|Bid||0.00 x 900|
|Ask||0.00 x 800|
|Day's Range||42.99 - 43.62|
|52 Week Range||28.96 - 43.65|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.35%|
Yahoo Finance's Jared Blikre joins Seana Smith from the floor of the New York Stock Exchange to discuss the latest market moves.
Weatherford International’s (WFT) year-to-date returns were nearly -17.3% as of May 15. During this period, Weatherford International has underperformed the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) (up 12.8%) and the VanEck Vectors Oil Services ETF (OIH) (up 9.2%). XOP tracks an index of companies in the US energy space, while OIH represents the OFS industry. Weatherford International has also underperformed the US rig count (up 12%) YTD.
In this part, we’ll discuss the top percentage gainers from the upstream sector in the US for the week starting on May 14. In the week starting on May 14, Legacy Reserves LP (LGCY) increased from last week’s close of $7.99 to $9.65 on May 16—an increase of ~21%. The company increased ~11% on Wednesday—more than the 30-day average volume. In the first quarter, Legacy Reserves reported revenues of ~$ 137 million—worse than analysts’ consensus of ~$143 million.
RPC’s (RES) YTD returns were -24.6% as of May 15. During this period, RPC underperformed the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) (up 12.8%), the VanEck Vectors Oil Services ETF (OIH) (9.2% returns), and the SPDR S&P 500 ETF (SPY) (1.6% returns). XOP represents the energy industry in the oil and gas exploration and production segment. So far, RPC has underperformed the US rig count this year (up ~12%).
Between May 10 and May 17, major energy ETFs’ correlations with US crude oil June futures were as follows: VanEck Vectors Oil Services ETF (OIH): 60.4% SPDR S&P Oil & Gas Exploration & Production ETF (XOP): 42.1% Alerian MLP ETF (AMLP): 24.9% Energy Select Sector SPDR ETF (XLE): 8.8%
After gaining for two weeks, crude oil started this week on a stronger note and gained in all of the trading days so far this week. Crude oil closed Thursday almost flat and opened higher on Friday. In the early hours on May 18, crude oil is consolidating at the highest levels traded since November 2011.
Oil exploration stock plays are surging along with crude futures amid expectations the global oil glut will continue to ease.
Crude oil started this week on a stronger note and gained in the first three trading days of the week. Carrying forward the strength, crude oil opened stronger on Thursday and traded with strength at the highest levels traded since November 2011 in the early hours.
Tenaris’s (TS) year-to-date returns as of May 11 were 21.4%. It has outperformed the price of crude oil, which has increased 17% since the beginning of the year. During that period, TS has outperformed the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and the VanEck Vectors Oil Services ETF (OIH). XOP, representing the oil and gas exploration and production segment in the energy industry, has increased 11% year-to-date. OIH, an ETF that tracks an index of 25 oilfield equipment and services companies, has risen 7.6% year-to-date. ...
The EIA estimates that Libya’s crude oil production increased by 20,000 bpd to 1,005,000 bpd in April—compared to the previous month. The production also increased by 470,000 bpd or 88% year-over-year.
The US Dollar Index rose ~0.7% to 93.2 on May 15—the highest level since December 26, 2017. June WTI oil futures increased ~0.5% on May 15. The strong US Dollar Index restricted the upside for oil prices during this period.
Crude oil started this week on a stable note by gaining on Monday but pulled back briefly on Tuesday. Crude oil opened May 16 on a stable note and traded with mixed sentiment in the early hours.
According to the EIA (U.S. Energy Information Administration), in the week ended May 4, US crude oil inventories fell by ~2.2 MMbbls (million barrels) to ~433.8 MMbbls. However, the market expected a fall of 0.4 MMbbls, based on the S&P Global Platts Survey. That day, US crude oil June futures rose 3%, supported by the larger-than-expected fall in US crude oil inventories and the US exit from the Iran nuclear deal on May 8.
According to the EIA, the monthly US crude production increased by 260,000 bpd (barrels per day) to a record high of 10,264,000 bpd in February—compared to the previous month. US crude oil production increased by 1,206,000 bpd or 13.3% year-over-year.
After gaining for two consecutive trading weeks, crude oil moved higher on Monday and started the week on a stronger note. Carrying forward the strength, crude oil opened stronger on Tuesday and trading with strength at 3.5-year high levels in the early hours.
As of May 11, ConocoPhillips (COP) had an implied volatility of ~22.9%, which was lower than its implied volatility of ~26.5% on March 30. Last week, COP’s implied volatility had increased marginally from ~22.5% to ~22.9% due to a strong ~4% move in its stock price in the same week.
The upstream MLP, which was close to bankruptcy during 2016, has recovered significantly in recent quarters driven by debt restructuring and strong earnings growth resulting from production growth and gains in crude oil (USO) prices. At the same time, the Energy Select Sector SPDR ETF (XLE) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) are up 6.2% and 11.0% YTD, respectively. The widening of the spread between WTI Midland and WTI cash and a decline in crude oil prices from here could limit the partnership’s earnings growth target for the rest of 2018, which could further weigh on LGCY’s stock performance.
Occidental Petroleum (OXY) announced its 1Q18 earnings on May 8 after the market closed. In 1Q18, Occidental Petroleum’s reported revenues of ~$3.83 billion were much better than the Wall Street analyst consensus of ~$3.67 billion. In 1Q18, OXY reported an adjusted profit of $0.92 per share, beating Wall Street analysts’ consensus for a profit of $0.70 per share. To learn more about OXY’s net income and revenues, see parts 1 and 2 of this series.
Crude oil rose last week and recorded the second consecutive weekly gain amid the improved sentiment. However, crude oil opened Monday on a weaker note and consolidated at multiyear high price levels in the early hours.
Denbury Resources announced its 1Q18 earnings on May 8 before the market opened. In 1Q18, Denbury Resources reported revenues of ~$353 million, much better than the Wall Street analyst consensus of ~$316 million. In 1Q18, DNR reported an adjusted profit of $0.12 per share, beating the Wall Street analyst consensus for a profit of $0.11 per share. To know more about DNR’s net income and revenues refer to part one and two of this series.
The EIA released its Short-Term Energy Outlook report on May 8. The EIA reported that WTI oil prices could average $65.58 per barrel in 2018—10.5% higher than the April estimates. The EIA also estimates that Brent oil prices could average $70.68 per barrel in 2018—11.6% higher than the April estimates.
Crude oil prices popped following President Donald Trump’s announcement that the U.S. will withdraw from the Iran deal. The $2 billion United States Oil fund (USO), for example, promises to deliver exposure to oil prices on a day-to-day basis. It does that by holding West Texas Intermediate crude futures, but because crude oil futures contracts expire every month, the fund administrator is required to continuously sell the expiring contract and buy the next month’s futures.