NEW YORK, NY / ACCESSWIRE / January 5, 2017 / Energy stocks rose Wednesday as oil prices have trended upwards and after analysts forecasted a weekly decline in U.S. oil stockpiles. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) gained 0.48 percent. In 2016, the ETF posted a gain of 37 percent.

"Energy outperformed in 2016, and if OPEC delivers, it will happen again in 2017," Bernstein analysts wrote in a note to clients Wednesday.

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Oil prices retreated slightly Wednesday after a sharp spike the day prior. U.S. West Texas Intermediate crude futures declined 0.24 percent, or $0.13, to settle at $53.13 a barrel on the New York Mercantile Exchange. Brent crude futures declined 0.37 percent, or $0.21, to settle at $56.25 a barrel on ICE Futures Europe. U.S. crude stockpiles are expected to fall by 1.7 million barrels last week, according to analysts surveyed by Reuters. The Wall Street Journal's survey of 10 analysts forecasts stockpiles to drop by 2 million barrels.

Encana Corp. (NYSE: ECA)

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Encana shares spiked 8.46 percent to close at $12.95 a share Wednesday. The stock traded between $12.29 and $12.98 on volume of 21.49 million shares traded. The company now expects a profit margin of $10 per barrel of oil equivalent in 2017, based on price assumptions of $55.00 WTI and $3.00 NYMEX, up from a previous estimate of $8 a barrel announced at an investor day in October. Production growth from Encana's core four assets is expected be in the upper range of, or exceed, its previously indicated growth plan of 15 to 20 percent year-over-year in the fourth quarter of 2016.

"Our performance gives us confidence that we can deliver one of the best value creation stories in our industry," said Doug Suttles, Encana President & CEO. "We are one of, if not the highest performing and most efficient companies in each of our core four assets. Through our relentless focus on efficiency, we expect our total 2017 drilling and completion costs will be flat or down year-over-year despite inflation for some services."

Chesapeake Energy Corporation (NYSE: CHK)

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Chesapeake Energy's shares gained 1.16 percent to close at $7.00 a share Wednesday. The stock traded between $6.85 and $7.07 on volume of 48.23 million shares traded. On December 20th, the company announced an agreement to sell a portion of the acreage and producing properties in its Haynesville Shale operating area for approximately $465 million to an affiliate of Covey Park Energy LLC. The sale includes approximately 41,500 net acres and 326 operated and non-operated wells currently producing approximately 50 million cubic feet (mmcf) of gas per day, net to Chesapeake.

"Chesapeake delivered on its strategy and achieved our stated financial and operational objectives in 2016. We exceeded our 2016 asset sales goal by approximately $500 million, bringing total gross proceeds from divestitures either signed or closed in the year to approximately $2.5 billion, excluding certain volumetric production payment repurchase transactions. We will continue to pursue opportunities to strengthen our balance sheet in 2017," commented Doug Lawler, Chesapeake's Chief Executive Officer.

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