Weatherford Outperformed the Energy Sector for the Third Week

Energy stocks

In the week ending February 8, oilfield services stock Weatherford International (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 Outperformed the Energy Sector for the Third Week

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).

However, OIH had the second-largest decline among the major energy subsector ETFs. Weatherford International outperformed the energy space for the third consecutive week. Weatherford International’s free cash flow and guidance for 2019 could have driven the stock. Since the company’s fourth-quarter earnings results on February 1, the stock has risen 15.6%. Patterson-UTI Energy (PTEN) had the fourth-highest gain among the energy stocks under review. On February 7, Patterson-UTI Energy reported its fourth-quarter earnings. The company reported a net loss of 4 cents per share—compared to analysts’ consensus estimates for a loss of 14 cents per share.

Other strong performers

Integrated energy stock BP (BP) had the second-highest rise on our list of energy gainers in the week ending February 8. The earnings results might have driven the stock. Buckeye Partners (BPL), which rose 4.3% on February 8, was the third-highest gainer among energy stocks. Buckeye Partners reported a net income of $3.13 per diluted unit, which is 4.5x analysts’ consensus estimates. AMLP had the second-lowest fall among major energy subsector ETFs last week.

Brent-WTI spread

Delek US Holdings (DK), which had the fifth-highest rise among energy stocks in the seven calendar days to February 8, might have benefited from the widening Brent-WTI spread. Last week, the Brent-WTI spread rose to nearly a one-month high. CRAK was the outperformer among major energy subsector ETFs.

These energy outperformers defied the ongoing trend in energy commodities and the broader market. The S&P 500 (SPY) was unchanged, while US crude oil and natural gas prices fell 4.6% and 5.5%, respectively, last week.