WCS tops US$50 a barrel, returning to levels of last July
Today's energy market action:
- WTI topped US$60 a barrel on Thursday, but retreated to US$59.98 by the end of the day, up 0.3% from yesterday's close. Brent declined almost 1% on Thursday.
- Canadian Light and Western Canadian Select (WCS) gained over 2%, as the discounts to WTI each narrowed by about US$1 per barrel. WCS topped US$50 on Thursday, for the first time since last July.
- Gasoline was flat for the day, while heating oil declined 1%.
Today's currency and equity market action:
- The US dollar rose almost 1%, recouping all of yesterday's losses, mostly due to weakness in other foreign currencies. The loonie declined about 0.5%, despite the release of decent wholesale trade and employment data for the month of January.
- US equity markets rallied nicely on Thursday. The NYSE rose 0.7%, while the NASDAQ gained 1.4%. The S&P 500 Index rose over 1%, mostly due to strength in large cap technology names. The SPX energy sector increased 0.7%, with midstream stocks posting the best gains for the day.
- In Toronto, the TSX rose 0.5%, led higher by the more offensive sectors. The Canadian energy sector gained 0.6%, with producers once again leading to the upside.
Today's notable energy news:
- CN Rail announced plans to invest $370 million across Alberta to strengthen the province's infrastructure. The plan includes building new tracks and doubling of rail lines, mainly around the Edmonton area. The company says this "new record capital investment" will boost "capacity and network resiliency" while meeting growing traffic demand on its rail networks.
- Murphy Oil sold its two Malaysian subsidiaries to a subsidiary of PTTEP for US$2.1 billion in cash. The divested properties account for about 48,000 boe/day of production, weighted 62% liquids. The company says it wants to reduce its debt load, and focus on its core holdings in the US. The company's board also approved US$500 million in share buybacks.
- Altagas Chairman and founder David Cornhill will be stepping down on April 1st, to be replaced with Pentti Karkkainen. Cornhill will remain on the Board, for now.
Today's debt issuances and share buybacks:
- Enerplus announced plans to buyback up to 16.7 million ERF shares over the next 12 months, representing about 7% of public float. The company says its shares are currently trading "in a price range that does not adequately reflect their underlying value."
- Inter Pipeline announced $750 million in fixed-to-floating notes due in 2079. Net proceeds will be used to reduce revolving credit debt, fund capital spending, and general accounting purposes.
- Valero Energy priced a public offering of US$1 billion in senior notes due in 2029. Net proceeds will be used for general corporate purposes.
|Suncor Energy||SU||46.23||▲0.3||35.53||55.47||D W|
|Imperial Oil||IMO||37.18||▲0.3||33.43||44.91||D W|
|Husky Energy||HSE||13.89||▲1.7||13.33||22.99||D W|
|Pembina Pipeline||PPL||50.20||▲0.6||37.60||50.45||D W|
|Inter Pipeline||IPL||22.11||▲0.2||18.60||25.66||D W|
|Gibson Energy||GEI||23.54||▲0.6||15.90||23.63||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||38.02||▲0.7||30.11||49.08||D W|
|Cenovus Energy||CVE||12.30||▲0.9||8.74||14.84||D W|
|Vermilion Energy||VET||34.38||▲1.0||26.67||49.67||D W|
|Pason Systems||PSI||20.60||▲0.6||16.61||24.57||D W|
|Mullen Group||MTL||12.41||▼-0.7||11.26||16.93||D W|
|Secure Energy||SES||8.57||▼-0.7||6.25||9.44||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||40.79||▼-1.0||27.96||47.45||D W|
|Exxon Mobil||XOM||81.79||▲0.6||64.65||87.36||D W|
|Kinder Morgan||KMI||20.42||▲1.6||14.62||20.44||D W|
|Williams Co||WMB||28.93||▲2.1||20.36||32.22||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||96.87||▲1.0||82.04||133.53||D W|
|Occidental Petro||OXY||67.24||▼-0.1||56.83||87.67||D W|
|Anadarko Petro||APC||45.27||▼-0.3||40.40||76.70||D W|
|Pioneer Natural Res||PXD||145.59||▲0.8||119.08||213.40||D W|
|Baker Hughes||BHGE||28.46||▲0.7||20.09||37.76||D W|
|Ntl-Oilwell Varco||NOV||27.90||▼-1.7||24.27||49.08||D W|
|Marathon Petro||MPC||62.79||▲1.0||54.29||88.45||D W|
|Phillips 66||PSX||98.55||▲0.4||78.44||123.97||D W|
|Valero Energy||VLO||86.38||▼-0.1||68.81||126.98||D W|
UPDATED: DAILY (END-OF-DAY)
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