4 Feb

Weatherford International Outperformed the Energy Space

WRITTEN BY Rabindra Samanta

Energy stocks

On January 25–February 1, oilfield services stocks (WFT) 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)

Weatherford International Outperformed the Energy Space

OIH rose the least among the major energy subsector ETFs. Weatherford International (WFT) outperformed the energy space for the second consecutive week. On February 1, Weatherford International reported its fourth-quarter earnings results. The company reported a non-GAAP net loss of $0.14 per share—compared to analysts’ consensus estimates for a loss of 12 cents per share. However, Weatherford International reported a free cash flow of $65 million for the last quarter. The free cash flow might have helped the stock to gain 19.4% on February 1. In the previous quarter, Weatherford International had a negative free cash flow of $67 million. In 2019, the company’s free cash flow will likely be positive based on its guidance.

In addition to US energy companies, the following foreign-headquartered integrated energy companies listed in the United States are also under review:

  • Imperial Oil (IMO)
  • China Petroleum & Chemical (SNP)
  • Total (TOT)
  • YPF (YPF)
  • Petrobras (PBR)
  • BP (BP)

Other strong performers

Oilfield services stock Superior Energy Services (SPN) and Nabors Industries (NBR) rose the third and fourth most among our list of energy gainers in the week ending on February 1. On January 28, Superior Energy Services announced that it will report its fourth-quarter earnings on February 18.

Upstream stock Carrizo Oil & Gas (CRZO) and midstream stock Cheniere Energy Partners (CQP) were the second and fifth-largest gainers among our selected energy stocks last week. Among major energy ETFs, AMLP rose the most, while XOP was the second-lowest gainer. Carrizo Oil & Gas is an oil-weighted stock. US crude oil March futures rose 2.9% last week.

Energy commodities and the broader market

The broader market’s rise might have been behind the upsides of the above-mentioned energy stocks, which also beat oil and the broader market last week. The S&P 500 Index (SPY) rose 1.6% during this period. Next, we’ll discuss the top underperformers in the energy sector last week.

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