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

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 a spectacular week last week, US natural gas prices jumped another 10% today, ending Monday at US$4.70/MMBtu. In Canada, AECO gas declined almost 8%, falling to $1.59/GJ.

  • 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.

  • The Canadian energy basket was roughly unchanged for the day. Heavy losses in large-cap integrated names offset gains in midstream stocks.

  • The SPX energy sector gained 0.3%. Integrated and midstream stocks all rose higher on Monday, while refining stocks posted the biggest losses.

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.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$66.79▲0.061.22
 
86.29
WTI$56.76▲0.555.14
 
76.41
CDN LT$29.76▲1.020.83
 
69.32
C5+$43.26▲0.737.76
 
71.40
WCS$19.91▼1.212.59
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ NOV 19   █ NOV 12   █ NOV 5   █ OCT 29   (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
  • Ensign Energy Svcs (ESI +7.2%)
  • Precision Drilling (PD +6.4%)
  • Trican Well Svc (TCW +6.3%)
  • Birchcliff Energy (BIR +4.8%)
  • Peyto Exploration (PEY +3.9%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • MEG Energy (MEG -4.2%)
  • Gran Tierra (GTE -3.3%)
  • Husky Energy (HSE -3.2%)
  • Seven Generations (VII -2.6%)
  • Suncor Energy (SU -1.1%)
  • 12-MO LOWS
  • Crescent Point (CPG -0.8%)
  • Trican Well Svc (TCW +6.3%)
  • 10-YR LOWS
  • Crescent Point (CPG -0.8%)
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Suncor EnergySU43.18▼-1.140.49
     
    55.4723D   W
    Imperial OilIMO41.52▼-1.133.43
     
    44.9167D   W
    Husky EnergyHSE16.87▼-3.215.09
     
    22.9918D   W
    MIDSTREAM
    EnbridgeENB43.79▲2.637.36
     
    51.0492D   W
    TransCanadaTRP53.22▲1.348.92
     
    65.1869D   W
    Pembina PipelinePPL44.81▲0.537.60
     
    47.8483D   W
    Inter PipelineIPL22.78▲0.120.68
     
    27.9265D   W
    Keyera KEY29.52▲0.228.45
     
    38.9121D   W
    Gibson EnergyGEI22.06▲0.615.68
     
    23.3298D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ35.86▲0.535.19
     
    49.0818D   W
    EncanaECA10.05▼-0.19.76
     
    18.543D   W
    Cenovus EnergyCVE10.60▼-0.79.03
     
    14.8416D   W
    TourmalineTOU20.01▲3.017.78
     
    26.1928D   W
    Seven GenerationsVII11.98▼-2.611.57
     
    19.408D   W
    SERVICES
    ShawcorSCL21.50▼-0.121.03
     
    29.5018D   W
    Pason SystemsPSI21.84▲0.316.05
     
    24.5794D   W
    Mullen Group MTL13.21▼-0.513.02
     
    16.9325D   W
    EnerflexEFX17.65▲0.613.55
     
    18.7295D   W
    Secure EnergySES8.28▲1.66.98
     
    9.8281D   W
    REFINING & MARKETING
    Parkland FuelPKI36.93▼-0.824.97
     
    47.4581D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Helmerich & Payne (HP +2.8%)
  • EQT Corp (EQT +2.8%)
  • Newfield Expl (NFX +1.7%)
  • Halliburton (HAL +1.6%)
  • Kinder Morgan (KMI +0.8%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Marathon Petro (MPC -3.1%)
  • Valero Energy (VLO -3%)
  • Ntl-Oilwell Varco (NOV -2.5%)
  • Apache (APA -2.4%)
  • HollyFrontier (HFC -2.4%)
  • 12-MO LOWS
  • Valero Energy (VLO -3%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM79.22▲0.372.16
     
    89.3055D   W
    ChevronCVX119.42▲0.3107.54
     
    133.8861↑D   W
    MIDSTREAM
    Kinder MorganKMI17.42▲0.814.69
     
    19.8374D   W
    Williams CoWMB25.33▲0.823.54
     
    33.6741↑D   W
    ONEOKOKE62.28▲0.149.65
     
    71.9947D   W
    LARGE CAP E&P
    ConocoPhillipsCOP66.44▲0.548.97
     
    80.2449D   W
    EOG ResourcesEOG105.71▲0.596.54
     
    133.5328D   W
    Occidental PetroOXY73.36▼0.062.47
     
    87.6745↑D   W
    Anadarko PetroAPC55.61▼-1.446.80
     
    76.7013D   W
    Concho ResCXO139.03▲0.5123.63
     
    163.1151↑D   W
    SERVICES
    SchlumbergerSLB48.31▲0.247.07
     
    80.353D   W
    HalliburtonHAL32.99▲1.631.75
     
    57.864D   W
    Ntl-Oilwell VarcoNOV32.81▼-2.531.48
     
    49.086D   W
    TechnipFMCFTI24.27▲0.623.51
     
    35.007D   W
    Baker HughesBHGE23.00▼-1.622.55
     
    37.762D   W
    REFINERS
    Phillips 66PSX94.90▼-1.889.14
     
    123.9717D   W
    Valero EnergyVLO80.69▼-3.079.53
     
    126.985D   W
    Marathon PetroMPC63.41▼-3.160.95
     
    88.459D   W
    HollyFrontierHFC62.33▼-2.442.42
     
    83.2835D   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.A61.68▼-0.660.27
     
    73.8614D   W
    TotalTOT56.64▼-0.853.37
     
    65.6942↑D   W
    BPBP40.92▲0.236.15
     
    47.8342D   W
    EniE33.70▼-1.232.13
     
    40.1537D   W
    EquinorEQNR24.36▼-1.719.76
     
    28.9340↑D   W
    ANALYST RATINGS

    UPGRADES

    • 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.

    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.
    Falling stock markets drag oil prices lower, as WTI erases all gains for the year

    Falling stock markets drag oil prices lower, as WTI erases all gains for the year

    WCS surges 50% as December contract expires

    WCS surges 50% as December contract expires

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