On November 30–December 7, Gulfport Energy (GPOR) gained the most on our list of upstream energy stocks. However, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 3.9%—the third–largest decline among the major energy subsector ETFs that we discussed in the previous part.
Our list of energy stocks also included the following plus a few integrated energy stocks:
- the VanEck Vectors Oil Services ETF (OIH)
- the Energy Select Sector SPDR ETF (XLE)
- the Alerian MLP ETF (AMLP)
- the VanEck Vectors Oil Refiners ETF (CRAK)
Another upstream stock, Laredo Petroleum (LPI) was the third-largest energy gainer on our list. Laredo Petroleum operates with a production mix of at least 50% in liquids based on the latest quarterly production data. Liquids include crude oil, condensates, and natural gas liquids. The rise in oil prices because of OPEC and non-OPEC members’ decision to carry out a coordinated production cut of 1.2 MMbpd (million barrels per day) in 2019 might have influenced these upstream energy stocks. However, Gulfport Energy operates with a production mix of ~89% in natural gas. Bullish sentiments in the oil market might have helped Gulfport Energy to rise. Gulfport Energy might be included in the S&P SmallCap 600 Index.
Midstream stocks NGL Energy Partners LP (NGL) and Crestwood Equity Partners (CEQP) were the second and fifth-largest outperformers, respectively, on our list of energy stocks in the week ending on December 7. The Alerian MLP ETF (AMLP) fell 0.9%. AMLP had the lowest decline among major energy subsector ETFs during this period.
Cenovus Energy (CVE), a Canadian oil sand producer, had the fourth-largest rise on our list of energy stocks. Last week, the WTI-WCS (Western Canada Select) spread contracted by more than ~$10 per barrel, which might have helped Cenovus Energy to rise.
Energy commodities and the broader market
Last week, US crude oil January futures rose 3.3%. Natural gas January futures fell 2.7%, while the S&P 500 Index fell 4.6%. These energy outperformers also beat oil and the broader market during this period.
Next, we’ll discuss the biggest declines in the energy space.
On November 30–December 7, the United States Oil ETF (USO) and the United States 12-Month Oil ETF (USL) rose 3.5% and 4.6%, respectively.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.