1 Jul

A Q2 Wrap-Up for Energy Stocks XOM, CVX, RDS.A, and BP

WRITTEN BY Maitali Ramkumar

Performances of integrated energy stocks

In the second quarter of 2019, Royal Dutch Shell (RDS.A) stock rose 4.0%, but its peers ExxonMobil (XOM) and BP (BP) fell 6.2% and 4.8%, respectively. Chevron (CVX) stock closed almost flat in the second quarter.

A Q2 Wrap-Up for Energy Stocks XOM, CVX, RDS.A, and BP

How the market and oil performed in the second quarter

Because the market and oil affect integrated energy stocks, let’s have a look at their performances in the second quarter of 2019.

In the quarter, WTI, the benchmark crude oil, fell 1.7%. In the same quarter, oil prices fell due to expectations of lower demand growth and higher supply from the US. However, in the latter half of June, tensions between the US and Iran rose, which lifted oil prices. The expectation that OPEC will continue to make production cuts in its upcoming meeting has been further supporting oil prices.

The US equity market, represented by the SPDR S&P 500 ETF (SPY), rose 1.2% in the second quarter. In June, the market gained on interest rate cut expectations. Issues between the US and Mexico also eased in the month, but this improvement was partly offset by rising tensions in the Middle East.

Earnings performance

Integrated energy companies’ earnings fell in the first quarter. They posted mixed performances compared to Wall Street’s estimates. While ExxonMobil (XOM) missed analysts’ earnings estimate, Chevron, Royal Dutch Shell, and BP surpassed analysts’ expectations.

In short

Integrated energy stocks reacted accordingly to the second quarter’s mixed cues. Presumably, lower oil prices affected the stocks, while higher equity markets supported them. Some stocks were also affected by their mixed first-quarter earnings results.

Latest articles

Tortoise Capital Advisors bought 9.5 million Kinder Morgan shares in Q3. That was the biggest addition among the company’s top 10 institutional investors.

Although near-term weakness exists in the cannabis stocks, we expect Cannabis 2.0 products or cannabis-derived products could act as a catalyst.

The US, Saudi Arabia, and Russia are the world’s top three crude oil producers. Let’s take a look at the world’s top oil players by production volumes.

Tesla’s Model Y is gearing up to enter the EV market next summer. Ford heated up this space with its announcement of the Mustang Mach-E launch in late 2020.

Yesterday, Comcast (CMCSA) rose 0.5% and closed at $44.81, with a market capitalization of $203.9 billion. But can you expect a further rise?

Advanced Micro Devices (AMD) is one of the best-performing semiconductor stocks of 2019, beating 100% year-to-date growth.