TSX energy ekes out second day of gains despite weakness in broader markets

TSX energy ekes out second day of gains despite weakness in broader markets

Today's energy market summary:

  • A relatively quiet Friday in oil markets, as Brent rose about 1% and WTI squeezed out a 0.4% gain. The differential on Canadian heavy oil narrowed by US$2 a barrel, sending WCS higher by 10%.

  • US equity markets posted another day of heavy losses, as several mega-cap names missed the mark on third quarter earnings. Losses were across all sectors. The US energy sector fell 0.8%, with declines seen in all subsectors. 

  • The TSX was relatively unscathed on Friday, as gains in energy and materials stocks offset losses in all other sectors. The Canadian energy sector posted a 0.4% increase for the day, with all subsectors posting small gains. 

  • Schlumberger (SLB -0.8%) continues to sink lower, now down over 13% in October. TransCanada (TRP.TO -0.6%) and Inter Pipeline (IPL.TO +0.8%) hit new 12-month lows during the day.

Today's notable market movers:

  • AltaGas Canada (ACI.TO +0.3%) completed its IPO this week, with 16.5 million shares listed on the TSX at $14.50 a share. Parent-company AltaGas (ALA.TO -2.3%) retains a 45% interest in its Canadian power subsidiary. AltaGas Canada may also seek to issue another 2,475,000 shares in the next 30 days, which would boost total proceeds to $275 million.

  • Enbridge (ENB.TO +0.4%) continues to progress on the start-up of its US$2.6 billion Nexus natural gas pipeline, which runs from Ohio to Michigan. US federal regulators (FERC) approved the start of a compressor station in Ohio this week, but put a second station on hold pending site restoration.

  • Phillips 66 Partners (PSXP -1.0%) announced plans to expand capacity on its Gray Oaks crude pipeline to 900,000 bbl/day, thanks to strong demand for crude deliveries from the Permian to the Gulf Coast.

  • Cheniere Energy (LNG -1.1%) is asking FERC for permission to start work on its US$1 billion Midship natural gas pipeline in Oklahoma. The 234-mile pipeline will deliver 1.44 Bcf/day of gas from the Anadarko basin to existing pipelines in Oklahoma, for both domestic consumption and LNG export. The project is expected to be completed early next year.

Today's notable third quarter earnings:

  • Phillips 66 (PSX +1.0%) reported third quarter revenues of US$30.6 billion, up 17% y/y. Adjusted earnings rose 70% to US$1.46 billion. Net income from its midstream business rose 19% y/y, while the chemicals division saw a 20% drop in profits due to high feedstock costs. Income from PSX's core refining business rose 3%, as higher crack spreads in its Central Corridor offset lower margins in the Gulf Coast and West Coast. The company says its refineries in the Midwest and Rocky Mountains regions ran at 108% of capacity in order to capitalize on the wide WTI-WCS differential.

  • PSX subsidiary Phillips 66 Partners (PSXP -1.0%) reported record earnings of US$217 million in Q3, up 17% y/y. The company also boosted its dividend by 5.3%.

  • Natural gas producer Cabot Oil and Gas (COG +7.1%) posted Q3 revenues of US$545 million, up 41% y/y, bringing net profits to US$122 million. Production rose 10% y/y to 2.03 Bcfe/day. Output is expected to grow 20% to 25% next year. COG also boosted its dividend by 17%, the third increase in the past 18 months.

  • National Oilwell Varco (NOV -3.0%) posted third quarter revenues of US$2.15 billion, up 17% y/y, while net income improved to US$1 million, versus a US$26 million loss for the same time last year. The company expects higher demand for its services in 2019 as the industry works through "near-term logistical challenges" in US shale basins and more offshore projects are sanctioned. 

  • French oil major Total (TOT -0.6%) posted third quarter revenues of US$54.7 billion, up 27% y/y. Production rose 8.6% to 2.8 million boe/day, thanks mostly to start-ups in Angola, Australia and Russia. The company expects 2018 production to grow about 8%, and 6 to 7% over the next two years. Total raised its dividend 3.2% and says it expects to boost payouts by 10% over the next three years, while still continuing its share buyback program.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$77.62▲0.957.23
 
86.29
WTI$67.59▲0.451.29
 
76.41
CDN LT$39.59▲0.738.43
 
69.32
C5+$53.09▲0.552.83
 
71.40
WCS$24.59▲10.119.43
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ OCT 26   █ OCT 19   █ OCT 12   █ OCT 5   (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
  • Trican Well (TCW +6.9%)
  • Gran Tierra (GTE +3.5%)
  • PrairieSky (PSK +3.1%)
  • Advantage Oil & Gas (AAV +3.1%)
  • CES Energy Solutions (CEU +2.8%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Seven Generations (VII -3%)
  • Encana (ECA -2.5%)
  • Nuvista Energy (NVA -2.2%)
  • Paramount Resources (POU -2.1%)
  • Birchcliff Energy (BIR -2%)
  • 12-MO LOWS
  • TransCanada (TRP -0.6%)
  • Inter Pipeline (IPL +0.8%)
  • Ensign Energy Services (ESI -0.6%)
  • Freehold Royalties (FRU -0.1%)
  • Paramount Resources (POU -2.1%)
  • PrairieSky (PSK +3.1%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • Kelt Exploration (KEL +0.8%)
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    SuncorSU44.36▲0.940.49
     
    55.4727D   W
    Imperial OilIMO41.50▼-0.733.43
     
    44.9185D   W
    Husky EnergyHSE18.69▼-0.715.09
     
    22.9951D   W
    MIDSTREAM
    EnbridgeENB40.96▲0.437.36
     
    51.0472D   W
    TransCanadaTRP49.78▼-0.649.12
     
    65.1833D   W
    Pembina PipelinePPL43.31▼-1.137.60
     
    47.8485D   W
    Inter PipelineIPL21.84▲0.821.30
     
    27.9255D   W
    Keyera KEY33.99▲2.431.20
     
    38.9167D   W
    Gibson EnergyGEI20.98▲0.515.68
     
    23.0497D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ36.91▲1.036.00
     
    49.0815D   W
    EncanaECA13.47▼-2.512.37
     
    18.5413D   W
    Cenovus EnergyCVE11.12▲0.29.03
     
    14.8424D   W
    TourmalineTOU19.78▲0.717.78
     
    27.2618D   W
    Seven GenerationsVII13.83▼-3.013.51
     
    21.2513D   W
    SERVICES
    ShawcorSCL24.63▲0.723.10
     
    29.5066D   W
    Pason SystemsPSI19.98▲1.516.05
     
    22.1092D   W
    Mullen Group MTL13.97▼-0.413.87
     
    17.1235D   W
    EnerflexEFX15.92▼-1.513.55
     
    17.8284D   W
    Secure EnergySES8.27▲1.66.98
     
    9.8288D   W
    REFINING & MARKETING
    Parkland FuelPKI42.48▼-0.824.97
     
    47.4598D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Cabot Oil & Gas (COG +7.1%)
  • Halliburton (HAL +1.2%)
  • Phillips 66 (PSX +1%)
  • ConocoPhillips (COP +0.7%)
  • Kinder Morgan (KMI +0.1%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • EQT Corp (EQT -7.9%)
  • Noble Energy (NBL -3.6%)
  • Ntl-Oilwell Varco (NOV -3%)
  • Newfield Exploration (NFX -3%)
  • Williams Co (WMB -2.8%)
  • 12-MO LOWS
  • Williams Co (WMB -2.8%)
  • Schlumberger (SLB -0.8%)
  • Halliburton (HAL +1.2%)
  • EQT Corp (EQT -7.9%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM77.53▼-1.072.16
     
    89.3060D   W
    ChevronCVX111.53▼0.0108.02
     
    133.8841D   W
    MIDSTREAM
    Kinder MorganKMI16.59▲0.114.69
     
    19.8361D   W
    Williams CoWMB24.32▼-2.824.00
     
    33.6732D   W
    ONEOKOKE63.34▼-2.049.65
     
    71.9966D   W
    LARGE CAP E&P
    ConocoPhillipsCOP68.48▲0.748.97
     
    80.2469D   W
    EOG ResourcesEOG106.56▼-0.595.74
     
    133.5331D   W
    Occidental PetroleumOXY67.91▼-1.162.47
     
    87.6727D   W
    Anadarko PetroleumAPC58.84▼-1.346.75
     
    76.7031D   W
    Concho ResourcesCXO135.18▼-0.9123.63
     
    163.1134↓D   W
    SERVICES
    SchlumbergerSLB52.90▼-0.851.84
     
    80.3511D   W
    HalliburtonHAL35.14▲1.233.73
     
    57.867D   W
    Ntl-Oilwell VarcoNOV35.89▼-3.031.47
     
    49.0825↓D   W
    TechnipFMCFTI26.35▼-2.525.16
     
    35.0016D   W
    Baker HughesBHGE27.36▼-0.725.53
     
    37.7611D   W
    REFINERS
    Phillips 66PSX99.45▲1.089.14
     
    123.9737D   W
    Valero EnergyVLO85.79▼-1.875.84
     
    126.987D   W
    Marathon PetroleumMPC68.86▼-1.655.87
     
    88.4539D   W
    HollyFrontierHFC61.99▼-1.835.71
     
    83.2863D   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.A61.91▼-0.160.62
     
    73.8645D   W
    TotalTOT57.84▼-0.653.37
     
    65.6952D   W
    BPBP41.10▼-1.236.15
     
    47.8347D   W
    EniE34.50▲2.131.58
     
    40.1551D   W
    EquinorEQNR25.650.019.74
     
    28.9370D   W
    ANALYST RATINGS

    UPGRADES

    • Calfrac Well Services (CFW.TO): Upgraded from Market Perform to Outperform at BMO.

    • Mullen Group (MTL.TO): Upgraded from Buy to Strong Buy at Industrial Alliance.

    • Surge Energy (SGY.TO): Upgraded from Underperform to Outperform at National Bank.

    • Precision Drilling (PD.TO): Upgraded from Underperform to Sector Perform at Scotiabank.

    DOWNGRADES

    • Altagas (ALA.TO): Downgraded from Outperform to Neutral at CIBC.

    • EQT (EQT): Downgraded from Outperform to Market Perform at BMO.


    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.
    Equity markets continue to slide, taking energy stocks down for the ride

    Equity markets continue to slide, taking energy stocks down for the ride

    Condensate prices continue to slide as discount widens to record high

    Condensate prices continue to slide as discount widens to record high