Sector Update: Energy Stocks, Crude Oil Extending Friday Declines in Late Trade

Friday, October 23, 2020 3:43 PM | MT Newswires

Energy stocks continued to lose more ground this afternoon, with the NYSE Energy Sector Index dropping 0.7% while the SPDR Energy Select Sector ETF was 1.0% lower in late trade.

Front-month West Texas Intermediate crude oil settled 79 cents lower at $39.85 per barrel in New York while the global benchmark Brent crude contract declined 73 cents to $41.73 per barrel. Henry Hub natural gas futures fell 4 cents to $2.97 per 1 million BTU.

In company news, DMC Global (BOOM) climbed 7.7% after the oilfield equipment supplier late Thursday surprised Wall Street by reporting adjusted Q3 net income of $0.08 per share, down sharply from its $0.90 per share adjusted profit during the same quarter last year but still beating the Capital IQ consensus looking for a $0.10 per share net loss, excluding one-time items. Revenue plunged on an adjusted basis. Revenue slid 44.7% year-over-year to $55.3 million but also exceeded the $46.5 million analyst mean.

Laredo Petroleum (LPI) rose 7% after late Thursday saying lenders for its senior secured credit facility have reaffirmed its borrowing base at $725 million. The oil and natural gas producer also announced its $11.3 million purchase of 2,758 net acres in western Texas, adding about 210 barrels of oil equivalent in daily production.

MPLX LP (MPLX) was narrowly lower after Friday announcing a two-week extension for the binding open season for a proposed 11,000-barrel-per-day expansion of its SLC Core pipeline until Nov. 6 to provide potential customers with more time to review revisions to the transportation service agreement. The expansion is expected to boost SLC Core capacity to 56,000 barrels per day when it comes online in early 2022.

Equinor (EQNR) declined nearly 1% after the Norwegian energy major Friday said Lars Christian Bacher will step down as chief financial officer on Nov. 1 and will be succeeded on an interim basis by Svein Skeie, currently the company's senior vice president for performance management.

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