Sector Update: Energy

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Energy stocks are mostly lower with the NYSE Energy Sector Index sliding about 0.9% and the S&P Energy Index falling just over 1.0%. Crude oil for February delivery is up 10 cents to $93.19 a barrel. February natural gas is ahead 4 cents at $3.33 per 1 million BTU.

In company news, Tesoro Corp. ( TSO ) is down about 4.7% at near $40.55 a share as analysts at Howard Weil today dropped shares of the refinery and marketing company from its Focus List with a new Outperform rating.

TSO also today amended a credit pact more than doubling its borrowing capacity to as much as $4 billion. The debt pays interest at 1.5 percentage points more than the London interbank offered rate, according to a regulatory filing. The company expects to repay $500 million of the expanded line within the next 18 months along with another $500 million by January 2015. Its prior revolver had a $1.85 billion capacity.

In other sector news,

(+) ES, (+8.3%) Accepts $3.75-a-share buyout from Energy Capital Partners. The target company has until Feb. 6 to solicit superior offers under "go-shop" provisions of the purchase agreement.

(+) CAK, (+1.5%) Signs drill contract with Transocean ( RIG ) for its Oyo #7 well off the coast of Nigeria. RIG shares are up about 1.4%.

(-) WG, (-0.2%) Sells all of its interests in Oman to affiliates of Interserve plc for $36 million.

(-) RDS.A, (-0.6%) Said its Kulluk oil-drilling ship that ran aground Jan. 1 in Alaska has been refloated.

(-) FST, (-1.5%) Standard & Poor's maintains B+ credit rating for the oil and gas company following its sale of properties in south Texas for $325 million. Its outlook is stable, S&P said.

(-) TLM, (-2.2%) Cut to Hold from Buy at TD Securities. Price target also lowered by $2 to $14 a share.

(-) GSE, (-3%, nearer 52 week lows) Selects J. Michael Kirksey as its new chief financial officer. Kirksey previously was CFO at Endeavour International Corp. ( END ). Also hires Valufinder Group to assist with identifying potential M&A targets.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: END , RIG , TSO

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