Energy Stocks Mostly Up As Crude Oil, Gas Trading Higher; XOM and CVX Near Yr Highs, But PostRock Energy Turns Negative


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Top Energy Stocks

XOM +0.8%, near year highs

CVX +0.8%, near year highs

COP +0.9%

SLB +1.1%

OXY +0.24%

Energy stocks are mostly higher today with the NYSE Energy Sector Index rising about 1.1% and the S&P Energy Index climbing 1.2%. Crude oil for November delivery is up 38 cents at $92.57 a barrel. November natural gas is up 11 cents at $3.43 a share.

In company news, PostRock Energy ( PSTR ) shares are now down about 0.6% at $1.70 apiece - above a day low $1.67 and a day high $1.88 at the open - after the company late Friday sold its KPC Pipeline, a 1,120-mile interstate pipeline transporting natural gas from northern Oklahoma and western Kansas to Wichita and Kansas City, to MV Pipelines, LLC for $53.5 million in cash.

Under the agreement, PSTR may receive additional payments of $1 million a year over each of the next four years if KPC's EBITDA exceeds a target amount. The sale is subject to a working capital adjustment. The sellers also will be place $100,000 in escrow pending cleanup of a former KPC site.

After deducting for about $2 million in estimated transaction costs, the company will record a loss on the sale of about $6 million. Net proceeds from the sale will be used to repay borrowings under the PSTR's credit facility.

In other sector news,

(+) RIG. (+4.1%) Brazilian court overturns an injunction threatening to halt off-shore drilling by the rig operator, accepting arguments an injunction would have caused billions of dollars in lost revenue for the government and the state-led oil firm Petrobras ( PRB ).

(+) GDP, (+3.4%) Closed on $95-million sale of non-core properties in the South Henderson field in eastern Texas to Memorial Resource Development LCC.

(-) IOC, (-0.3%, turns negative) Begins drilling on the Antelope-3 appraisal well in Petroleum Retention License 15 in Papua New Guinea.

(+) RDS-A, (+0.4%) Shut down its Bonny oil pipeline in Nigeria, deferring about 150,000 barrels of daily production after oil thieves set fire to the 28-inch trunkline.

(-) PVA, (-2%) Closes on new five-year, $300-million senior secured revolving credit facility. Accordion feature allows for up to $300 million more of borrowing capacity.

(-) NOG, (-2.6%) Company President Ryan Gilbertson resigns, effective Oct. 1, but will continue as advisor to the board of directors through October 2014.

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: PRB , PSTR

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