Energy stocks post another day of losses, wiping out all of April's gains

Energy stocks post another day of losses, wiping out all of April's gains

Today's energy and equity market action:

  • Brent and WTI declined again on Thursday, losing 2% and almost 3%, respectively. Canadian benchmarks also dropped 3%, as differentials to WTI were little changed.

  • Gasoline declined over 2%, while heating oil and Henry Hub fell about 1% for the day.

  • US bond yields all moved higher again on Thursday, helping the US dollar rise another 0.2%. The loonie lost 0.3% for the day.

  • Global equity markets were mixed on Thursday. European exchanges declined overnight, while Chinese markets mostly posted gains. In New York, the NYSE, NASDAQ and S&P 500 dipped slightly. In Toronto, the TSX declined 0.6% 

  • Energy was once again the worst performing sector on both sides of the border, falling 2.6% on the TSX and 1.7% on the SPX. Producers and US refining stocks were the worst hit subsectors.

Today's notable energy news:

  • Russia's April output dipped to 11.23 million bbl/day, down from 11.3 million bbl/day in March, but still higher than its quota of 11.18 million bbl/day. The country produced a record 11.4 million bbl/day last October.

  • The Petroleum Services Association of Canada (PSAC) once again lowered its 2019 drilling forecast, now expected at 5,300 wells across Canada. This is the second downward revision, and 1,300 wells lower than its November estimate. Despite higher oil prices and lower differentials for Canadian crude, PSAC says companies are using the extra funds to reduce debt, buy stock and raise dividends, instead of re-investing in Canada. 

  • Junior gas producer Trident Exploration ceased operations this week, laying off all staff and abandoning its 4,700 wells to the Alberta Energy Regulator. The company estimates its reclamation costs at $329 million, making it impossible to restructure its debt due to the recent Redwater decision. Last January, the Supreme Court of Canada ruled that insolvent companies remain liable for environmental liabilities, which must be passed on to creditors or asset buyers.

  • ExxonMobil sanctioned another US$2 billion expansion of its Baytown chemical plant in Texas. This latest phase is expected to start-up in 2022, producing both high-performance plastics and linear olefins.

  • AltaGas subsidiary WGL Midstream has agreed to sell its entire stake in the Stonewall Gas Gathering System to a subsidiary of DTE Energy for $370 million. The sale is part of AltaGas' plan to divest up to $2.0 billion in assets this year.

Today's notable first quarter earnings:

  • Suncor Energy posted a net profit of $1.5 billion, almost double the same time last year. Funds from operations rose 19% to $2.6 billion. Total upstream production rose over 10% to 764,300 boe/day, thanks to higher output from Syncrude, Fort Hills and Hebron. Oil sands production dipped to 396.600 bbl/day due to Alberta's curtailment order. Mark Little officially took over as CEO today, replacing Steve Williams. Suncor also denied rumours it was in talks with Devon Energy to buy its oil sands assets.

  • Painted Pony Energy posted a net loss of $2.6 million in Q1, versus a $9 million loss for the same time last year. Revenues rose 7% to $108  million, while funds from operations were unchanged at $46.5 million. First quarter production rose 4% y/y to 54,389 boe/day. The company also reduced its debt load by $55 million over the past year.

  • Baytex Energy posted an $11.3 million profit for the first quarter, on revenues of $452 million. Production and revenues rose about 50% y/y due to its acquisition of Raging River Exploration last year. Production topped 100,000 boe/day in Q1, but is expected to average 95,000 to 97,000 boe/day this year.

  • Bonavista Energy posted a Q1 loss of $40 million, as revenues declined 13% y/y to $121 million. Production averaged almost 67,000 boe/day during the quarter, down 8% from the same time last year.

  • Parkland Fuel reported a $91 million profit in the first quarter, up from $20 million for the same time last year. Revenues rose 26% y/y to $4.2 billion.

  • Crew Energy posted a first quarter profit of $6.2 million, up almost 50% from the same time last year. Production averaged 23,222 boe/day in Q1, up 4% from the previous quarter.

  • Altagas reported a net profit of $809 million, on revenues of $1.9 billion. Funds from operations more than doubled to $301 million. The company also says it reduced its debt by $1.7 billion in Q1.

  • HollyFrontier reported a net profit of US$253 million, down 6% from the same time last year. Revenues also declined 6% to US$3.9 billion. The company's lubricants and specialty products division posted a surprise loss of US$9.1 million, blamed on abnormally weak demand. Refinery utilization averaged 87.6% during the quarter, as 433,720 bbl/day of crude was processed through its six refineries.

  • Royal Dutch Shell posted a first quarter profit of US$6.0 billion, up 2% y/y, while revenues declined 6% y/y to US$83.7 billion. The company says it saw weakness in its chemicals and refining business units, but higher prices for LNG. Shell also approved another US$2.8 billion in share buybacks, and says it remains on track to repurchase at least US$25 billion of its shares by the end of 2020.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$70.75▼2.050.47
 
86.29
WTI$61.81▼2.842.53
 
76.41
CDN LT$57.34▼3.120.83
 
69.32
C5+$57.36▼3.037.04
 
71.40
WCS$49.82▼3.312.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ MAY 2   █ APR 25   █ APR 18   █ APR 11   (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
Pason Systems (PSI +6.7%)
Altagas (ALA +3.4%)
Parkland Fuel (PKI +0.5%)
MEG Energy (MEG 0%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
Peyto Exploration (PEY -5.5%)
Seven Generations (VII -5%)
Birchcliff Energy (BIR -4.5%)
Crescent Point (CPG -4.5%)
Parex Resources (PXT -4.1%)
12-MO
LOWS
Mullen Group (MTL -3.1%)
CES Energy (CEU -4%)
Peyto Exploration (PEY -5.5%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU42.61▼-2.635.53
 
55.47D   W
Imperial OilIMO38.30▼-1.133.52
 
44.91D   W
Husky EnergyHSE14.00▼-1.013.21
 
22.99D   W
MIDSTREAM
EnbridgeENB48.88▼-1.339.12
 
51.20D   W
TransCanadaTRP63.38▼-0.747.90
 
64.46D   W
Pembina PipelinePPL47.23▼-1.039.15
 
50.65D   W
Inter PipelineIPL21.35▼-1.118.60
 
25.66D   W
Keyera KEY30.26▼-1.424.05
 
38.91D   W
Gibson EnergyGEI21.76▼-1.416.40
 
23.75D   W
LARGE CAP E&P
Cdn Natural ResCNQ37.78▼-2.930.11
 
49.08D   W
Cenovus EnergyCVE12.26▼-3.08.74
 
14.84D   W
EncanaECA8.77▼-2.56.90
 
18.54D   W
TourmalineTOU19.27▼-1.515.84
 
26.19D   W
Vermilion EnergyVET31.96▼-3.126.67
 
49.67D   W
SERVICES
Pason SystemsPSI20.77▲6.717.18
 
24.57D   W
EnerflexEFX17.63▼-2.113.55
 
20.38D   W
Mullen Group MTL9.46▼-3.19.39
 
16.93D   W
ShawcorSCL19.07▼-3.115.11
 
28.89D   W
Secure EnergySES7.41▼-3.66.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI41.62▲0.529.83
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Helmerich & Payne (HP +0.8%)
Halliburton (HAL +0.5%)
Ntl-Oilwell Varco (NOV +0.1%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Apache (APA -6.2%)
Marathon Oil (MRO -6.1%)
Concho Res (CXO -3.6%)
HollyFrontier (HFC -3.3%)
Phillips 66 (PSX -3%)
12-MO
LOWS
Ntl-Oilwell Varco (NOV +0.1%)
HollyFrontier (HFC -3.3%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM77.29▼-1.864.65
 
87.36D   W
ChevronCVX116.38▼-1.2100.22
 
131.08D   W
MIDSTREAM
Kinder MorganKMI19.36▼-1.214.62
 
20.44D   W
Williams CoWMB27.46▼-1.920.36
 
32.22D   W
ONEOKOKE66.85▼-1.150.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP61.29▼-2.256.75
 
80.24D   W
EOG ResourcesEOG89.17▼-3.082.04
 
133.53D   W
Occidental PetroOXY57.35▼-0.256.83
 
87.67D   W
Anadarko PetroAPC71.54▼-1.240.40
 
76.70D   W
Pioneer Natural ResPXD153.47▼-2.9119.08
 
213.40D   W
SERVICES
SchlumbergerSLB41.12▼-0.634.99
 
75.43D   W
HalliburtonHAL27.74▲0.524.70
 
54.91D   W
Baker HughesBHGE23.52▼-0.120.09
 
37.76D   W
Ntl-Oilwell VarcoNOV24.95▲0.124.04
 
49.08D   W
TechnipFMCFTI23.45▼-1.418.20
 
34.39D   W
REFINERS
Marathon PetroMPC58.69▼-2.154.29
 
88.45D   W
Phillips 66PSX89.10▼-3.078.44
 
123.97D   W
Valero EnergyVLO88.25▼-1.768.81
 
126.98D   W
HollyFrontierHFC46.19▼-3.345.29
 
83.28D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A63.70▲1.655.04
 
73.86D   W
TotalTOT55.09▲0.249.70
 
65.69D   W
BPBP42.63▼-1.036.28
 
47.83D   W
EniE33.39▼-0.529.75
 
40.15D   W
EquinorEQNR21.66▼-0.519.95
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • Granite Oil (GXO.TO): Upgraded from Market Perform to Outperform at Raymond James.

DOWNGRADES

  • None

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
Energy stocks rebound slightly on Friday, paring losses for the week

Energy stocks rebound slightly on Friday, paring losses for the week

Oil prices dip as US crude stockpiles move sharply higher

Oil prices dip as US crude stockpiles move sharply higher

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