Energy Sector Update for 02/13/2018: MNGA,TEP,ARCH

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Top Energy Stocks

XOM -0.06%

CVX -0.89%

COP +0.47%

SLB -0.99%

OXY -0.12%

Energy stocks were mostly lower, with the NYSE Energy Sector Index falling more than 0.3% while shares of energy companies in the S&P 500 were down more than 0.4% as a group. Crude oil for March delivery was falling 31 cents to $59.98 per barrel in New York while the benchmark Brent crude April contract was down 19 cents to $62.40 per barrel. March natural gas futures were up 8 cents at $2.63 per 1 million BTU. Among energy-related ETFs, United States Oil was down 0.5% while United States Natural Gas was up 2.4%. The Philadephia oil-service sector index was down nearly 1.9%.

In industry news:

Crude oil price declined on Tuesday after the International Energy Agency warned rising U.S. production could reverse the drop in global oil inventories and set the stage for a return to the conditions that caused a price crash four years ago. In its monthly market outlook, the agency said increased non-OPEC production - particularly from the United States where output recently climbed to a record 10.25 million barrels per day - was threatening to lift oil output ahead of demand this year. U.S.oil production "will soon overtake that of Saudi Arabia", the report said, and could be challenging Russia as the global leader by the end of the year. At 4:30 p.m. ET, traders will be looking to the American Petroleum Institute's inventory report for crude oil for the week ended Feb. 9, ahead of similar data presented by the U.S. Energy Information Administration on Wednesday at 10:30 a.m. ET.

Among energy stocks moving on news:

- MagneGas ( MNGA ) has turned higher again Tuesday after earlier giving back all of a 7.5% advance to a session high of $1.57 a share that followed the artificial-fuels producer's saying it added more than 100 new clients during the final three months of 2017, adding it was on pace for record Q4 sales. "With this rapid pace of new client additions, we can expect that our Florida operations will benefit from the full impact of these new customers," chief financial officer Scott Mahoney said, later adding the company continues to scale up its order fulfillment operations. "As a result, we believe we are off to a great start to 2018."

In other sector news

- Tallgrass Energy Partners LP ( TEP ) rose Tuesday after the company reported Q4 net income of $0.67 per share compared with $0.51 per share during the same quarter last year but still shy of the Capital IQ consensus expecting $0.69 per share. Revenue rose to $174.8 million during the quarter from from $162.2 million last year, also trailing the $183.9 million analyst mean.

- Arch Coal ( ARCH ) was narrowly lower this afternoon after the miner said Q4 net income jumped to $4.12 per share from $1.65 per share during the same period last year, breezing past the $2.39 per share Street view. Revenue slipped to $560.2 million from $575.7 million during the year-ago period and lagging the $574.8 million analyst consensus. The company is projecting FY18 sales between 92 million to 99 million tons, largely in-line with FY17 levels. It also declared a dividend of $0.40 per share, up from its most recent distribution of $0.35 per share and payable March 15 to shareholders of record on March 5.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Energy
Referenced Symbols: MNGA , ARCH

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