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Best Energy ETFs & Stocks of Last Week

Sweta Killa
A number of business buyouts will likely be conducive to Middleby's (MIDD) near-term results. Nevertheless, margin pressure remains a drag.

U.S. crude bounced back nicely and recorded its weekly gain in two months ending their longest run of weekly losses since 2015. This is primarily thanks to the tightening supply outlook on the back of looming Iranian supply shortages, and a strike in the North Sea oil and gas fields amid rising U.S. oil production (see: all the Energy ETFs here).

Trump has re-imposed tough economic sanctions against Iran this month and vowed to bring more damaging sanctions in November that will target Iran's port operators, as well as its energy, shipping and shipbuilding industries. Since Iran is OPEC's third-largest oil producer and exports about 2.5 million barrels a day, renewed sanctions would reduce Iranian oil exports. Per some sources, Iranian tanker loadings are already down by around 700,000 barrels a day in the first half of August relative to July, which if it holds will exceed most expectations.

Workers at three oil and gas platforms operated by Total in the North Sea — Alwyn, Elgin and Dunbar — plan to go on strike on Sep 3. These fields, which account for about 45,000-50,000 barrels per day to the North Sea's Forties and Brent crude streams, have already seen five strikes over the past month.

Further, falling U.S. rig counts and shrinking domestic crude inventories also supported the oil price. The weekly data from oil services firm Baker Hughes BHI showed that the number of rigs fell by nine last week to 860, the biggest reduction since May 2016. Meanwhile, U.S. crude oil inventories fell by 5.8 million barrels (more than three times forecasts) for the week (ending August 17) to 408.4 million barrels, the five-year average for this time of year.

Though both China and United States escalated trade disputes with the implementation of another round of tariffs on $16 billion worth of each other’s goods, it may not curb China's appetite for U.S. crude. This is because China’s Unipec will resume buying U.S. crude oil in October after a two-month halt, according to Reuters (read: Energy ETFs: Victims of China Tariffs).

Give the combination of factors, the energy sector enjoyed a strong surge last week. As such, we have highlighted the four top-performing energy ETFs and stocks that are poised to perform well, should oil price rise.

Invesco DWA Energy Momentum ETF PXI

This fund offers exposure to companies having relative strength (momentum) by tracking the Dorsey Wright Energy Technical Leaders Index.
 
Zacks Rank: #3 (Hold)
AUM: $138.4 million
Expense Ratio: 0.60%
Last Week Return: 6.8%

First Trust Nasdaq Oil & Gas ETF FTXN

This fund follows the Nasdaq US Smart Oil & Gas Index, which measures the performance of the most liquid oil and gas securities from the NASDAQ US Benchmark Index screened through volatility, value and growth (read: Top & Flop ETF Areas of Q2).

Zacks Rank: #3
AUM: $28.4 million
Expense Ratio: 0.60%
Last Week Return: 6.5%

SPDR S&P Oil & Gas Exploration & Production ETF XOP

This fund provides exposure to the oil and gas exploration companies by tracking the S&P Oil & Gas Exploration & Production Select Industry Index.

Zacks Rank: #3
AUM: $3.2 billion
Expense Ratio: 0.35%
Last Week Return: 5.9%

Invesco S&P SmallCap Energy ETF PSCE

This fund offers exposure to the small-cap segment of the energy sector by tracking the S&P Small Cap 600 Capped Energy Index (read: Oil ETFs: What You Need to Know).

Zacks Rank: #3
AUM: $62.4 million
Expense Ratio: 0.29%
Last Week Return: 5.8%

Lilis Energy Inc. LLEX

This independent oil and gas exploration and production company is engaged in the acquisition, drilling and production of oil and natural gas properties and prospects within the DJ Basin.

Zacks Rank: #3
VGM Score: C
Market Cap: $329.6 million
Last Week Return: 23.6%

California Resources Corporation CRC

This company is engaged in exploration and production of oil and gas. It produces, gathers, processes and markets crude oil, natural gas, natural gas liquids and electricity primarily in the State of California (read: Earnings Miss at Oil Majors Drag Energy ETFs Down).

Zacks Rank: #3
VGM Score: B
Market Cap: $1.7 billion
Last Week Return: 23.5%

Baytex Energy Corp BTE

This oil and gas company is engaged in the acquisition, development, and production of oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States.

Zacks Rank: #3
VGM Score: C
Market Cap: $783.1 million
Last Week Return: 21.2%

Northern Oil and Gas Inc. NOG

This exploration and production company is engaged in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Rank: #2 (Buy)
VGM Score: B
Market Cap: $979.1 million
Last Week Return: 18.7%

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