Sector Update: Energy


Shutterstock photo

Energy stocks are narrowly lower, with the NYSE Energy Sector Index falling 0.2% while shares of energy companies in the S&P 500 are down 0.3% as a group. Crude oil remains under hard selling pressure, with October futures falling $2.43 to $107.09 per barrel. October natural gas is off 4 cents to $3.57 per 1 million BTU.

In company news, EXCO Resources ( XCO ) is down more than 3% at $7.05 a share despite raising its guidance for FY13 adjusted EBITDA guidance by $15 million to $450 million.

The oil and gas company initially forecast EBITDA of $296 million for the current fiscal year, raising it to $341 million when it released its fiscal Q2 financial results and again to $435 million when it reported its Q3 results to account for the company's recent acquisition of properties in Eagle Ford and Haynesville shale formations.

Also contributing to the improved guidance was the decision by BG Group plc not to acquire 50% of the producing and undeveloped oil and gas assets in the Haynesville shale formation. XCO had closed on that acquisition on July 12, paying $288 million.

In other sector news,

(-) NSH, (-4.4%) Shares slide to new new 52-week low after analysts at Credit Suisse lowered their rating for the oil and gas pipeline company to Underperform from Neutral.

(-) NRGM, (-6.1%) Prices public sale of 11 mln shares at $22.50 each. Underwriters also received 30-day option to buy up to 1.65 mln additional shares. Net proceeds will be used to repay debt and to fund ongoing expansion projects.

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

More from MT Newswires


MT Newswires

MT Newswires

Market News, Commodities
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by