Energy stocks are mostly lower, with the NYSE Energy Sector
Index falling 1.0% while shares of energy companies in the S&P
500 are down 1.1% as a group. Crude oil for December delivery is
down $2.10 at $93.04 per barrel while December natural gas is up 4
cents to $3.62 per 1 million BTU.
In company news, Bonanza Creek Energy (
) is down more than 2% at $50.21 a share after announcing plans to
sell an additional $150 million of its 6.75% senior notes due 2021,
subject to market conditions.
BCEI previously sold $300 million of the 6.75% senior notes in
April. The company plans to use $68.5 million of the net proceeds
to repay all of its outstanding borrowings under its revolving
credit facility, with the remaining $78.1 million to be used for
general corporate purposes.
Moody's Investors Service assigned a B3 rating to the senior
notes offering, with Moody's vice president Andrew Brooks saying
the new funding will further fund the company's 31,700 acres in the
Wattenburg field in Colorado, adding "the high liquids content from
Wattenberg production (should yield) attractive cash margins and
provides substantial growth opportunities for Bonanza Creek."
In other sector news,
(+) NTI, (+3.3%) Western Refining (
) agrees to buy a 38.7% limited partnership stake in the oil and
gas company for $775 million from Acon Investments and TPG.
(-) GTE, (-7.5%) EPS of $0.12 trails Thomson Reuters consensus
by $0.07 per share. Revenue rises 12.3% year over year to $189.7
million, also missing estimates by around $28.74 mln. Revises FY13
daily production forecast 2% higher.