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NGLs Week

NGLs Week Newsletter  

PetroChem Wire and Genscape have partnered to create NGLs Week, a comprehensive summary of price trends, upstream and downstream costs, operations news and supply/demand forecasts. The report contains everything you'll need to understand what's happening in the NGL markets.

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Petchem stocks continue to fall as crude drops below $30: PCW index

HOUSTON, January 22, 2016 (PCW) -– Petrochemical companies’ stocks resumed their downward march this week as crude fell below $30/bbl and other economic indicators softened.

The midstream sector remained the biggest loser with its average stock price down $2.95, or 14.81%, to $16.96/share, led by Energy Transfer’s 14.79% decrease during the week. The Dallas-based company’s stock hit a six-year low early in the week as doubts mounted on its ability to close its acquisition of Tulsa-based Williams amid declining stock prices and as some analysts lowered Williams’ credit rating to effectively junk status.

The vinyls sector came in second as its average stock price fell $3.32, or 10.39%, to $28.63/share during the week. Axiall was in the lead again with its stock price hitting a fresh multi-year low during the week. The company’s share price finished the week down 11.51%.

The aromatics/refinery sector saw its average stock price shed $5.92, or 9.57%, to $55.90/share. Tesoro’s 11.66% weekly stock price loss took pole position as a handful of analysts downgraded its rating to ‘BBB-‘, indicating the company is a moderate default risk.

The olefins/polyolefins sector saw its average stock price slide $4.63, or 8.42%, to $50.39/share. Williams again was the group’s biggest loser with its stock price down 12.3%, as troubles continued to plague its looming deal with Energy Transfer. Over the weekend, a class action shareholder lawsuit was filed against Williams and Energy Transfer, alleging misrepresentations of shareholder benefits once the acquisition is completed. – Samantha Hartke

*Index components:

Weekly Stock Price Index
  This Week Last Week Difference % Difference
Midstream Average 16.96 19.91 -2.95 -14.81
Olefins/Polyolefins Average 50.39 55.02 -4.63 -8.42
Aros/Refinery Average 55.90 61.81 -5.92 -9.57
Vinyls Average 28.63 31.95 -3.32 -10.39
Major Economic Indicators
  This Week Last Week Difference % Difference
EUR/USD 1.09 1.09 0.00 0.09
Dow Jones Indices 15822.68 16379.05 -556.37 -3.40
S&P 500 1868.99 1921.84 -52.85 -2.75
WTI crude 29.53 31.20 -1.67 -5.35