Oil prices sink along with global equity markets, as WTI hits 14-month low

Oil prices sink along with global equity markets, as WTI hits 14-month low

Today's energy market summary:

Today's equity market action:

  • The sell-off continues in North American markets, with the Dow Jones Industrial logging another 500+ point decline (-2.1%). Despite falling bond yields, the Dow Utilities was the worst performer, declining 3.4%. 

  • The S&P 500 fell 2.1%, while the TSX sank another 1.6%. Declines were seen across all sectors.

  • Canadian energy stocks lost an average of 2.5%, while US counterparts declined almost 2%. Producers were the worst hit on Monday, with many, many names hitting fresh multi-year lows on both sides of the border.

Today’s 2019 guidance updates:

  • Baytex Energy (BTE.TO -7.2%) has approved a 2019 capital budget of $550 to $650 million, with production expected to average 93,000 to 97,000 boe/day, weighted 83% liquids. Next year's capex spending is subject to cash flow and assumes a WTI price of US$52.

  • Gran Tierra (GTE.TO -2.9%) says Q4 production is currently tracking at a record high of 38,220 boe/day, up 11% from the same quarter last year. Next year's output is expected to average between 40,000 to 42,000 boe/day. The company has set a 2019 capital budget of $350 to $370 million.

  • Painted Pony Energy (PONY.TO -7.0%) has approved a 2019 capital budget of $95 to $110 million, which is expected to be fully funded from operating cash flow. Next year's production is forecasted to average between 324 and 336 MMcfe/day, weighted 9% liquids.

Today's M&A activity:

  • TransCanada (TRP.TO -2.3%) has agreed to sell its Coolidge Generating Station to a subsidiary of Southwest Generation for US$465 million. The 575 MW natural gas-fired power facility is located in Coolidge, Arizona. TransCanada also filed for a mixed-shelf offering of US$2 billion in common and preferred shares.

  • Enbridge (ENB -2.0%) has closed on the purchase of Spectra Energy Partners (SEP n/c). Effective Monday, SEP shares will be delisted from the NYSE.

  • Eni (E -1.0%) has sold a 35% stake in Block 24 offshore Mexico to Qatar Petroleum. Eni retains a 65% stake and will continue to operate the field. Financial terms of the deal were not disclosed.

  • According to Bloomberg, Royal Dutch Shell (RDS.A -0.9%) is now the frontrunner in talks to buy privately-held Endeavor Energy, who owns drilling rights to 300,000 acres of mostly undeveloped land in the Permian Basin. ExxonMobil (XOM -2.0%), Chevron (CVX -1.2%) and ConocoPhillips (COP -2.2%) have reportedly lost interest in the deal, said to be worth about US$8 billion.

  • Switzerland-based Weatherford International (WFT -12.5%) announced the sale of its surface data logging business to Excellence Logging for $50 million in cash. Net proceeds will be use to reduce debt. The company has also been warned it will be delisted from the NYSE if share prices do not return above US$1/share in the next 6 months. WFT shares ended Monday at US$0.38.

Today's other notable energy news:

  • Kinder Morgan (KMI -2.0%) says it will move forward with its Roanoke Expansion on the Plantation Pipe Line, adding 21,000 bbl/day of additional refined product transport capacity from Louisiana and Mississippi into the state of Virginia. Pending all regulatory approvals, the expansion is expected to be in service by the spring of 2020.

  • Following in the footsteps of ExxonMobil (XOM -2.0%) last week, BP (BP -0.7%) announced the signing of several MOUs with Angola's Sonangol for exploration and production sharing, the extension of a production licence and an agreement to progress on the development of an offshore deepwater block.

  • Eni (E -1.0%) announced a positive final investment decision to develop the Merakes Project, located offshore the Indonesian province of East Kalimantan. Gas production will be shipped out of the Bontang LNG facility.

  • The government of Oman has signed two oil and gas exploration agreements with Occidental Petroleum (OXY -1.5%). The company has agreed to spend US$14 million over the next three years.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$59.61▼1.158.71
 
86.29
WTI$49.88▼2.649.88
 
76.41
CDN LT$40.23▼5.420.83
 
69.32
C5+$46.83▲8.537.04
 
71.40
WCS$32.03▼4.912.59
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ DEC 17   █ DEC 10   █ DEC 3   █ NOV 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
  • Shawcor (SCL +1.8%)
  • Imperial Oil (IMO +0.9%)
  • PrairieSky (PSK +0.2%)
  • Pason Systems (PSI +0.1%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Tamarack Valley (TVE -10.4%)
  • Baytex Energy (BTE -7.2%)
  • TORC O&G (TOG -6.9%)
  • Trican Well Svc (TCW -6.6%)
  • Advantage O&G (AAV -6.3%)
  • 12-MO LOWS
  • Suncor Energy (SU -1.3%)
  • Husky Energy (HSE -4%)
  • Inter Pipeline (IPL -2.3%)
  • Encana (ECA -1.2%)
  • Tourmaline (TOU -3.5%)
  • Vermilion Energy (VET -3.2%)
  • ARC Resources (ARX -3.7%)
  • Parex Resources (PXT -2.7%)
  • Whitecap Res (WCP -3%)
  • Peyto Exploration (PEY -6.1%)
  • Baytex Energy (BTE -7.2%)
  • Freehold Royalties (FRU -3.7%)
  • Paramount Res (POU -5.7%)
  • Birchcliff Energy (BIR -4.4%)
  • Precision Drilling (PD -2.4%)
  • Ensign Energy Svcs (ESI -4.4%)
  • Tamarack Valley (TVE -10.4%)
  • Advantage O&G (AAV -6.3%)
  • 10-YR LOWS
  • Tourmaline (TOU -3.5%)
  • ARC Resources (ARX -3.7%)
  • Peyto Exploration (PEY -6.1%)
  • Freehold Royalties (FRU -3.7%)
  • Birchcliff Energy (BIR -4.4%)
  • Precision Drilling (PD -2.4%)
  • Ensign Energy Svcs (ESI -4.4%)
  • Advantage O&G (AAV -6.3%)
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Suncor EnergySU39.09▼-1.338.92
     
    55.4721D   W
    Imperial OilIMO35.10▲0.933.43
     
    44.9126D   W
    Husky EnergyHSE14.75▼-4.014.62
     
    22.9917D   W
    MIDSTREAM
    EnbridgeENB41.92▼-2.037.36
     
    51.0477D   W
    TransCanadaTRP52.32▼-2.348.92
     
    62.3166D   W
    Pembina PipelinePPL42.93▼-2.237.60
     
    47.8469D   W
    Inter PipelineIPL19.80▼-2.319.67
     
    27.6028D   W
    Keyera KEY27.76▼-1.627.27
     
    38.9125D   W
    Gibson EnergyGEI18.77▼-3.115.68
     
    23.3274D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ33.15▼-3.332.08
     
    49.0824D   W
    Cenovus EnergyCVE9.85▼-4.09.03
     
    14.8425D   W
    EncanaECA7.69▼-1.27.65
     
    18.542D   W
    TourmalineTOU16.22▼-3.516.13
     
    26.1913D   W
    Vermilion EnergyVET28.00▼-3.227.97
     
    50.469D   W
    SERVICES
    Pason SystemsPSI18.59▲0.116.05
     
    24.5744D   W
    EnerflexEFX15.32▼-0.513.55
     
    18.7276D   W
    ShawcorSCL17.23▲1.816.66
     
    29.5010D   W
    Mullen Group MTL12.02▼-2.211.93
     
    16.9326D   W
    Secure EnergySES7.14▼-1.16.72
     
    9.8249D   W
    REFINING & MARKETING
    Parkland FuelPKI34.05▼-5.926.34
     
    47.4562D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Baker Hughes (BHGE +0.8%)
  • Halliburton (HAL +0.2%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Concho Res (CXO -4.6%)
  • Diamondback (FANG -4.5%)
  • EOG Resources (EOG -3.8%)
  • Helmerich & Payne (HP -3.6%)
  • Cimarex Energy (XEC -3%)
  • 12-MO LOWS
  • Williams Co (WMB -2%)
  • EOG Resources (EOG -3.8%)
  • Concho Res (CXO -4.6%)
  • Schlumberger (SLB -0.1%)
  • Ntl-Oilwell Varco (NOV -1.2%)
  • TechnipFMC (FTI -2.2%)
  • Marathon Petro (MPC -1.7%)
  • Phillips 66 (PSX -1.1%)
  • Valero Energy (VLO -1%)
  • Pioneer Natural Res (PXD -2.6%)
  • Devon Energy (DVN -1.3%)
  • Noble Energy (NBL -2.9%)
  • Diamondback (FANG -4.5%)
  • Cimarex Energy (XEC -3%)
  • Helmerich & Payne (HP -3.6%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM74.04▼-2.172.16
     
    89.3055D   W
    ChevronCVX112.45▼-1.2107.54
     
    133.8860D   W
    MIDSTREAM
    Kinder MorganKMI15.84▼-2.014.69
     
    19.8353D   W
    Williams CoWMB22.98▼-2.022.78
     
    33.6737D   W
    ONEOKOKE58.60▼-2.751.28
     
    71.9948D   W
    LARGE CAP E&P
    ConocoPhillipsCOP63.12▼-2.250.18
     
    80.2462D   W
    EOG ResourcesEOG96.21▼-3.895.46
     
    133.5330D   W
    Occidental PetroOXY64.11▼-1.562.47
     
    87.6727D   W
    Anadarko PetroAPC49.58▼-2.747.39
     
    76.7016D   W
    Concho ResCXO109.78▼-4.6109.18
     
    163.1116D   W
    SERVICES
    SchlumbergerSLB39.05▼-0.138.81
     
    80.351D   W
    HalliburtonHAL29.09▲0.228.17
     
    57.866D   W
    Ntl-Oilwell VarcoNOV26.35▼-1.226.26
     
    49.082D   W
    Baker HughesBHGE21.62▲0.820.81
     
    37.767D   W
    TechnipFMCFTI19.70▼-2.219.57
     
    35.003D   W
    REFINERS
    Marathon PetroMPC58.84▼-1.758.13
     
    88.4522D   W
    Phillips 66PSX85.86▼-1.184.87
     
    123.9720D   W
    Valero EnergyVLO72.58▼-1.071.25
     
    126.985D   W
    HollyFrontierHFC52.68▼-2.642.42
     
    83.2815D   W
    NYSE ADRs
    ADRs BULLISH INDICATORS
    12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • ADRs BEARISH INDICATORS
    12-MO LOWS
  • Royal Dutch Shell (RDS.A -0.9%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    Royal Dutch ShellRDS.A57.71▼-0.957.51
     
    73.869D   W
    TotalTOT54.00▼-0.653.37
     
    65.6959D   W
    BPBP38.41▼-0.736.15
     
    47.8345D   W
    EniE31.36▼-0.931.18
     
    40.1542D   W
    EquinorEQNR21.93▼-0.820.11
     
    28.9335D   W
    ANALYST RATINGS

    UPGRADES

    • Crestwood Equity Partners (CEQP): Upgraded from Neutral to Buy at Goldman Sachs.

    • Superior Plus (SPB.TO): Upgraded from Sector Perform to Outperform at RBC.

    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.
    Brent prices deteriorate, following WTI to new 14-month low

    Brent prices deteriorate, following WTI to new 14-month low

    Energy stocks hit new lows as oil prices continue to trend sideways

    Energy stocks hit new lows as oil prices continue to trend sideways