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Markets

Energy Stocks Point To Higher Start

Monday, May 14, 2018

Sector Commentary

Energy stocks are pointing to a higher start, gaining on the backs of rising U.S. stock futures, while oil prices erased early morning losses and swung higher. U.S. stock future indexes rose this morning on signs of easing trade tensions between U.S. and China after President Donald Trump pledged to help China's ZTE Corp "get back into business, fast" following a crippling U.S. ban.

Oil prices steadied below 3-1/2 year highs as resistance emerged in Europe and Asia to U.S. sanctions against major crude exporter Iran, while rising U.S. drilling pointed to higher North American production. U.S. drillers added 10 oil rigs in the week to May 11, bringing the total to 844, the highest level since March 2015, energy services firm Baker Hughes said on Friday.

Natural gas futures were flat on weather forecasts expecting seasonal temperatures in key consuming areas.

INTERNATIONAL INTEGRATEDS

Reuters - Gazprom could exceed its 2018 gas output expectations of 475.8 billion cubic metres.

Reuters - Angola's sole liquefied natural gas project has sold a cargo loading over May 12 to 13 to Petrobras .

Press Release - On 15 May 2018, the annual general meeting in Statoil will vote on the proposal to change the company's name, from Statoil ASA to Equinor ASA.

(Sunday) Reuters - Total was restarting the Unibon hydrotreater at its 225,500-barrel-per-day Port Arthur, Texas, refinery on Sunday night.

(Sunday) Reuters - Total said it had signed a memorandum of understanding with the government of Oman to develop natural gas resources in the Gulf state.

U.S. E&PS

Reuters - ConocoPhillips is preparing to sell its North Sea fields as the company focuses on shale operations in its home market.

(Late Friday) Reuters - ConocoPhillips to seize about $636 million in assets belonging to Venezuela's state oil company PDVSA due to the 2007 nationalization of the U.S. oil major's projects in Venezuela.

(Sunday) Press Release - Lonestar Resources reported a net loss attributable to its common stockholders of $18.5 million, or ($0.75) per weighted average share, during 1Q18 compared to net income of $3.1 million, or $0.14 per weighted average share during the 1Q17. Excluding, on a tax-adjusted basis, certain items that the Company does not view as either recurring or indicative of its ongoing financial performance, our adjusted net loss for 1Q18 was ($3.1) million, or ($0.13) per common share.

Seaport Global Securities discontinued coverage of Rex Energy .

CANADIAN E&PS

Press Release - Touchstone Exploration achieved its first quarter 2018 average crude oil production of 1,543 barrels per day, a 21% increase relative to the 1,280 bbls/d produced in the prior year comparative quarter. It also delivered April 2018 average production of 1,669 bbls/d.

OIL SERVICES

Goldman Sachs downgraded Emerge Energy Services to 'Neutral' from 'Buy'

AltaCorp initiated Hi-Crush Partners and Western Energy Services at 'Outperform'.

(Saturday) Press Release - National Oilwell Varco announced that its Board of Directors declared the regular quarterly cash dividend of $0.05 per share of common stock, payable on June 29, 2018 to each stockholder of record on June 15, 2018.

Goldman Sachs upgraded Oceaneering International to 'Buy' from 'Neutral'.

(Late Friday) Press Release - Superior Energy Services announced that SESI, L.L.C., a direct, wholly-owned subsidiary of the Company, has extended the expiration date of its offer to exchange up to $500.0 million aggregate principal amount of its 7.75% Senior Notes due 2024, which have been registered under the Securities Act of 1933, as amended, for an equal amount of its currently outstanding 7.75% Senior Notes due 2024, which were issued in a private placement on August 17, 2017.

REFINERS

JPMorgan downgraded Andeavor to 'Neutral' from 'Overweight'.

JPMorgan upgraded Delek US Holdings to 'Overweight' from 'Neutral'.

MLPS & PIPELINES

(Late Friday) Reuters - TransCanada filed with U.S. energy regulators to cut some of its temporary discounted spot rates for its Keystone crude pipeline from the international boundary with Canada at or near Haskett, Manitoba to Wood River and Patoka, Illinois and Cushing, Oklahoma.

(Sunday) Press Release - Western Gas Partners and Western Gas Equity Partnersannounced that the boards of directors of their general partners have appointed Gennifer F. Kelly as Senior Vice President and Chief Operating Officer.

MARKET COMMENTARY

U.S. President Donald Trump helped ease some trade tensions between U.S. and China, after he said he'd help ZTE Corp "get back into business, fast". Futures for major Wall Street indexes pointed to a higher start ahead of the second round of trade talks between the two countries this week, mirroring similar movement in Asia. Meanwhile, European stocks edged lower. A strong euro pushed the dollar down, while spot gold prices edged up. Oil prices recovered some lost ground.

Nasdaq Advisory Services Energy Team is part of Nasdaq's Advisory Services -- the most experienced team in the industry. The team delivers unmatched shareholder analysis, a comprehensive view of trading and investor activity, and insights into how best to manage investor relations outreach efforts. For questions, please contact Tamar Essner . This communication and the content found by following any link herein are being provided to you by Corporate Solutions, a business of Nasdaq, Inc. and certain of its subsidiaries (collectively, "Nasdaq"), for informational purposes only. Nasdaq makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Sources include Reuters, TR IBES, WSJ, The Financial Times and proprietary Nasdaq research.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.