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Energy Sector Update for 07/02/2018: E,CLB,HAL,TTI,BKEP,CLB


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Energy stocks retreated Monday, with the NYSE Energy Sector Index falling more than 1.6% this afternoon while shares of energy companies in the S&P 500 were down almost 1.7% as a group. West Texas Intermediate crude oil for August delivery settled 21 cents lower at $73.94 per barrel in New York while the global benchmark Brent crude September contract declined $1.91 to $77.32 per barrel in its first session as the front-month contract. August natural gas futures fell 6 cents to $2.86 per 1 million BTU. Among energy-related ETFs, United States Oil dropped nearly 0.5% while United States Natural Gas also was down almost 2.0%. The Philadelphia Oil Service index dropped over 2.9% this afternoon.

In industry news:

Oil prices finished lower on Monday, pausing Monday after four straight days of gains that carried the front-month contract to strong weekly, monthly, quarterly and first-half gains as long-running efforts by OPEC, anticipated increases in demand and supply disruptions combined to thrust prices higher. August West Texas Intermediate rose just over 8% last week on the New York Mercantile Exchange, settling Friday at $74.15 a barrel, extending its June advance to almost 11% and its Q2 advance to more than 14%, according to data compiled by WSJ Market Data Group. Year to date, U.S. crude was up by almost 23% as it starts the second half of 2018 while Brent crude climbed 18.8% this year through Friday's close.

Among energy stocks moving on news,

- ENI SpA ( E ) retreated Monday, dropping over 1% in late trade, after the Italian energy major disclosed plans to merge its Eni Norge AS unit in Norway with Point Resources AS and renaming the combined company Var Energi AS. Point Resources currently is owned by private equity investors HitecVision. The new Norwegian exploration and production company that work in a region stretching from the North Sea to the Barents Sea and producing around 180,000 barrels of oil equivalent per day this year from a portfolio of 17 producing oil and gas fields. Production is expected to reach 250,000 barrels per day by 2023, Eni said.

In other sector news

- Halliburton Co ( HAL ) fell over 2% on Monday despite the oilfield-services company announcing a new well construction-services agreement for all OKEA fields on the Norwegian continental shelf. The five-year base contract has two, two-year extension options, and calls for Halliburton to use its Landmark's software suite in the iEnergy cloud in addition to providing field development planning services for OKEA. Separately, Halliburton Monday said it signed a joint-marketing agreement for the sale and distribution of TETRA Technologies' ( TTI ) family of TETRA CS Neptune completion fluids.

- Blueknight Energy Partners ( BKEP ) was stymied several times to recoup a 3% gain soon after Monday's opening bell that followed the company late Friday saying it was selling three asphalt terminals in Lubbock and Saginaw, Texas, and Memphis, Tenn., to Ergon Asphalt & Emulsions for $90 million in cash. Net proceeds from the transaction will be used to pay down existing debt. Also, analysts at Janney Monday lowered their price target for Blueknight shares by 50 cents to $3.50 apiece while reiterating their Neutral stock rating, saying they were somewhat cautious about its crude oil terminalling and storage business and also were waiting for the company's development, integration and strategic plans to become more constructive.

- Core Laboratories ( CLB ) tumbled Monday, at one point sinking over 13%, after the reservoir services company late Friday pared its Q2 earnings forecast by $0.07 per share from its previous guidance to a new range of $0.57 to $0.59 per share. It also lowered its Q2 revenue outlook to a new range of $174 million to $175 million from its prior range of $177 million to $179 million. Analysts, on average, are looking earnings of $0.64 per share on $175 million in revenue. It Q3 profit outlook also lags the $0.75 per share Street view by at least $0.09 per share.

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: E , HAL , TTI , BKEP , CLB


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