Energy Sector Update for 07/02/2019: PBR,EQT,XOM,NOG

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Top Energy Stocks

XOM -1.14%

CVX -1.61%

COP -3.10%

SLB -0.81%

OXY -2.18%

Energy stocks extended their declines this afternoon, with the NYSE Energy Sector Index dropping over 1.4% while the shares of energy companies in the S&P 500 also were down nearly 1.8% as a group. West Texas Intermediate crude oil for August delivery settled $2.84 lower at $56.25 per barrel at the New York Mercantile Exchange while the global benchmark Brent crude September contract declining $2.45 to $62.61 per barrel. August natural gas futures fell 3 cents to $2.24 per 1 million BTU.

Among energy stocks moving on news:

(+) Petroleo Brasileiro SA ( PBR ) slid about 2% on Tuesday after the Brazilian energy major more commonly known as Petrobras told Reuters it was splitting its marketing and trading subsidiary in separate domestic and international trading units. The reorganization is intended to better align Petrobras with industry changes and address a corruption scandal that spread into the trading unit. Six former Petrobras employees were implicated in the fraud, including a fuel broker who prosecutors say was a key actor in the scheme.

In other sector news:

(-) Exxon Mobil ( XOM ) slipped more 1% after the energy major warned rising commodity prices will boost its Q2 upstream profit by between $400 million to $600 million but the recent drop in gasoline prices will hit that segment's earnings by roughly the same amount. In a new research note, Berenberg said those factors point to a positive $250 million net rise over its $2.4 billion in Q1 earnings although that leaves the company's likely Q2 bottom line below the Capital IQ consensus expecting Q2 GAAP net income of $4.35 billion and $3.84 billion in adjusted earnings.

(-) Northern Oil and Gas ( NOG ) declined more than 5% after the oil and natural gas producer said it has completed its purchase of properties in North Dakota previously owned by a wholly owned subsidiary of Flywheel Bakken LLC. It also is expecting the acquired assets will add an average of around 6,650 barrels of oil equivalent per day during Q3 and by about 7,000 barrels per day in Q4.

(-) EQT Corp ( EQT ) slid 6.5% on Tuesday. The five independent board nominees both supported by the company and the Toby Rice Group urged other investors to vote for the other seven members on the EQT management slate, stating they were "best suited" to oversee the company's operations and its ongoing transformation. In an open letter to shareholders, the independent director candidates said the management team's performance over the last three quarters shows it "earned the chance to show that it can achieve the continued turnaround we seek." The EQT annual meeting is scheduled for next Wednesday, July 10.

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: PBR , XOM , NOG , EQT

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