Top Energy Stocks
Energy stocks were lower this afternoon, with the NYSE Energy
Sector Index sinking about 0.6% while shares of energy companies in
the S&P 500 were down 0.1% as a group. Crude oil for September
delivery was up 23 cents at $102.18 per barrel while August natural
gas was down 12 cents to $3.83 per 1 million BTU.
In company news, Diamondback Energy (
) was higher Monday afternoon after the oil and gas company
announced plans to acquire additional acreage in the Midland Basin
of Texas and increasing its FY14 production forecast.
The $538 million cash purchase is subject to certain adjustments
and consists largely of operating leasehold interests with
unrelated third parties. The company said the properties represent
many years of growth potential, with nearly 400 identified
horizontal drilling locations.
Separately, FANG boosted its projected FY14 daily production by
another 1,000 barrels to a new range of 17,000 to 19,000 barrels of
oil equivalent per day. The new estimates do not include any
volumes from the upcoming Midlands Basin purchase.
The company intends to pay for the deal, in part, through an
underwritten public offering of 5 million shares of its common
stock, which at Friday's closing price of $86.66 a share, would
generate around $433 million in gross proceeds. It also plans to
use borrowings from its revolving credit facility to fund the rest
of the purchase price.
FANG shares were ahead nearly 2% at $88.26 apiece in recent
trade, earlier climbing to a session high of $89.87 a share. The
stock has a 52-week range of 36.78 to $93.33 a share, rising almost
124% over the past 12 months.
In other sector news,
(+) HAL, (+0.1%) Q2 net income climbs 20% from year-ago levels
to $774 mln, or $0.91 per share, matching Street view. Revenue
rises 10% year over year to $8.05 bln, topping estimates by $17
mln. Boosts stock buyback by another $1 bln to $6 bln.
(-) HNR, (-1.3%) Gabon government issues Declaration of
Commerciality for the Deussafu exploration block and also awards
Exclusive Exploitation Authorization to HNR for the Ruche, Tortue,
Moubenga and Walt Whitman offshore prospects.
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