Energy Sector Update for 03/05/2018: GMLP,SBR,OCIP

Top Energy Stocks

XOM +0.75%

CVX +0.79%

COP +0.02%

SLB +1.31%

OXY +0.58%

Energy stocks were ending mostly higher, with the NYSE Energy Sector Index Monday rising almost 1.2% while shares of energy companies in the S&P 500 were up over 1.0% as a group. Crude oil for April delivery settled $1.32 higher at $62.57 per barrel in New York while the benchmark Brent crude April contract was advancing $1.22 - or just under 2% - to $65.59 per barrel. April gas futures rose 1 cent to $2.70 per 1 million BTU. Among energy-related ETFs, United States Oil was up just over 1.9% while United States Natural Gas was down about 0.2%. The Philadephia oil-service sector index also was up more than 2.2%.

In industry news:

The United States is projected to meet most of the world's growing oil demand over the next five years, according a new report issued Monday by the International Energy Agency. The IEA also is expecting strong economic growth around the globe, spurring continued demand for oil through 2023 at a minimum. "Upstream investment shows little sign of recovering from its plunge in 2015-2016, which raises concerns about whether adequate supply will be available to offset natural field declines and meet robust demand growth after 2020," the agency said.

Among energy stocks moving on news:

(+) Golar LNG Partners LP ( GMLP ) was little changed in late Monday trading, giving back a 1% advance to a mid-morning session high of $19.76 per unit, that followed the liquefied natural gas shipping and floating storage regasification company authorized the repurchase of up to $25 million of its outstanding common units over the next two years. Stock will be purchased only during periods where the partnership is not aware of any material inside information that would likely affect a seller's decision to sell.

In other sector news

(+) OCI Partners ( OCIP ) added more than 2% in value Monday, touching a session high of $9.30 a share, after the methanol and ammonia producer swung to a Q4 profit compared with a net loss during the year-ago period as revenue grew year over year. The company earned $13 million during the three months ended Dec. 31, reversing a $17 million net loss during the final three months of 2016. Revenue increased to $98 million from $66 million last year. It also reported Q4 earnings before interest, taxes, depreciation and amortization of $38 million, up from $16 million during the same quarter last year. No analyst estimates were available for comparison.

(-) Sabine Royalty Trust ( SBR ) turned lower during Monday trading, slipping just over 0.5% to a session low of $42.60 a share, after declaring a cash distribution to investors of $0.210680 per unit, up from its most recent distribution of $0.191220 paid Feb. 28 but down compared to its $0.227020 per unit paid Jan. 30. The upcoming distribution is payable March 29 to investors of record on March 15. The trust said the upcoming distribution - payable March 29 to investors of record on March 15 - largely reflects around 47,575 barrels of oil produced in December 2017 and sold at an average price of $52.29 per barrel as well about 490 billion cubic feet of natural gas sold at an average $2.71 per 1 million cubic feet during November.

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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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