Energy Sector Update for 03/07/2018: FELP,TGA,TGL.TO,OBE

Top Energy Stocks

XOM -3.00%

CVX -0.51%

COP -0.40%

SLB -1.74%

OXY -1.52%

Energy stocks were following Wall Street lower Wednesday, with the NYSE Energy Sector Index falling more than 1.5% while shares of energy companies in the S&P 500 also were down over 1.5% as a group. Crude oil for April delivery was slipping $1.25 to $61.35 per barrel in New York while the benchmark Brent crude April contract was declining $1.17 to $64.62 per barrel. April gas futures were 3 cents higher at $2.78 per 1 million BTU. Among energy-related ETFs, United States Oil was down nearly 2.4% while United States Natural Gas was up 0.8%. The Philadephia oil-service sector index was down almost 2.3%.

In industry news:

US crude oil inventories rose by 2.408 million barrels during the seven days ended March 2, reaching 425.9 million barrels, according to the US Energy Information Administration. That topped Wall Street expectations for a 2.190-million-barrel rise last week although the new supply total was down 19.4% compared with year-ago levels and also trailed the American Petroleum Institute estimate of a 5.661-million-barrel build. Gasoline inventories fell 800,000 barrels to 251.0 million last week while distillate supplies fell 600,00 barrels to 137.4 million.

Among energy stocks moving on news:

+ Foresight Energy ( FELP ) was hanging on to a small gain Wednesday afternoon, easing from a 4.5% opening advance to a session high of $3.95 per unit, after narrowing its Q4 net loss compared with year-ago levels as revenue rose. The thermal coal producer recorded a $0.49 per unit loss during the three months ended Dec. 31, improving on a $0.65 per unit loss during the year-ago period. Revenue grew to $284.6 million from $252.9 million last year, exceeding the two-analyst consensus looking for $264.8 million in quarterly revenue. The company also declared a $0.0565 per unit distribution from retained excess cash flow, down from $0.061 per unit during its previous distribution and payable March 30 to investors of record on March 20.

In other sector news

- TransGlobe Energy (TGA,TGL.TO) was fractionally lower during Wednesday US trading, recovering from a nearly 2% decline to $1.27 a share earlier in the session after the oil and natural gas producer narrowed its Q4 net loss as oil prices improved and sales nearly tripled compared with year-ago levels. The company recorded a net loss of $0.03 per share during the three months ended Dec. 31, 2017, paring a $0.49 per share loss during the year-ago period. Petroleum and natural gas sales climbed 198% to just under $73.0 million from $24.5 million last year. Analyst estimates were not available.

- Obsidian Energy ( OBE ) was down over 5% in mid-day trade, boucing back from a 9% decline to a session low of 89 cents a share previously, despite reporting a 10% increase in its Q4 production and reaffirming its FY18 production outlook. Production during the three months ended Dec. 31 averaged 31,447 barrels of oil equivalent per day, up 10% from the same period in 2016, adjusted for A&D. The company also said its total FY18 forecast remains unchanged, projecting production this year in a range of 29,000 to 30,000 barrels per day. It also is expecting a 5% production growth rate and between $13.00 to $13.50 in per-barrel operating costs.

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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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