- Energy shares have dragged this week as sinking commodity prices pulled shares lower on Bay Street and Wall Street
- An industry report from American Petroleum Institute (API) pointed to a jump in U.S crude inventory
- Devon Energy Corp. (NYSE:DVN) shares fell after the company said the impact of Winter Storm Elliot stifled Q4 profit on its oil and gas wells
- Higher crude prices helped lift Suncor Energy Inc. (TSX:SU) shares with a better-than-expected Q4 2022 profit report
- Oil prices have shown a 1.10 per cent decline over the past week, but figures have been trending upward 0.11 per cent on the month
The energy sector has taken a few hits as of late, but some stocks have weathered the storm.
One of the heavyweight markets for Canada’s main stock index has dragged this week, as sinking commodity prices pulled shares lower on Bay Street and Wall Street.
Oil continues to barrel lower, and a report released on Wednesday found that U.S. stockpiles were estimated to have grown. The U.S. benchmark, West Texas Intermediate crude futures, fell 0.70 per cent on Wednesday to trade around US$78. Brent prices also fell, losing 0.64 per cent to just over US$85 per barrel.
Values were shaky after an industry report from American Petroleum Institute pointed to a jump in U.S crude inventory. One company caught in the crossfire was Devon Energy Corp. (NYSE:DVN), whose shares fell more than 11 per cent after the company said the impact of Winter Storm Elliot stifled Q4 profit on its oil and gas wells.
Looking ahead, the Oklahoma City-based company expects production in Q4 to be reduced by 2 per cent, (or 15,000 barrels of oil equivalent per day (boe/d), because of the impact severe winter weather has imposed upon its operations. Devon Energy’s production estimates are now sitting at an average production run of 636,000 boe/d in Q4, including 316,000 boe/d.
On the flipside, higher crude prices helped lift Suncor Energy Inc. (TSX:SU) shares up nearly a full percentage by midday. This followed a better-than-expected Q4 2022 profit report this week.
The Calgary-based energy company stated that profits rose 76 per cent to C$2.74 billion and announced that it is lifting its quarterly dividend by 11 per cent to $0.52 a share. Its earnings amounted to $1.81 per share, compared to $0.89 a share a year ago.
The company said that its upstream production increased to 763,100 boe/d in Q4 2022, compared to 743,300 boe/d a year earlier.
Suncor’s crude oil production totalled 440,000 barrels per day, and its refinery utilization rate was 94 per cent in Q4 2022, compared to 447,000 bbls/d and a 96 per cent utilization rate a year earlier.
Overall, oil prices have shown a 1.10 per cent decline over the past week, but figures have been trending upward by 0.11 per cent on the month.
