Investor Relations

Energy Market Commentary June 17, 2016: Nasdaq Advisory Services

Friday, June 17, 2016

Sector Commentary

Energy stocks are expected to open mixed to higher as both WTI and Brent crude oil futures have started to regain ground following six-consecutive days of declines. The broader equity markets are lacking in direction in early trading, continuing to be pressured by global growth concerns and still growing uncertainties around Britain's future in the European Union. Today also mark quadruple witching so we can expect sizeable block activity at the start and particularly at the end of today’s session.

WTI crude oil futures are higher in pre-market trading, trailing Brent crude slightly as investors started to close some short positions after a week of volatile trading, weakness in the dollar and as markets priced in a higher possibility that the U.K. will vote to remain in the EU. Trading is though still expected to remain volatile less than a week before the referendum vote.

Natural gas futures are little changed as traders weigh yesterday's bearish inventory report against continued warmer temperatures and stronger demand for power.

INTERNATIONAL INTEGRATEDS

Reuters - BP and Rosneft signed a deal on Friday to create an oil exploration joint venture in Russia in which BP plans to invest up to $300 million.

Reuters - Gazprom said on Friday that gas exports to Europe via undersea Nord Stream pipeline rose by 25 percent year-on-year to 20 billion cubic metres on Jan. 1 – June 16.

(Late Thursday) Reuters - The new Chief Executive of Petrbras on Thursday said the state-run oil company has received offers to buy a stake in its fuels-retailing unit BR Distribuidora in recent days, boosting plans to raise cash and cut debt.

Canadian INTEGRATEDS

(Late Thursday) Press Release - Husky Energy has commenced steam operations at the 4,500 barrels per day Edam West Thermal in Saskatchewan, its third thermal project to be brought online this year.

(Late Thursday) Reuters - Suncor Energy has launched an auction of its Petro-Canada lubricants division, whose white mineral oils are sprayed on gummy bear candy to make it shiny and prevent sticking, people familiar with the matter said. The sale could fetch around $800 million and help Canada's biggest energy company pay down debt incurred by recent acquisitions.

U.S. E&PS

Stifel Nicolaus initiated coverage of Carrizo Oil & Gas and Energen with a ‘Buy’ rating.

CANADIAN E&PS

(Late Thursday) Press Release - ARC Resources confirmed that an eligible dividend of $0.05 per share will be paid on July 15, 2016 to shareholders of record on June 30, 2016. The ex-dividend date is June 28, 2016. As at June 16, 2016 the trailing twelve-month payments to investors, including the June 15, 2016 payment, total $1.00 per share.

Press Release - Enerplus announces that a cash dividend in the amount of CDN$0.01 per share will be payable on July 15, 2016 to all shareholders of record at the close of business on June 28, 2016. The ex-dividend date for this payment is June 24, 2016.

(Late Thursday) Press Release - Long Run Exploration announced that Calgary Sinoenergy Investment has extended the outside date of the proposed plan of arrangement involving Long Run, the Purchaser and the Long Run security holders to July 29, 2016.

OIL SERVICES

(Late Thursday) Press Release - Canadian Energy Services & Technology announced that, at the annual and special meeting of shareholders held on June 16, 2016, each of the nine nominees listed in the management information circular of the Corporation dated May 12, 2016 were elected as directors of the Corporation.

Press Release - WSP Global is pleased to announce that is has entered into an agreement with Schlumberger to acquire its industrial water consultancy business.

REFINERS

(Late Thursday) Reuters - Marathon Petroleum restarted the gasoline-producing unit at its 451,000 barrel per day Galveston Bay refinery in Texas City, Texas for a second time on Thursday.

Morgan Stanley downgraded Philipps 66 to ‘Equal Weight.’

(Late Thursday) Reuters - Valero Energy has moved the start of a planned multi-unit overhaul at its 335,000 barrel per day Port Arthur, Texas, refinery to late August from mid-September.

MLPS

(Late Thursday) Reuters - Magellan Midstream Partners announced that its board of directors has elected Lori A. Gobillot and Edward J. Guay as independent board members effective June 15, 2016.

(Late Thursday) Reuters - Magellan Midstream Partners will resume operations on its East Houston to Frost, Texas refined products pipeline by Friday evening.

Argus Research Company downgraded Oneok to ‘Hold’ from ‘Buy.’

(Late Thursday) Reuters - Pembina Pipeline has shut its Western Pipeline in British Columbia, Canada, after wet weather and erosion exposed a portion of the line.

Mitsubishi UFJ Securities initiated coverage of Western Gas Partners with a ‘Neutral’ rating.

MARKET COMMENTARY

U.S. stock index futures were lower on Friday, weighed by global growth worries and uncertainties around Britain's future in the European Union. Global stocks have been under duress as repercussions of Britain's possible exit from the European Union and the U.S. Federal Reserve's warning about the strength of the economy spooked investors. However, the murder of a pro-"Remain" British politician led to the suspension of campaigning for the June 23 referendum. Wall Street broke its five-day losing streak on Thursday and analysts said the news could rally sentiment for Britain to remain in the Union. Risky assets such as oil were back in favor on Friday, with the commodity rising more than 1.5 percent, for the first time after six days.


Nasdaq Advisory Services Energy Team is part of Nasdaq's Advisory Services -- the most experienced team in the industry. The team delivers unmatched shareholder analysis, a comprehensive view of trading and investor activity, and insights into how best to manage investor relations outreach efforts. For questions, please contact Tamar Essner.

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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