2 Energy Companies Tumbling on Wednesday

Energy stocks are on the decline this week, with three stocks tumbling on Wednesday: Murphy Oil Corp (MUR) and Noble Energy Inc. (NBL) suffering the worst losses.

1.     Murphy Oil

Murphy Oil is down 8.19% on the week and fell over 5% on Wednesday. The stock is down 0.69% in early morning trade on Thursday. The company’s stock is slumping as Brent crude fell on Tuesday by $1.84. West Texas Intermediate fell by $1.65 on Tuesday, too.

Fears of an oversupply of oil continue and a strengthening greenback have all weighed on oil prices.

Murphy Oil has had an impressive year, up over 60% since February lows.

The company’s Q2 2016 results for the period ended June 30 were net income of $3 million and an EPS of $0.02. The company ended the quarter with $399 million in cash and $2.46 billion in debt. Murphy paid off its revolving credit facility debt.

The company received $1.15 billion for the sale of its Syncrude and Motney assets.

2.     Noble Energy

Noble Energy is a Texas-based company that is down over 4% in the last five days of trading and down 2.86% since the start of trading on Wednesday. There was no immediate news that would have caused the company’s stock to slump.

Energy prices are the only factor of volatility for the company that could be behind the falling stock prices.

The company is struggling on the year, posting a Q2 2016 net income loss of $103 million. During the same period a year prior, the company posted a $101 million profit. Revenues came in at a $1.3 billion, beating estimates of $981 million.

The company’s stock is up 10% over the last 12-month period. The stock is up 2% since January 4. The company’s assets include the Wattenberg Gas Field, the Delaware Basin and the Denver Basin. The company also operates in Africa, Europe and South America.

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Daniel Simmons