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

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

Today's energy market summary:

  • World oil prices dipped lower on Monday, after Russia's energy minister rejected calls to freeze or cut production

  • In Canada, Canadian Light declined 1.4%, while Western Canadian Select rose 0.4% on a slight narrowing of its discount to WTI.

  • US equity markets went on a wild ride today, gaining ground in the morning but selling-off sharply in the afternoon after President Trump threatened more tariffs on Chinese imports. The Dow swung over 900 points for the day, ending Monday down 1%. The Nasdaq was once again today's biggest loser, falling 1.6%.

  • Emerging markets were the worst hit globally, now down about 10% for the month of October, and 15% year to date.

  • The TSX declined 1.1%, with cannabis stocks once again leading to the downside. The TSX energy sector fell 3%, breaking to a 12-month low. Declines were seen across all subsectors, with many producers also falling to new multi-year lows for the day.

  • Energy was also the worst performing sector on the S&P 500, declining 2% for the day. E&Ps were the worst hit, while refining stocks were the least scathed. Heavy-weight Chevron Corp (CVW -2.4%) sank to a 12-month low. On the NYSE, Royal Dutch Shell's (RDS.A -1.1%) ADR also hit a 12-month low.

Today's notable market movers:

  • Just weeks after obtaining regulatory approval, ConocoPhillips (COP -1.7%) has approved funding for its Greater Mooses Tooth #2 (GMT2) project in Alaska's North Slope. The project is expected to produce 35,000 to 40,000 bbl/day by the end of 2021. The company says capital costs will be north of US$1 billion, with construction expected to begin this winter.

  • Equinor (EQNR -0.9%) confirmed the presence of 12 to 25 million recoverable barrels of oil in the Skruis exploration well, the first well drilled by Equinor this year in the Barents Sea. The well is located within the Johan Castberg field, where total recoverable reserves are as much as 650 million barrels. The US$6 billion development is planned for start-up sometime in 2022. Skruis is owned jointly with ENI (E +0.2%) and Norway's state-owned Petoro.

Today's notable third quarter earnings:

  • PrairieSky Royalties (PSK.TO -3.0%) reported Q3 revenues of $78.1 million, about 91% from production royalties. Net earnings rose to $28.5 million, up almost 50% from the same time last year. Royalty production averaged 23,438 boe/day in Q3, weighted about half liquids, up 2% from the previous quarter.

  • TransOcean (RIG -5.2%) reported a net loss of US$409 million for the third quarter, including a US$439 million impairment charge on two retired floaters. Drilling revenues rose 3% y/y to US$816 million. As of October, the company says it has a backlog of US$11.5 billion.

  • Continental Resources (CLR -5.9%) reported a net income of US$314 million in Q3, on total revenues of US$1.28 billion, up 76% y/y. Production averaged 296,904 boe/day during the quarter, up 22% y/y.

  • Net losses at Weatherford International (WFT -22.2%) narrowed to US$199 million in Q3, on improved results out of Argentina and Mexico. Revenues dipped 1% y/y to US$1.44 billion. WFT stock sank to another all-time record low again on Monday.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$77.34▼0.457.23
 
86.29
WTI$67.04▼0.851.29
 
76.41
CDN LT$39.04▼1.438.43
 
69.32
C5+$52.54▼1.052.54
 
71.40
WCS$24.69▲0.419.43
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ OCT 29   █ OCT 22   █ OCT 15   █ OCT 8   (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
  • None
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • CES Energy Solutions (CEU -8.7%)
  • Nuvista Energy (NVA -7.4%)
  • Advantage Oil & Gas (AAV -7.1%)
  • Baytex Energy (BTE -6.8%)
  • Birchcliff Energy (BIR -6.8%)
  • 12-MO LOWS
  • TransCanada (TRP -0.9%)
  • Inter Pipeline (IPL -2.5%)
  • Cdn Natural Res (CNQ -3.1%)
  • Seven Generations (VII -5.4%)
  • Mullen Group (MTL -3.4%)
  • Advantage Oil & Gas (AAV -7.1%)
  • Altagas Ltd (ALA -3.5%)
  • ARC Resources (ARX -4.7%)
  • Baytex Energy (BTE -6.8%)
  • CES Energy Solutions (CEU -8.7%)
  • Ensign Energy Services (ESI -4.2%)
  • Freehold Royalties (FRU -2.3%)
  • Kelt Exploration (KEL -5.2%)
  • Nuvista Energy (NVA -7.4%)
  • Paramount Resources (POU -5.4%)
  • PrairieSky (PSK -3%)
  • TORC Oil & Gas (TOG -5.1%)
  • Whitecap Resources (WCP -4.8%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    SuncorSU43.49▼-2.040.49
     
    55.4724D   W
    Imperial OilIMO41.00▼-1.233.43
     
    44.9179D   W
    Husky EnergyHSE18.27▼-2.315.09
     
    22.9940D   W
    MIDSTREAM
    EnbridgeENB40.05▼-2.237.36
     
    51.0461D   W
    TransCanadaTRP49.32▼-0.949.04
     
    65.1833D   W
    Pembina PipelinePPL42.74▼-1.337.60
     
    47.8480↓D   W
    Inter PipelineIPL21.29▼-2.521.16
     
    27.9244D   W
    Keyera KEY32.92▼-3.231.20
     
    38.9155D   W
    Gibson EnergyGEI20.50▼-2.315.68
     
    23.0497D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ35.77▼-3.135.37
     
    49.0814D   W
    EncanaECA12.98▼-3.612.37
     
    18.5411D   W
    Cenovus EnergyCVE10.87▼-2.39.03
     
    14.8421D   W
    TourmalineTOU19.14▼-3.217.78
     
    27.2616D   W
    Seven GenerationsVII13.09▼-5.412.98
     
    21.2510D   W
    SERVICES
    ShawcorSCL23.96▼-2.723.10
     
    29.5055D   W
    Pason SystemsPSI19.47▼-2.616.05
     
    22.1089D   W
    Mullen Group MTL13.49▼-3.413.43
     
    17.1225D   W
    EnerflexEFX15.49▼-2.713.55
     
    17.8266D   W
    Secure EnergySES7.95▼-3.96.98
     
    9.8269D   W
    REFINING & MARKETING
    Parkland FuelPKI42.20▼-0.724.97
     
    47.4598D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Valero Energy (VLO +1.9%)
  • HollyFrontier (HFC +0.3%)
  • Cabot Oil & Gas (COG +0.1%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Noble Energy (NBL -5.4%)
  • Anadarko Petroleum (APC -5.1%)
  • EQT Corp (EQT -4.7%)
  • Newfield Exploration (NFX -4.6%)
  • Pioneer Natural Res (PXD -4.4%)
  • 12-MO LOWS
  • Chevron (CVX -2.4%)
  • Williams Co (WMB -1.3%)
  • Schlumberger (SLB -2.7%)
  • TechnipFMC (FTI -1.9%)
  • EQT Corp (EQT -4.7%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM77.05▼-0.672.16
     
    89.3057D   W
    ChevronCVX108.93▼-2.4107.54
     
    133.8832D   W
    MIDSTREAM
    Kinder MorganKMI16.46▼-0.814.69
     
    19.8356D   W
    Williams CoWMB24.03▼-1.323.76
     
    33.6727D   W
    ONEOKOKE63.23▼-0.349.65
     
    71.9961D   W
    LARGE CAP E&P
    ConocoPhillipsCOP67.35▼-1.748.97
     
    80.2464D   W
    EOG ResourcesEOG102.04▼-4.195.84
     
    133.5320D   W
    Occidental PetroleumOXY66.46▼-2.162.47
     
    87.6722D   W
    Anadarko PetroleumAPC55.87▼-5.146.80
     
    76.7018D   W
    Concho ResourcesCXO130.93▼-3.2123.63
     
    163.1124↓D   W
    SERVICES
    SchlumbergerSLB51.45▼-2.750.80
     
    80.359D   W
    HalliburtonHAL34.42▼-2.033.73
     
    57.866D   W
    Ntl-Oilwell VarcoNOV35.11▼-0.931.47
     
    49.0819D   W
    TechnipFMCFTI25.88▼-1.925.57
     
    35.0013D   W
    Baker HughesBHGE26.59▼-2.825.53
     
    37.769D   W
    REFINERS
    Phillips 66PSX98.52▼-0.989.14
     
    123.9732D   W
    Valero EnergyVLO87.38▲1.975.95
     
    126.9811D   W
    Marathon PetroleumMPC67.23▼-2.457.40
     
    88.4526D   W
    HollyFrontierHFC62.15▲0.335.71
     
    83.2856D   W
    NYSE ADRs
    ADRs BULLISH INDICATORS
    12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • ADRs BEARISH INDICATORS
    12-MO LOWS
  • Royal Dutch Shell (RDS.A -1.1%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    Royal Dutch ShellRDS.A61.25▼-1.160.53
     
    73.8641D   W
    TotalTOT57.29▼-0.853.37
     
    65.6949D   W
    BPBP41.03▼-0.236.15
     
    47.8348D   W
    EniE34.63▲0.231.58
     
    40.1552D   W
    EquinorEQNR25.41▼-0.919.76
     
    28.9367D   W
    ANALYST RATINGS

    UPGRADES

    • ConocoPhillips (COP): Upgraded from Neutral to Buy at Bank of America.

    • Core Laboratories (CLB): Upgraded from Hold to Buy at Stifel Nicolus.

    • Helmerich & Payne (HP): Upgraded from Underperform to Market Perform at BMO Capital.

    • National Oilwell Varco (NOV): Upgraded from In-Line to Outperform at Evercore ISI.

    DOWNGRADES

    • None


    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.
    Discount on Canadian Light blows out to US$35, sending prices tumbling 20%

    Discount on Canadian Light blows out to US$35, sending prices tumbling 20%

    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

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