Oil & gas companies Q4 news flow most positive in past 8-quarters

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Total SA leads positive news coverage among top 10 oil & gas companies in 2017

Global oil & gas companies witnessed a significant improvement in underlying news sentiment for December 2017 quarter. Crude oil prices are at its highest level in past 8-quarters (Image 1), which has led to improvement in prospects of earnings, production and growth-oriented activities for the oil & gas companies. As a result, news coverage on top 100 global oil & gas companies during Q4 was most positive in the past 8-quarters.

[Image 1: Crude Oil Price Trend]

FiND, an alternative data platform developed by Heckyl has accurately captured movement in news sentiment for the oil & gas sector. For the past 8-quarters, our positive to negative news ratio for top 100 oil & gas companies showed near perfect positive correlation (0.95) with Dow Jones Global Oil & Gas index (Image 2).

Dow Jones Global Oil & Gas - Positive to Negative News Ratio
[Image 2: Dow Jones Global Oil & Gas v/s Heckyl Positive to Negative News Ratio]

 (The ratio value higher than 1 indicates mostly positive news sentiment. On the other hand, the ratio value lower than 1 signals broadly negative news sentiment.)

2017 turned out to be a good year for oil & gas companies globally in terms of improvement in positive news flow. Sentiment has improved across top news categories during 2017 (Image 3). Earnings, estimates, production, M&A, and contracts were top 5 topics that dominated positive news coverage for oil & gas companies in 2017.

Top News Categories +ve -ve
[Image 3: Category-wise Positive to Negative News Ratio]

Among top 10 global oil & gas companies, news flow for French oil giant Total SA was most favorable as the volume of positive news outpaced negative news volume by nearly 5 times in 2017 (Image 4). On the other hand, Exxon Mobil, the world largest integrated oil & gas company, topped the volume of both positive and negative news items during the year.

Co Positive Negative Ratio
[Image 4: Positive and Negative News Volume for Top 10 Oil & Gas Companies]

At the same time, Total SA’s news sentiment 200-DMA was in the uptrend since February 2017 (Image 5). Currently, news sentiment 200-DMA for French integrated oil & gas company is at the highest level among its global peers.

Peer sentiment 200 DMA
[Image 5: Compare Screen highlighting News Sentiment for Top 5 Oil & Gas Companies]

In our view, strong positive correlation signals that the Heckyl news sentiment is an alternative indicator to capture the underlying sentiment for both oil & gas sector as well as individual companies.

FiND offers high-end Media analytics by tracking mainstream news and social media in real-time and analyzing movement in underlying sentiment around it for all listed and unlisted companies across the globe.

To know more about Find, email us at find@heckyl.com

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