Sector Update: Energy

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Energy stocks were mixed in late trade with the NYSE Energy Sector Index rising about 0.1% while shares of energy companies in the S&P 500 also were down less than 0.1% as a group.

In company news, Eagle Rock Energy Partners LP equity units Thursday slid to their lowest levels since September 2009 after the oil and gas limited master partnership late yesterday said it was suspending its quarterly distributions ahead of a $1.3 billion deal transferring its midstream business to Regency Energy Partners ( RGP ).

EROC units were down 17.5% at $4.00 each in recent trade, just 3 cents off their session low. The stock was down 57.2% over the past year through Wednesday's close.

The company has scheduled an April 29 special meeting for unitholders to vote on the proposed transaction, which includes around 8,100 miles of gathering pipeline and over 800 million cubic feet of processing plants. The company blamed a second request in late February for information and documents from the Federal Trade Commission for extending closing of the deal past its original timeframe, adding it anticipates resuming its quarterly distributions once the transaction concludes.

EROC also issued preliminary results for the three months ended March 31, saying it expects to report results slightly above the preceding quarter when it posted adjusted EBITDA of $57.4 million and $18.5 million in distributable cash flow.

In other sector news,

(+) COG, Overcomes Q1 financial results trailing analyst expectations. EPS of $0.26 lags consensus by $0.01 per share. Revenue rose 36.6% to $509.8 million, lagging estimates by around $29.32 million. Production grew 34% over year-ago levels.

(-) CLB, Expects Q2 revenue to range between $280 mln to $286 mln, trailing consensus by at least $4 mln. Forecasts Q2 EPS of $1.48 to $1.53, lagging Street view by at least $0.01 per share. FY14 revenue guidance also misses.

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

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This article appears in: Investing , Commodities

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