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Top Gains in the Energy Sector Last Week

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Energy stocks

In the week ending on April 26, upstream stock Anadarko Petroleum (APC) rose the most among the stocks in the energy space. The stocks are included in 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)

A few foreign-headquartered integrated energy companies listed in the United States, including Imperial Oil (IMO) and China Petroleum & Chemical (SNP), are also on our list of energy stocks.

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On April 24, Occidental Petroleum (OXY) made a proposal to acquire Anadarko Petroleum (APC) at $76 per share. Anadarko Petroleum’s shareholders will receive $38 cash and 0.6 Occidental Petroleum shares for each Anadarko Petroleum share held. On April 12, Chevron (CVX) announced that it entered into a definitive agreement with Anadarko Petroleum to acquire all of Anadarko Petroleum’s outstanding shares in a stock and cash transaction valued at $33 billion or $65 per share. The run-up to acquire Anadarko Petroleum is pushing the stock prices higher.

Other strong performers

Carrizo Oil & Gas (CRZO) and Denbury Resources (DNR) were the third and fourth-largest gainers among energy stocks last week. On May 7, Denbury Resources and Carrizo Oil & Gas planned to release their first-quarter earnings results. These upstream stocks are expected to report a downside of 10% and 28.6% in their earnings based on analysts’ consensus estimates. Earnings-related sentiments could be behind the rise.

Oil States International (OIS) and Ensco Rowan (ESV) were the second and fifth-largest gainers among energy stocks last week. On April 24, Oil States International announced its first-quarter earnings results. The company reported a net loss of 25 cents per diluted share—better than analysts’ consensus estimate for a loss of $0.28 per share. On May 2, Ensco Rowan is scheduled to announce its earnings results for the last quarter.

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