Energy Sector Driven By Strength In The Crude Complex

Wednesday, March 14, 2018

Sector Commentary

The energy sector is poised for a higher start, backed by strength in the crude complex and major equity market indices ahead of several key data points on the health of the economy and the government inventory report.

WTI crude oil futures are up nearly 1% in early trading, outpacing Brent, supported by a smaller than expected build in the API report last night and strong Chinese factory data amid a drop in China's own crude production. Traders will be looking towards the EIA data mid-morning for the next major catalyst.

Natural gas futures are down over 1.25% so far this morning, pressured by moderating weather forecasts and ahead of tomorrow’s inventory report.


Press Release - Petroleo Brasileiro intends to sell 100% stake in Piranema and Piranema Sul fields located in Sergipe-Alagoas Basin, Brazil.

Press Release - Electricite de France SA and Total intend to sell their 75% stake in an LNG terminal located in Dunkirk, France.


Press Release - Suncor Energy announced that the Syncrude maintenance turnaround originally scheduled to begin in April, will be moved up by approximately one month. On March 15, Syncrude plans to begin an eight-week turnaround, which was originally scheduled to begin in April. Advancing the turnaround will permit Syncrude to address an unrelated issue which has been constraining capacity on a line that feeds bitumen from the mine to the upgrader.


Press Release - Abraxas Petroleum said production was 808 MBoe and revenue of $29.6 million. Its net loss was $4.1 million, or $0.02 per share.

Press Release - Midstates Petroleum generated adjusted EBITDA of $33.9 million in the fourth quarter of 2017, an increase of 12% over $30.2 million in the prior quarter; full-year 2017. Adjusted EBITDA totaled $128.2 million.

Press Release - Noble Energy announced the closing of the previously announced divestment of a 7.5 percent working interest in the Tamar field, offshore Israel, to Tamar Petroleum Ltd. Noble Energy remains operator of the field with a 25 percent working interest.

Press Release - Pioneer Natural Resources announced that a fire occurred at a compressor station on March 6 in Pioneer’s West Panhandle field in the panhandle region of Texas. There were no injuries associated with the incident and the fire was contained within the compressor station.


CIBC started Petrus Resources at ‘Neutral’.

Press Release - Touchstone Exploration achieved January and February 2018 crude oil sales of 1,521 and 1,552 barrels per day, respectively.


Press Release - Fairmount Santrol announced that it has received notice from the U.S. Federal Trade Commission that early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, was granted in connection with its proposed merger with Unimin Corporation.

Press Release - Helix Energy Solutions Group announced its intention to offer, subject to market and other conditions, $125 million principal amount of Convertible Senior Notes due 2023.

Jefferies upgraded Oceaneering International to ‘Hold’ from ‘Underperform’.

MLPs & PipelinES

Press Release - EV Energy Partners and its subsidiaries announced that the Company entered into a restructuring support agreement with certain holders of approximately 70% of its 8.0% senior notes due 2019 and lenders holding approximately 94% of the principal amount outstanding under the Company’s reserve-based lending facility on March 13, 2018.


U.S. stock index futures were higher with all three major indexes on track to begin the quarter on a positive note ahead of economic data that will give clues on the health of the economy. Construction spending and the Institute for Supply Management's data on factory activity are scheduled for release later in the day. In Europe, markets traded higher with financial stocks gaining support from speculation over future course of monetary policy. Asian bourses closed mostly higher. Gold slid as the dollar pared losses after its worst quarterly performance in seven years and 10-year U.S. Treasury yields climbed, weighing on appetite for non-interest bearing bullion.

Nasdaq Advisory Services Energy Team Tamar Essner
This communication and the content found by following any link herein are being provided to you by Corporate Solutions, a business of Nasdaq, Inc. and certain of its subsidiaries (collectively, “Nasdaq”), for informational purposes only. Nasdaq makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Sources include Reuters, TR IBES, WSJ, The Financial Times and proprietary Nasdaq research.

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

Latest Markets Videos