$XOP

3 stories mentioning XOPUpdated 13d ago

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Oil Stocks Rise as Middle East Tensions Lift Crude Ahead of Earnings Season, RBC Says

Shares of US oil and gas producers gained over the past week as renewed tensions between Israel and Iran pushed crude prices higher ahead of the Q2 earnings season, RBC Capital Markets analyst Scott Hanold said in a Thursday note.Oil prices climbed to around $80 per barrel for the US benchmark West Texas Intermediate after US President Donald Trump pledged further action against Iran following renewed military strikes.The renewed geopolitical tensions came as the US Strategic Petroleum Reserve fell for the consecutive week to 316.5 million barrels, while inventories at the Cushing, Oklahoma, delivery hub rose above the 20-million-barrel level considered the minimum for efficient operations.Despite the jump in oil prices, trading activity across energy markets remained subdued, Hanold said.Oil-focused exploration and production companies outperformed their natural gas peers over the past week. Shares of oil-weighted producers rose about 3%, while gas-focused companies slipped 1%.The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) gained 4% as crude prices rose about 10%, while US natural gas benchmark Henry Hub prices fell 4%.Investor attention is now shifting toward the upcoming US exploration and production earnings season, with analysts reporting increased discussions around company strategy and capital allocation after limited interest from generalist investors during much of the second quarter.Among the companies drawing the most attention are Expand Energy (EXE), where investors are awaiting the appointment of a new chief executive and Devon Energy (DVN) over potential asset sales.Other companies include EOG Resources' (EOG) exploration activities in the UAE, Matador Resources' (MTDR) efforts to unlock value from its midstream assets, California Resources' (CRC) strategic initiatives, and EQT's (EQT) growth plans.Analysts said investors are also focused on the potential for mergers and acquisitions, free cash flow allocation and the outlook for US natural gas markets, with EOG, Matador, SM Energy (SM) and EQT emerging as favored names heading into earnings.Price: $168.11, Change: $+1.67, Percent Change: +1.00%

$CRC$DVN$EOG$EQT$EXE$FCF$MTDR$SM$XOP

Commodities42d ago

US Oil, Gas Stocks Slide as US-Iran Deal Optimism Pressures Crude Prices, RBC Says

US energy stocks extended losses over the past week as easing geopolitical tensions in the Middle East weighed heavily on crude prices, while investors shifted focus to concerns about oversupply and downside risks, RBC Capital Markets strategists said in a note on Thursday.RBC analysts said WTI traded in a range of $75 per barrel to $80/bbl during the week before retreating to levels last seen in early March, as markets grew confident that the US and Iran would sign a deal to reopen the Strait of Hormuz and allow Iranian crude exports.Market participants are now weighing whether the agreement translates into a normalization of shipping flows and a meaningful increase in supply, they said in a weekly note.The geopolitical-driven decline in oil prices has come despite a tightening US supply backdrop, with crude inventories posting seven consecutive weekly draws.However, expectations of a future supply glut have resurfaced after the International Energy Agency projected that an additional 8 million b/d of supply could overwhelm demand growth of about 2 million b/d once flows via the Hormuz fully normalize.Oil-weighted exploration and production companies fell 8% over the week, while gas-focused producers declined 3%, RBC said. Large-cap producers were down 6%, with small- and mid-cap names losing 8%.RBC said the SPDR S&P Oil & Gas Exploration & Production ETF dropped 7% during the period as WTI crude tumbled 17%, while Henry Hub natural gas prices were largely unchanged.Meanwhile, market participants' discussions were dominated by macroeconomic and oil market concerns following signs of a resolution to the Iran conflict.RBC said that investors questioned the potential for further downside in crude prices and debated the need for strategic stockpiling and the pace at which offline supply could return.Price: $152.02, Change: $-3.73, Percent Change: -2.39%

$XOP

Commodities48d ago

Oil Drops on Diplomatic Progress with Iran, Tight Inventories Limits Downside, RBC Says

Oil prices came under renewed pressure on Friday after the White House signaled that a nuclear agreement with Iran could be reached in the near term, raising expectations for additional crude supplies to return to the market, RBC Capital Markets analyst Scott Hanold said in a Friday note.US benchmark West Texas Intermediate crude fell below $80 per barrel, although prices remain approximately 18% higher than levels seen before the outbreak of conflict in late February. Shares of US exploration and production companies also weakened, leaving the sector up just 6% since the start of the conflict.Despite the prospect of an easing in geopolitical tensions, Hanold said the impact on global oil fundamentals has already been significant. Supply and inventory buffers have been substantially reduced, supporting expectations for higher medium-term oil prices. Analysts estimate that the industry's mid-cycle oil price could remain at or above $75 per barrel for the next several years.US crude inventories currently stand about 5% below their five-year average. In its latest Short-Term Energy Outlook, the US Energy Information Administration projected total OECD oil inventories will fall below 2.3 billion barrels by December, the lowest level since the agency began tracking the data in 2003.Energy equities broadly declined over the past week. Oil-focused E&P companies fell roughly 5%, while natural gas-focused producers declined about 6%. Large-cap energy stocks were down 4%, while small- and mid-cap names lost 5%. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 4% during the period, as WTI crude declined 7% and Henry Hub natural gas prices dropped 8%.Investor interest in the energy sector remains intact but highly selective, according to discussions with long-only funds, generalist investors, and hedge funds. Investors continue to cite attractive valuations, with free cash flow-to-enterprise value and free cash flow-to-market capitalization yields averaging in the low- to mid-teens.Interest in natural gas producers remains more limited amid concerns that a strengthening El Nino weather pattern could weigh on demand. However, investors have shown growing interest in Expand Energy (EXE) due to its relative valuation. Other energy names drawing attention include Devon Energy (DVN), ConocoPhillips (COP), Diamondback Energy (FANG), and Permian Resources (PR).Price: $167.10, Change: $+3.69, Percent Change: +2.26%

$COP$DVN$EXE$FANG$PR$XOP

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