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Energy Stocks: Top Outperformers Last Week

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Energy stocks

In the week ending February 22, oilfield services stock Superior Energy Services (SPN) rose the most among the energy stocks under review in this series, which include the following ETFs:

  • the Alerian MLP ETF (AMLP)
  • the Energy Select Sector SPDR ETF (XLE)
  • the VanEck Vectors Oil Services ETF (OIH)
  • the VanEck Vectors Oil Refiners ETF (CRAK)
  • the SPDR S&P Oil & Gas Exploration & Production ETF (XOP)

In addition to US energy companies, a few foreign-headquartered integrated energy companies listed in the United States are also under review including Imperial Oil (IMO) and China Petroleum & Chemical (SNP). On February 18, China Petroleum & Chemical reported an adjusted net loss of $0.2 per share for the last quarter, which beat analysts’ consensus estimates by 28.6%.

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Other strong performers

Other stocks from the oilfield services subsector, McDermott International (MDR) and U.S. Silica Holdings (SLCA) were second and fourth among energy stock outperformers. However, OIH fell the most among the major energy subsector ETFs. The sentiments surrounding the earnings results might have supported these oilfield services stocks despite widespread bearishness in the subsector. On February 19, U.S. Silica Holdings reported an adjusted loss of $0.04 per share for the last quarter, which beat analysts’ consensus estimates by 63.6%. On February 25, McDermott International is expected to report adjusted earnings of $0.17 per diluted share for the fourth quarter based on analysts’ consensus estimates—a fall of 15% on a sequential basis.

Downstream stock Delek US Holdings (DK) and upstream stock Devon Energy (DVN) were the third and fifth outperformers among energy stocks last week. CRAK was the only ETF that closed in the green, while XOP had the second-largest decline among major energy subsector ETFs.

Devon Energy’s management decided to restructure its upstream assets, which might have increased investors’ confidence in the stock. On February 19, Delek US Holdings announced its fourth-quarter earnings results. The company reported an adjusted net income of $1.59 per diluted share, which beat analysts’ consensus estimates by 26.2%. On February 20, the stock rose 6.3%. Brent crude oil might outperform WTI crude oil prices in the first quarter, which might benefit Delek US Holdings’ stock prices.

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