Shell Stock Ranks 3rd among 6 Integrated Energy Companies



Shell stock in the current quarter

Royal Dutch Shell (RDS.A) stock comes in third on our list of six integrated energy stocks. The fourth-ranked stock on our list is ExxonMobil (XOM), followed by Chevron (CVX) and Total (TOT).

Shell stock has risen 11.2% since April 2, outperforming the SPDR S&P 500 ETF (SPY), which closely follows and tracks the S&P 500 Index. SPY has risen 5.2% in the same period. Shell’s peers XOM, CVX, and TOT have risen 11%, 10.7%, and 6.8%, respectively, so far in the second quarter.

Shell’s moving averages

In the current quarter, Shell’s 50-day moving average (or DMA) has stayed above its 200-DMA. The surge in Shell stock has led to the expansion of the gap between its 50-DMA and its 200-DMA. Shell’s 50-DMA, which was 6.4% above its 200-DMA, is now 6.9% above its 200-DMA. That’s a favorable technical phenomenon for Shell stock.

Why the rise in Shell stock?

Shell stock’s correlation coefficient with WTI prices in the current quarter is 0.64, implying a positive correlation. WTI prices have risen 6.7% in the current quarter.

During the quarter, Shell posted its first-quarter results with earnings surpassing the estimates. For more on this, be sure to read Shell’s Strong 1Q18 Earnings Led by Higher Oil Prices.

Shell has also seen an expansion of its robust upstream portfolio in the current quarter. It announced its Dover discovery in the US Gulf of Mexico. The discovery is 13 miles from Shell’s mega deepwater project Appomattox. It could be developed through a tie-back to the Appomattox host.

Shell also kick-started production in the Kaikias phase one project. The project has come into production one year ahead of schedule with a 30% lower-than-estimated cost—a remarkable achievement. Shell expects more than 15 projects globally to contribute more than 700 Mboepd (thousand barrels of oil equivalent per day) of net new production in 2018–2019. Kaikias is one of them. Shell also has projects under construction, which are expected to deliver more than 200 Mboepd of new production by 2020.

More From Market Realist