TSX energy stocks tumble another 1%, and look to retest lows of 2019

TSX energy stocks tumble another 1%, and look to retest lows of 2019

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Today's energy market update:

  • Oil prices took a hard fall early last week, despite OPEC's decision to extend their existing production pact to March 2020. Brent dipped 0.2% on Monday, ending the day just above US$64 a barrel. WTI rose 0.3%, closing just under US$58.

  • Canadian benchmarks all gained ground on Monday, moving up in tandem with WTI.

  • Gasoline prices declined 1.5%, while Henry Hub gave back 0.6%.

Today's currency and equity market action:

  • Expectations for a July rate cut were tempered slightly after a much better than expected US jobs report was released on Friday. The US dollar surged over 1% last week, but was little moved on Monday.

  • The Canadian dollar was little changed last week, and little changed on Monday. The Bank of Canada is due to announce its next interest rate decision on Wednesday.

  • Most global markets kicked off the week with a loss, including Canada and the US. In New York, the NYSE fell 0.5%, while the NSADAQ declined 0.8%. After hitting record-highs last week, the S&P 500 and DJIA large cap indices both gave back about 0.5% on Monday. The US energy sector slipped 0.1%.

  • The TSX declined 0.5%, dragged lower by a 0.8% loss in energy stocks.

Today's notable energy news:

  • Encana announced the sale of its natural gas assets in Oklahoma’s Arkoma Basin to an undisclosed buyer for $165 million. The properties produce about 77 MMcf/day, and were acquired through its purchase of Newfield Exploration earlier this year.

  • Norwegian oil major Equinor has agreed to sell about 55 million Lundin Petroleum shares, in exchange for a 2.6% stake in the Johan Sverdrup field, and US$650 million in cash. The shares are worth about US$1.56 billion, representing a 16% stake in the company. Once the transaction is completed, Equinor's share of Johan Sverdrup will rise to 42.6%, while its stake in Lundin Petroleum will be cut to 4.9%.

  • In a note to clients, Goldman Sachs recommends investors remain "more cautious in the medium term," reducing its share price targets for a number of US producers, including Apache, Hess, Marathon Oil, Noble Energy, Pioneer Natural Resources, Chesapeake and Encana. The investment firm predicts OPEC production to be flat to lower next year, supporting longer term prices at the "low end" of US$50 to US$60 a barrel for WTI and US$55 to US$65 for Brent. Goldman also says it expects Q2 earnings to decline due to lower oil and gas prices this past quarter.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$64.11▼0.250.47
 
86.29
WTI$57.66▲0.342.53
 
76.41
SCO$58.52▲0.325.15
 
74.46
C5+$53.44▲0.537.04
 
71.40
CDN LT$53.39▲0.620.83
 
69.32
WCS$45.00▲0.812.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JUL 8   █ JUL 1   █ JUN 24   █ JUN 17   (USD/BBL)
MARKET OVERVIEW
MARKETS
CURRENCIES & YIELDS
TSX SECTORS
TSX SECTORS - 52WK
SPX SECTORS
SPX SECTORS - 52WK
ENERGY SECTORS

TSX ENERGY SUB-SECTORS

SPX ENERGY SUB-SECTORS
TSX ENERGY STOCKS
TSX BULLISH INDICATORS
TOP 5
CES Energy (CEU +3.1%)
Birchcliff Energy (BIR +3%)
Peyto Exploration (PEY +1.3%)
Inter Pipeline (IPL +0.8%)
Nuvista Energy (NVA +0.8%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
Precision Drilling (PD -4.5%)
Gran Tierra (GTE -3%)
Seven Generations (VII -2.7%)
Cdn Natural Res (CNQ -2.3%)
Encana (ECA -2.2%)
12-MO
LOWS
Baytex Energy (BTE -2.1%)
Kelt Exploration (KEL -0.8%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU41.08▼-0.135.53
 
55.47D   W
Imperial OilIMO36.13▲0.633.52
 
44.91D   W
Husky EnergyHSE12.35▼-1.212.18
 
22.99D   W
MIDSTREAM
EnbridgeENB47.11▼-1.039.40
 
51.22D   W
TC EnergyTRP64.86▼-0.547.90
 
66.93D   W
Pembina PipelinePPL48.76▼-0.839.15
 
50.65D   W
Inter PipelineIPL21.98▲0.818.60
 
25.66D   W
Keyera KEY33.67▼-0.624.05
 
38.91D   W
Gibson EnergyGEI23.29▼-0.116.90
 
24.18D   W
LARGE CAP E&P
Cdn Natural ResCNQ34.11▼-2.330.11
 
49.08D   W
Cenovus EnergyCVE11.75▲0.58.74
 
14.84D   W
EncanaECA6.33▼-2.26.12
 
18.54D   W
TourmalineTOU16.50▼-0.415.39
 
25.79D   W
Vermilion EnergyVET28.42▲0.226.54
 
49.67D   W
SERVICES
Pason SystemsPSI18.40▼-0.917.18
 
24.57D   W
EnerflexEFX16.71▼-1.613.56
 
20.38D   W
Mullen Group MTL9.80▼-0.99.36
 
16.93D   W
ShawcorSCL17.60▼-0.415.11
 
28.89D   W
Secure EnergySES7.21▲0.76.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI41.49▼-0.431.59
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Baker Hughes (BHGE +2.6%)
EOG Resources (EOG +1.8%)
Helmerich & Payne (HP +1.3%)
Halliburton (HAL +1%)
Cabot O&G (COG +0.9%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Cimarex Energy (XEC -3.6%)
Noble Energy (NBL -2.7%)
Apache (APA -2.5%)
Hess Corp (HES -2.1%)
Marathon Oil (MRO -1.7%)
12-MO
LOWS
None
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM76.48▲0.564.65
 
87.36D   W
ChevronCVX123.60▲0.1100.22
 
128.55D   W
MIDSTREAM
Kinder MorganKMI21.06▼-0.314.62
 
21.50D   W
Williams CoWMB28.44▲0.320.36
 
32.22D   W
ONEOKOKE69.57▼-1.050.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP59.890.056.75
 
80.24D   W
EOG ResourcesEOG90.15▲1.880.41
 
133.53D   W
Occidental PetroOXY49.30▲0.047.00
 
86.60D   W
Anadarko PetroAPC70.91▼-0.240.40
 
76.70D   W
Pioneer Natural ResPXD145.80▼-0.5119.08
 
193.03D   W
SERVICES
SchlumbergerSLB39.89▲0.834.46
 
69.61D   W
HalliburtonHAL23.25▲1.020.98
 
47.03D   W
Baker HughesBHGE25.19▲2.620.09
 
35.55D   W
Ntl-Oilwell VarcoNOV21.83▼-0.519.57
 
49.08D   W
TechnipFMCFTI24.97▼-0.718.20
 
33.60D   W
REFINERS
Marathon PetroMPC54.34▼-1.045.47
 
88.45D   W
Phillips 66PSX96.96▲0.278.44
 
123.97D   W
Valero EnergyVLO81.36▼-0.668.81
 
122.42D   W
HollyFrontierHFC45.89▲0.137.73
 
76.56D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A64.42▼-0.355.04
 
71.85D   W
TotalTOT55.60▲0.449.70
 
65.69D   W
BPBP41.08▲0.136.28
 
47.25D   W
EniE32.79▲0.529.75
 
39.16D   W
EquinorEQNR20.03▲0.918.91
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • Cabot Oil & Gas (COG): Upgraded from Market Perform to Outperform at Wells Fargo.

DOWNGRADES

  • Centennial Resource (CDEV): Downgraded from Buy to Hold at SunTrust Banks.

  • Earthstone Energy (ESTE): Downgraded from Outperform to Market Perform at Wells Fargo.

  • Oasis Petroleum (OAS): Downgraded from Hold to Sell at SunTrust Banks.

  • Pioneer Natural Resources (PXD): Downgraded from Buy to Hold at SunTrust Banks.

  • SM Energy (SM): Downgraded from Outperform to Market Perform at Wells Fargo.

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
• PRICE CHARTS PROVIDED BY STOCKCHARTS.COM ARE DIVIDEND ADJUSTED

NOTES:
• OIL PRICES, FUTURES AND DIFFERENTIALS SHOWN IN USD/BBL
• WCS = WESTERN CANADIAN SELECT; C5+ = EDMONTON CONDENSATE; SCO = SYNTHETIC CRUDE
• FUTURES CURVES REFLECT 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
North American benchmarks post fourth day of gains, on expectations of further drawdowns in US crude stockpiles

North American benchmarks post fourth day of gains, on expectations of further drawdowns in US crude stockpiles

Oil prices post a loss on Friday, but end the month much improved

Oil prices post a loss on Friday, but end the month much improved

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