Energy Stocks Moderately Higher as Crude Also Gains; Magnegas Down After Discounted Offering

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Energy stocks are moderately higher today with the NYSE Energy Sector Index rising 0.4% and the S&P Energy Index ahead 0.5%. Crude oil for September delivery is up 51 cents to $94.84 a barrel.

In company news, Magnegas Corp ( MNGA ) is down over 6% today at $3.05 a share after the alternative-energy firm priced an upsized public offering of 2.85 million shares of common stock at $3 each.

The offering was expanded by 475,000 shares from its original size and included 652,173 shares sold by Global Alpha LLC and its principals and co-owners, Ruggero and Carla Santilli. MNGA and the selling stockholders have granted underwriters a 45-day option to purchase up to 427,500 additional shares to cover any over-allotments.

MNGA, which produces hydrogen-based fuels made from liquid waste, began trading yesterday on the Nasdaq exchange. The stock previous traded on the OTC bulletin board.

In other sector news,

(+) VQ, (+17.7%) Oil & gas firm rallies after would-be merger partner - Denver Parent Corp - confirms "advanced discussions" to secure $436.5 million financing package. Deal also includes $210-million asset sale by VQ to Denver Parent Corp.

(+) RIG, (+4%) Said Sedco 714 unit won one-year contract extension in the North Sea at a $395,000 dayrate, up 56% from prior contract. Transocean John Shaw also rehired for another year with 13% dayrate hike. Deals boost backlog $275 million.

(+) RRC, (+2.9%) Analysts at Capital One say oil and gas explorer likely takeover candidate, possibly fetching over $100 a share from a prospective suitor.

(+) EC, (+1%) Said deep-water Parmer prospect #1 in the Gulf of Mexico produced a 240-foot column of net condensate-rich gas pay, including a 40-foot net oil pay. EC owns a 30% interest in the two Parmer leases. Apache Corp ( APA ) and Stone Energy ( SGY ) also hold stakes.

(+) BHP, (+1.2%) Said jobs could go at its Australian coal mines because of deteriorating market conditions. "We don't intend to provide any detail about specific adjustments, but clearly there may be some impact on jobs in some areas," BHP said in a statement emailed to Reuters.

(-) SSN, (-1.9%) Files shelf registration to sell up to $200 million of common or preferred shares, debt instruments or derivatives.

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: APA , MNGA , SGY

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