Oil prices and energy stocks post a second consecutive day of gains
Today's energy market summary:
Oil prices moved up slightly on Monday, following through on Friday's gains.
Brent rose 1.3% while WTI gained 1.1%. Canadian benchmarks all rose in tandem with WTI as differentials were unchanged for the day.
Gasoline prices dipped 0.4%, while Henry Hub moved up almost 3%.
Disappointing wholesale sales data for the month of May dented the loonie by 0.4%. The US dollar index edged up 0.1%, ending the day just under 97.
Aside from technology stocks, equity markets were little moved on Monday. The NYSE was unchanged, while the S&P 500 Large Cap Index rose 0.3%. The TSX also rose 0.2%.
Energy stocks moved up 0.4% on the SPX and 0.5% on the TSX, also a second consecutive day of gains.
Today's notable energy news:
AltaGas has agreed to sell its US power generation assets to TerraForm Power for $940 million. The assets were acquired through the purchase of WGL Energy. Once this latest deal closes, the company’s total asset divestitures will add up to $1.3 billion so far this year. TerraForm is an affiliate of Brookfield Asset Management.
Royalty production at PrairieSky Royalty dipped to 22,160 boe/day in the first half of this year, down 5% from the same time last year. The decline was blamed on spring break-up, "challenging" commodity prices and the province's mandated production curtailments, which resulted in less capital spending. Second quarter revenues declined 9% y/y to $69.3 million, mostly due to lower oil prices.
Philadelphia Energy Solutions filed for Chapter 11 this week, marking its second bankruptcy in less than two years. The company's 335,000 bbl/day PES refinery suffered a major fire last month, leaving the facility crippled, and forcing the lay-off of 1,000 workers. The company has secured US$100 million in financing, and could be eligible for US$1.25 billion in insurance payments. CEO Mark Smith says the funds will be put towards winding down its operations, repairing damaged equipment and restarting the refinery.
Echoing a similar sentiment from Schlumberger last week, oilfield services firm Halliburton says it continues to grow revenues in almost every market except North America. For the first half of this year, revenues totalled US$11.7 billion, down 2% for the same period last year.
According to Reuters, Brazil's PetroBras is poised to sell two shallow-water oilfields to Trident Energy for as much as US$1 billion. The fields produce about 35,000 boe/day. Trident is backed by private-equity firm Warburg Pincus.
BP announced a new 50/50 joint-venture with Brazil's Bunge, a major producer of sugarcane ethanol. The new agreement boosts BP's biofuels business by more than 50%. Financial terms of the deal were not disclosed.
|Suncor Energy||SU||40.84||▲0.4||35.53||55.47||D W|
|Imperial Oil||IMO||36.86||▲1.4||33.52||44.69||D W|
|Husky Energy||HSE||11.38||▲1.0||11.05||22.99||D W|
|TC Energy||TRP||66.48||▲0.7||47.90||67.15||D W|
|Pembina Pipeline||PPL||50.06||▲0.7||39.15||50.65||D W|
|Inter Pipeline||IPL||22.59||▲0.9||18.60||25.35||D W|
|Gibson Energy||GEI||24.25||▲1.1||16.90||24.33||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||34.07||▲0.1||30.11||47.93||D W|
|Cenovus Energy||CVE||12.52||▲0.9||8.74||14.26||D W|
|Vermilion Energy||VET||26.10||▲0.1||25.70||47.98||D W|
|Pason Systems||PSI||18.09||▲1.3||17.18||24.57||D W|
|Mullen Group||MTL||9.39||▲1.5||9.15||16.93||D W|
|Secure Energy||SES||6.97||▼-0.4||6.25||9.44||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||43.57||▼-0.4||31.59||47.45||D W|
|Exxon Mobil||XOM||75.07||▲0.1||64.65||87.36||D W|
|Kinder Morgan||KMI||20.77||▲1.3||14.62||21.50||D W|
|Williams Co||WMB||27.62||▲0.2||20.36||32.22||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||87.21||▲0.2||80.41||133.53||D W|
|Occidental Petro||OXY||52.51||▲0.3||47.00||84.93||D W|
|Anadarko Petro||APC||73.64||▲0.4||40.40||76.23||D W|
|Pioneer Natural Res||PXD||138.23||▲0.1||119.08||193.03||D W|
|Baker Hughes||BHGE||23.96||▲1.7||20.09||35.55||D W|
|Ntl-Oilwell Varco||NOV||21.25||▲1.2||19.57||49.08||D W|
|Marathon Petro||MPC||55.22||▼0.0||45.47||88.45||D W|
|Phillips 66||PSX||102.55||▲0.6||78.44||123.97||D W|
|Valero Energy||VLO||84.35||▲0.8||68.81||122.42||D W|
CNOOC (CEO): Upgraded from Neutral to Outperform at CICC Research.
UPDATED: DAILY (END-OF-DAY)
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