On November 2–9, upstream stock EP Energy (EPE) fell the most on our list of upstream energy stocks. However, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 0.6%—the lowest gainer among the major energy ETFs that we discussed in Part 1. On November 7, EP Energy announced its third-quarter earnings results. The company reported an adjusted loss of $0.04 per share—compared to analysts’ consensus estimates for an income of $0.01 per share.
Other large losses
Other upstream stocks, Denbury Resources (DNR), Oasis Petroleum (OAS), Concho Resources (CXO), and WPX Energy (WPX) were the second, third, fourth, and fifth-largest upstream energy declines, respectively, in the week ending November 9. These four stocks are oil-weighted upstream stocks.
On November 8, Denbury Resources announced its third-quarter earnings results. The company reported an adjusted income of $0.13 per diluted share—compared to analysts’ consensus estimates of $0.11 per share.
Energy commodities and the broader market
Last week, US crude oil December futures fell 4.7%, natural gas December futures rose 13.2%, and the S&P 500 Index rose 2.1%. Most of these upstream energy underperformers also underperformed energy commodities and the broader market during this period. Notably, the fall in oil prices might have dragged these oil-weighted upstream stocks.