Energy stocks drift lower as US dollar slowly creeps higher

Energy stocks drift lower as US dollar slowly creeps higher

Today's energy market summary:

  • The Wall Street Journal reported that Libya's National Oil Company (NOC) may be poised to restore production at the 315,000 bbl/day El Sharara oil field, which has been offline since early December.
  • According to Reuters, OPEC production declined 400,000 bbl/day in January, to 10.24 million bbl/day.
  • Brent rose 0.8% while WTI and Edmonton Light gained 0.2%.
  • The differentials on WCS and Edmonton Condensate (C5+) widened slightly, sending both benchmarks slightly lower on Friday.
  • For the week, WTI, and Canadian Light posted a 5% loss, while WCS declined over 6%. Brent was the least scathed, falling just 1% from the previous Friday.
  • Gasoline and Henry Hub gas prices gained over 1%, while heating oil rose 0.4%.
  • AECO gas gained 3% for the day, ending the week at US$1.46/MMBtu.

Today's treasury, currency and equity market action:

  • Global bond yields continue to drift lower, including the US, Germany and the UK.
  • Canadian bond yields rose slightly after Statistics Canada reported a much better than expected January jobs report.
  • The US dollar gained another 0.1%, ending Friday up over 1% from the previous week.
  • The loonie gained 0.2%, while most other global currencies were little changed.
  • Equity markets slid lower this morning, but recovered most of their losses by the end of the day.
  • US markets were mostly unchanged, including the S&P 500.
  • European markets, including the UK, were slightly lower overnight, while Japan's Nikkei fell 2%.
  • In Toronto, the TSX declined 0.5%, including a 0.9% drop in the Canadian energy sector.
  • The US energy sector also declined 0.7%.

Today's notable energy news:

  • TransCanada confirmed that yesterday's leak near St. Louis, Missouri, originated from its Keystone pipeline. The state estimates about 43 barrels was spilled along the line's right-of-way. TransCanada has yet to provide a timeline for repair and restart.
  • Enbridge's Platte pipeline, which was also taken offline yesterday as a precautionary measure, was restarted on Friday.
  • Crew Energy boosted its 2018 year-end proved plus probable reserves to 411 million barrels of oil equivalent, mostly in the form of natural gas, up 11% from the previous year.
  • South African oil major Sasol warned capital costs for its Lake Charles chemicals project in Louisiana has risen from US$11.1 to US$11.8 billion, while start-up has been delayed by up to five months. The company blamed the slippage on "several factors within and beyond" its control.
  • Royal Dutch Shell has teamed up with junior UK explorer Cluff Natural Resources to develop its natural gas assets in the UK North Sea. Under terms of the agreement, Shell will acquire a 70% operating stake, while Cluff retains the remaining 30%.

Today's Q4/2018 earnings and 2019 updates:

  • Fourth quarter profits at Phillips 66 rose to US$2.3 billion, up from US$548 million for the same quarter last year. The company says it benefited from wide differentials on Bakken, Canadian and other inland crude streams. Utilization rates reached 99% in Q4, as the company processed about 2.1 million barrels through its 13 refineries.
  • Apache Corp cut its 2019 exploration and production budget to US$2.4 billion, significantly lower than originally planned, and much less than last year's capital spend. The company is still targeting an annualized growth rate of 6 to 10% by year-end, with full-year production guidance set at 410,000 to 440,000 boe/day. Apache says its capital spending program and dividend is "cash flow neutral" at US$53 WTI.
OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$62.10▲0.850.47
 
86.29
WTI$52.72▲0.242.53
 
76.41
CDN LT$49.07▲0.220.83
 
69.32
C5+$50.34▼0.437.04
 
71.40
WCS$43.09▼0.312.59
 
56.21

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ FEB 8   █ FEB 1   █ JAN 25   █ JAN 18   (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
  • ARC Resources (ARX +8%)
  • MEG Energy (MEG +1.6%)
  • Crescent Point (CPG +1.5%)
  • Nuvista Energy (NVA +1.3%)
  • Inter Pipeline (IPL +1.1%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Encana (ECA -3.8%)
  • Precision Drilling (PD -3.4%)
  • Enbridge (ENB -2.8%)
  • Mullen Group (MTL -2%)
  • Cenovus Energy (CVE -1.6%)
  • 12-MO LOWS
  • Crescent Point (CPG +1.5%)
  • 10-YR LOWS
  • Crescent Point (CPG +1.5%)
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Suncor EnergySU42.81▼-1.335.53
     
    55.47D   W
    Imperial OilIMO35.49▼-1.433.43
     
    44.91D   W
    Husky EnergyHSE14.95▲0.513.33
     
    22.99D   W
    MIDSTREAM
    EnbridgeENB47.92▼-2.837.36
     
    49.70D   W
    TransCanadaTRP55.21▼-1.447.90
     
    59.51D   W
    Pembina PipelinePPL47.09▼-0.637.60
     
    47.84D   W
    Inter PipelineIPL20.93▲1.118.60
     
    25.66D   W
    Keyera KEY28.00▼-1.024.05
     
    38.91D   W
    Gibson EnergyGEI19.60▼-0.915.68
     
    23.32D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ34.14▼-1.030.11
     
    49.08D   W
    Cenovus EnergyCVE9.93▼-1.68.74
     
    14.84D   W
    EncanaECA8.06▼-3.86.90
     
    18.54D   W
    TourmalineTOU18.16▼-0.615.84
     
    26.19D   W
    Vermilion EnergyVET31.14▼-1.626.67
     
    49.67D   W
    SERVICES
    Pason SystemsPSI19.60▲0.216.05
     
    24.57D   W
    EnerflexEFX16.75▼-0.213.55
     
    18.72D   W
    Mullen Group MTL11.51▼-2.011.26
     
    16.93D   W
    ShawcorSCL19.63▲0.415.11
     
    28.89D   W
    Secure EnergySES7.71▲0.76.25
     
    8.91D   W
    REFINING & MARKETING
    Parkland FuelPKI37.18▲0.427.36
     
    47.45D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Phillips 66 (PSX +1.9%)
  • Cabot O&G (COG +1%)
  • Baker Hughes (BHGE +0.9%)
  • Williams Co (WMB +0.8%)
  • Kinder Morgan (KMI +0.3%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Newfield Expl (NFX -2.9%)
  • Halliburton (HAL -2.6%)
  • Apache (APA -2.2%)
  • Anadarko Petro (APC -1.8%)
  • Schlumberger (SLB -1.6%)
  • 12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Exxon MobilXOM73.98▲0.264.65
     
    87.36D   W
    ChevronCVX117.58▼-0.6100.22
     
    131.08D   W
    MIDSTREAM
    Kinder MorganKMI18.02▲0.314.62
     
    18.67D   W
    Williams CoWMB26.88▲0.820.36
     
    32.22D   W
    ONEOKOKE65.02▼-0.250.26
     
    71.99D   W
    LARGE CAP E&P
    ConocoPhillipsCOP66.26▼-1.450.18
     
    80.24D   W
    EOG ResourcesEOG92.50▼-0.582.04
     
    133.53D   W
    Occidental PetroOXY64.96▲0.156.83
     
    87.67D   W
    Anadarko PetroAPC41.84▼-1.840.40
     
    76.70D   W
    Pioneer Natural ResPXD135.71▼-0.8119.08
     
    213.40D   W
    SERVICES
    SchlumbergerSLB42.78▼-1.634.99
     
    75.43D   W
    HalliburtonHAL29.70▼-2.624.70
     
    54.91D   W
    Baker HughesBHGE24.61▲0.920.09
     
    37.76D   W
    Ntl-Oilwell VarcoNOV28.35▼-1.024.27
     
    49.08D   W
    TechnipFMCFTI22.35▼-0.818.20
     
    34.39D   W
    REFINERS
    Marathon PetroMPC62.72▼-1.554.29
     
    88.45D   W
    Phillips 66PSX93.52▲1.978.44
     
    123.97D   W
    Valero EnergyVLO84.14▲0.368.81
     
    126.98D   W
    HollyFrontierHFC53.95▼-1.442.42
     
    83.28D   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 CHART
    Royal Dutch ShellRDS.A62.90▲0.155.04
     
    73.86D   W
    TotalTOT55.16▲1.149.70
     
    65.69D   W
    BPBP42.49▼-0.536.28
     
    47.83D   W
    EniE33.00▼-0.329.75
     
    40.15D   W
    EquinorEQNR22.60▲0.119.95
     
    28.93D   W
    ANALYST RATINGS

    UPGRADES

    • Cimarex Energy (XEC): Upgraded from Neutral to Positive at Susquehanna Bancshares.

    • Phillips 66 (PSX): Upgraded from Hold to Buy at Tudor Pickering.

    DOWNGRADES

    • Enbridge (ENB.TO): Downgraded from Buy to Neutral at UBS.

    • HollyFrontier (HFC): Downgraded from Buy to Hold at Tudor Pickering.

    • PBF Energy (PBF): Downgraded from Buy to Hold at Tudor Pickering.

    • Sasol (SSL): Downgraded from Outperform to Neutral at Macquarie.

    LATEST ENERGY NEWS

    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
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