Energy stocks are ending slightly higher this afternoon with the
NYSE Energy Sector Index rising 0.1% while shares of energy
companies in the S&P 500 also are up 0.1% as a group. Crude oil
for December delivery settled 31 cents higher at $92.87 per barrel
while November natural gas fell 6 cents to $3.56 per 1 million
In company news, Tesoro Corp (
) is up 1.8% at $56.35 a share, climbing as high as $56.95 earlier
in today's session and the refiner late yesterday selling the rest
of its transportation and storage assets in the Los Angeles region
to Tesoro Logistics LP (TTLP) for $650 million.
The assets include two marine terminals with a combined
throughput capacity of 285,000 barrels per day and with one of the
terminals capable of handling very large crude oil carriers able to
ship 2 million barrels per trip.
TLLP also will receive over 100 miles of active pipelines
connecting the terminals with around 2 million barrels of
additional storage facilities in the region. The deal also includes
a petroleum coke handling and storage facility.
TSO will receive $585 million of the purchase price in cash with
the remaining $85 million to be paid in stock based on the average
closing of TLLP shares during the 10 days prior to closing.
Separately, TLLP - which was spun out of TSO in 2011 - today
priced an offering of 6.3 million equity units at $51.05 each,
generating nearly $322 million in gross proceeds that will help
fund the cash portion of the deal.
TLLP shares are down 6.2% at $49.75 each this afternoon.
In other sector news,
(+) EQU, Pursuing exclusive negotiations through early December
with an unnamed firm on a potential transaction identified during
recent strategic assessment. Said it will provide more information
on strategic alternatives "in due course."
(-) OILT, Prices offering of 2.6 mln common units representing
limited partner interests at $61.65 apiece, a 4.3% discount to
Monday's closing price and generating $160.3 million in gross
proceeds. The new money will be used to reduce existing debt.
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