Energy Sector Update for 04/07/2020: GLNG,PAA,XOM,TOT

Top Energy Stocks

XOM +2.85%

CVX +2.45%

COP +1.68%

SLB +4.98%

OXY +2.53%

Energy stocks were hanging on to a portion of their earlier gains, with the NYSE Energy Sector Index climbing 1.8% in late trade while the SPDR Energy Select Sector ETF was up 2.9%. Front-month West Texas Intermediate crude oil settled $2.45 lower at $23.63 per barrel while the global benchmark Brent crude contract declined 89 cents to $32.16 per barrel. Natural gas futures rose 12 cents to $1.85 per 1 million BTU.

Among energy stocks moving on news:

(-) Golar LNG (GLNG) tumbled over 23% after its Gimi MS subsidiary received a force majeure claim from BP Mauritania Investments, stating that BP won't be ready to receive the floating liquefied natural gas facility at the target connection date in 2022. At this stage, BP estimates the delay is of about one year and it's "not currently possible to mitigate or shorten this delay," according to a Golar statement.

In other sector news:

(+) Exxon Mobil (XOM) rose 3.5% on Tuesday after the energy major said it was cutting capital spending by 30% to around $23 billion and reducing its cash operating expenses by 15% this year because of slumping crude oil prices and lower demand amid the COVID-19 pandemic.

(+) Plains All American Pipeline (PAA) was little changed late Tuesday, reversing its mid-day advance. The energy infrastructure company said it was cutting its Q1 distribution by 50% to $0.18 per common unit and Class A common share as part of efforts to strengthen its financial position during the COVID-19 pandemic. It also cut its 2020-2021 capital budget by roughly one-third to $1.55 billion and received $165 million in proceeds from an April 1 asset sale.

(+) Total (TOT) was fractionally higher. The French energy major earlier Tuesday announced a charter deal for its first two LNG-powered very large crude carrier vessels, each of which can carry about 300,000 tons of oil. Financial terms of the charters by Malaysian shipowner AET were not disclosed.

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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