These stocks will struggle with $40 oil: Traders

After oil extended its climb Friday, "Fast Money" traders debated whether some energy companies could get by with the commodity at current levels.

U.S. crude futures settled at $38.50 a barrel, rising for a fourth straight week. Even after those gains, oil prices have fallen about 34 percent in the last year.

Traders assessed multiple companies' prospects with prices around $40 per barrel.


Schlumberger shares have climbed 7 percent this year, ending Friday at $75 per share. Trader Guy Adami contended the stock has moved "too far, too fast."

He believes it could slide below $70 per share.

The exterior of a Schlumberger Corporation building in West Houston, Texas.
Richard Carson | Reuters
The exterior of a Schlumberger Corporation building in West Houston, Texas.

Exploration and production

Trader David Seaburg sees varying fates for some exploration and production names. He said Apache is "not going to do well" with oil at $40 per barrel.

However, he argued that Noble Energy and Occidental Petroleum will "do fine." All three of those stocks have climbed this year despite a down year for broader markets.

Trader Tim Seymour called EOG Natural Resources "best in breed," saying the company will survive with $40 oil.

But Chesapeake Energy will likely have a hard time at those levels, added trader Brian Kelly.

The giants

Seymour outlined Chevron and Exxon Mobil as dividend plays. He called Exxon "a name you want to stay with," saying he would prefer it to BP.


Guy Adami

Guy Adami is long CELG, EXAS, GDX, INTC, Guy Adami's wife, Linda Snow, works at Merck.

Brian Kelly

Brian Kelly is long BBRY, Bitcoin, GLD, GLD puts, SH, SLV, TLT, US Dollar, UUP, Yen; he is short Aussie Dollar, BLK, British Pound, CS, DB, Euro, EWH, FRC, Hong Kong Dollar, UBS, SPY, Yuan, 5-Year Note Futures

David Seaburg

Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc

Tim Seymour

Tim Seymour is long AAPL, AVP, BAC, BBRY, DO, F, FCX, GM, GOOGL, INTC, JCP, NKE, SINA, T, TWTR, VZ, XOM. Tim's firm is long BABA, BIDU, CLF, KO, MCD, PEP, PF, SAVE, SBUX, VALE, WMT,YHOO, short HYG, IWM.