Sector Update: Energy


Energy stocks are higher, with the NYSE Energy Sector Index rising about 0.5% while shares of energy companies in the S&P 500 are ahead about 0.5% as a group. Crude oil for November delivery is down 87 cents at $102.72 per barrel while October natural gas is down 7 cents to $3.54 per 1 million BTU.

In company news, Emerald Oil ( EOX ) is down 5.6% at $6.71 a share, trimming a portion of its earlier decline made after the independent oil and gas company announced plans to sell 15 million shares of its common stock in a public offering.

Net proceeds will be used to accelerate its development and growth plans as well as fund leases and acquisitions in addition to financing its capital expenditures. The company also granted 30-day options to underwriters to purchase up to 2.25 million more shares to cover possible overallotments.

Separately on Monday, EOX said it signed a definitive agreement with affiliates of White Deer Energy, an energy private equity firm, to issue and sell enough of its shares to give White Deer a 19.9% stake of the company. Shares in the private placement will be priced the same as the public offering.

In other sector news,

(+) NOV, (+0.7%) Announces plans to spin off its oil equipment distribution business into a separate company during the first six months of 2014. The unit generated about $4.5 bln in revenue last year.

(-) CLMT, (-3.4%) The specialty fuels company was cut to Underperform from Neutral at Credit Suisse, which also dropped its price target by $2 to $31 a share.

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 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: EOX

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