In the week ending February 15, oilfield services stock McDermott International (MDR) fell 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 13, McDermott International announced that “For the fourth quarter of 2018, McDermott expects to report an adverse change in estimate of approximately $168 million, due to unfavorable labor productivity, and increases in subcontract, commissioning and construction management costs.” On the same day, the stock fell 26.6%.
Weatherford International (WFT) had the second-largest decline among energy stocks last week. However, OIH was the second-largest loss among the major energy subsector ETFs. In the week ending February 15, Weatherford International fell after outperforming the energy space for three consecutive weeks. Profit-booking could have dragged the stock.
Callon Petroleum (CPE) was the third-largest loss among energy stocks. On February 12, Callon Petroleum fell 8.5%. On the same day, the company announced its 2019 outlook. In 2019, Callon Petroleum’s production growth is expected to be 20% more than analysts’ consensus estimates for 2018. Based on the company’s guidance, its operational capital expenditure might be between $500 million and $525 million in 2019. Callon Petroleum underperformed energy stocks despite more than a 5% rise in US crude oil prices on February 8–15. On February 13, RBC reduced the target price on the stock by $1 to $10. On the same day, Imperial Capital increased its target price on Callon Petroleum by $3 to $15.
YPF Sociedad Anonima (YPF) and BP (BP) had the fourth and fifth-largest losses among energy stocks last week.