Weekly Performance Update On 6 Foreign Integrated Oil And Gas Stocks

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Includes: BP, E, RDS.A, STO, SU, TOT
by: Power Hedge

The price of crude oil increased sharply over the last week, sparked by a rally that began midday Wednesday. Prior to that, the price of crude was relatively flat, excluding some volatility on Monday. This is similar to the performance of the overall market, as measured by the S&P 500 index. The index dropped shortly after the market open on Monday and then recovered later in the day. From there, it was relatively flat on both Tuesday and Wednesday before entering a powerful rally on Thursday and Friday. This ultimately drove the index up to its closing price of 1,418.16. The market opened at 1402 on Monday. As usual though, this action in the oil and stock markets had different effects on the six foreign integrated oil and gas stocks that I follow in this weekly update series.

Statoil (NYSE:STO) opened at $24.87 on August 13, 2012. The stock closed at $25.18 in after hours trading on August 17, 2012. Stockholders in the company thus profited from a gain of $0.31 per ADR share or 1.25% over the week. Statoil opened at $23.48 on July 23, 2012. This gives the stock a trailing four-week gain of $1.70 or 7.24%.

STO 5-Day Chart

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Source: Fidelity Investments

STO 4-Week Chart

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Source: Fidelity Investments

BP plc (NYSE:BP) opened the week at $42.17. The stock closed at $42.73 in after hours trading on August 17. This gives BP shareholders a gain of $0.56 or 1.33% over the week. BP opened at $40.02 on July 23. Thus, shareholders of BP stock profited from a gain of $2.71 or 6.77% over the trailing four-week period. BP went ex-dividend on August 8. Thus, shareholders of the company will be receiving a dividend payment of $0.48 per share held. BP shareholders thus saw a total gain of $3.19 or 7.97% over the trailing four-week period when the dividend is considered. BP is reportedly attempting to sell some oil fields in the Gulf of Mexico. If successful, this would net about $5 to $6 billion for BP at the asking price after tax and reduce the company's production by about 58,000 barrels of oil equivalent per day.

BP 5-Day Chart

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Source: Fidelity Investments

BP 4-Week Chart

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Source: Fidelity Investments

Total S.A. (NYSE:TOT) opened on August 13 at $49.40 per share. The stock closed at $49.71 in after hours trading on August 17. This gives ADR shareholders a gain of $0.31 or 0.63% for the week. Total opened on July 23 at $42.75. Thus, stockholders have seen a gain of $6.96 or 16.28% over the past four weeks. Short sellers have been piling into Total stock recently, with the short interest increasing by 142.6% from July 13 to July 31. Obviously, the short sellers expect that Total stock will decline following this rapid run-up. However, the company still has a lot going for it including massive reserves and a 5.6% annualized dividend yield that could make this an expensive and risky short.

TOT 5-Day Chart

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Source: Fidelity Investments

TOT 4-Week Chart

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Source: Fidelity Investments

Suncor (NYSE:SU) opened on August 13 at $32.20. The stock closed at $32.78 in after hours trading on August 17. This gives the stock a gain of $0.58 or 1.80% for the week. The stock opened on July 23, 2012 at $29.28. Thus, Suncor stock has seen a gain of $3.50 or 11.95% over the trailing four week period.

SU 5-Day Chart

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Source: Fidelity Investments

SU 4-Week Chart

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Source: Fidelity Investments

Royal Dutch Shell (NYSE:RDS.A) opened at $70.77 on August 13, 2012. The stock closed at $70.65 in after hours trading on Friday, August 17. Shareholders thus suffered a loss of $0.12 or 0.17% for the week. The stock opened at $67.54 on July 23, 2012. Shareholders thus experienced a gain of $3.23 per share or 4.78% over the trailing four-week period. Royal Dutch Shell went ex-dividend on August 8, 2012. Shareholders as of that date will receive a dividend payment of $0.86 per share. This increases the trailing four-week total return to $4.09 or 6.06% when the dividend is considered.

RDS.A 5-Day Chart

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Source: Fidelity Investments

RDS.A 4-Week Chart

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Source: Fidelity Investments

Eni (NYSE:E) opened at $44.05 on August 13. The stock closed at $44.24 in after hours trading on Friday, August 17. This gives shareholders a gain of $0.19 or 0.43% for the week. The stock opened at $37.95 on July 23, 2012. Shareholders thus profited from a gain of $6.29 per share or 16.57% over the trailing four-week period.

E 5-Day Chart

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Source: Fidelity Investments

E 4-Week Chart

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Source: Fidelity Investments

Canadian oil and gas giant Suncor Energy was the best performer of these six over the past week, although both BP and Statoil delivered admirable performances. Royal Dutch Shell was the worst performer of the group and was the only one of these six to see a loss in the past week. All six of the companies delivered gains over the trailing four-week period, however. The best performer of the group was Italy's Eni, just narrowly edging out France's Total. The worst performer of the group over the trailing four-week period was Royal Dutch Shell. Royal Dutch Shell was the only one of the six that did not return at least 5% in the trailing four-week period.

Disclosure: I am long STO, BP, SU.