Oil prices waffle as traders await results from US/China trade talks
Today's energy and equity market update:
A mixed day in energy markets, with Brent ending the day unchanged, and WTI posting a 0.7% loss. Canadian Light declined 1.2%, as the discount to WTI widened to almost US$5.30. Western Canadian Select also sank 1%.
Most global markets posted declines on Thursday, as traders digest the impact of more US tariffs on Chinese imports. Chinese markets were the worst hit, declining about 2% overnight.
The Dow Jones Industrial Average was the worst performing index in the US, falling 0.5%. The NYSE and the S&P 500 both dipped 0.2%. The energy sector was little changed once again in the US. US refiners were the worst performing energy subsector for the second day in a row.
Today's notable energy news:
Kinder Morgan Canada came up empty-handed in its search for a buyer of its remaining Canadian assets. The company says it has concluded its strategic review and will stick to the status quo. More details are expected Friday morning during a live webcast conference call. Parent-company Kinder Morgan holds a 70% stake in its Canadian subsidiary.
Chevron says it won't make a counter-offer for Anadarko, allowing its proposed Merger Agreement to expire. CEO Michael Wirth says "winning in any environment doesn’t mean winning at any cost." Under terms of the deal, Anadarko will pay Chevron a US$1 billion break-up fee, which Chevron will put towards share buybacks.
McDermott International announced a "sizeable" EPC contract by ADNOC for FEED on phase one of its Umm Shaif Gas Cap Condensate Development Project, located offshore Abu Dhabi.
Today's notable first quarter earnings:
Canadian Natural Resources reported a $961 million profit, up 65% from the same time last year. Cash from operations declined 60% y/y to $996 million. Production averaged 1.04 million boe/day in Q1, weighted 54% light oil, 22% heavy crude and 24% natural gas. Volumes are down almost 8% from last year's record high of 1.12 million boe/day, due to voluntary and involuntary curtailments in the province of Alberta.
Athabasca Oil Corp booked a $207 million profit for the first quarter, including proceeds from the sale of its Leismer infrastructure assets to Enbridge. The company averaged 39,206 boe/day during the quarter, while netbacks rose almost four-fold to $16.77/boe. Realization prices for its diluted bitumen hit a record $42.56 per barrel in Q1.
Crescent Point Energy eked out a net profit of $2 million, much improved over a $91 million loss for the same time last year. Cash flow from operations declined 10% to $417 million. Production dipped 1% y/y to 175,955 boe/day, weighted 91% liquids.
Inter Pipeline posted a $98 million net profit, down over 30% from the same time last year. Revenues dipped 2% y/y to $659 million. Total pipeline throughput volumes averaged 1.39 million bbl/day, down 6% y/y. Volumes on its oil sands pipelines also declined 6% y/y to 1.2 million bbl/day, reflecting Alberta's mandated production cuts.
CES Energy Solutions posted a $2.2 million profit for the first quarter, down from $13 million for the same time last year. Revenues rose 11% to $333 million. US revenues rose 25% while Canadian revenues posted an 11% decline.
Tamarack Valley Energy posted a net loss of $4.8 million, down from a $3.3 million profit for the same time last year. Revenues dipped 4% y/y to $95 million. The company produced 23,149 boe/day, down 2% y/y reflecting its curtailment order.
Toronto-based Fronterra Energy reported a net profit of $26 million in the first quarter, up from a $117 million loss for the same time last year. Revenues rose 33% y/y to $378 million. First quarter production declined 5% y/y to 67,974 boe/day due to force majeure on a major export pipeline. However, Fronterra says output has since been restored to over 75,000 boe/day.
Energy Transfer posted a first quarter profit of US$870 million, more than double the same time last year reflecting the company's "simplification transaction." The company announced plans to expand its Permian Express Pipeline by another 120,000 bbl/day before the end of this year, and cancelled its 1 million bbl/day Permian Gulf Coast Pipeline.
|Suncor Energy||SU||43.57||▼-0.7||35.53||55.47||D W|
|Imperial Oil||IMO||38.33||▼-0.4||33.52||44.91||D W|
|Husky Energy||HSE||13.63||▼-1.0||13.21||22.99||D W|
|Pembina Pipeline||PPL||47.47||▲0.3||39.15||50.65||D W|
|Inter Pipeline||IPL||20.81||▼-0.7||18.60||25.66||D W|
|Gibson Energy||GEI||22.07||▼-0.7||16.64||23.75||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||37.93||▲0.1||30.11||49.08||D W|
|Cenovus Energy||CVE||12.06||0.0||8.74||14.84||D W|
|Vermilion Energy||VET||31.64||▼-1.0||26.67||49.67||D W|
|Pason Systems||PSI||19.73||▲0.4||17.18||24.57||D W|
|Mullen Group||MTL||10.17||▲2.4||9.39||16.93||D W|
|Secure Energy||SES||7.83||▲2.1||6.25||9.44||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||39.93||▼-0.8||30.01||47.45||D W|
|Exxon Mobil||XOM||76.77||▼-0.1||64.65||87.36||D W|
|Kinder Morgan||KMI||19.73||▲0.3||14.62||20.44||D W|
|Williams Co||WMB||26.96||▼-0.5||20.36||32.22||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||94.24||▲0.2||82.04||133.53||D W|
|Occidental Petro||OXY||56.33||▼-6.4||56.12||87.67||D W|
|Anadarko Petro||APC||73.39||▼-3.3||40.40||76.70||D W|
|Pioneer Natural Res||PXD||153.40||▼-0.2||119.08||213.40||D W|
|Baker Hughes||BHGE||22.61||▼-1.5||20.09||37.76||D W|
|Ntl-Oilwell Varco||NOV||25.11||▲1.2||24.04||49.08||D W|
|Marathon Petro||MPC||52.96||▼-4.1||52.50||88.45||D W|
|Phillips 66||PSX||85.75||▼-0.2||78.44||123.97||D W|
|Valero Energy||VLO||81.74||▼-0.8||68.81||126.98||D W|
Diamondback Energy (FANG): Upgraded from Outperform to Strong Buy at Raymond James.
Peyto Exploration & Development (PEY.TO): Upgraded from Hold to Buy at GMP Securities.
Paramount Resources (POU.TO): Upgraded from Outperform to Strong Buy at Raymond James.
Royal Dutch Shell (RDS/A): Upgraded from Underweight to Equal Weight at Morgan Stanley.
Step Energy Services (STEP.TO): Upgraded from Sector Perform to Sector Outperform at Scotiabank.
UPDATED: DAILY (END-OF-DAY)
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