Top energy companies with the most new filings in 1Q15
Anadarko Petroleum (APC) was among the energy companies with the most new filings by hedge funds in 1Q15. While Whiting Petroleum (WLL) posted the highest weekly losses, ExxonMobil (XOM) and EOG Resources (EOG) were among firms posting the lowest weekly losses.
Supreme Court rejected Anadarko’s proposal to evade penalties
Anadarko and BP (BP) tried to circumvent penalties pertaining to a pollution law concerning the 2010 Gulf of Mexico oil spill. However, the Supreme Court upheld an earlier ruling where both of the companies were held responsible for damages to society under the Clean Water Act. Anadarko might have to pay $1 billion as a result of this ruling.
XOP was among energy ETFs posting the most weekly losses
The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) had the worst weekly returns. As we explained in XOP Is a Better Trade than Commodity ETFs in June 26 Week, XOP—unlike the Energy Select Sector SPDR ETF (XLE)—tracks an equal-weighted index. No stock exceeds 2% of the index. This prevents the performance of the fund from being skewed by a few holdings.
However, several smaller companies with more volatile stocks have an impact on its performance. Despite being slightly riskier than XLE in some ways, XOP is a “sharper” tool for playing an upswing in energy prices. It has better downside protection compared to the United States Oil Fund (USO).