28 Nov

Integrated Energy Losers Last Week: CVE, IMO

WRITTEN BY Nicholas Chapman

Integrated energy stocks

After concluding our coverage of the biggest movers in the energy sector, let’s look now at the top losers from the integrated energy sector in the United States for the week that started November 20, 2017.

Integrated Energy Losers Last Week: CVE, IMO

Cenovus Energy: The top integrated energy loser

Cenovus Energy (CVE) was the leading losing stock as of the middle of last week from the integrated energy sector. It fell from the previous week’s close of $10.16 to $9.71 on November 22, 2017, or by 4.4%. CVE fell significantly on the first two days of the holiday-shortened week and was trading just above its 200-day moving average at the mid-point of the week, which could act as a strong support. As of November 22, 2017, CVE closed at $9.71, whereas its 200-day moving average was $9.65.

Last week’s fall for CVE was part of its downtrend that started on November 13, 2017, after the company announced its plan to divest its EOR (enhanced oil recovery) operations in Saskatchewan for cash proceeds of $940 million. The sale was part of CVE’s strategy to optimize its portfolio and deleverage its balance sheet. Since the announcement of the Saskatchewan divestiture, CVE stock has fallen significantly by ~14% in eight trading sessions.

The other integrated energy laggard last week was Imperial Oil (IMO), which fell marginally. IMO has been on an uptrend since the first week of June 2017 and has risen 13% since then. As of the middle of last week, IMO was finding support at its 50-day moving average and consolidating for the last nine weeks. As of November 22, IMO closed at $31.23, whereas its 50-day moving average was $30.68.

The Vanguard Energy ETF (VDE) rose 0.57% as of the middle of last week. VDE has exposure to integrated heavyweights such as Exxon Mobil (XOM) and Chevron (CVX). In comparison, the SPDR S&P 500 ETF (SPY) rose 0.74% at the mid-point of last week.

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