In the week ending May 24, oilfield services stock Nabors Industries (NBR) fell the most among the stocks in the energy space. The stock is 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)
On April 30, Nabors Industries released its first-quarter earnings results. On a sequential basis, the loss contracted by 35.5%. However, the net loss from continuing operations was at $0.36 per share—compared to analysts’ consensus estimate for a loss of $0.26 per share.
Other oilfield services stocks Superior Energy Services (SPN) and Ensco (ESV) had the second and fourth-largest decline among energy stocks, respectively, last week. On May 22, Ensco announced that its board members decided to stop the regular cash dividend on a sequential basis. On the same day, Ensco’s stock prices fell ~3.5%.
On April 23, Superior Energy Services reported a net loss of $0.31 per share for the first quarter—below analysts’ consensus estimate for a loss of $0.24 per share. Since April 23, Superior Energy Services’ stock prices have fallen ~61.3%. Apart from earnings sentiments and trade war concerns, the oil rig count, which is at a new one-year low, is a concern for the oilfield services subsector.
Upstream stocks California Resources (CRC) and Whiting Petroleum (WLL) had the third and fifth-largest decline among energy stocks, respectively. During this period, US crude oil prices fell 6.8%, while natural gas active futures fell 2%—a factor that might have dragged these upstream stocks.
Weak oil prices and investors’ disappointment following Whiting Petroleum’s first-quarter earnings results could be behind the double-digit fall. Since Whiting Petroleum’s first-quarter earnings results, the stock prices have fallen 27.5%. For the same quarter, Whiting Petroleum reported an adjusted net loss of $0.16 per diluted share compared to analysts’ estimates for an income of $0.20 per share.