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Andeavor: 3rd-Best-Performing Energy Stock of XLE in 2017

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Andeavor rises 31% in 2017

Andeavor (ANDV), the third-best-performing energy stock from the Energy Select Sector SPDR ETF (XLE), is from the oil and gas refining and marketing subsector. In 2017, ANDV rose ~31% to $114.35 from its 2016 close of $87.45. It easily outperformed the Energy Select Sector SPDR ETF (XLE). XLE fell ~3% in 2017. ANDV has also beaten the performances of crude oil (USO) and natural gas (UNG). In 2017, crude oil rose ~12%, and natural gas fell ~21%.

However, Andeavor has underperformed the VanEck Vectors Oil Refiners ETF (CRAK). CRAK rose ~47% in 2017. In comparison, the SPDR S&P 500 ETF (SPY) rose ~19%, and the SPDR Dow Jones Industrial Average ETF (DIA) rose ~25% in 2017.

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Andeavor’s revenues and earnings

In the first nine months of 2017, Andeavor reported revenues of ~$24 billion, which was ~33% higher than ~$18 billion in the same period of 2016. In the first nine months of 2017, ANDV reported net profits of ~$649 million, which is slightly lower than ~$656 million in the same period of 2016. A significant increase in SG&A (selling, general, and administrative) expenses caused ANDV’s net income to fall in the first nine months of 2017. ANDV reported much higher SG&A expenses of ~$552 million in the first nine months of 2017, from ~$283 million in the first nine months of 2016.

Andeavor will announce its 4Q17 and 2017 earnings on February 15, 2018, after the market closes.

Next, let’s compare the 2017 returns of Cabot Oil & Gas (COG) with the broader market and energy commodities and analyze its fundamental metrics.

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