hardisty storage terminal, Gibson Energy (GEI.TO +9.3%), shot up today on a ratings upgrade from BMO and higher price target forecast from Credit Suisse.

Today's other notable market movers:

  • Devon Energy (DVE +1.2%) announced the completion of all maintenance work at its Jackfish SAGD facility in Alberta, with production in the process of being restored back to peak rates. Net production out of Canada is expected to top 120,000 boe/day by the end of 2018, while Q4 output from the US is forecasted at 418,000 boe/day. Total Q3 upstream capital spend was US$523 million, 9% percent below midpoint guidance.

  • Tallgrass Energy (TGE +5.1%) is expanding its joint-venture with privately-held Silver Creek Midstream in the Powder River Basin. Tallgrass will operate the JV with a 51% stake, with Silver Creek owning the remaining 49%.

  • China's state-owned CNPC signed an agreement with Brazil's Petrobras (PBR +4.1%) to purchase a 20% stake in the 150,000 bbl/day Comperj refinery and several offshore oil fields, which produce 350,000 bbl/day of heavy sour crude. CNPC will study the feasibility of completing the Comperj facility, which was shelved after construction was 80% complete.

  • Total (TOT -0.2%) says it is in discussion with several Indian companies to acquire a stake in various LNG import terminals and municipal gas distribution projects. The French oil major is also looking at setting up retail gas stations in the country, which is currently the fastest growing energy consumer in the world.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$81.41▲0.855.62
 
86.29
WTI$71.92▲0.249.29
 
76.41
CDN LT$45.01▲0.043.17
 
69.32
C5+$64.02▲0.151.08
 
71.40
WCS$26.44▲0.425.80
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ OCT 16   █ OCT 9   █ OCT 2   █ SEP 25   (USD/BBL)
MARKET OVERVIEW
MARKETS
CURRENCIES & YIELDS
    TSX SECTORS
52-WK
    SPX SECTORS
52-WK
ENERGY SECTORS

TSX ENERGY SUB-SECTORS

SPX ENERGY SUB-SECTORS
TSX ENERGY STOCKS
TSX BULLISH INDICATORS
TOP 5
  • Gibson Energy (GEI +9.3%)
  • Parex Resources (PXT +4.3%)
  • Gran Tierra (GTE +3.8%)
  • Birchcliff Energy (BIR +3.5%)
  • Cenovus Energy (CVE +3.5%)
  • 12-MO HIGHS
  • Gibson Energy (GEI +9.3%)
  • Parkland Fuel (PKI +0.9%)
  • 10-YR HIGHS
  • Parkland Fuel (PKI +0.9%)
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Ensign Energy Services (ESI -2.6%)
  • Tourmaline (TOU -1.2%)
  • Precision Drilling (PD -0.8%)
  • Altagas (ALA -0.7%)
  • Baytex Energy (BTE -0.6%)
  • 12-MO LOWS
  • Trican Well (TCW 0%)
  • Vermilion Energy (VET +2.5%)
  • Whitecap Resources (WCP +1.4%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • Cenovus Energy (CVE +3.5%)
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    SuncorSU47.66▼-0.440.49
     
    55.4743D   W
    Imperial OilIMO43.98▲1.033.43
     
    44.9195D   W
    Husky EnergyHSE20.41▲2.215.09
     
    22.9980D   W
    MIDSTREAM
    EnbridgeENB43.25▲3.037.36
     
    52.0974D   W
    TransCanadaTRP51.95▲0.750.28
     
    65.1831D   W
    Pembina PipelinePPL44.63▲1.937.60
     
    47.8487D   W
    Inter PipelineIPL22.14▲2.121.36
     
    27.9230D   W
    Keyera KEY35.73▲2.831.20
     
    39.3180D   W
    Gibson EnergyGEI22.79▲9.315.68
     
    23.0097D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ37.97▲1.636.88
     
    49.0813D   W
    EncanaECA14.68▼-0.112.37
     
    18.5420D   W
    Cenovus EnergyCVE11.39▲3.59.03
     
    14.8422D   W
    TourmalineTOU20.44▼-1.217.78
     
    27.2617D   W
    Seven GenerationsVII15.31▲2.113.62
     
    21.2539D   W
    SERVICES
    ShawcorSCL24.02▲1.823.22
     
    29.5025D   W
    Pason SystemsPSI20.45▲1.816.05
     
    22.1090D   W
    Mullen Group MTL15.16▲1.014.10
     
    17.1264D   W
    EnerflexEFX16.79▲0.213.55
     
    18.3891D   W
    Secure EnergySES8.03▼-0.56.98
     
    9.8271D   W
    REFINING & MARKETING
    Parkland FuelPKI46.95▲0.923.41
     
    47.4598D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • ONEOK (OKE +4.1%)
  • HollyFrontier (HFC +4%)
  • Marathon Petroleum (MPC +2.9%)
  • Devon Energy (DVN +2.7%)
  • Phillips 66 (PSX +2.4%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Noble Energy (NBL -0.3%)
  • EOG Resources (EOG -0.2%)
  • Apache (APA -0.1%)
  • Cabot Oil & Gas (COG 0%)
  • 12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM81.20▲0.572.16
     
    89.3053↓D   W
    ChevronCVX117.51▲0.5108.02
     
    133.8841↓D   W
    MIDSTREAM
    Kinder MorganKMI17.92▲2.214.69
     
    19.8372↓D   W
    Williams CoWMB26.94▲0.624.00
     
    33.6751D   W
    ONEOKOKE67.46▲4.149.65
     
    71.9979D   W
    LARGE CAP E&P
    ConocoPhillipsCOP73.80▲0.748.97
     
    80.2482↓D   W
    EOG ResourcesEOG122.26▼-0.295.36
     
    133.5372↓D   W
    Occidental PetroleumOXY73.12▲1.262.47
     
    87.6730D   W
    Anadarko PetroleumAPC68.28▲1.046.75
     
    76.7075D   W
    Concho ResourcesCXO152.98▲1.2123.63
     
    163.1168↓D   W
    SERVICES
    SchlumbergerSLB59.68▲0.258.30
     
    80.3521D   W
    HalliburtonHAL40.08▲0.735.75
     
    57.8616D   W
    National-Oilwell VarcoNOV42.65▲1.131.47
     
    49.0866D   W
    TechnipFMCFTI30.26▲0.624.53
     
    35.0039D   W
    Baker HughesBHGE30.84▲0.525.53
     
    37.7628D   W
    REFINERS
    Phillips 66PSX109.86▲2.489.14
     
    123.9750↓D   W
    Valero EnergyVLO105.91▲2.175.84
     
    126.9839D   W
    Marathon PetroleumMPC80.07▲2.955.68
     
    88.4561D   W
    HollyFrontierHFC67.27▲4.035.49
     
    83.2881D   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.A66.00▲0.960.43
     
    73.8647D   W
    TotalTOT62.00▼-0.253.37
     
    65.6960D   W
    BPBP44.70▲0.536.15
     
    47.8369D   W
    EniE36.69▲0.731.58
     
    40.1549D   W
    EquinorEQNR27.38▲1.219.74
     
    28.9380↓D   W
    ANALYST RATINGS

    UPGRADES

    • Gibson Energy (GEI.TO): Upgraded from Market Perform to Outperform at BMO.

    • HollyFrontier (HFC): Upgraded from Underperform to Hold at Jefferies Financial.

    • Imperial Oil (IMO.TO): Upgraded from Hold to Buy at Canaccord Genuity.

    • Phillips 66 (PSX): Upgraded from Underperform to Hold at Jefferies Financial.

    DOWNGRADES

    • Antero Midstream Partners (AM): Downgraded from Buy to Hold at Stifel Nicolaus.

    • Calfrac Well Services (CFW.TO): Downgraded from Buy to Hold at Canaccord Genuity.

    • Ensign Energy Services (ESI.TO): Downgraded from Outperform to In-Line at Evercore.

    • Source Energy Services (SHLE.TO): Downgraded from Outperform to Neutral at CIBC.

    • Trican Well Service (TCW.TO): Downgraded from Outperform to In-Line at Evercore and from Buy to Hold at Canaccord Genuity.

    • Western Energy Services (WRG.TO): Downgraded from Outperform to Neutral at CIBC.


    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.
    Surprise build in US crude stockpiles drag oil prices lower

    Surprise build in US crude stockpiles drag oil prices lower

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

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

    0