RECENT Energy and Power RESEARCH
On October 11, 2017, natural gas (UNG) (BOIL) (FCG) November futures were at $2.89 per MMBtu (million British thermal units), a fall of 0.1% from the last trading session.
In the EIA’s natural gas inventory report for the week ended September 29, the natural gas inventory came in at 3,508 Bcf (billion cubic feet). This reading was higher than 3,466 Bcf in the previous week.
SCANA Corporation (SCG) stock seemed to have taken a breather from its free fall in the last few trading sessions. In the last one-month period, SCG stock has corrected more than 17%.
Crude oil prices have risen from last week’s close of $49.29 per barrel on October 6 to $51.09 per barrel on October 10—a rise of almost 4% so far this week.
Valero Energy (VLO) is expected to publish its 3Q17 results on October 26. Before we proceed with the 3Q17 estimates, let’s recap Valero’s 2Q17 performance versus estimates.
November WTI (West Texas Intermediate) crude oil futures contracts rose 2.7% and closed at $50.92 per barrel on Tuesday, October 10, 2017.
In 3Q17, Wall Street analysts expect an $0.08 adjusted loss per share for National Oilwell Varco (NOV). This outlook indicates that they expect NOV to cut its adjusted loss compared to its 2Q17 adjusted loss of $0.14 per share.
The Utilities Select Sector SPDR ETF (XLU), which represents S&P 500 Utilities Index, has gained ~10% YTD, marginally underperforming broader markets.
On October 10, 2017, US crude oil (USO) (USL) (OIIL) November futures rose 2.7% and closed at $50.92 per barrel.
On October 9, 2017, US crude oil (USO) November futures closed at $49.58 per barrel—0.6% higher than the previous closing price.
Overall, refining stocks rose in 3Q17. This rise was likely due to Hurricane Harvey, which resulted in higher regional refining indicators.
In the week ending October 6, Noble was the worst-performing offshore driller (OIH), while Seadrill was the best performer.
In 3Q17, analysts expect an $0.18 adjusted loss per share for Patterson-UTI Energy (PTEN), which means Wall Street analysts expect PTEN to cut its losses from the 2Q17 adjusted loss of $0.21 per share.
For the week ending October 6, 2017, Encana’s (ECA) stock price fell almost 5% or from $11.78 to $11.23. Last week, Encana stock fell in all five days.
US crude oil futures contracts for November delivery rose 0.6% to $49.58 per barrel on October 9. Brent crude oil futures rose 0.3% and closed at $55.79.
So far, NRG Energy stock has already risen 109% this year. Recently, Moody’s revised its outlook on NRG Energy to “positive” from “stable.”
In the week ending October 6, 2017, crude oil (USO) (USL) prices fell from $51.67 per barrel to $49.29 per barrel, a significant decline of almost 5%.
Whiting Petroleum (WLL) stock saw a break in its upward momentum last week when the stock fell along with falling crude oil prices.
Between September 29 and October 6, 2017, US crude oil (USO) November futures fell 4.6%. On October 6, US crude oil futures closed at $49.29 per barrel, below the $50 mark.
Although FirstEnergy stock surged nearly 5% last week, it has not confirmed a bullish trend just yet.