Analyzing Midstream Stocks and the Energy Space

Energy stocks

On August 10–17, upstream stock Energen (EGN) saw the highest gain on our list of energy stocks. However, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 4.8%—the second-highest decline among major energy subsector ETFs during this period, as we discussed in the previous part.

Analyzing Midstream Stocks and the Energy Space

On August 14, Energen announced that “Diamondback Energy Inc (FANG) will acquire Energen in an all-stock transaction valued at approximately $9.2 billion, including Energen’s net debt of $830 million as of June 30, 2018.”

We created our list of energy stocks from the following energy subsector ETFs and a few integrated energy stocks—XOP, the Energy Select Sector SPDR ETF (XLE), the Alerian MLP ETF (AMLP), and the VanEck Vectors Oil Services ETF (OIH).

Other large gainers

Denbury Resources (DNR) was the fifth-largest gainer among energy stocks last week. However, most of the top five energy gainers on our list were midstream stocks. Shell Midstream Partners (SHLX), Crestwood Equity Partners (CEQP), and Genesis Energy (GEL) were the second, third, and fourth-largest gainers on our list on August 10–17. In fact, the Alerian MLP ETF (AMLP) fell 0.3%—the outperformer among major energy subsector ETFs during this period.

Energy commodities and the broader market

During the week ending August 17, US crude oil October futures fell 2.6%, while natural gas September futures rose 0.1%. The S&P 500 rose 0.6% during this period. So, most of these energy gainers outperformed energy commodities and equity markets last week.

Next, we’ll discuss oil ETFs’ price performance.