Energy Stocks Rising; Noble Corp Climbing on Plans to Spin Off Older Assets in New Company


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Top Energy Stocks

XOM -0.32%

CVX +0.16%

COP +0.27%

SLB +1.47%

OXY +0.34%

Energy stocks are moderately higher, with the NYSE Energy Sector Index rising 0.4% while shares of energy companies in the S&P 500 are ahead 0.4% as a group. Crude oil for November delivery is down 41 cents at $102.72 per barrel while October natural gas is up 3 cents to $3.59 per 1 million BTU.

In company news, Noble Corp ( NE ) is up nearly 3% at $39.00 a share after disclosing plans to spin off its older oil drilling rigs into a separate company that may go public next year.

The move comes as NE works to command higher valuations for its best drilling assets while its older rigs will make up the bulk of its standard specification drilling units. The new company will includes five drillships and three semisubmersibles as well as 34 jackups, two submersibles and one FPSO. It also would be responsible for NE's Hibernia platform operations.

NE also said it expects to file for an initial public offering of up to 20% of the new company's stock later this year or in early 2014, with completion of the deal contingent upon a favorable tax ruling from the IRS - expected soon, according to NE.

In other sector news,

(+) ANW, (+9.6%) Signs facilities agreement for new, $1 bln syndicated secured multicurrency revolving credit facilities comprised of three tranches to be drawn once the oil and gas company executes additional security documents.

(+) BPZ, (+2.0%) Closes on $125-mln offering of 8.50% convertible senior notes due September 2017 as well as the repurchase of $85.0 million of its 6.50% convertible senior notes due March 2015.

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

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