Energy Stocks: Biggest Losses Last Week


Dec. 4 2020, Updated 10:52 a.m. ET

Energy stocks

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.

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Other underperformers

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.


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