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

Oil prices were relatively flat for most of this week. There were a few spikes and troughs followed by corrections but nothing that was persistent. That all changed on Friday. Midday Friday, WTI oil prices spiked quickly from $92 to $93 and then just as quickly fell to around $90. Prices remained around $90 for the remainder of the day where they closed out the week. The overall market, as measured by the S&P 500 index, showed a considerable amount of volatility. The index climbed slowly and steadily until the middle of the day on Thursday. The overall market began to fall starting at that time and continued its fall into Friday. By the time the market closed, this plunge had completely erased all the gains that were achieved earlier in the week and finished off just slightly above where it opened. As usual, this had different effects on the six foreign integrated oil and gas stocks that are tracked in this weekly update series.

Statoil (STO) opened at $25.61 on October 15, 2012. The stock closed at $25.78 in after hours trading on October 19, 2012. Stockholders in the company thus profited from a gain of $0.17 per ADR share or 0.66% over the week. Statoil opened at $26.56 on September 24, 2012. This gives the stock a trailing four-week loss of $0.78 or 2.94%.

STO 5-Day Chart

Source: Fidelity Investments

STO 4-Week Chart

Source: Fidelity Investments

BP plc (BP) opened the week at $41.62. The stock closed at $43.07 in after hours trading on October 19. BP's stockholders thus witnessed a gain of $1.45 or 3.48% over the week. BP opened at $42.99 on September 17, 2012. Thus, shareholders of BP stock profited from a gain of $0.08 or 0.19% over the trailing four-week period. BP made progress in selling its troubled stake in TNK-BP over the past week. The company announced that it will trade its half of the joint venture for $10 billion to $15 billion in cash plus a 20% stake in Rosneft. This would give BP a huge presence in Russia and likely greatly reduce the regime risk faced by the company as it is rather unlikely that the Russian government would be openly hostile towards Rosneft.

BP 5-Day Chart

Source: Fidelity Investments

BP 4-Week Chart

Source: Fidelity Investments

Total S.A. (TOT) opened on October 15 at $50.05 per share. The stock closed at $51.49 in after hours trading on October 19. This gives ADR shareholders a gain of $1.44 or 2.88% for the week. Total opened on September 24 at $52.29. Thus, stockholders have suffered a loss of $0.80 or 1.55% over the past four weeks. Stocks rating site TheStreet.com reiterated its BUY rating on Total on Wednesday, citing the company's position to grow earnings going forward.

TOT 5-Day Chart

Source: Fidelity Investments

TOT 4-Week Chart

Source: Fidelity Investments

Suncor (SU) opened on October 15 at $32.95. The stock closed at $34.00 in after hours trading on October 19. This gives the stock a loss of $1.05 or 3.19% for the week. The stock opened on September 24, 2012 at $33.41. Thus, Suncor stock has delivered a profit of $0.59 or 1.77% over the trailing four week period. Stock ratings site TheStreet.com reiterated its BUY rating on Suncor stock on Thursday. The website cited growth in revenue and cash flow combined with a very low debt-to-equity ratio.

SU 5-Day Chart

Source: Fidelity Investments

SU 4-Week Chart

Source: Fidelity Investments

Royal Dutch Shell (RDS.A) opened at $68.98 on October 15, 2012. The stock closed at $68.74 in after hours trading on Friday, October 19. Shareholders thus suffered a loss of $0.24 or 0.35% for the week. The stock opened at $71.09 on September 24, 2012. Shareholders thus suffered a loss of $2.35 per share or 3.31% over the trailing four-week period. Goldman Sachs (GS) downgraded Royal Dutch Shell to SELL on Thursday. Meanwhile, stock ratings site TheStreet.com rates Royal Dutch Shell as a BUY due primarily to attractive valuation and overall strong financial position.

RDS.A 5-Day Chart

Source: Fidelity Investments

RDS.A 4-Week Chart

Source: Fidelity Investments

Eni (E) opened at $45.30 on October 15. The stock closed at $45.93 in after hours trading on Friday, October 19. Shareholders thus witnessed a gain of $0.63 or 1.39% for the week. The stock opened at $46.51 on September 24, 2012. Shareholders thus suffered a loss of $0.58 per share or 1.26% over the trailing four-week period. Eni went ex-dividend on September 24. Thus, shareholders as of the close of the market on the preceding day will receive a dividend of approximately $1.09 per ADR share. The dividend thus effectively changes the trailing four-week loss into a gain of approximately $0.51 or 1.10%.

E 5-Day Chart

Source: Fidelity Investments

E 4-Week Chart

Source: Fidelity Investments

In a complete reversal from last week, two of these stocks delivered losses this week with the remainder delivering gains. The best performer over the past week was BP. Total was the second best performer but it was not close to BP's performance. The worst performer by far was Canadian giant Suncor. Suncor showed its volatility as this stock is typically more volatile than the others here. Suncor was also the best performer over the trailing four-week period and, once again, none of the others were anywhere close. Royal Dutch Shell was by far the worst performer over the trailing four-week period.

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