Energy stocks are moderately higher today with the NYSE Energy
Sector Index rising 0.4% while shares of energy companies in the
S&P 500 also are ahead 0.4% as a group. Crude oil for November
delivery is down 41 cents at $102.72 per barrel while October
natural gas is up 3 cents to $3.59 per 1 million BTU.
In company news, Noble Corp (
) is up nearly 3% at $39.00 a share after disclosing plans to spin
off its older oil drilling rigs into a separate company that may go
public next year.
The move comes as NE works to command higher valuations for its
best drilling assets while its older rigs will make up the bulk of
its standard specification drilling units. The new company will
includes five drillships and three semisubmersibles as well as 34
jackups, two submersibles and one FPSO. It also would be
responsible for NE's Hibernia platform operations.
NE also said it expects to file for an initial public offering
of up to 20% of the new company's stock later this year or in early
2014, with completion of the deal contingent upon a favorable tax
ruling from the IRS - expected soon, according to NE.
In other sector news,
(+) ANW, (+9.6%) Signs facilities agreement for new, $1 bln
syndicated secured multicurrency revolving credit facilities
comprised of three tranches to be drawn once the oil and gas
company executes additional security documents.
(+) BPZ, (+2.0%) Closes on $125-mln offering of 8.50%
convertible senior notes due September 2017 as well as the
repurchase of $85.0 million of its 6.50% convertible senior notes
due March 2015.