In the week ending June 7, oilfield services stock McDermott International (MDR) rose 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 5, MDR announced that “CCS JV, a joint venture between McDermott, Saipem and Chiyoda, has reached full agreement for a contract with Anadarko Petroleum Corporation for the Mozambique Area 1 Liquefied Natural Gas Development.” On the same day, MDR’s stock prices rose more than 5%.
Other strong performers
Another oilfield services stock, TechnipFMC (FTI) rose the fifth most among energy stocks between May 31 and June 7. On June 4, Berenberg reduced its price target on FTI by 50 cents to $28.5.
Upstream stocks Continental Resources (CLR) and Apache (APA) rose third and fourth, while downstream stock Delek US Holdings (DK) had the second-highest rise among energy stocks, respectively, last week.
On June 3, CLR announced the start of a quarterly dividend of 5 cents per share and a share-repurchase of $1 billion. On the next day, CLR’s stock prices jumped ~15%. In the second quarter, based on analysts’ consensus estimates, Apache’s earnings might double on a sequential basis. Moreover, despite weaker oil prices, the rise of 4.4% in the S&P 500 Index (SPY) might have supported APA’s stock prices.