Energy markets little moved on Friday, but log another loss for the week
Today's energy market update:
For the week, Brent fell 0.3%, its second consecutive week of declines. WTI declined for the third week in a row, dropping 0.5%. Canadian Light and Western Canadian Select (WCS) posted their fourth week of losses, falling 1.6% and 1.8%, respectively.
Natural gas was this week's winner in energy commodities, rising over 2% versus last Friday’s close.
Today's currency, treasury and equity market update:
Statistics Canada reported a stellar jobs report for the month of April, with 107,000 new positions created during the month. The national unemployment rate declined 0.1 percentage points to 5.7%.
The Canadian dollar gained 0.4% for the day, reversing losses from earlier in the week, and ending Friday just above 74.50 cents.
Concerns over global trade sent bond yields mostly lower this week. US bond yields remain inverted on the short end of the curve. German bunds were particularly hard hit this week, with the 10-year ending Friday at -0.04%.
After opening sharply lower, US equity markets staged a recovery on Friday afternoon after US officials hinted they may be making progress on a trade deal with China. US tariffs on US$200 billion in Chinese imports were increased from 10% to 25% today.
The NYSE rose 0.5% for the day, but ended the week almost 2% lower. The S&P 500 also rose 0.4% for the day, paring weekly losses to 2.2%. In Toronto, the TSX fell 0.2%, bringing weekly losses to 1.2%.
In the energy space, the TSX energy sector lost 0.7% for the day, erasing all gains from earlier in the week. The US energy basket was once again little changed for the day, but down 0.6% for the week, a fifth consecutive week of declines.
Today's notable energy news:
According to Baker Hughes, the US lost two oil rigs this week, reversing gains from the previous week. Canada added five rigs, bringing the total to 22.
Australia's IFM Investors has agreed to buy remaining Buckeye Partners shares for US$41.50 a share, a 27.5% premium to yesterday's close. The all-cash deal values Buckeye at US$10.3 billion. Buckeye owns and operates 6,000 miles of pipe and storage terminals, primarily in the US East Coast and Gulf Coast.
Now that Chevron has graciously bowed out, Occidental Petroleum has sealed the deal on its US$57 billion purchase of Anadarko Petroleum, including debt. The agreement also paves the way for Total to acquire Anadarko's assets in Algeria, Ghana, Mozambique and South Africa for US$8.8 billion. Both boards of directors have approved the merger, which is expected to close in the second half of this year.
Today's notable first quarter earnings:
Enbridge posted a $1.9 billion profit for the first quarter, up from $445 million for the same quarter last year. The company says its massive Mainline crude export network transported record volumes this past quarter. Enbridge has $16 billion in projects under development, scheduled to come into service through 2023.
Enerplus reported a net profit of $19 million in Q1, down from almost $30 million for the same time last year. Production rose 4% to 88,583 boe/day, while revenues rose over 8% to $288 million. Full year 2019 production guidance was bumped up slightly to between 97,000 to 101,000 boe/day, while capital spending is now estimated to be between $590 and $630 million this year.
Obsidian Energy reported a first quarter loss of $54 million, down from a loss of $65 million for the same time last year. Production averaged 27,651 boe/day, down 6% y/y, due to curtailment orders from the province and shut-in of non-economic wells. Netbacks improved 8% to $19/boe.
|Suncor Energy||SU||42.76||▼-1.9||35.53||55.47||D W|
|Imperial Oil||IMO||37.95||▼-1.0||33.52||44.91||D W|
|Husky Energy||HSE||13.42||▼-1.5||13.21||22.99||D W|
|Pembina Pipeline||PPL||47.63||▲0.3||39.15||50.65||D W|
|Inter Pipeline||IPL||20.75||▼-0.3||18.60||25.66||D W|
|Gibson Energy||GEI||22.09||▲0.1||16.64||23.75||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||37.96||▲0.1||30.11||49.08||D W|
|Cenovus Energy||CVE||12.13||▲0.6||8.74||14.84||D W|
|Vermilion Energy||VET||31.56||▼-0.3||26.67||49.67||D W|
|Pason Systems||PSI||19.82||▲0.5||17.18||24.57||D W|
|Mullen Group||MTL||10.09||▼-0.8||9.39||16.93||D W|
|Secure Energy||SES||7.74||▼-1.2||6.25||9.44||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||39.60||▼-0.8||30.01||47.45||D W|
|Exxon Mobil||XOM||76.56||▲0.9||64.65||87.36||D W|
|Kinder Morgan||KMI||19.70||▼-0.2||14.62||20.44||D W|
|Williams Co||WMB||27.55||▲2.2||20.36||32.22||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||95.00||▲0.8||82.04||133.53||D W|
|Occidental Petro||OXY||54.97||▼-2.4||54.50||87.67||D W|
|Anadarko Petro||APC||73.06||▼-0.5||40.40||76.70||D W|
|Pioneer Natural Res||PXD||151.65||▼-1.1||119.08||213.40||D W|
|Baker Hughes||BHGE||22.32||▼-1.3||20.09||37.41||D W|
|Ntl-Oilwell Varco||NOV||24.90||▼-0.8||24.04||49.08||D W|
|Marathon Petro||MPC||53.15||▲0.4||52.03||88.45||D W|
|Phillips 66||PSX||86.65||▲1.1||78.44||123.97||D W|
|Valero Energy||VLO||83.73||▲2.4||68.81||126.98||D W|
UPDATED: DAILY (END-OF-DAY)
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