Energy Sector Update for 03/06/2018: ENB,ENB.TO,CVX,BTE,BTE.TO,CDEV

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Top Energy Stocks

XOM +0.13%

CVX +0.83%

COP +0.30%

SLB +0.81%

OXY -0.14%

Energy stocks have turned moderately higher again, with the NYSE Energy Sector Index rising almost 0.4% while shares of energy companies in the S&P 500 also were up slightly less than 0.3% as a group. Crude oil for April delivery settled 3 cents higher at $62.60 per barrel in New York while the benchmark Brent crude April contract advanced 18 cents to $65.72 per barrel. April gas futures rose 5 cents to $2.75 per 1 million BTU. Among energy-related ETFs, United States Oil was falling 0.1% in recent trade while United States Natural Gas was up more than 1.7%. The Philadelphia oil-service sector index was up a little more than 0.1%.

In industry news:

Oil prices Tuesday turned higher again, reversing a mid-day slump and extending gains that began Monday when the International Energy Agency Monday said it expects global demand for crude oil to continue over the next five years, with much of that demand to be met by producers in the United States, Canada, Brazil and other non-OPEC nations. The IEA report also found crude prices were supportd by OPEC production limits as well as by petrochemicals and Asia despite a slowdown in Chinese demand in response to new environmental measures to curb air pollution. U.S. producers are set to cover 80% of 6.4 million barrels per day of global demand growth through 2023, the agency said. Traders later Tuesday will be looking to the American Petroleum Institute's weekly inventory report for the seven days ended March 2. The API report is due out at 4:30 p.m. ET.

Among energy stocks moving on news:

+ Enbridge Inc (ENB,ENB.TO) climbed just under 1% Tuesday afternoon, reaching a session high of $31.86 a share, after the Canadian pipeline company said it will pay a 24.495% redemption premium over the face value of its 6.75% senior unsecured notes due 2032 as well as a 34.482% premium for its 7.50% senior unsecured notes due 2038 issued by its Spectra Energy Capital subsidiary when its tender offers for the securities expire later today at 5 p.m. ET, unless extended by the company. The tender offer covers any or all of the nearly $167 million of the 6.75% senior notes and slightly more than $112.5 million of the 7.50% senior notes, the company said.

In other sector news:

+ Baytex Energy (BTE,BTE.TO) rose over 10% on Tuesday, touching a session high of $3.02 a share, after the Canadian oil and natural gas producer reported a surprise Q4 profit and revenue also topping expert opinion. Excluding one-time items, the company earned C$0.32, or about $0.25, per share, reversing a C$1.66 per share net loss durign the same quarter last year and also beating the Capital IQ consensus looking for a C$0.12 per share net loss. Total revenue rose to C$302.2 million from C$233.1 million last year, also exceeding the single-analyst call expecting C$277 million in revenue.

+ Chevron ( CVX ) still was higher this afternoon, giving back roughly half of a 2% gain earlier Tuesday that followed its CEO saying the energy major is looking to grow its free cash flow during 2018 and in the future. "Even with no commodity price appreciation, we expect to deliver stronger upstream cash margins and production growth," Michael Wirth told analysts and shareholders during a Monday investor conferece. "This is a powerful combination."

- Centennial Resource Development ( CDEV ) declined Tuesday, sinking over 4% to a session low of $19.23 a share, after funds affiliated with Riverstone VI Centennial QB Holdings LP together with other institutional investors filed to sell 25 million of the oil and natural gas company's shares through a secondary offering. Some of the selling shareholders also issued 30-day options to the underwriters to buy up to 3.75 million more shares to cover potential overallotments.

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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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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