Energy stocks are ending mixed today with the NYSE Energy Sector
Index declining about 0.1% while shares of energy companies in the
S&P 500 are ahead 0.3% as a group. Crude oil for January
delivery is up $1.00 at $93.72 per barrel while January natural gas
is down a penny at $3.94 per 1 million BTU.
In company news, Cobalt International Energy Inc. (
) has fallen to some of its worst levels in nearly two years after
initial test results from its Lontra No. 1 pre-salt discovery well
apparently failed to impress investors.
The new well off the Angolian coast was drilled to a total depth
of 4,195 meters, producing a stabilized daily flow rate of 2,500
barrels of condensate and 39 million cubic feet per day of gas. The
flow rates were significantly restricted by the surface test
facilities on the SSV Catarina drilling rig.
CIE executives acknowledged the well contains more gas than they
expected, with CEO Joseph Bryant saying the company believes there
is a potentially large emerging market for natural gas in Luanda,
Angola's capital city.
Bryant also said CIE already has begun discussion with the
project concessionaire on ways for simultaneous commercialization
of both the liquids and the gas discovered from the Lontra
Shares last traded at around $18.56 each, down 16.51, earlier
sliding as low as $18.34 - the lowest price for CIE stock since
In other sector news,
(+) MPC, Deutsche Bank upgrade to Buy from Hold and boosts its
price target by $28 to $108 a share, citing its best-in-class
logistics system and "excellent" operations overall - which it
believes is a key criterion for buying a refinery stock.
(-) PBR, Brazilian energy producer tumbles after The Wall Street
Journal says the Brazilian government continues to keep a lid on
fuel prices. Also, Credit Suisse cut its rating for the stock to
Sell from Buy, citing PBR's timid price hike.
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