In the week ending on May 3, oilfield services stock Weatherford International (WFT) fell 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.
On April 30, Weatherford International announced that it completed the sale of its surface data logging business to Excellence Logging for $50 million in total consideration and laboratory services business to a group led by CSL Capital Management for $206 million in cash.
Diamond Offshore Drilling (DO), Superior Energy Services (SPN), McDermott International (MDR), and Ensco Rowan (ESV) were the second, third, fourth, and fifth-highest losses among energy stocks last week. On April 25, Raymond James reduced its target price on Superior Energy Services by $2 to $6. On May 3, Superior Energy Services’ stock prices closed at $3.36.
On April 29, Diamond Offshore Drilling released its first-quarter earnings results. On a sequential basis, the loss contracted by 8.6%. The company reported a loss of $0.53 per diluted share, better than analysts’ consensus estimate for a loss of $0.59 per share.
On April 29, McDermott International reported an adjusted net income of $0.02 per share below analysts’ consensus estimate for an income of $0.07 per share. On May 1, Ensco Rowan released its first-quarter earnings results. The company reported an adjusted net loss of $1.69 per share—below analysts’ consensus estimate for a loss of $1.57 per share.
Apart from earnings sentiments, the oil rig count near more than its one-year low is a concern for the oilfield services subsector.