XOM, CVX, RDS.A, BP: How Integrated Energy Stocks Performed after 3Q17 Earnings


Nov. 20 2020, Updated 4:05 p.m. ET

Performance of integrated energy stocks

In this series, we’ll conduct a cross-sectional analysis of integrated energy stocks’ market performance after their 3Q17 earnings. We’ll consider the stock performance of integrated energy stocks since October 26, 2017, the beginning of these 3Q17 earnings releases.

Since October 26, Royal Dutch Shell (RDS.A) stock has risen 5.3%, the highest among its peers ExxonMobil (XOM), BP (BP), and Chevron (CVX). BP also rose 4.9% during the same period. However, XOM and CVX have fallen 0.3% and 2.9%, respectively, since October 26.

The SPDR S&P 500 ETF (SPY) rose 1.1% during the same period. So, integrated energy stocks Shell and BP have outperformed the market since October 26. However, XOM and CVX underperformed the market during the same period.

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WTI price trend

Integrated energy stocks typically show a positive correlation to crude oil prices. So, a rise in WTI prices since October 26 could provide a boost to Shell and BP. We’ll discuss this correlation later in this series.

WTI prices have been rising since September, and they touched a 28-month high at the beginning of November. Oil prices have increased on the back of reducing global supplies, which mostly resulted from production cuts carried out by the major oil-producing nations. These cuts have been in effect now for the past nine months.

These cuts could be extended when OPEC conducts its meeting on November 30, 2017. Plus, the geopolitical unrest in Iraq has further supported oil prices. For more details on this, please refer to  Global Crude Oil Glut: Is It Shrinking? Overall, WTI prices have risen 5.7% since October 26.

Shell and BP posted strong 3Q17 earnings, surpassing estimates and supporting their stock prices. However, CVX’s 3Q17 earnings missed estimates, and its stock has underperformed since October 26.


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