Energy Sector Update for 04/12/2019: MDR,MPC,APC,CVX,OXY,NOV

Top Energy Stocks

XOM -1.49%

CVX -5.29%

COP +1.40%

SLB +0.62%

OXY -2.92%

Energy stocks turned narrowly mixed this afternoon, with the NYSE Energy Sector Index slipping less than 0.1% while shares of energy companies in the S&P 500 were up nearly 0.1% as a group. West Texas Intermediate crude oil for May delivery settled 31 cents higher at $63.89 per barrel while the global benchmark Brent crude June contract advanced 69 cents to $71.52 per barrel. May natural gas futures were unchanged at $2.66 per 1 million BTU.

In industry news:

US energy companies added two more oil drillrigs to the field during the seven days ended April 12, marking the second week in a row that the national rig count increased, reaching 833 rigs compared to 815 rigs during the same week last year. Oilfield-services company Baker Hughes Friday also said five natural gas drill rigs were idled last week in the US, pulling the combined national total down to 1,022 rigs.

Among energy stocks moving on news:

(+) McDermott International (MDR) climbed over 4% on Friday after announcing a contract award valued between $50 million to $250 million to provide engineering, procurement, construction and installation assistance to from Qatargas' expansion of its North Field offshore facilities in Qatar.

In other sector news:

(+) Anadarko Petroleum (APC) raced nearly 33% higher after agreeing to a $33 billion buyout proposal from Chevron (CVX), with the energy major offering a combination of 0.3869 of a share plus $16.25 in cash for each Anadarko share. The deal values Anadarko at $65 a share, a 38.9% premium to Thursday's closing price, and $5 below what Occidental Petroleum (OXY) reportedly has offered for the company, according to CNBC, citing sources.

(-) Marathon Petroleum Corp (MPC) declined 2.5% Friday after announcing its proposed purchase of a 900,000-barrel capacity light product and asphalt terminal in Buffalo, N.Y., from NOCO Inc. Terms of the transaction, which also includes 33 NOCO Express retail stores, were not disclosed.

(-) National Oilwell Varco (NOV) dropped 8% on Friday after the drilling components company said it was expecting around $1.94 billion in Q1 revenue compared with its prior guidance expecting a sequential decline from its Q4 performance when it generated $2.4 billion in revenue. Analysts polled by Capital IQ, on average, have been looking for $2.09 billion in revenue during the January-to-March reporting period.

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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