Seeking Alpha
Growth at reasonable price, long/short equity, foreign companies, master limited partnerships
Profile| Send Message|
( followers)  

Crude oil prices saw significant volatility over the past week and, overall, prices fell. Prices fell sharply downward on Monday morning, falling from $97.45 to $94.55 in the span of about an hour. The prices rallied after that but did not manage to make it to their opening levels. Charting the crude price shows that the price of oil was volatile throughout the week with the overall trend being a relatively gradual downward slope. Prices again rallied on Friday with a very sharp upward movement. This rally failed to return oil prices to the price at which they opened the week, however. The broader market, as measured by the S&P 500 index, proved less volatile over the week with the exception of the rapid descent between Wednesday's close and Thursday's open. The index was relatively flat on Monday, Tuesday, and Wednesday. It was significantly lower, but still flat on Thursday, and rallied between Thursday and Friday. Friday was much more volatile. The index closed out the week lower than Monday's open but not by much. As always, this overall market action had different effects on the six foreign integrated oil and gas stocks that I track in this weekly update series.

Statoil (NYSE:STO) opened at $25.39 on August 27, 2012. The stock closed at $25.65 in after hours trading on August 31, 2012. Stockholders in the company thus profited from a gain of $0.26 per ADR share or 1.02% over the week. Statoil opened at $24.43 on August 6, 2012. This gives the stock a trailing four-week gain of $1.22 or 4.99%. Statoil announced this week that it will be transporting oil from the Bakken shale region by rail. This is due to the lack of sufficient pipeline capacity in the area. My fellow Seeking Alpha contributor, Michael Fitzsimmons, believes that this will be a positive for the company as it will increase the prices that Statoil is able to get for the oil that it extracts from the Bakken shale. Statoil also signed an agreement with Rosneft (OTC:RNFTF) to explore for oil in the Arctic. This should serve to further increase Statoil's reserves and ultimately increase its production.

STO 5-Day Chart

Source: Fidelity Investments

STO 4-Week Chart

Source: Fidelity Investments

BP plc (NYSE:BP) opened the week at $42.19. The stock closed at $42.19 in after hours trading on August 31. The stock was thus completely flat over the week. BP opened at $41.07 on August 6. Thus, shareholders of BP stock profited from a gain of $1.12 or 2.73% over the trailing four-week period. BP went ex-dividend on August 8. Shareholders of the company as of that date will be receiving a dividend payment of $0.48 per share held. BP shareholders thus saw a total gain of $1.60 or 3.90% over the trailing four-week period when the dividend is considered.

BP 5-Day Chart

Source: Fidelity Investments

BP 4-Week Chart

Source: Fidelity Investments

Total S.A. (NYSE:TOT) opened on August 27 at $49.32 per share. The stock closed at $49.75 in after hours trading on August 31. This gives ADR shareholders a gain of $0.43 or 0.87% for the week. Total opened on August 6 at $48.03. Thus, stockholders have seen a gain of $1.72 or 3.58% over the past four weeks.

TOT 5-Day Chart

Source: Fidelity Investments

TOT 4-Week Chart

Source: Fidelity Investments

Suncor (NYSE:SU) opened on August 27 at $31.72. The stock closed at $31.28 in after hours trading on August 31. This gives the stock a loss of $0.44 or 1.39% for the week. The stock opened on August 6, 2012 at $31.56. Thus, Suncor stock has suffered a loss of $0.28 or 0.89% over the trailing four week period. Suncor went ex-dividend on August 30, 2012. Shareholders as of that date will receive a dividend payment of $0.13. Therefore, Suncor's loss over the past week was $0.31 or 0.98% when the dividend is considered. Likewise, Suncor's loss over the trailing four-week period is reduced to $0.15 or 0.47% when the dividend is considered.

SU 5-Day Chart

Source: Fidelity Investments

SU 4-Week Chart

Source: Fidelity Investments

Royal Dutch Shell (NYSE:RDS.A) opened at $70.38 on August 27, 2012. The stock closed at $70.22 in after hours trading on Friday, August 31. Shareholders thus suffered a loss of $0.16 or 0.23% for the week. The stock opened at $70.11 on August 6, 2012. Shareholders thus experienced a gain of $0.11 per share or 0.16% 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 $0.97 or 1.38% when the dividend is considered. Royal Dutch shell is in the process of restarting its operations in the Gulf that were taken offline last week due to the approach of Hurricane Isaac. Thus, the company will only suffer a week or two of lost production due to this hurricane. Shell was also granted permission to begin drilling in Alaska's Chukchi Sea. This is a positive for the company as the Arctic remains one of the last great frontiers for oil exploration and production.

RDS.A 5-Day Chart

Source: Fidelity Investments

RDS.A 4-Week Chart

Source: Fidelity Investments

Eni (NYSE:E) opened at $43.72 on August 27. The stock closed at $44.16 in after hours trading on Friday, August 31. Shareholders thus profited from a gain of $0.44 or 1.01% for the week. The stock opened at $43.83 on August 6, 2012. Shareholders thus profited from a gain of $0.33 per share or 0.75% over the trailing four-week period.

E 5-Day Chart

Source: Fidelity Investments

E 4-Week Chart

Source: Fidelity Investments

Statoil was the best performing stock of these six over the past week with Italian giant Eni in a very close second. Royal Dutch Shell and Suncor were the only two stocks of these six to see a loss over the week with Suncor having a much larger loss. Suncor's stock has historically been more volatile than that of the other six and that is evident this week. Statoil was by far the best performer over the four week period even after accounting for dividends paid by a few of the other companies. Suncor was the worst performer and was the only one of the six to return a loss over the trailing four-week period.

Source: Weekly Performance Update On 6 Foreign Integrated Oil And Gas Stocks