|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||73.58 - 74.67|
|52 Week Range||61.80 - 78.39|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.14%|
So far, ONEOK (OKE) has risen nearly 9% in 2018. In comparison, Enterprise Products Partners (EPD), Targa Resources (TRGP), and Kinder Morgan (KMI) have fallen nearly 1%, 6%, and 13%, respectively, during the same period. The Energy Select Sector SPDR ETF (XLE) has risen nearly 1% year-to-date. So, ONEOK has outperformed its peers in 2018. ONEOK’s strong 4Q17 performance and positive 2018 outlook likely contributed to the company’s outperformance.
On April 25, the EIA released the weekly US crude oil production data. The EIA reported that US crude oil production rose by 46,000 bpd (barrels per day) to a record high of 10,586,000 bpd on April 13–20. The production also increased by 1,321,000 bpd or ~14.3% YoY (year-over-year).
On April 25, the EIA released its crude oil inventory report. The EIA reported that US crude oil inventories increased by 2.1 MMbbls (million barrels) to 429.7 MMbbls on April 13–20. However, the inventories declined by 98.9 MMbbls or ~18.7% YoY (year-over-year).
The S&P 500 rose ~0.2% to 2,639.4 on April 25 due to strong 1Q18 earnings results. However, the US ten-year Treasury yield is at a four-year high, which limited the S&P 500’s upside. Eight out of ten major sectors in the S&P 500 rose on April 25.
Of the 31 analysts covering Diamond Offshore Drilling (DO), only 13% recommend a “buy” or equivalent for the stock. Among the top offshore drilling stocks (XLE), Diamond Offshore Drilling has the lowest percentage of “buy” recommendations. About 42% have rated the stock a “hold.”
On April 24, the API released its gasoline and distillate inventory data. The API reported that US gasoline inventories decreased by 2.7 MMbbls (million barrels) on April 13–20. Market surveys estimate that US gasoline inventories could have declined by ~0.6 MMbbls during the same period.
June WTI crude oil futures contracts fell 0.04% from the previous settlement and were trading at $67.67 per barrel at 2:10 AM EST on April 25.
The S&P 500 fell ~1.3% to 2,634.56 on April 24 due to a rise in the US ten-year Treasury yield. The US ten-year Treasury yield rose above 3% for the first time since 2014. Eight out of the ten major sectors in the S&P 500 fell on April 24.
In 2008, the natural gas rig count made a record high of 1,606. From the record level in 2008 until April 20, the natural gas rig count fell 88%. Between January 2008 and January 2018, US natural gas marketed production rose 45.5%, based on the EIA’s monthly data. Natural gas supplies
Weatherford International (WFT) released its financial results for 1Q18 on April 24. WFT’s stock price reacted positively, rising 6.6% yesterday to $2.76 from the previous day’s close and strongly outperforming the 1.4% fall in crude oil prices. Earnings exceeding estimates could have boosted WFT’s stock price yesterday. The VanEck Vectors Oil Services ETF (OIH) fell 0.8%. OIH tracks an index of 25 oilfield equipment and services companies.
Noble Energy (NBL) stock has mainly risen since the beginning of 2018. Noble Energy has tracked crude oil prices (DBO) (UCO) higher.
Halliburton (HAL) released its financial results for 1Q18 on April 23. that day, HAL’s stock price reacted positively, rising 0.2% to $52.05. Its earnings beat estimates, and significantly higher revenue from its North American operations backed investors’ renewed interest in HAL’s outlook, which may have provided a tailwind to HAL’s stock price. West Texas Intermediate crude oil rose 0.7%.
Baker Hughes (BHGE) released its financial information for 1Q18 on April 20. Immediately following the earnings release, Baker Hughes stock reacted positively. The stock increased 0.8% to $33.99 from the previous day’s close. The VanEck Vectors Oil Services ETF (OIH) decreased 0.7% on the same day. OIH tracks an index of 25 oilfield equipment and services companies.
Schlumberger (SLB) released its 1Q18 results on April 20. Its stock price reacted negatively immediately following the earnings release, falling 1.5% to close at $69.23.
Energy Transfer Equity (ETE), the MLP GP (general partner) of Energy Transfer Partners (ETP), has risen ~12.0% month-to-date, supported by strong gains in crude oil prices and a general recovery in the midstream energy sector. The Alerian MLP ETF (AMLP) has gained 6.9% during the same timeframe.
On April 23, US crude oil June futures rose 0.4% and settled at $68.64 per barrel—the highest closing level for US crude oil active futures in more than three years. On the same day, the US Dollar Index rose 0.7%.
Hedge funds’ net long positions in WTI crude oil futures and options contracts increased by 24,758 to 442,408 on April 10–17. The net long positions increased for the third time in the last five weeks.
The S&P 500 rose ~0.01% to 2,670.29 on April 23 due to optimism about strong 1Q18 earnings results. Analysts estimate earnings growth of ~20% for S&P 500 companies in 1Q18, which could be the strongest earnings results in seven years. Five out of the ten major sectors in the S&P 500 rose on April 23.
The Energy Select Sector SPDR (NYSEArca: XLE), the largest equity-based energy ETF, jumped by about 4% last week in what is perhaps the latest sign that the energy sector rebound is proving legitimate. ...
Analysts estimate that Cushing inventories could have increased on April 13–20. A larger-than-expected rise in Cushing inventories could pressure oil prices.
On April 20, 2018, major oil producers’ meeting was held in Jeddah to discuss extending ongoing production cuts. The meeting highlighted OPEC’s higher compliance with ongoing production cuts. On April 20, Saudi Arabia’s energy minister said that production cuts could continue into 2019. The expectation of an extension supported oil prices last week. Brent and US crude oil prices increased ~2% and ~1.5% respectively, last week.
The energy sector (XLE) rose 2.6% last week because of the continued surge in oil prices, which will likely remain in focus given that President Trump started tweeting about OPEC and crude prices. The industrial and consumer discretionary sectors rose 2.1% and 1.7%, respectively, while the financial (XLF) sector rebounded by 1.6% due to the increase in bond yields. Large speculators of the S&P 500 Index, which include hedge funds, increased net bullish positions last week.
Kinder Morgan (KMI) stock rose 7.4% last week. The company reported strong 1Q18 results on April 18 after the markets closed. KMI rose 2.3% on April 19. Kinder Morgan also opened last week strong with a 2.3% rise on Monday, followed by a 2.2% rise on Tuesday.