Investor Relations

Energy Market Commentary November 14, 2016: Nasdaq Advisory Services

Monday, November 14, 2016

Sector Commentary

The energy sector is poised for a mixed to lower start, weighed down by weakness in the crude complex while the broader equity markets continued to tick higher, adding to the rally that followed last week's election, as the selloff in bond markets continued. With little economic news today or major sector drivers trading will be dictated by trends in the broader markets.

WTI crude oil futures are down over 1% in early trading, trailing Brent with both benchmarks trading down near 3 month lows, as the prospect of another year of oversupply, a rise in the dollar and weak prices overshadowed chances that OPEC will reach a deal to cut output.

Natural gas futures jumped over 3% after last week’s steep slide, driven by forecasts for mild weather and light heating demand through at least late November.

U.S. INTEGRATEDS

Reuters - Production at Chevron's $54 billion Gorgon liquefied natural gas export project was shut temporarily but restart activities are under way.

(Late Friday) Reuters - The hydrocracker and a catalytic reformer were shut early on Friday at ExxonMobil's 344,600 barrel per day Beaumont, Texas refinery.

INTERNATIONAL INTEGRATEDS

(Late Friday) Reuters - Petrobras' production of oil and natural gas in Brazil fell to 2.68 million barrels of oil equivalent per day in October.

Reuters - Japanese refiner Idemitsu Kosan will again delay its planned purchase of Showa Shell Sekiyu shares from Royal Dutch Shell because a review by the Japan Fair Trade Commission remains ongoing.

U.S. E&PS

BMO Capital Markets upgraded WPX Energy to ‘Outperform’ from ‘Market Perform.’

CANADIAN E&PS

• ERF reported 3Q’16 CFPS of $0.33 versus Thomson Reuters I/B/E/S estimate of $0.33.

Press Release - Enerplus recorded a net loss of $100.7 million in the third quarter, compared to a net loss of $168.6 million in the previous quarter. The third quarter net loss was impacted by a non-cash impairment charge of $61.0 million and a non-cash valuation allowance on our deferred tax asset as a result of the decline in the twelve month trailing average commodity prices.

DRILLERS

• ATW reported 4Q’16 EPS of $0.62 versus Thomson Reuters I/B/E/S estimate of $0.59.

(Late Friday) Press Release - Atwood Oceanics announced that it earned net income of $4.2 million or $0.07 per diluted share, on revenues of $188.7 million for the quarter ended September 30, 2016, compared to net income of $99.5 million or $1.53 per diluted share on revenues of $227.8 million for the quarter ended June 30, 2016 and compared to net income of $150.7 million or $2.32 per diluted share, on revenues of $363.2 million for the quarter ended September 30, 2015.

MARKET COMMENTARY

U.S. stock index futures were marginally higher, steadying after last week's wild gyrations as the weekend brought more clarity about possible appointments by U.S. President-elect Donald Trump. European shares started the week on a positive note. Most Asian shares closed lower though Japanese shares bucked the trend to close up. The dollar hit a 11-month peak on expectations of faster domestic inflation. Gold traded lower and a prospect of another year of oversupply, pushed oil prices down.


Nasdaq Advisory Services Energy Team Tamar Essner
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