Upstream Stocks Led the Declines in the Energy Sector



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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