Statoil Ranks 5th in Top 10 Integrated Energy Stocks



Statoil’s stock performance in 4Q17

In terms of stock price appreciation, Statoil (STO) stock stands fifth on our list of top ten integrated energy stocks. Statoil marks the beginning of the middle-order stocks. The other stocks in the middle order are Chevron (CVX) and ExxonMobil (XOM).

Statoil stock has risen 3.6% in 4Q17, underperforming the SPDR Dow Jones Industrial Average ETF Trust (DIA). DIA has risen 9.0% in the same period. STO’s peers XOM and CVX have risen 1.4% and 1.9%, respectively, in 4Q17 so far.

Statoil’s moving averages

In 4Q17, Statoil’s 50-day moving average (or 50 DMA) has remained above its 200-day moving average (or 200 DMA). The rise in Statoil’s stock price has led to the steepening of STO’s 50 DMA. STO’s 50 DMA, which stood 3.3% above its 200 DMA on October 2, 2017, now stands 11.1% above its 200 DMA.

Why the rise in Statoil stock?

Statoil’s correlation coefficient versus WTI for the last one-year period stood at 0.57, implying a strong positive correlation. WTI prices rose 13.0% in 3Q17, which may have boosted Statoil stock.

In the current quarter, Statoil reported strong 9M17 numbers. STO’s net operating income rose due to an across-the-board rise in segmental earnings.

During 4Q17, Statoil also saw activity in its Upstream segment. The company started production at its Verbier sidetrack well, which is located on the UK Continental Shelf and is estimated to have recoverable volumes of 25 million barrels of oil.

Statoil agreed to acquire equities and operatorships in Martin Linge field and the Garantiana discovery, located on the Norwegian Continental Shelf, from Total (TOT) for ~$1.5 billion. STO also won an exploration license in Neuquén Basin as an operator.

In the next part, we’ll examine the stock returns of Chevron (CVX) in 4Q17.

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