Energy stocks are broadly higher with the NYSE Energy Sector
Index rising 1.7% and the S&P Energy Index adding 1.6%. Crude
oil for October delivery is up 57 cents at $98.88 a barrel. October
natural gas is down 8 cents at $2.95 per 1 million BTU.
In company news, Nexen Inc (
) are down fractionally today after four Republican U.S. senators
voiced concerns over CNOOC Ltd's (
) proposed $15.1 billion buyout of the Canadian natural gas
supplier. At last look, NXY shares are off about 0.3%, but still at
high end of its year range. CEO ADRs are up about 4%.
In a letter to Treasury Secretary Timothy Geithner, the senators
said they were worried foreign national interests are mixing with
profit motivation in the transaction. American officials have a say
in the deal because NXY has substantial drilling operations in
U.S.-governed portions of the Gulf of Mexico.
Two prominent Democrats - Sen. Charles Schumer of New York and
Rep. Ed Markey of Massachusetts - previously have expressed their
concerns over the transaction in letters to Geithner.
In other sector news,
(+) VQ, (+1.7%, near year high) Extends deadline by an
additional three days, or until Oct. 8, for the company to obtain
the necessary financing to complete its going-private
(+) ORIG, (+0.4%) Prices $800 million offering of 6.5% senior
secured notes due 2017 offered by Drill Rigs Holdings Inc.
subsidiary at 99.469% of their face value. Offering was increased
$50.0 million from its original announcement.
(+) OPTT, (+1%) Reports $0.42 a share Q1 net loss, or $0.10
wider than the consensus estimate. Revenues came in at $1 million,
also trailing the $2 million analyst median. OPTT posted a $0.49 a
share net loss on $1.9 million in revenue during the same three
months last year.
(-) LEI, (-1.1%) Said gross production during the first two
months of fiscal Q2 is up 22% over the prior quarter, reaching 439
barrels of oil per day.
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