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 (
) 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
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
(-) 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.
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