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

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

Today's energy market action:

  • Brent and WTI were little changed for the day, but closed out the week about 2% lower.

  • Canadian Light and Western Canadian Select (WCS) were also little changed on Friday. Edmonton Condensate (C5+) rose 0.4%, as the discount to WTI narrowed to about US$4.30 per barrel. Canadian benchmarks also lost about 2% this week, posting a third consecutive week of declines.

  • Henry Hub declined about 1% of Friday, after the Energy Information Administration reported unusually high gas injections for this time of year due to mild weather and strong gas production rates.

Today's currency and equity market action:

  • The US economy added 263,000 new jobs last month, much more than expected, and sending the unemployment rate to 3.6%. February and March figures were revised higher as well. Wage growth is tracking at 3.2%.

  • Despite the good news, the US dollar sank 0.3% on Friday, bringing the weekly loss to 0.5%. The Canadian dollar rose 0.3%, ending the week at almost 74.50 cents.

  • Traders in the US were in a good mood on Friday, sending all markets higher, particularly smaller cap names. The NYSE rose 0.8% while the NASDAQ gained 1.6%. The S&P 500 rose about 1%, with all sectors ending the day in the positive. The SPX energy sector rose 0.8% for the day, but lost over 3% for the week.

  • In Toronto, the TSX rose a more modest 0.5%. Canadian markets were in offensive mode, with materials and energy stocks leading to the upside. The TSX energy basket gained 1% for the day, reducing the weekly loss to 5.5%.

Today's crude oil supply update:

  • Two new oil rigs were put into service this week in the US, bringing the total to 807. Canada lost two rigs, leaving 17 oil rigs in service.

  • Iran's production is expected to fall from 1 million bbl/day in April to less than 500,000 bbl/day in May, and likely stay at those levels going forward. The country is expected to continue selling crude to both India and China, used as part of a debt repayment plan. The country exported 2.5 million bbl/day in April of 2018, before the US announced plans to reinstate sanctions. Iran has since stopped reporting production numbers to OPEC.

  • Despite pleas from President Trump and falling output from both Iran and Venezuela, Saudi Arabia says it expects to keep production steady at 10 million bbl/day in May, still well below its quota of 10.3 million bbl/day. The kingdom reportedly needs a Brent price of at least US$70 to help fund its spending plans.

Today's other notable energy news:

  • TransCanada officially changed its name to TC Energy today, reflecting its growing presence in the US and Mexico. CEO Russ Girling says he has no plans to move the company's head office out of Calgary.

  • Plains Midstream Canada (PMC) announced plans to build a new 50,000 bbl/day terminal in Mitsue, Alberta. The terminal connects Rangeland Midstream's new crude oil gathering and diluent distribution system to PMC's Rainbow pipeline, providing access to the Edmonton market. PMC is a subsidiary of Plains All American Pipeline. Texas-based Rangeland is backed by venture capital firm EnCap Flatrock Midstream.

  • ExxonMobil has sanctioned Phase 2 of its Liza development offshore Guyana. This latest phase will add 220,000 bbl/day of production capacity by the middle 2020. The first phase of 120,000 bbl/day is on track for first oil by Q1/2020. Exxon says it is targeting 750,000 bbl/day by 2025. Liza is jointly owned with Hess and CNOOC.

  • Royal Dutch Shell is reportedly looking to sell its 35% stake in the US$15 billion Abadi LNG project, located offshore Indonesia. The stake is estimated to be worth about US$1 billion.

Today's notable first quarter earnings:

  • TransCanada posted a first quarter net profit of $1.0 billion, up 37% from the first quarter of 2018. Revenues dipped 2% y/y to $3.5 billion. The company has $30 billion in secured growth projects under development, $7 billion of which should be completed by the end of this year. TransCanada also says the Nebraska Supreme Court should render a verdict on the validity of Keystone XL's approved routing before the summer.

  • First quarter earnings at Pembina Pipeline dipped 5% y/y to $313 million. Cash flow from operations rose 22% y/y to $608 million. Volumes rose 4% y/y to 3.4 million boe/day, including 2.5 million bbl/day shipped through its Pipelines Division. Pembina says it remains committed to its Jordan Cove LNG terminal, but plans to limit capital spending as it awaits regulatory approval from FERC and the state of Oregon. The company also sanctioned an eighth phase of expansion on its Peace Pipeline system, and raised its monthly dividend 5.3% to $0.19 per share.

  • Net profits at Seven Generations declined to $10.8 million, about half the same quarter last year. Revenues declined 16% y/y to $546 million, mostly due to lower realized prices for condensate and NGLs. Volumes averaged 197,400 boe/day, weighted 59% liquids, and up 5% y/y.

  • Advantage Oil and Gas posted a Q1 profit of $681,000 in Q1, down from $10 million for the same time last year. Production rose 13% to 44,900 boe/day, including an 84% increase in liquids production. The company cut its 2019 capital spending budget by $10 million, now expected to be between $180 and $200 million. Production is expected to average about 45,000 boe/day this year.

  • Accommodations provider Black Diamond Group posted a first quarter loss of $2.7 million. Revenues rose 11% y/y to $45.4 million. Outside of Canada, the company says it expects strong demand with modest capital investment expected this year.

  • Enerflex posted a $17 million profit in Q1, up 6.1% y/y. Revenues rose 26% to $485 million. The company says it saw improved results across all product lines, particularly Engineered Systems. Enerflex's backlog declined from $1.4 billion in Q4/2018 to $1.2 billion in the first quarter of this year.

  • Murphy Oil posted a first quarter profit of US$40 million, down from US$168 million for the same time last year. Revenues rose 58% to US$591 million, while net production averaged 191,841 bbl/day, up 15% y/y.

  • EOG Resources posted a net profit of US$635 million, little changed from the previous year. Operating revenues rose 10% to US$4.1 billion. Production rose 17% y/y to 774,000 boe/day.

  • Noble Energy posted a net loss of US$313 million, down from a US$554 million profit from the same quarter last year. First quarter volumes averaged 337,000 boe/day, while revenues declined 18% y/y to US$1.1 billion.

  • Adjusted earnings at Equinor declined 5% y/y to US$4.2 billion in the first quarter. Production held steady at 2.18 million boe/day, while revenues declined 17% to US$16.4 billion.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$70.85▲0.150.47
 
86.29
WTI$61.94▲0.242.53
 
76.41
CDN LT$57.24▼0.220.83
 
69.32
C5+$57.61▲0.437.04
 
71.40
WCS$49.89▲0.112.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ MAY 3   █ APR 26   █ APR 19   █ APR 12   (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
Baytex Energy (BTE +12.9%)
Crescent Point (CPG +4.3%)
TORC O&G (TOG +3.6%)
Encana (ECA +3.3%)
Mullen Group (MTL +3.1%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
Enerflex (EFX -6.3%)
Seven Generations (VII -1.9%)
Pason Systems (PSI -1.4%)
TransCanada (TRP -1.2%)
Cenovus Energy (CVE -1.1%)
12-MO
LOWS
CES Energy (CEU -0.8%)
Peyto Exploration (PEY +1.4%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU43.47▲2.035.53
 
55.47D   W
Imperial OilIMO38.61▲0.833.52
 
44.91D   W
Husky EnergyHSE14.04▲0.313.21
 
22.99D   W
MIDSTREAM
EnbridgeENB49.21▲0.739.12
 
51.20D   W
TransCanadaTRP62.63▼-1.247.90
 
64.46D   W
Pembina PipelinePPL47.54▲0.739.15
 
50.65D   W
Inter PipelineIPL21.25▼-0.518.60
 
25.66D   W
Keyera KEY30.55▲1.024.05
 
38.91D   W
Gibson EnergyGEI21.74▼-0.116.40
 
23.75D   W
LARGE CAP E&P
Cdn Natural ResCNQ37.73▼-0.130.11
 
49.08D   W
Cenovus EnergyCVE12.13▼-1.18.74
 
14.84D   W
EncanaECA9.06▲3.36.90
 
18.54D   W
TourmalineTOU19.21▼-0.315.84
 
26.19D   W
Vermilion EnergyVET32.28▲1.026.67
 
49.67D   W
SERVICES
Pason SystemsPSI20.47▼-1.417.18
 
24.57D   W
EnerflexEFX16.52▼-6.313.55
 
20.38D   W
Mullen Group MTL9.75▲3.19.39
 
16.93D   W
ShawcorSCL19.49▲2.215.11
 
28.89D   W
Secure EnergySES7.52▲1.56.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI41.78▲0.430.01
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Concho Res (CXO +4.4%)
Apache (APA +2.8%)
Baker Hughes (BHGE +2.6%)
Cimarex Energy (XEC +2.2%)
Marathon Petro (MPC +2.2%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Noble Energy (NBL -2.1%)
12-MO
LOWS
None
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM77.47▲0.364.65
 
87.36D   W
ChevronCVX117.27▲0.8100.22
 
131.08D   W
MIDSTREAM
Kinder MorganKMI19.53▲0.914.62
 
20.44D   W
Williams CoWMB27.59▲0.520.36
 
32.22D   W
ONEOKOKE66.89▲0.050.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP62.01▲1.256.75
 
80.24D   W
EOG ResourcesEOG90.90▲2.082.04
 
133.53D   W
Occidental PetroOXY57.95▲1.156.83
 
87.67D   W
Anadarko PetroAPC72.72▲1.640.40
 
76.70D   W
Pioneer Natural ResPXD156.09▲1.7119.08
 
213.40D   W
SERVICES
SchlumbergerSLB41.28▲0.434.99
 
75.43D   W
HalliburtonHAL27.77▲0.124.70
 
54.91D   W
Baker HughesBHGE24.13▲2.620.09
 
37.76D   W
Ntl-Oilwell VarcoNOV25.41▲1.924.04
 
49.08D   W
TechnipFMCFTI23.50▲0.218.20
 
34.39D   W
REFINERS
Marathon PetroMPC59.96▲2.254.29
 
88.45D   W
Phillips 66PSX89.56▲0.578.44
 
123.97D   W
Valero EnergyVLO88.44▲0.268.81
 
126.98D   W
HollyFrontierHFC46.74▲1.245.29
 
83.28D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A64.29▲0.955.04
 
73.86D   W
TotalTOT55.18▲0.249.70
 
65.69D   W
BPBP43.08▲1.136.28
 
47.83D   W
EniE33.56▲0.429.75
 
40.15D   W
EquinorEQNR21.81▲0.619.95
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • None

DOWNGRADES

  • Crew Energy (CR.TO): Downgraded from Outperform to Market Perform at Raymond James.

  • Enerflex (EFX.TO): Downgraded from Outperform to Sector Perform at National Bank.

  • Source Energy Service (SHLE.TO): Downgraded from Outperform to Sector Perform at AltaCorp Capital.

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
Oil markets little moved as traders await results of US/China trade talks

Oil markets little moved as traders await results of US/China trade talks

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

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