Energy Sector Update for 07/24/2020: NEP,SMLP,SLB,BOOM

Energy stocks were lower heading into Friday's close, with the NYSE Energy Sector Index falling 0.1% while the SPDR Energy Select Sector ETF was down 0.6% this afternoon.

Front-month West Texas Intermediate crude oil settled 22 cents higher at $42.29 per barrel at the New York Mercantile Exchange while the global benchmark Brent crude contract declined 4 cents to $43.27 per barrel. Henry Hub natural gas futures rose 2 cents to $1.81 per 1 million BTU.

In company news, Nextera Energy Partners (NEP) was climbing 1.6% in late Friday trading after the pipeline company reported Q2 net income of $0.69 per share, reversing a $0.49 per share profit during the same quarter last year and beating the Capital IQ consensus by $0.13 per share.

Schlumberger (SLB) turned higher late Friday, adding 1.5% and erasing a nearly 2% mid-day retreat after it reported steep declines in Q2 earnings and revenue compared with year-ago levels and also disclosing plans to idle more than 21,000 employees as part of a wide-ranging business reorganization. Net income dropped almost 86% from year-ago levels to $0.05 per share while revenue at the oilfield services giant fell more than 35% to $5.36 billion. Analysts polled by Capital IQ had been expecting a $0.01 per share net loss on $5.36 billion in revenue.

Summit Midstream Partners (SMLP) was 1.1% higher after the firm said it expects non-GAAP FY20 EBITDA in a range from $250 million to $260 million, down from the previous forecast of $260 million to $285 million and largely reflecting the impact of shut-in production during the April-to-June period due to the COVID-19 pandemic.

To the downside, DMC Global (BOOM) fell 1% after the oilfield-services company late Thursday reported a non-GAAP Q2 net loss of $0.29 per share, reversing a $1.17 adjusted net profit during the year-ago period and missing the Capital IQ mean of a $0.14 loss, excluding one-time items. Revenue fell year-over-year to $43.2 million but narrowly topped the $42.95 million Street view.

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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