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)
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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.