Equity markets continue to slide, taking energy stocks down for the ride
Today's energy market summary:
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.
|CURRENCIES & YIELDS|
|Imperial Oil||IMO||41.00||▼-1.2||33.43||44.91||79||D W|
|Husky Energy||HSE||18.27||▼-2.3||15.09||22.99||40||D W|
|Pembina Pipeline||PPL||42.74||▼-1.3||37.60||47.84||80↓||D W|
|Inter Pipeline||IPL||21.29||▼-2.5||21.16||27.92||44||D W|
|Gibson Energy||GEI||20.50||▼-2.3||15.68||23.04||97||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||35.77||▼-3.1||35.37||49.08||14||D W|
|Cenovus Energy||CVE||10.87||▼-2.3||9.03||14.84||21||D W|
|Seven Generations||VII||13.09||▼-5.4||12.98||21.25||10||D W|
|Pason Systems||PSI||19.47||▼-2.6||16.05||22.10||89||D W|
|Mullen Group||MTL||13.49||▼-3.4||13.43||17.12||25||D W|
|Secure Energy||SES||7.95||▼-3.9||6.98||9.82||69||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||42.20||▼-0.7||24.97||47.45||98||D W|
|Exxon Mobil||XOM||77.05||▼-0.6||72.16||89.30||57||D W|
|Kinder Morgan||KMI||16.46||▼-0.8||14.69||19.83||56||D W|
|Williams Co||WMB||24.03||▼-1.3||23.76||33.67||27||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||102.04||▼-4.1||95.84||133.53||20||D W|
|Occidental Petroleum||OXY||66.46||▼-2.1||62.47||87.67||22||D W|
|Anadarko Petroleum||APC||55.87||▼-5.1||46.80||76.70||18||D W|
|Concho Resources||CXO||130.93||▼-3.2||123.63||163.11||24↓||D W|
|Ntl-Oilwell Varco||NOV||35.11||▼-0.9||31.47||49.08||19||D W|
|Baker Hughes||BHGE||26.59||▼-2.8||25.53||37.76||9||D W|
|Phillips 66||PSX||98.52||▼-0.9||89.14||123.97||32||D W|
|Valero Energy||VLO||87.38||▲1.9||75.95||126.98||11||D W|
|Marathon Petroleum||MPC||67.23||▼-2.4||57.40||88.45||26||D W|
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.
UPDATED: DAILY (END-OF-DAY)
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