Oil prices waffle as traders await results from US/China trade talks

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.

  • In Toronto, the TSX fell 0.5%. Energy stocks dipped an average of 0.1%. Canadian energy services were the best performing subsector north of the border.

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.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$70.39▲0.050.47
 
86.29
WTI$61.70▼0.742.53
 
76.41
CDN LT$56.43▼1.220.83
 
69.32
C5+$57.49▼0.837.04
 
71.40
WCS$49.09▼1.012.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ MAY 9   █ MAY 2   █ APR 25   █ APR 18   (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
Crescent Point (CPG +5.2%)
TORC O&G (TOG +2.8%)
Precision Drilling (PD +2.7%)
Mullen Group (MTL +2.4%)
Parex Resources (PXT +2.3%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
Encana (ECA -2.3%)
Birchcliff Energy (BIR -1.7%)
MEG Energy (MEG -1.6%)
Keyera (KEY -1.1%)
Husky Energy (HSE -1%)
12-MO
LOWS
None
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU43.57▼-0.735.53
 
55.47D   W
Imperial OilIMO38.33▼-0.433.52
 
44.91D   W
Husky EnergyHSE13.63▼-1.013.21
 
22.99D   W
MIDSTREAM
EnbridgeENB49.17▼-0.739.40
 
51.20D   W
TransCanadaTRP63.02▼-0.147.90
 
64.46D   W
Pembina PipelinePPL47.47▲0.339.15
 
50.65D   W
Inter PipelineIPL20.81▼-0.718.60
 
25.66D   W
Keyera KEY30.96▼-1.124.05
 
38.91D   W
Gibson EnergyGEI22.07▼-0.716.64
 
23.75D   W
LARGE CAP E&P
Cdn Natural ResCNQ37.93▲0.130.11
 
49.08D   W
Cenovus EnergyCVE12.060.08.74
 
14.84D   W
EncanaECA9.01▼-2.36.90
 
18.54D   W
TourmalineTOU20.14▲1.115.84
 
26.19D   W
Vermilion EnergyVET31.64▼-1.026.67
 
49.67D   W
SERVICES
Pason SystemsPSI19.73▲0.417.18
 
24.57D   W
EnerflexEFX17.23▲1.513.55
 
20.38D   W
Mullen Group MTL10.17▲2.49.39
 
16.93D   W
ShawcorSCL19.16▲0.215.11
 
28.89D   W
Secure EnergySES7.83▲2.16.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI39.93▼-0.830.01
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Chevron (CVX +3.1%)
Helmerich & Payne (HP +2.3%)
Diamondback (FANG +2.3%)
Apache (APA +1.5%)
Cabot O&G (COG +1.4%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Occidental Petro (OXY -6.4%)
Marathon Petro (MPC -4.1%)
Anadarko Petro (APC -3.3%)
Halliburton (HAL -1.9%)
Marathon Oil (MRO -1.9%)
12-MO
LOWS
Occidental Petro (OXY -6.4%)
Marathon Petro (MPC -4.1%)
HollyFrontier (HFC -0.4%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM76.77▼-0.164.65
 
87.36D   W
ChevronCVX121.19▲3.1100.22
 
131.08D   W
MIDSTREAM
Kinder MorganKMI19.73▲0.314.62
 
20.44D   W
Williams CoWMB26.96▼-0.520.36
 
32.22D   W
ONEOKOKE66.04▲0.150.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP61.54▲0.256.75
 
80.24D   W
EOG ResourcesEOG94.24▲0.282.04
 
133.53D   W
Occidental PetroOXY56.33▼-6.456.12
 
87.67D   W
Anadarko PetroAPC73.39▼-3.340.40
 
76.70D   W
Pioneer Natural ResPXD153.40▼-0.2119.08
 
213.40D   W
SERVICES
SchlumbergerSLB40.27▲0.034.99
 
75.43D   W
HalliburtonHAL25.99▼-1.924.70
 
54.91D   W
Baker HughesBHGE22.61▼-1.520.09
 
37.76D   W
Ntl-Oilwell VarcoNOV25.11▲1.224.04
 
49.08D   W
TechnipFMCFTI22.88▲0.218.20
 
34.39D   W
REFINERS
Marathon PetroMPC52.96▼-4.152.50
 
88.45D   W
Phillips 66PSX85.75▼-0.278.44
 
123.97D   W
Valero EnergyVLO81.74▼-0.868.81
 
126.98D   W
HollyFrontierHFC43.56▼-0.442.19
 
83.28D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A63.13▲0.755.04
 
73.86D   W
TotalTOT52.79▲0.549.70
 
65.69D   W
BPBP41.65▼0.036.28
 
47.83D   W
EniE32.29▼-0.429.75
 
40.15D   W
EquinorEQNR20.95▼-1.419.95
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • 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.

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 markets little moved on Friday, but log another loss for the week

Energy markets little moved on Friday, but log another loss for the week

Falling crude stockpiles and record Chinese demand give energy commodities a boost

Falling crude stockpiles and record Chinese demand give energy commodities a boost

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