Energy stocks are narrowly higher with the NYSE Energy Sector
Index up less than 0.1% and the S&P Energy Index holding on to
a 0.2% gain. Commodities are mixed. Crude oil for October delivery
is down 3 cents at $96.39 a barrel. October natural gas is up 4
cents at $2.72 per 1 million BTU.
In company news, Petroleo Brasileiro SA (
) reportedly is seeking a joint-venture partner to invest as much
as $4 billion into the company's deepwater drilling operations in
the U.S. Gulf of Mexico, people familiar with the matter told the
Wall Street Journal. PBR ADRs are down about 1.5% today.
The Brazilian state-owned oil company has hired Morgan Stanley (
) to seek out potential partners for the assets, the people said,
adding MS has begun sending out preliminary financial information
to prospective buyers, including foreign and U.S. oil companies.
The company has provided few details on which assets it plans to
PBR is looking to sell as much as 50% of its Gulf operations,
valued at roughly $8 billion, in a deal allowing it to maintain
control, the people said. The asset sales are part of a previously
announced plan by PBR to raise about $14.8 billion to fund its
five-year investment plan.
In other sector news,
(+) TLM, (+3%) Appoints Hal Kvisle, formerly CEO at TransCanada
) and currently a board member at TLM, as its new president and
chief executive officer after John Manzoni agreed to step down from
those positions, effective immediately.
(+) BP, (+0.4%) Reportedly in talks to sell some of its Gulf of
Mexico oil fields to Plains Exploration (
) for roughly $7 billion, a person familiar with the matter tells
(+) TLLP, (+0.05%, turned positive) Pipeline company prices $350
million offering of 5.875% senior unsecured notes due 2020.
Proceeds will be used proceeds to fund its purchase of a marine
terminal and short-haul pipelines in the greater Los Angeles area
as well as repaying its revolving credit facility in full.
(-) SDRL, (-2%) Announces proposed $1.0 billion offering of
unsecured notes due 2017. Proceeds slated to repay existing debt
and funding growth capital expenditures. Separately today, HSBC
downgrades the stock to Neutral from Overweight.
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