Energy Sector Update for 10/18/2016: SM,OAS,WNR,ULTR

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Top Energy Stocks

XOM -0.07%

CVX -0.06%

COP -1.46%

SLB +0.57%

OXY -0.86%

Energy stocks were mostly higher, with the NYSE Energy Sector Index rising 0.4% while shares of energy companies in the S&P 500 were up about 0.2% as a group. Crude oil for November delivery was up 9 cents at $50.03 per barrel while November natural gas futures were 3 cents higher at $3.27 per 1 million BTU.

In company news, SM Energy Company ( SM ) jumped out to a 15-month high on Tuesday after the oil and natural gas producer today announced its purchase of 35,700 acres in the Midland Basin in western Texas for $1.10 billion in cash and 13.4 million shares of its common stock valued at around $500 million.

The property acquisition increases the company's footprint in the Midland Basin to about 82,450 acres. SM Energy expects to use net proceeds from a $785 million sale of property and other assets in the Williston Basin to Oasis Petroleum ( OAS ) also announced today to pay for the bulk of its cash outlay for the deal.

Separately, analysts at CapitalOne today raised their investment call for SM Energy to Overweight from Equal Weight.

SM shares were up over 1% at $39.17 each, previously climbing to their best level since July 2015 at $43.09 a share.

In other sector news,

(+) WNR, (+2.8%) Begins tender offering for up to $195 mln of its 7.125% senior secured notes due 2020.

(-) ULTR, (-23.4%) Nasdaq announces it will suspend trading of the company's stock, effective Wednesday.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Energy
Referenced Symbols: SM , OAS , WNR , ULTR

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