Energy Stocks Flat To Slightly Lower As Crude Oil Extends Declines; BP ADRs Down After Federal Appeals Court Decision


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Top Energy Stocks

XOM -0.5%

CVX +0.10%

COP +0.02%

SLB -0.6%

OXY -0.12%

Energy stocks are narrowly mixed today with the NYSE Energy Sector Index currently down about 0.3% while shares of energy companies in the S&P 500 are now up about 0.1% as a group. Crude oil for October delivery is down $1.43 at $107.37 per barrel. September natural gas is unchanged at $3.57 per 1 million BTU.

In company news, BP plc ( BP ) is down 0.8% at near $41.30 per ADR, trading near its session lows after a federal appeals court late yesterday reversing an earlier decision favoring the company in a multimillion-dollar insurance fight.

BP has argued that it is entitled to a portion of $750 million in coverage from a Transocean ( RIG ) insurance policy to help it pay pollution-related costs following a huge April 2010 explosion, fire and spill in the Gulf of Mexico.

BP leased the drilling rig that exploded from RIG. A district court judge nearly three years rejected BP's arguments although that decision was overturned by the Fifth U.S. Circuit Court of Appeals in March.

But on Thursday, a three-judge panel from that same court said the outcome of the dispute isn't clear and said it would seek answers for two key questions from the Texas Supreme Court before making a final ruling, letting the original district court decision to stand.

In other sector news,

(+) APA, (+7.6%) Sells 33% stake in its Egypt oil and gas business to a unit of China Petrochemical Corp for $3.1 bln in a deal expected to close in Q4, subject to regulatory approvals. Separately, UBS reduced its EPS estimates for APA, setting $90 price target.

(-) HOS, (-2.5%) Launches exchange offer for $450 mln of its 5.0% senior notes due 2021, with those notes to be exchanged for an equal number of 5.0% Series B senior notes due 2021.

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

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This article appears in: Investing , Commodities
More Headlines for: BP , RIG

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