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Upstream Stocks Led the Declines in the Energy Sector

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Energy stocks

In the week ending February 8, upstream stock Denbury Resources (DNR) 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).

Upstream stocks lead the decline

Chesapeake Energy (CHK), SM Energy (SM), Carrizo Oil & Gas (CRZO), and California Resources (CRC) had the second, third, fourth, and fifth-largest declines on our list of energy stocks. XOP fell the most among major energy subsector ETFs last week. Denbury Resources, SM Energy, Carrizo Oil & Gas, and California Resources operate with a production mix of at least 60% in liquids based on the latest quarterly production data. Liquids include crude oil, condensates, and natural gas liquids. Chesapeake Energy operates with a production mix of ~72.4% in natural gas.

The downtrend in energy commodities and the fall in the bullish sentiments in the broader market might have dragged these energy stocks. The S&P 500 (SPY) was unchanged, while US crude oil and natural gas prices fell 4.6% and 5.5%, respectively, in the last week.

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