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Energy Sector Update for 05/21/2020: LNG,TNK,NOG

Energy stocks were mostly lower this afternoon, with the NYSE Energy Sector Index falling 1.4% while the SPDR Energy Select Sector ETF also was down 1.4%.

Front-month West Texas Intermediate crude oil was up 0.8% to $33.74 per barrel while the global benchmark Brent crude contract was advancing 24 cents to $36 per barrel. Natural gas futures were 7 cents lower at $1.70 per 1 million BTU.

Among energy-related ETFs, the United States Oil Fund was ahead 2.8% while the United States Natural Gas fund was sliding 3.4%. The Philadelphia Oil Service Sector index was declining 0.6%.

In company news, Cheniere Energy (LNG) slid 2.8% after buyers reportedly have asked to cancel at least 17 orders for liquefied natural gas slated for loading from the company’s Sabine Pass and Corpus Christi terminals in July. Buyers could eventually cancel between 35 to 45 July shipments, according to a Bloomberg report.

Teekay Tankers (TNK) rose 3.3% after reporting adjusted Q1 net income of $3.27 per share, improving on its $0.44 per share non-GAAP profit during the same quarter last year and easily beating the Capital IQ consensus expecting $2.91 per share. Revenue grew 43.5% year-over-year to $341.9 million, also topping the $227 million Street view.

Northern Oil and Gas (NOG) dropped 4% after saying it swapped $3.9 million of its common stock for $4.5 million of its 8.5% senior secured notes due 2023. Following the expected June 18 close of the transaction, the company will have about $301.3 million of the senior notes outstanding.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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