Noble Energy’s stock performance
After Noble Energy’s (NBL) 4Q16 earnings release on February 13, 2017, Noble Energy stock fell ~1.1%.
However, Noble Energy rose ~34% YoY (year-over-year). In this part of the series, we’ll analyze Noble Energy’s stock performance with respect to movements in the broader industry and the broader market.
What drove Noble Energy’s performance?
As you can see in the above graph, Noble Energy’s performance has been driven mainly by WTI (West Texas Intermediate) crude oil prices (UCO) and natural gas prices (UGAZ). Prices have also been driving the broader industry ETF, the Energy Select Sector SPDR ETF (XLE).
From January 30, 2017, to February 13, 2017, Noble Energy stock was mostly underperforming XLE. Toward the end of the period, Noble had lower returns than XLE. Noble Energy stock fell ~2.7% during the period, while XLE rose ~0.5%.
Noble Energy also underperformed the SPDR S&P 500 ETF (SPY) (SPX-INDEX). SPY rose 2.3% during the two-week period.
Noble Energy’s fall on February 13 could be because of the decline in natural gas prices. Natural gas prices closed 2% lower on the same day. In after-market trading, Noble Energy stock rose 1.3% due to better-than-expected earnings and revenue.
Read Part 1 in this series to learn more about Noble Energy’s 4Q16 performance.