Energy Stocks Finish With Small Gains; Tesoro Rises After Selling Terminals, Pipelines for $650 Mln


Top Energy Stocks

XOM 0.00%

CVX +1.27%

COP -0.10%

SLB -0.66%

OXY -0.21%

Energy stocks are ending slightly higher this afternoon with the NYSE Energy Sector Index rising 0.1% while shares of energy companies in the S&P 500 also are up 0.1% as a group. Crude oil for December delivery settled 31 cents higher at $92.87 per barrel while November natural gas fell 6 cents to $3.56 per 1 million BTU.

In company news, Tesoro Corp ( TSO ) is up 1.8% at $56.35 a share, climbing as high as $56.95 earlier in today's session and the refiner late yesterday selling the rest of its transportation and storage assets in the Los Angeles region to Tesoro Logistics LP (TTLP) for $650 million.

The assets include two marine terminals with a combined throughput capacity of 285,000 barrels per day and with one of the terminals capable of handling very large crude oil carriers able to ship 2 million barrels per trip.

TLLP also will receive over 100 miles of active pipelines connecting the terminals with around 2 million barrels of additional storage facilities in the region. The deal also includes a petroleum coke handling and storage facility.

TSO will receive $585 million of the purchase price in cash with the remaining $85 million to be paid in stock based on the average closing of TLLP shares during the 10 days prior to closing.

Separately, TLLP - which was spun out of TSO in 2011 - today priced an offering of 6.3 million equity units at $51.05 each, generating nearly $322 million in gross proceeds that will help fund the cash portion of the deal.

TLLP shares are down 6.2% at $49.75 each this afternoon.

In other sector news,

(+) EQU, Pursuing exclusive negotiations through early December with an unnamed firm on a potential transaction identified during recent strategic assessment. Said it will provide more information on strategic alternatives "in due course."

(-) OILT, Prices offering of 2.6 mln common units representing limited partner interests at $61.65 apiece, a 4.3% discount to Monday's closing price and generating $160.3 million in gross proceeds. The new money will be used to reduce existing debt.

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

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: TSO

MT Newswires

MT Newswires

More from MT Newswires:

Related Videos




Most Active by Volume

  • $10.24 ▲ 33.16%
  • $27.29 ▲ 1.75%
    $15.69 unch
  • $10.98 ▲ 5.48%
  • $11.83 ▲ 5.81%
  • $18.22 ▲ 3.70%
  • $111.31 ▲ 0.48%
  • $5.16 ▲ 5.52%
As of 10/6/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by