Last week, upstream stock QEP Resources (QEP) 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 June 7, J.P. Morgan reduced its price target on QEP Resources by $2 to $9. Moreover, JP Morgan changed its ratings on QEP from neutral to underweight. On the same day, QEP’s stock prices declined ~4%.
Other upstream stocks Range Resources (RRC), Denbury Resources (DNR), and Occidental Petroleum (OXY) had the second, fourth, and fifth largest declines among energy stocks, respectively, last week. On May 31, RRC announced a quarterly dividend of two cents per share for the common stockholder. Moreover, RRC operates with a production mix of ~69.2% in natural gas. Last week, natural gas prices fell 4.8% and closed near their three-year low. Also, weak crude prices might have dragged down DNR and OXY. On June 5, US crude oil prices fell to their lowest level since January 14. For Occidental Petroleum, the disagreement among stockholders over Anadarko deal might be a concern.
Downstream stock PBF Energy fell the third most among energy stocks last week. On June 1, PBF reported its Q1 2019 earnings results. It reported a net loss of $1.18 per diluted share, which was more than analysts’ consensus estimates for a loss of $0.98 per share.