Energy Sector Update for 04/02/2020: GMLP,APA,IO,PUMP

Top Energy Stocks

XOM +6.16%

CVX +9.77%

COP +12.39%

SLB +9.29%

OXY +18.39%

Energy stocks rallied Thursday after President Donald Trump said Saudi Arabia and Russia may be close to a deal to jointly reduce production by 10 million barrels per day, sending crude oil prices more than 20% higher. The NYSE Energy Sector Index was climbing 7.0% in late trade while the SPDR Energy Select Sector ETF was up 8.3%. Front-month West Texas Intermediate crude oil settled $5.01 higher at $25.32 per barrel while the global benchmark Brent crude contract advanced $5.07 to $39.81 per barrel. Natural gas futures fell 4 cents to $1.55 per 1 million BTU.

Among energy stocks moving on news:

(-) Golar LNG Partners (GMLP) dropped to a record low of $1.30 a share, at one point Thursday sinking nearly 60%, after the liquified natural gas company slashed its dividend for the three months ended March 31 by 95% compared with the previous quarter to $0.02 per share, in a move it expects will retain about $109 million in cash flow this year. The company also wants to extend the maturity for its senior unsecured bonds coming due in May and again in May 2021 by 18 months because of the deteriorating macro-economic environment and the COVID-19 pandemic.

In other sector news:

(+) Ion Geophysical (IO) climbed nearly 107% after the seismic services company forecast Q1 revenue exceeding Wall Street estimates by a wide margin. The company said it was expecting between $56 million to $57 million in revenue during the three months ended March 31 compared with the two-analyst mean looking for $38.87 million.

(+) ProPetro (PUMP) climbed 24% after the oilfield services company reported a decline in Q1 revenue to $434.8 million from $541.8 million during the year-ago period but still beating the $414.3 million analyst mean for the three months ended Dec. 31.

(+) Apache (APA) raced almost 15% higher after Thursday announcing a significant discovery at its 50%-owned Sapakara West-1 well offshore Suriname. The well was drilled by the Noble (NE) Sam Croft, with preliminary tests indicating net pay of at least 79 meters of oil and gas condensate in two intervals. Total SA (TOT) holds the remaining working interest in the well.

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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