Canadian energy stocks try to find a floor as oil prices stabilize
Today's energy market summary:
A relatively quiet Monday, with Brent ending the day unchanged and WTI posting a 0.5% gain.
Canadian Light and Edmonton Condensate rose almost 1%, while WCS declined 1.2% as the discount to WTI widened by about US$0.50/bbl.
After rebuffing plans to curb output, Russia's energy minister now says he plans to sign an agreement with OPEC at their next official meeting in Vienna on December 6.
Renewed trade tensions between the US and China spooked equity markets again today, sending bond yields and the US dollar slightly lower.
The Nasdaq was once again the worst performer in the US, falling 3%, as mega-cap technology names continue to sell off. The S&P 500 declined a more modest 1.7%. In Toronto, the TSX fell 0.6%, with declines seen across most sectors.
Today's notable energy news:
Husky Energy's (HSE.TO -3.2%) White Rose production facility off the coast of Newfoundland spilled about 1,500 barrels of oil on Friday, forcing the shutdown of production from the platform. White Rose was taken offline on Thursday due to stormy weather, and remains offline pending inspections and clearance to restart by provincial regulators.
Precision Drilling (PD.TO +6.4%) says its friendly-merger with Trinidad Drilling (TDG.TO +3.7%) has been cleared by US and Canadian competition bureaus. The company also says it put two more rigs into service in the US since releasing its third quarter earnings. A shareholder meeting is scheduled for December 11, while Ensign Energy's (ESI.TO +7.2%) competing $1.68 per share all-cash offer expires on November 27, 2018.
Cimarex (XEC -0.8%) has agreed to acquire Resolution Energy (REN +13.8%) for US$1.6 billion in cash and stock, including US$710 million in debt. The deal gives Cimarex more exposure to the Permian Basin.
QEP Resources (QEP +8.8%) announced the sale of various natural gas assets in northwest Louisiana to an affiliate of Aethon Energy for US$735 million. QEP says net proceeds will be used to fund development of its core Permian assets, reduce debt, and buyback shares.
According to Reuters, ConocoPhillips (COP +0.5%) is close to selling its North Sea oil and gas assets to UK petrochemicals giant Ineos. The deal is estimated to be worth US$3 billion.
|CURRENCIES & YIELDS|
|Suncor Energy||SU||43.18||▼-1.1||40.49||55.47||23||D W|
|Imperial Oil||IMO||41.52||▼-1.1||33.43||44.91||67||D W|
|Husky Energy||HSE||16.87||▼-3.2||15.09||22.99||18||D W|
|Pembina Pipeline||PPL||44.81||▲0.5||37.60||47.84||83||D W|
|Inter Pipeline||IPL||22.78||▲0.1||20.68||27.92||65||D W|
|Gibson Energy||GEI||22.06||▲0.6||15.68||23.32||98||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||35.86||▲0.5||35.19||49.08||18||D W|
|Cenovus Energy||CVE||10.60||▼-0.7||9.03||14.84||16||D W|
|Seven Generations||VII||11.98||▼-2.6||11.57||19.40||8||D W|
|Pason Systems||PSI||21.84||▲0.3||16.05||24.57||94||D W|
|Mullen Group||MTL||13.21||▼-0.5||13.02||16.93||25||D W|
|Secure Energy||SES||8.28||▲1.6||6.98||9.82||81||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||36.93||▼-0.8||24.97||47.45||81||D W|
|Exxon Mobil||XOM||79.22||▲0.3||72.16||89.30||55||D W|
|Kinder Morgan||KMI||17.42||▲0.8||14.69||19.83||74||D W|
|Williams Co||WMB||25.33||▲0.8||23.54||33.67||41↑||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||105.71||▲0.5||96.54||133.53||28||D W|
|Occidental Petro||OXY||73.36||▼0.0||62.47||87.67||45↑||D W|
|Anadarko Petro||APC||55.61||▼-1.4||46.80||76.70||13||D W|
|Concho Res||CXO||139.03||▲0.5||123.63||163.11||51↑||D W|
|Ntl-Oilwell Varco||NOV||32.81||▼-2.5||31.48||49.08||6||D W|
|Baker Hughes||BHGE||23.00||▼-1.6||22.55||37.76||2||D W|
|Phillips 66||PSX||94.90||▼-1.8||89.14||123.97||17||D W|
|Valero Energy||VLO||80.69||▼-3.0||79.53||126.98||5||D W|
|Marathon Petro||MPC||63.41||▼-3.1||60.95||88.45||9||D W|
Helmerich & Payne (HP): Upgraded from Underperform to Neutral at Credit Suisse, from Neutral to Buy at Ctigroup and from Sell to Buy at SunTrust Banks
Precision Drilling (PD.TO): Upgraded from Outperform to Neutral at CIBC and Neutral to Buy at Citigroup.
Select Energy Services (WTTR): Upgraded from Neutral to Buy at Citigroup.
Targa Resources (TRGP): Upgraded from Hold to Overweight at US Capital Advisors.
UPDATED: DAILY (END-OF-DAY)
• OIL PRICES REFLECT NEAR MONTH CONTRACT FROM THE NYMEX/CME GROUP
• EQUITY PRICES PROVIDED BY NYSE & TMX GROUP
• CHARTPACKS COURTESY STOCKCHARTS.COM (DIVIDEND ADJUSTED)
• 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
• 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.