Welcome to the MarketReader Energy Minute.

Below are AI-generated insights on moves in the energy sector, powered by MarketReader technology.

Friday, July 19

XLE [-0.1%]
Energy Select Sector SPDR Fund (XLE) decreased by -0.4%, aligning with the broader market downturn and a -1.09% drop in Oil (XTI/USD). XLE's top performers like XOM, COP, and HAL experienced declines, with Exxon Mobil selling Malaysian assets and Halliburton facing revenue challenges. Falling oil prices, influenced by China's demand slowdown and U.S. trade concerns, also impacted XLE. Market sentiment remains cautious, with expectations of Federal Reserve rate cuts and geopolitical tensions affecting oil markets. Exxon Mobil's upcoming Q2 results and positive crude oil price outlook amidst global economic uncertainties contribute to the complex landscape influencing XLE's current movement.

USO [-1.3%]
Oil prices declined as Brent and West Texas Intermediate crude futures dropped on concerns over China's demand amidst weak economic data and trade tensions with the U.S. The rebounding dollar, lack of clear stimulus measures from China's Third Plenum, and bearish market sentiment also weighed on prices. Despite U.S. inventory reductions and geopolitical tensions, such as those between Hamas and Israel, the United States Oil Fund LP decreased by 0.4% since the previous close.

BOIL [-1.1%]
ProShares Ultra Bloomberg Natural Gas (BOIL) has experienced a -1.4% price movement since Thursday's market close. The surge in sustainable aviation fuel production in the US, Kinder Morgan's pipeline capacity expansion to meet rising power demand, and speculation around China boosting germanium stockpiles could potentially drive up demand for natural gas as an input, signal increased transportation needs, and indirectly impact natural gas prices due to potential implications on chipmaking and technology sectors reliant on energy sources like natural gas.

XOM | $117.22 | -1.3% | -6.8B

COP | $114.70 | -1.6% | -2.1B

SLB | $50.11 | +2.9% | +2.0B

SLB | +2.9% | +2.0B
Schlumberger NV's stock price rose by 3.3% today, driven by the announcement of an expected significant increase in free cash flow for the second half of the year compared to the first half. CEO Olivier Le Peuch foresees a 14%-15% growth in adjusted EBITDA for the full year with margins at or above 25%. Despite anticipating additional charges in Q3 due to operational adjustments and lower North America activity levels, the company projects strong international growth. Sequential revenue growth in the low single digits is expected, reflecting a positive outlook for Schlumberger's financial performance moving forward.

XOM | -1.3% | -6.8B
Exxon Mobil Corp's stock price dropped by -1.1% today, aligning with the broader market decline. The company has finalized the sale of its Malaysian oil and gas assets to Petronas, exiting the country's upstream sector to concentrate on oil production in the Americas. This strategic move includes the transfer of Exxon's staff to Petronas, with undisclosed terms. Furthermore, Exxon reported operational flaring at its Beaumont, Texas complex, which includes a significant oil refinery. Social media buzz highlighted another flaring incident at Joliet, possibly indicating positive developments as power is restored and units reset after approximately four hours of activity.

NFE | +5.9% | +308.3M
New Fortress Energy Inc's stock price surged by 5.9% after achieving First LNG at its Fast LNG asset in Altamira, Mexico. This milestone signifies the successful completion of a groundbreaking project, with the innovative Fast LNG design enabling rapid deployment compared to conventional liquefaction facilities. The project's 1.4 MTPA production capacity strengthens NFE's LNG portfolio integration, enhancing its ability to supply cost-effective, environmentally friendly LNG to downstream terminal customers.

KMI | +2.2% | +1.0B
Kinder Morgan Inc's stock price rose by +2.2% following positive adjustments from Goldman Sachs and Argus, with a new price target of $23 and an upgraded buy rating, respectively. Despite a slight earnings miss, the company reported a 2% year-over-year revenue increase. Notably, despite increased short interest, Kinder Morgan has less short interest compared to peers, potentially indicating favorable market sentiment towards the company. Analysts maintain a "Moderate Buy" consensus rating for the stock.

HAL | -4.6% | -1.4B
Halliburton Co's stock price dropped 4.2% post-earnings release despite meeting EPS estimates, as revenue fell short at $5.83 billion, missing expectations. The decrease in North American revenue was attributed to reduced pressure pumping services and lower Gulf of Mexico activity, contrasting with international revenue growth. Halliburton anticipates a challenging North American oil service cycle in 2H24, with plans to divest assets and a projected 6-8% decrease in NAM revenue due to lower activity levels. Despite this, the company maintains a positive outlook internationally, with strong demand and high activity levels expected to drive double-digit revenue growth. Operating income increased by 5% quarter-over-quarter to $1.032 billion, with an approximate 18% margin, reflecting challenges in the U.S. market but gains internationally.

[WHITF] Whitehaven Coal Ltd Sees Strong Performance Over the Past Month

• Goldman Sachs raises price target to AUD8.10, boosting stock by 4.7% on July 3rd.
• UBS increases price target to AUD9.65 with a Buy rating on July 8th.
• Analysts highlight growth potential and value proposition within the coal industry sector.

Over the past month, Whitehaven Coal Ltd (WHITF) experienced a notable positive price action of 13.4%, significantly outperforming the S&P 500 by 10.2%. This strong performance was influenced by key events and sentiments within the market.

On July 3rd, WHITF saw a significant bullish move of +4.7% following Goldman Sachs raising its price target to AUD8.10 from AUD7.40 while maintaining a Neutral rating. Analysts highlighted growth potential in WHITF's future performance and value proposition within the coal industry sector, contributing to this increase.

Moreover, on July 8th, UBS raised WHITF's price target to AUD9.65 from AUD8.85 with a Buy rating by analyst Lachlan Shaw, further boosting positive sentiment around the company's outlook and potentially influencing its stock performance positively in the near term.

These upward revisions in price targets by major financial institutions underscored confidence in WHITF's prospects and contributed to its overall bullish trend during this period.

Whitehaven Coal Ltd outperformed both broader market indices like S&P 500 which had a return of only 3.3% over the same period as well as Energy (XLE) sector reflecting robust performance compared to these benchmarks.

Whitehaven Coal Ltd outperformed the Energy (XLE) sector by 10%.

Open MarketReader to see more.

Thank you for spending a minute with us. 

If you have 2 more minutes, watch this demo of the MarketReader Platform: