Energy Stocks Stumbling in Market Slide; Shale-Oil Proving a Boom for Union Pacific Too

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Top Energy Stocks

XOM -1.1%, earlier hit new year high

CVX -0.70%

COP -1%

SLB -1.3%

OXY -1.43%

Energy stocks are mostly lower with the NYSE Energy Sector Index sinking 1.1% and the S&P Energy Index falling just under 1.4%. Crude oil for November delivery is down 49 cents at $91.61 a barrel. November natural gas is up 5 cents at $3.64 per 1 million BTU.

In company news, Union Pacific Corp. ( UNP ) is enjoying a upswing in business from the booming shale-oil industry, helping offset a 12% drop in volume and a 5% drop in revenue for the rail carrier from coal shipments in its most recent quarterly results.

For example, drilling equipment, chemicals and sand used in hydraulic fracturing operations are being shipped to the newly opened shale oil and gas fields in North Dakota Ohio, Pennsylvania and western Texas. On the return trip, the trains are hauling crude bound for refineries in California, Texas and Louisiana.

Overall, UNP yesterday said its earnings rose 15% in Q3, posting a $2.19 a share profit. Revenue jumped 4.7% to $5.34 billion Analysts polled by Thomson Reuters had been expecting $2.18 a share on $5.39 billion in revenue.

UNP shares are lower today, sliding about 1.4% to near $123.50 apiece, but still at the top end of its 52-week range.

In other sector news,

(-) SLB, (-1.3%) Reports Q3 earnings of $1.08 a share, ex items, up $0.12 from year-ago levels and beating the Capital IQ consensus by $0.01. Revenues rose 11.1% to $10.61 billion, trailing expectations by $40 million.

(-) PGH, (-2.6%) Agrees to sell $300 million of its 3.450% notes due in November 2022. Offering is expected to close Oct. 23.

(-) CPNO, (-5.1%) Announces 6 million unit offering. Plans to use proceeds to repay a portion of its revolving credit facility, using the increased borrowing capacity as needed for capital projects, acquisitions and other general corporate purposes.

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

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