WCS surges 50% as December contract expires

WCS surges 50% as December contract expires

Today's energy market summary:

  • Canadian crude and condensate benchmark prices all surged today, as futures rolled into the January contract on Friday.

  • WCS gained almost 50% as the discount to WTI narrowed from US$43 a barrel to US$36.30. The discount on Canadian Light narrowed by almost US$8, while the C5+ discount narrowed by US$4.

  • Brent and WTI ended the day roughly unchanged, despite a 0.5% drop in the US dollar.

  • After yesterday's meltdown, Henry Hub rebounded over 5% on Friday.

  • Equity markets had a very uneventful Friday, with most US indices ending the day flat to slightly higher. In Toronto, the TSX rose 0.1%.

  • The TSX energy sector posted a 0.5% loss, led lower by large-cap integrated names. Canadian energy services firms ended Friday mostly in the green.

  • The SPX energy sector posted its second day of solid gains, rising over 1%. Gains were broadly based with all large-cap components ending the day higher.

Today's notable energy news:

  • Ensign Energy (ESI.TO -0.8%) has advanced the expiry date for its all-cash offer for Trinidad Drilling (TDG.TO -0.6%) to November 27, 2018. Under terms of the deal, Trinidad shareholders are entitled to $1.68 per TDG share. Trinidad is instead recommending investors vote for a merger with Precision Drilling (PD.TO +0.3%). The deal with PD is subject to a $20 million break-up fee, payable by Trinidad, should the merger fall through. A special shareholders meeting is planned for December 11, 2018.

  • Total (TOT n/c), ExxonMobil (XOM +1.0) and Oil Search announced a new MOU with the government of Papua New Guinea, establishing a framework for its proposed Papua LNG Project. The project will include two LNG trains of 2.7 Mt/y. The partners have agreed to begin engineering studies on the terminal.

  • Anadarko Petroleum (APC +1.6%) says it has allocated US$200 million for its proposed Mozambique LNG export terminal, in preparation for a final investment decision sometime next year. If the project is sanctioned, first LNG exports are expected by 2023. Capital costs for the 13 Mt/y terminal are estimated to be somewhere between US$8 and US$15 billion.

Today's quarterly earnings:

  • Driller Helmerich & Payne (HP +4.3%) swung to a profit in the fourth quarter. The company reported a US$2.5 million profit, versus a US$22.5 million loss for the same quarter last year. Revenues rose 31% y/y to US$697 million. For the fiscal year 2018, the company reported a net income of US$483 million on operating revenues of US$2.5 billion. 

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$66.76▲0.261.22
 
86.29
WTI$56.460.055.14
 
76.41
CDN LT$29.46▲36.820.83
 
69.32
C5+$42.96▲10.237.76
 
71.40
WCS$20.16▲49.012.59
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ NOV 16   █ NOV 9   █ NOV 2   █ OCT 26   (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
  • TORC O&G (TOG +6.1%)
  • Baytex Energy (BTE +6.1%)
  • Nuvista Energy (NVA +2.9%)
  • Enerflex (EFX +1.8%)
  • Seven Generations (VII +1.7%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Crescent Point (CPG -2.7%)
  • Cenovus Energy (CVE -2.5%)
  • Peyto Exploration (PEY -2.5%)
  • Husky Energy (HSE -2.4%)
  • Freehold Royalties (FRU -1.6%)
  • 12-MO LOWS
  • Cdn Natural Res (CNQ -0.1%)
  • Encana (ECA -1.6%)
  • Crescent Point (CPG -2.7%)
  • Freehold Royalties (FRU -1.6%)
  • Trican Well Svc (TCW 0%)
  • Whitecap Res (WCP -0.5%)
  • 10-YR LOWS
  • Crescent Point (CPG -2.7%)
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Suncor EnergySU43.68▼-1.140.49
     
    55.4724D   W
    Imperial OilIMO41.98▼-0.133.43
     
    44.9173D   W
    Husky EnergyHSE17.43▼-2.415.09
     
    22.9924D   W
    MIDSTREAM
    EnbridgeENB42.68▲0.337.36
     
    51.0481D   W
    TransCanadaTRP52.56▲0.348.92
     
    65.1858D   W
    Pembina PipelinePPL44.60▲0.737.60
     
    47.8481D   W
    Inter PipelineIPL22.76▼-0.120.68
     
    27.9265D   W
    Keyera KEY29.47▲0.228.45
     
    38.9120D   W
    Gibson EnergyGEI21.92▲0.115.68
     
    23.3297↓D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ35.70▼-0.135.19
     
    49.0817D   W
    EncanaECA10.06▼-1.69.76
     
    18.543D   W
    Cenovus EnergyCVE10.67▼-2.59.03
     
    14.8417D   W
    TourmalineTOU19.42▼-0.117.78
     
    26.1920D   W
    Seven GenerationsVII12.30▲1.711.57
     
    19.409D   W
    SERVICES
    ShawcorSCL21.52▲1.521.03
     
    29.5019D   W
    Pason SystemsPSI21.77▲1.516.05
     
    24.5793D   W
    Mullen Group MTL13.27▲1.513.02
     
    16.9324D   W
    EnerflexEFX17.55▲1.813.55
     
    18.7294D   W
    Secure EnergySES8.15▲0.46.98
     
    9.8268D   W
    REFINING & MARKETING
    Parkland FuelPKI37.21▼-0.924.97
     
    47.4580↓D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Helmerich & Payne (HP +4.3%)
  • EOG Resources (EOG +3.6%)
  • Concho Res (CXO +2.8%)
  • Chevron (CVX +1.8%)
  • Anadarko Petro (APC +1.6%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Newfield Expl (NFX -3.6%)
  • Devon Energy (DVN -3.5%)
  • EQT Corp (EQT -3.3%)
  • Noble Energy (NBL -1.3%)
  • Cimarex Energy (XEC -0.2%)
  • 12-MO LOWS
  • Devon Energy (DVN -3.5%)
  • EQT Corp (EQT -3.3%)
  • Newfield Expl (NFX -3.6%)
  • 10-YR LOWS
  • EQT Corp (EQT -3.3%)
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM78.96▲1.072.16
     
    89.3049D   W
    ChevronCVX119.06▲1.8107.54
     
    133.8855D   W
    MIDSTREAM
    Kinder MorganKMI17.28▲0.614.69
     
    19.8366D   W
    Williams CoWMB25.13▲0.523.54
     
    33.6727D   W
    ONEOKOKE62.20▲1.449.65
     
    71.9941D   W
    LARGE CAP E&P
    ConocoPhillipsCOP66.12▲1.448.97
     
    80.2439D   W
    EOG ResourcesEOG105.20▲3.696.54
     
    133.5321D   W
    Occidental PetroOXY73.38▲1.162.47
     
    87.6739D   W
    Anadarko PetroAPC56.38▲1.646.80
     
    76.7012D   W
    Concho ResCXO138.39▲2.8123.63
     
    163.1142D   W
    SERVICES
    SchlumbergerSLB48.22▲0.347.07
     
    80.353D   W
    HalliburtonHAL32.46▲0.031.75
     
    57.863D   W
    Ntl-Oilwell VarcoNOV33.65▲0.531.47
     
    49.086D   W
    TechnipFMCFTI24.26▲0.623.51
     
    35.005D   W
    Baker HughesBHGE23.37▲0.422.55
     
    37.762D   W
    REFINERS
    Phillips 66PSX96.61▲1.289.14
     
    123.9719D   W
    Valero EnergyVLO83.95▲0.880.88
     
    126.985D   W
    Marathon PetroMPC65.44▲0.160.95
     
    88.4513D   W
    HollyFrontierHFC63.83▲1.242.42
     
    83.2842D   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.A62.02▲0.660.27
     
    73.8615D   W
    TotalTOT57.11▼0.053.37
     
    65.6935D   W
    BPBP40.84▼-0.836.15
     
    47.8331D   W
    EniE34.12▼-0.132.13
     
    40.1534D   W
    EquinorEQNR24.78▲1.719.76
     
    28.9337D   W
    ANALYST RATINGS

    UPGRADES

    • CNOOC (CEO): Upgraded from Neutral to Buy at UBS Group.

    • Core Laboratories (CLB): Upgraded from Neutral to Buy at Guggenheim.

    • EOG Resources (EOG): Upgraded from Neutral to Outperform at Credit Suisse.

    • Pembina Pipeline (PPL.TO): Upgraded from Neutral to Outperform at Credit Suisse.

    DOWNGRADES

    • Traverse Energy (TVL.V): Downgraded from Hold to Reduce at GMP Securities.

    • Weatherford International (WFT): Downgraded from Outperform to Market Perform at Raymond James.


    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.
    Canadian energy stocks try to find a floor as oil prices stabilize

    Canadian energy stocks try to find a floor as oil prices stabilize

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