Energy Stocks Mixed in Thursday Pre-Trade; Shell Probing Gulf of Mexico Sheen

By Staff,

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Energy stocks are mixed in early pre-trade following a 0.27% rise yesterday for the NYSE Energy index. The S&P Energy index slid underwater just before the closing bell, finishing with a 0.07% decline. Crude oil is higher this morning, with the May NYMEX contract up 56 cents to $103.27 a barrel. May natural gas is up a penny at $1.99 per 1 million British thermal units.

In company news, Royal Dutch Shell (RDS-A) yesterday notified the National Response Center of a light sheen in the Gulf of Mexico between its Mars and Ursa production areas. It said there is no current indication the sheen is originating from wells in either project areas and the source of this sheen is unknown. Still, RDS-A has activated the Louisiana Responder, a Marine Spill Response Corporation vessel.

QR Energy ( QRE ) last night priced a public offering of 6.202 million equity units at $19.18 each, generating about $114.3 million in net proceeds for the oil and gas exploration company after underwriting and other offering expenses were deducted. Underwriters have up to 30 days to exercise overallotment options, which if fully exercised, could generate an additional $48.4 million in net proceeds for QRE.

QRE also offered nearly 11.3 million units on behalf of Quantum Resources Funds, its one-time corporate parent that late last year sold $577 million of natural gas and oil assets in the Permian Basin near the joint borders of Texas, Louisiana, Arkansas and Oklahoma. QRE did not receive any of the $216.6 million generated by the sale of those equity units.

The company will use its proceeds to repay debt. QRE shares slid 2 cents to $19.16 each in after-hours trading Wednesday night.

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) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: QRE

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