Markets

Energy Stocks Weak on Cohn Departure News

Wednesday, March 7, 2018

Sector Commentary

Energy stocks are looking at a weak open as broader equity futures are sharply lower on the news that top economic advisor Gary Cohn is resigning his position. Additionally crude oil prices are modestly lower before the bell.

WTI crude oil futures are lower in in early trading as financial markets slid after a free trade advocate in the U.S. government resigned, feeding concerns that Washington's plans for import tariffs could spark a trade war. Rising U.S. crude output and climbing U.S. inventories have also weighed. The United States is set to become the world's biggest oil producer this year, threatening to offset supply cuts by the OPEC, Russia and other producers. "Rising U.S. oil output coupled with a simultaneous upswing in domestic oil stockpiles has all the makings for a potent bearish cocktail," PVM Oil Associates strategist Stephen Brennock said.

Natural gas futures are continuing their recent rally as another winter storm is approaching the east coast.

U.S. INTEGRATEDS

(Late Tuesday) Press Release - Chevron Phillips Chemical Company announced that Greg Wagner, vice president of Human Resources, will retire from the company after 35 years of distinguished service with Chevron Phillips Chemical and Chevron Corp . The company also announced that Maricela Caballero will replace Mr. Wagner effective May 16, 2018.

Press Release - Chevron intends to sell minority stake in Kitimat LNG.

(Late Tuesday) Reuters - Chevron said it expected supply shortage in the global liquefied natural gas market by around 2025, echoing comments made last month by top LNG trader Royal Dutch Shell.

Reuters - Exxon Mobil said on Wednesday it expects its earnings to more than double by 2025 to $31 billion with crude prices CLc1LCOc1 at or above current levels.

Reuters - ExxonMobil said its facilities in Hides in the highlands of Papua New Guinea remained safely shut in after a magnitude 6.7 aftershock struck early on Wednesday, just a week after a deadly quake forced it to close all its PNG liquefied natural gas facilities.

INTERNATIONAL INTEGRATEDS

Reuters - BP is set to begin production at two of its Egyptian gas fields as part of its West Nile Delta project before the end of 2018.

Press Release - Statoil intends to acquire 50% interest in Baltyk Srodkowy I offshore wind project situated in Baltic Sea, Poland, from Polenergia SA.

CAnadian INTEGRATEDS

UBS Equities initiated Cenovus Energy at 'Neutral' rating.

UBS Equities initiated Suncor Energy at 'Buy' rating.

U.S. E&PS

UBS Equities initiated Anadarko Petroleum , Cimarex Energy , Concho Resource, Diamondback Energy, EOG Resources, Newfield Exploration, Noble Energy, Parsley Energy, Pioneer Natural Resources, Range Resource and RSP Permian at 'Buy' rating.

UBS Equities initiated Apache , Chesapeake Energy and Southwestern Energy at 'Sell' rating.

UBS Equities initiated Cabot Oil & Gas , ConocoPhillips , Continental Resources , Denbury Resources, Devon Energy, Energen , Hess, Jagged Peak Energy, Marathon Oil, Murphy Oil, Oasis Petroleum, Occidental Petroleum and Whiting Petroleum at 'Neutral' rating.

Press Release - Energen announced that Energen has expanded its Board of Directors and appointed Vincent Intrieri, former Senior Managing Director of Icahn Capital LP and Director of Icahn Enterprises, and Jonathan Cohen, Founder of Atlas Energy and Atlas Pipeline Partners, to the Company's Board.

(Late Tuesday) Press Release - Marathon Oil announced that Douglas L. Foshee and M. Elise "Lisa" Hyland have been elected to the Company's board of directors, effective April 1, 2018.

CANADIAN E&PS

UBS Equities initiated Canadian Natural Resources and Encana at 'Buy' rating.

UBS Equities initiated Meg Energy at 'Neutral' rating.

Press Release - Obsidian Energy reported fourth quarter funds flow from operations of $52 million, up from $40 million in the third quarter.

OIL SERVICES

Press Release - Baker Hughes announced that the Baker Hughes international rig count for February 2018 was 979, up 19 from the 960 counted in January 2018, and up 38 from the 941 counted in February 2017. The international offshore rig count for February 2018 was 194, down 2 from the 196 counted in January 2018, and down 6 from the 200 counted in February 2017.

REFINERs

Credit Suisse assumed coverage of Andeavor and Marathon Petroleum at 'Outperform' rating.

Credit Suisse assumed coverage of HollyFrontier, Phillips 66and Valero Energy at 'Neutral' rating.

MARKET COMMENTARY

U.S. stock futures tumbled a day after the resignation of Gary Cohn, the top economic adviser to President Donald Trump. Cohn's departure led to a fall in global stocks and the dollar, against the safe-haven yen, as investors feared U.S. tilting towards protectionism. Gold prices were down on profit taking, while oil prices fell in line with the broad decline in global financial markets.

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.