Energy Stocks Mixed Although XOM and CVX Hit Yr Highs; Petroleo Brasileiro Said Seeking JV Partner for Gulf Projects

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Top Energy Stocks

XOM -0.16%, earlier hit year highs

CVX +0.06%, has hit year highs

COP -0.19%

SLB +0.55%

OXY -0.3%

Energy stocks are mixed - although both XOM and CVX have hit new year highs - with the NYSE Energy Sector Index up less than 0.1% and the S&P Energy Index holding on to a 0.2% gain. Commodities are mixed. Crude oil for October delivery is down 3 cents at $96.39 a barrel. October natural gas is up 4 cents at $2.72 per 1 million BTU.

In company news, Petroleo Brasileiro SA ( PBR ) reportedly is seeking a joint-venture partner to invest as much as $4 billion into the company's deepwater drilling operations in the U.S. Gulf of Mexico, people familiar with the matter told the Wall Street Journal. PBR ADRs are down about 1.5% today.

The Brazilian state-owned oil company has hired Morgan Stanley ( MS ) to seek out potential partners for the assets, the people said, adding MS has begun sending out preliminary financial information to prospective buyers, including foreign and U.S. oil companies. The company has provided few details on which assets it plans to sell.

PBR is looking to sell as much as 50% of its Gulf operations, valued at roughly $8 billion, in a deal allowing it to maintain control, the people said. The asset sales are part of a previously announced plan by PBR to raise about $14.8 billion to fund its five-year investment plan.

In other sector news,

(+) TLM, (+3.3%) Appoints Hal Kvisle, formerly CEO at TransCanada ( TRP ) and currently a board member at TLM, as its new president and chief executive officer after John Manzoni agreed to step down from those positions, effective immediately.

(+) BP, (+0.48%) Reportedly in talks to sell some of its Gulf of Mexico oil fields to Plains Exploration ( PXP ) for roughly $7 billion, a person familiar with the matter tells Reuters.

(+) TLLP, (+0.14%, has turned positive) Pipeline company prices $350 million offering of 5.875% senior unsecured notes due 2020. Proceeds will be used proceeds to fund its purchase of a marine terminal and short-haul pipelines in the greater Los Angeles area as well as repaying its revolving credit facility in full.

(-) SDRL, (-2.0%) Announces proposed $1.0 billion offering of unsecured notes due 2017. Proceeds slated to repay existing debt and funding growth capital expenditures. Separately today, HSBC downgrades the stock to Neutral from Overweight.

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 , Commodities
Referenced Symbols: MS , PBR , PXP , TRP

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