Energy Select Sector SPDR ETF (XLE) - NYSEARCA
  • Oct. 23, 2015, 9:37 AM
    | Oct. 23, 2015, 9:37 AM | 27 Comments
  • Oct. 19, 2015, 4:56 PM
    • Lenders so far have reduced only $450M from the borrowing bases of some two dozen public oil companies, ~2% of the capital available under their reloadable credit facilities, Jefferies says.
    • Analysts had expected banks to cut borrowing bases by an average 15% across the sector this fall during their semiannual review of the reserve-based loans they made when crude prices were much higher.
    • SandRidge Energy (NYSE:SD) became the latest to ace its bank review, saying today its lenders did not reduce its $500M borrowing base.
    • Jefferies believes one reason banks have been flexible is that financial regulators have pushed lenders to shore up extra funds to protect against oil company losses.
    • But Jefferies says the banks’ spring 2016 reassessment period “could be much tougher" if oil stays cheap, in part because domestic oil producers have hedged little of next year’s production; the firm expects the 24 producers it tracks to have 2.9x debt to pre-tax earnings by year-end vs. 1.9x at the same time last year.
    • ETFs: XLE, VDE, ERX, OIH, XOP, ERY, DIG, DUG, BGR, XES, IYE, IEO, IEZ, FENY, PXE, PXJ, FIF, NDP, RYE, FXN, DDG
    | Oct. 19, 2015, 4:56 PM | 17 Comments
  • Oct. 9, 2015, 2:26 PM
    • The House passes legislation that would lift the 40-year-old ban on oil exports, giving the oil industry one of its top congressional priorities.
    • But the real test is in the narrowly divided Senate, where stand-alone export legislation is far less likely to advance; in the 261-159 House vote, only 26 Democrats joined 235 Republicans to support the measure, held down by the Obama administration's opposition.
    • More than a dozen oil companies - including Continental Resources (NYSE:CLR), ConocoPhillips (NYSE:COP), Encana (NYSE:ECA), Hess (NYSE:HES), Marathon Oil (NYSE:MRO) and Apache (NYSE:APA) - have been pressing the issue with Congress, arguing that allowing oil exports would eliminate market distortions, create jobs and stimulate more U.S. petroleum production; it also would help companies fetch a higher price on the global oil market.
    • "An extra dollar or two for the price of our product today is very important because our margins are incredibly squeezed,” says ECA's Doug Suttles.
    • ETFs: USO, OIL, XLE, UCO, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, DBO, DWTI, ERY, DIG, DTO, DUG, BGR, USL, XES, IYE, IEO, IEZ, DNO, FENY, PXE, PXJ, FIF, OLO, SZO, NDP, RYE, FXN, OLEM, DDG
    | Oct. 9, 2015, 2:26 PM | 101 Comments
  • Oct. 8, 2015, 12:43 PM
    • Ahead of revisions to the Global Industry Classification Standard structure set to take effect next August in which real estate-related stocks will be broken out of the financial sector, State Street's (NYSE:STT) Real Estate Select Sector SPDR (NYSEARCA:XLRE) opens for trade alongside the FInancial Services Select Sector SPDR (NYSEARCA:XLFS). The Financial Select Sector SPDR (NYSEARCA:XLF) remains the same for those looking for exposure to the whole sector in just one ETF.
    • Concurrent with the launches, SSgA cuts the expense ratio for the entire Select Sector SPDR ETF suite to 0.14% from 0.15%.
    • Other Sector SPDRs: XLY, XLP, XLE, XLV, XLI, XLB, XLK, XLU
    | Oct. 8, 2015, 12:43 PM | 6 Comments
  • Oct. 6, 2015, 3:28 PM
    • Oil industry execs speaking at the Oil and Money conference in London warn of a "dramatic" decline in U.S. production that could pave the way for a future spike in prices if fuel demand increases.
    • Former EOG Resources (EOG +2.7%) CEO Mark Papa, now a partner at energy investment firm Riverstone Holdings, expects U.S. oil production to stall this month and begin to decline from early next year.
    • Royal Dutch Shell (RDS.A, RDS.B) CEO Ben van Beurden agrees, saying U.S. oil producers will struggle to refinance while prices remain so low, leading to lower output in the future.
    • Weatherford (WFT +9.9%) CEO Bernard Duroc-Danner notes that the speed and brutality of cost cutting in the industry is the deepest since 1999; in addition to WFT, he thinks just two other big North American oil services companies will remain as the sector is forced to consolidate.
    • November WTI crude climbed $2.27, or 4.9%, to settle at $48.53/bbl for the highest settlement since Aug. 31, propelling energy stocks (XLE +2.3%) to the top of today's stock market leaderboard.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
    | Oct. 6, 2015, 3:28 PM | 109 Comments
  • Oct. 6, 2015, 11:33 AM
    | Oct. 6, 2015, 11:33 AM | 25 Comments
  • Oct. 1, 2015, 2:19 PM
    • The Senate Banking Committee approves a bill to lift the ban on U.S. crude oil exports, but the vote illustrates the hardening political divisions on the issue and some senators’ skepticism of making such a major trade policy change.
    • The panel voted 13-9 to approve the oil exports bill authored by North Dakota Sen. Heitkamp, the only Democrat to cross party lines and join the 12 committee Republicans in favoring the measure.
    • But the committee added a provision requiring Iran to use proceeds from the recent nuclear deal to compensate terrorism victims who have won U.S. court rulings against the country, which virtually guarantees the bill will not survive on the Senate floor, where Democrats easily can muster the 41 votes needed to protect Pres. Obama’s deal.
    • The House is expected to vote on its own legislation next week.
    • ETFs: XLE, VDE, ERX, OIH, XOP, ERY, DIG, DUG, BGR, XES, IYE, IEO, IEZ, FENY, PXE, PXJ, FIF, NDP, RYE, FXN, DDG
    | Oct. 1, 2015, 2:19 PM | 13 Comments
  • Sep. 28, 2015, 3:36 PM
    • Morgan Stanley chief U.S. equity strategist Adam Parker is waving the white flag on the energy sector, confessing that he and his team "made a really bad call" by going overweight on the group at the beginning of this year.
    • Parker now says the supply glut in oil may not improve for another year, at a minimum, and that investors may find a better entry point in 6-9 months.
    • "We thought the falling rig count would be a catalyst to spark a dream of higher oil," Parker explains. "We now think rig counts aren’t the way to think about it - it is production, and production isn’t down really at all in the U.S."
    • Parker's mea culpa comes as energy stocks are whacked today, with WTI crude -2.8% to $44.43/bbl as signs of slowing global economic growth continue to spark worries about the outlook for energy demand; XLE -3.8%, with E&P (NYSEARCA:XOP) stocks down more than 5% and oil service stocks (NYSEARCA:OIH) off nearly 4%.
    • Other ETFs: VDE, ERX, ERY, FCG, DIG, GASL, DUG, BGR, XES, IYE, IEO, IEZ, FENY, PXE, PXI, FIF, PXJ, NDP, RYE, FXN, DDG
    | Sep. 28, 2015, 3:36 PM | 24 Comments
  • Sep. 25, 2015, 7:57 AM
    • California regulators are expected to restore a first-in-the-nation climate change program that requires a 10% cut in carbon emissions on transportation fuels sold in the state by 2020.
    • The California Air Resources Board is expected to vote today on the clean fuel standard, which has survived a long legal challenge from fuel makers, particularly out-of-state refiners and ethanol companies who argued that transporting the fuels into California alone made them less competitive against in-state producers.
    • Oil producers say the standard will cost consumers much more in a state that already has some of the highest gas prices in the U.S. as the companies try to comply with the mandate or face being shut out of the market; supporters say the program will encourage greater use of cleaner biofuels and electric vehicles.
    • ETFs: XLE, VDE, ERX, OIH, ERY, DIG, PBW, DUG, BGR, IYE, QCLN, FENY, FIF, PXJ, RYE, FXN, PUW, DDG, HECO
    | Sep. 25, 2015, 7:57 AM
  • Sep. 23, 2015, 3:55 PM
    • WTI crude oil settled 4.1% lower at $44.48/bbl after an initially bullish reaction to lower crude inventories was reversed by large gasoline builds that raised concerns about high autumn fuel supplies.
    • Crude prices rose after the EIA's weekly report showed oil stocks falling more than expected, a sign of stronger demand, but oil suddenly turned lower as the same EIA report showed distillate inventories rising to a four-year high - bad news for refiners, who have less incentive to produce more distillates.
    • The draw also was smaller than the 3.7M-barrel decline reported by the American Petroleum Institute, which had helped lift prices since Tuesday night.
    • In the bigger picture are ever-present growth concerns in China, the world’s second-largest oil importer; a reading on Chinese manufacturing overnight fell to a six-and-a-half-year low.
    • ETFs: USO, OIL, XLE, UCO, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, DBO, DWTI, ERY, DIG, DTO, DUG, BGR, USL, XES, IYE, IEO, IEZ, DNO, FENY, PXE, PXJ, FIF, OLO, SZO, NDP, RYE, FXN, OLEM, DDG
    | Sep. 23, 2015, 3:55 PM | 45 Comments
  • Sep. 23, 2015, 2:42 PM
    • U.S. oil producers are about to see their credit lines shrink, and a new survey by the Haynes and Boone law firm predicts nearly 80% of oil and gas producers will see a reduction in the maximum amount they can borrow with credit lines cut by an average of 39%.
    • Whiting Petroleum (NYSE:WLL), for example, may see the maximum amount it can charge on its credit line cut to $3.75B from $4.5B, CEO James Volker said recently.
    • Lenders are using $48/bbl to value assets in Q3, down from $77 at the end of last year, according to a quarterly bank survey from Macquarie, and reserve growth has slowed because companies are spending less on drilling.
    • ETFs: XLE, VDE, ERX, OIH, XOP, ERY, DIG, DUG, BGR, XES, IYE, IEO, IEZ, FENY, PXE, PXJ, FIF, NDP, RYE, FXN, DDG
    | Sep. 23, 2015, 2:42 PM | 6 Comments
  • Sep. 21, 2015, 12:22 PM
    • The world's biggest oil companies are banking on cost reductions of 20%-30% on projects to help them weather falling oil prices, but projects worth ~$1.5T remain uneconomic and are unlikely to go ahead, according to a new report from Wood Mackenzie.
    • The consulting firm estimates that supply chain savings through squeezing the service sector will result in an average cost reduction of just 10%-15%, half what the industry is hoping to achieve, and the sector must rethink the way it approaches projects, many of which were already expensive when oil was at $100/bbl.
    • "A prolonged period of low oil prices over a number of years is likely needed to bring about profound, structural changes to industry costs," Wood Mackenzie says, which it thinks is unlikely - "in our view, oil prices will begin to recover from 2017, and there is a real risk that cost inflation pressures then return."
    • ETFs: XLE, VDE, ERX, OIH, XOP, ERY, FCG, DIG, GASL, DUG, BGR, XES, IYE, IEO, IEZ, FENY, PXE, FIF, PXJ, NDP, RYE, FXN, DDG
    | Sep. 21, 2015, 12:22 PM | 14 Comments
  • Sep. 18, 2015, 3:49 PM
    • Crude oil futures fell by the most in nearly three weeks following the Fed’s decision to keep interest rates unchanged, raising worries about the U.S. economy and energy demand.
    • October WTI futures fell $2.23 (-4.8%) to $44.69/bbl, while November Brent crude slipped $1.61 (-3.3%) to $47.47.
    • News of a third straight weekly decline in active U.S. oil drilling rigs failed to help, as "the industry is getting so much more production from new technology that a decline in working rigs doesn't mean nearly as much as it used to," according to one commodities broker.
    • Meanwhile, Kuwait's oil minister said it would take time for the oil market to balance, indicating OPEC would continue defending market share over production cuts to bolster prices.
    • ETFs: USO, OIL, XLE, UCO, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, DBO, DWTI, ERY, DIG, DTO, DUG, BGR, USL, XES, IYE, IEO, IEZ, DNO, FENY, PXE, PXI, FIF, PXJ, DBE, OLO, SZO, NDP, RYE, RJN, FXN, OLEM, DDG, JJE
    | Sep. 18, 2015, 3:49 PM | 58 Comments
  • Sep. 18, 2015, 1:38 PM
    • Energy Select Sector SPDR ETF (NYSEARCA:XLE) announces quarterly distribution of $0.4781.
    • 30-Day Sec yield of 3.09% (as of 9/16/2015).
    • Payable Sept. 28; for shareholders of record Sept. 22; ex-div Sept. 18.
    | Sep. 18, 2015, 1:38 PM
  • Sep. 15, 2015, 6:56 PM
    • The borrowing party is about to end for smaller and more debt-laden oil producers, WSJ reports, with drillers bracing for cuts to their credit lines next month as banks re-evaluate how much energy companies’ oil and gas properties are worth and the low price of oil catches up to the producers.
    • Some smaller companies already are negotiating with their lenders, dumping assets at low prices and delaying payments to vendors.
    • "With eight bankruptcies already announced this year, weaker producers could live or die by the whims of capital providers," and banks will reduce borrowing bases by as much as 15%, according to Citi analysts, which WSJ says would dry up ~$10B of liquidity.
    • More distress likely is in store for many companies because the hedges they purchased as protection against low oil prices are increasingly expiring.
    • ETFs: XLE, VDE, ERX, OIH, XOP, ERY, FCG, DIG, GASL, DUG, BGR, XES, IYE, IEO, IEZ, FENY, PXE, FIF, PXJ, PSCE, NDP, RYE, FXN, DDG
    | Sep. 15, 2015, 6:56 PM | 15 Comments
  • Sep. 14, 2015, 12:52 PM
    • The rout in commodity prices has made properties not worth drilling to such an extent that 66 oil and gas producers have written down the value of their drilling fields by more this year than any full year in history, WSJ reports.
    • The companies have taken impairment charges totaling $59.8B through June, according to a tally by energy consultancy IHS Herold, topping the previous record of $48.5B set in 2008.
    • This year’s impairment tally is certain to grow, even if oil prices buck forecasts and move higher: U.S. securities regulators require E&P companies to value drilling properties and reserves according to energy prices over the previous 12 months, which means the formulas used to calculate their value at the end of June still included prices from H2 of last year, before oil prices had made much of their descent to their current ~$45/bbl price levels.
    • "There’s a disconnect between the 12-month average and reality. There will be pricing impairments for the next two quarters, at least," IHS says.
    • ETFs: XLE, VDE, ERX, OIH, XOP, ERY, DIG, DUG, BGR, IYE, IEO, FENY, PXE, FIF, PXJ, NDP, RYE, FXN, DDG
    | Sep. 14, 2015, 12:52 PM | 14 Comments
XLE Description
The Energy Select Sector SPDR® Fund, before expenses, seeks to closely match the returns and characteristics of the Energy Select Sector Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
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Country: United States
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