Canadian energy stocks sink lower, closing in on January 2016 lows

Canadian energy stocks sink lower, closing in on January 2016 lows

Today's energy market summary:

  • Oil prices failed to follow through on Monday's gains, ending Tuesday flat to slightly lower. Brent declined 0.4%, while WTI nudged lower by 0.1%. Gasoline also fell 1.4%.

  • Canadian Light and Edmonton Condensate (C5+) also dipped slightly. Western Canadian Select (WCS) declined 3% as the discount to WTI widened by US$0.50 per barrel.

  • The American Petroleum Institute (API) is forecasting a 3.5 million barrel build in US crude stockpiles. Official numbers from the EIA are due Wednesday morning.

  • The US dollar continues to creep higher, gaining another 0.3% on Tuesday. The greenback is now over 97, re-testing the recent highs of mid-November.

Today's equity market action:

  • US markets started the day lower, after the US threatened to implement harsher tariffs on China in the new year. Most markets recovered later in the day, ending Tuesday slightly in the positive. The Dow and S&P 500 rose less than 0.5%, while the Nasdaq was unchanged.

  • European and Chinese markets also ended the trading day roughly unchanged.

  • In Toronto, the TSX declined 0.5%, with most sectors posting losses.

  • In the energy space, the TSX energy sector lost another 1.6%, continuing the steep downtrend that began last July. Losses were across all the subsectors, except for a handful of pipeline stocks and Cenovus Energy (CVE.TO +1.2%). Many producers and service companies hit new multi-year lows during the day.

  • The SPX energy sector lost 0.3%. Gains in large-cap integrated and midstream names offset losses in the other subsectors.

Today's notable energy news:

  • Ensign Energy (ESI.TO -9.3%) says about 56% of Trinidad Drilling (TDG.TO +3.0%) shareholders have tendered their shares, boosting its stake to 66% and allowing it to complete its hostile take-over. ESI stock touched a 1-year low on Tuesday.

  • As a result, the friendly merger between Trinidad and Precision Drilling (PD.TO +2.8%) is officially dead, with Trinidad now owing Precision a $20 million break-up fee.

  • TransCanada (TRP.TO +0.7%) has asked a Montana court to allow it to resume early works activities on its Keystone XL pipeline. Earlier this month, a US judge halted construction of the US$8 billion project pending another environmental assessment. The company is asking the courts to narrow the scope of that injunction.

  • McDermott International (MDR -1.2%) announced a "sizeable" contract from Royal Dutch Shell (RDS.A -1.0%) for a new subsea umbilical and flowline installation at Shell's Great White Frio development in the US Gulf of Mexico. Financial terms of the deal were not disclosed.

  • Shareholders at Diamondback Energy (FANG +0.5%) and Energen (EGN +0.7%) have approved a merger of the two companies, allowing the deal to close by the end of this month.

  • Columbia's Ecopetrol (EC +1.5%) says it plans to invest as much as US$4 billion in exploration and production next year, slightly more than initially planned. The company says it expects to produce about 725,000 boe/day in 2019, about 1% higher than the current year average.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$60.21▼0.458.80
 
86.29
WTI$51.56▼0.150.42
 
76.41
CDN LT$26.31▼0.320.83
 
69.32
C5+$38.31▼0.237.17
 
71.40
WCS$17.31▼3.212.59
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ NOV 27   █ NOV 20   █ NOV 13   █ NOV 6   (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
  • Precision Drilling (PD +2.8%)
  • Keyera (KEY +1.6%)
  • Cenovus Energy (CVE +1.2%)
  • Altagas (ALA +1.1%)
  • TransCanada (TRP +0.7%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Ensign Energy Svcs (ESI -9.3%)
  • Seven Generations (VII -5.9%)
  • Birchcliff Energy (BIR -5.3%)
  • ARC Resources (ARX -5%)
  • Advantage O&G (AAV -5%)
  • 12-MO LOWS
  • Keyera (KEY +1.6%)
  • Cdn Natural Res (CNQ -3.3%)
  • Encana (ECA -1.8%)
  • Seven Generations (VII -5.9%)
  • Shawcor (SCL -3%)
  • Mullen Group (MTL -2.8%)
  • Advantage O&G (AAV -5%)
  • ARC Resources (ARX -5%)
  • Crescent Point (CPG -3%)
  • Ensign Energy Svcs (ESI -9.3%)
  • Freehold Royalties (FRU -3%)
  • Kelt Exploration (KEL -3.3%)
  • Nuvista Energy (NVA -1.5%)
  • Paramount Res (POU -2.8%)
  • PrairieSky (PSK -2.6%)
  • Parex Resources (PXT +0.7%)
  • Trican Well Svc (TCW -2.4%)
  • Whitecap Res (WCP -4.4%)
  • 10-YR LOWS
  • Seven Generations (VII -5.9%)
  • ARC Resources (ARX -5%)
  • Crescent Point (CPG -3%)
  • Ensign Energy Svcs (ESI -9.3%)
  • DEATH CROSSES
  • Husky Energy (HSE -1.3%)
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Suncor EnergySU43.29▲0.340.49
     
    55.4728D   W
    Imperial OilIMO39.87▼-0.433.43
     
    44.9145D   W
    Husky EnergyHSE15.60▼-1.315.09
     
    22.9918D   W
    MIDSTREAM
    EnbridgeENB42.51▼-0.737.36
     
    51.0488↓D   W
    TransCanadaTRP53.50▲0.748.92
     
    64.3482D   W
    Pembina PipelinePPL43.92▲0.637.60
     
    47.8478D   W
    Inter PipelineIPL21.40▼-1.620.68
     
    27.9237D   W
    Keyera KEY28.40▲1.627.85
     
    38.9119D   W
    Gibson EnergyGEI21.12▼-0.315.68
     
    23.3296D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ32.64▼-3.332.58
     
    49.0812D   W
    EncanaECA9.14▼-1.89.05
     
    18.543D   W
    Cenovus EnergyCVE9.40▲1.29.03
     
    14.8410D   W
    TourmalineTOU18.40▼-4.417.78
     
    26.1916D   W
    Seven GenerationsVII10.03▼-5.910.03
     
    19.404D   W
    SERVICES
    ShawcorSCL18.97▼-3.018.72
     
    29.509D   W
    Pason SystemsPSI20.61▼-1.716.05
     
    24.5785↓D   W
    Mullen Group MTL12.21▼-2.812.12
     
    16.9316D   W
    EnerflexEFX16.39▼-2.713.55
     
    18.7291D   W
    Secure EnergySES7.44▼-4.76.98
     
    9.8233D   W
    REFINING & MARKETING
    Parkland FuelPKI37.33▲0.325.02
     
    47.4589D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • ConocoPhillips (COP +0.9%)
  • Williams Co (WMB +0.7%)
  • ONEOK (OKE +0.4%)
  • Halliburton (HAL +0.3%)
  • Chevron (CVX +0.2%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Newfield Expl (NFX -4%)
  • Cabot O&G (COG -2.8%)
  • TechnipFMC (FTI -2.6%)
  • Pioneer Natural Res (PXD -2.1%)
  • Devon Energy (DVN -1.9%)
  • 12-MO LOWS
  • Schlumberger (SLB -0.9%)
  • Devon Energy (DVN -1.9%)
  • Newfield Expl (NFX -4%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • Concho Res (CXO -1.4%)
  • Apache (APA -0.8%)
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM77.05▲0.172.16
     
    89.3045D   W
    ChevronCVX115.21▲0.2107.54
     
    133.8848D   W
    MIDSTREAM
    Kinder MorganKMI16.73▲0.114.69
     
    19.8353D   W
    Williams CoWMB24.99▲0.723.54
     
    33.6738D   W
    ONEOKOKE59.75▲0.449.65
     
    71.9926D   W
    LARGE CAP E&P
    ConocoPhillipsCOP65.28▲0.948.97
     
    80.2445D   W
    EOG ResourcesEOG101.95▼-0.696.54
     
    133.5320D   W
    Occidental PetroOXY69.38▼-1.862.47
     
    87.6723D   W
    Anadarko PetroAPC51.97▼-0.846.80
     
    76.707D   W
    Concho ResCXO126.90▼-1.4123.63
     
    163.1122D   W
    SERVICES
    SchlumbergerSLB46.20▼-0.945.54
     
    80.353D   W
    HalliburtonHAL31.88▲0.330.47
     
    57.863D   W
    Ntl-Oilwell VarcoNOV31.98▼-0.731.30
     
    49.086D   W
    TechnipFMCFTI23.21▼-2.622.39
     
    35.005D   W
    Baker HughesBHGE22.38▼-1.221.67
     
    37.761D   W
    REFINERS
    Phillips 66PSX91.26▼-0.988.99
     
    123.9710D   W
    Valero EnergyVLO77.43▼-1.777.00
     
    126.982D   W
    Marathon PetroMPC63.74▼-0.760.64
     
    88.4512D   W
    HollyFrontierHFC60.17▼-0.542.42
     
    83.2819D   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
  • BP (BP -0.5%)
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    Royal Dutch ShellRDS.A59.75▼-1.058.55
     
    73.8612D   W
    TotalTOT54.26▼-0.953.37
     
    65.6923D   W
    BPBP40.32▼-0.536.15
     
    47.8336D   W
    EniE31.96▼-1.231.72
     
    40.1517D   W
    EquinorEQNR23.15▲0.419.91
     
    28.9321D   W
    ANALYST RATINGS

    UPGRADES

    • Calfrac Well Services (CFW.TO): Upgraded from Sector Perform to Outperform at National Bank.

    • CES Energy Solutions (CEU.TO): Upgraded from Sector Perform to Outperform at National Bank.

    • Parsley Energy (PE): Upgraded from Neutral to Buy at Goldman Sachs.

    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.
    US energy stocks rally despite further declines in WTI

    US energy stocks rally despite further declines in WTI

    Oil prices rebound from highly oversold conditions

    Oil prices rebound from highly oversold conditions

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