Upstream energy stocks
Between July 17 and 24, 2017, our list of oil-weighted stocks on average dipped 2.4% compared to a 0.2% rise in US crude oil (USO)(DBO) September futures. These oil-weighted stocks—with a production mix of a minimum 60% in oil—have been chosen from the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
Diamondback Energy (FANG) rose 3% and outperformed other oil-weighted stocks in XOP in the last five trading sessions. Callon Petroleum Company (CPE) and Concho Resources (CXO) were other outperformers, with gains of 2.1% and 1.9%, respectively, during this period.
FANG and CPE both had correlations of more than 60% with US crude oil futures in the trailing week. During this period, US crude oil futures rose just 0.2%, but it closed in the green.
Oasis Petroleum (OAS), Carrizo Oil & Gas (CRZO), and Denbury Resources (DNR) were the underperformers among oil-weighted stocks. Between July 17 and 24, 2017, these three stocks plunged 4.2%, 8.7%, and 15.6%, respectively.
Investors should note that, apart from oil, sentiment in the broader markets could impact these oil-weighted stocks’ returns.
Since last year
On February 11, 2016, US crude oil active futures dipped to their lowest closing price in the last 12 years. Since then, oil prices have recovered 76.8% while oil-weighted stocks on average gained only 37.4%.
Below is a list of outperformers among oil-weighted stocks.
But Whiting Petroleum (WLL), Occidental Petroleum (OXY), and Carrizo Oil & Gas (CRZO) have been the underperformers since February 11, 2016. WLL rose just 1.2% while OXY and CRZO were down 4% and 35.2%, respectively, in this period.
So US crude oil active futures have outdone oil-weighted stocks both in the trailing week and since February 11, 2016.